The Brazilian Government has granted a 3GW green hydrogen and ammonia project CAPEX and OPEX tax exemptions as the developer prepares to take final investment decision (FID) this year.
Solar developer Solatio plans to build the project in the Parnaíba Export Processing Zone (EPS) in the state of Piauí in three consecutive 1GW phases per year, with the first phase planned to come online in January 2029.
The majority of the plant’s output is planned to be exported to European and Asian markets. H2 View understands offtakes agreements are still undergoing negotiations.
The approval from the National Council of Export Processing Zones (CZPE) grants the project “substantial” tax exemptions for both the plant’s CAPEX and OPEX.
Based on engineering and industrial plant design undertaken by Australia’s Worley, Solatio told H2 View the CAPEX for all 3GW of the development would be $4.3bn. Solatio has yet to disclose its equity partners.
The exemptions come after the August approval from the Brazilian National Secretariat for Energy, Transition and Planning for a 3GW grid connection, giving the site access to “24/7 renewable energy supply.”
© Solatio
To ensure compliance with international green hydrogen standards, the project will operate under a long-term contract certified by Brazil’s electric energy market operator, allowing surplus renewable energy generated during daylight hours to be “exchanged” for wind and hydro sources.
Solatio says these approvals will enhance the project’s competitiveness and support goals of achieving a levelised cost of hydrogen (LCOH) below $3/kg.
“This is a decisive step toward establishing Brazil as a global leader in green hydrogen and ammonia production,” said Pedro Vaquer, CEO of Solatio.
The project is now in the final stages of environmental licensing, ahead of an expected FID in 2025.
Solatio’s development adds to a growing list of large-scale green hydrogen projects in Brazil looking to export to overseas markets. Many regions like the EU have looked to the South American country as a potential major supplier thanks to its low-cost renewable energy.
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