Port of Açu lines up third ammonia project with new land reservation contract

Brazil’s Port of Açu and renewable fuels producer Sempen have entered into a land reservation agreement for the construction of a green ammonia plant in the port’s industrial complex in the north of the State of Rio de Janeiro.

Under the agreement, Sempen will reserve an area in Port of Açu’s low-carbon hydrogen hub for the plant with a planned production capacity of 1 million tons of green ammonia per year.

The company anticipates the final investment decision (FID) on the project by 2028 and the start-up of the ammonia production in 2030.

“The partnership with Porto do Açu represents an important milestone in our journey to boost the production of green ammonia and sustainable fuels in Brazil. We are excited about the potential to contribute to the global energy transition and to be part of a strategic low-carbon hub that will support the sustainable development of the renewable energy and green hydrogen industry in the country,” said Juan Pablo Freijo, CEO of Sempen.

CEO of Port of Açu, Eugenio Figueiredo, added: “We are the first port in the country to license a 1 million m² hydrogen and low-carbon derivatives hub, and we are currently licensing a new 2 million m² area to expand our operations. Sempen will be allocated to this new hub, and its partnership with us is another step towards establishing Açu as a hub for sustainable energy solutions, reflecting our commitment to innovative projects that contribute to the global energy transition.”

The partnership with Sempen follows the port’s land reservation agreements signed with HIF Global for e-methanol production, and Norway’s Fuella and London-based Yamna for ammonia production.

While investing in its energy transition program by developing an integrated platform for the low-carbon economy and reserving two million square meters for green hydrogen projects with a Preliminary License from the Rio de Janeiro Government granted in January 2024, Porto do Açu is one of Brazil’s major oil and gas export facilities handling 40% of the country’s oil exports.

The South American country—said to be one of the largest GHG emitters in the world—has the potential to become a ”sustainability powerhouse” and play a crucial role in the global energy transition and become the world’s largest sustainable fuel producer due to an abundance of renewable energy sources, according to management consulting firm McKinsey & Company.

Even though Brazil is also preparing to host the United Nations Framework Convention on Climate Change later this year, the country recently opposed the proposed carbon levy on shipping, the world’s first universal fee on an international polluter, as it reportedly believes that the proposed levy could endanger exports from developing countries, raise food prices and increase inequalities among and within countries.