Eletrobras signs agreement with Prumo to produce green hydrogen at Brazilian port

Brazil's Eletrobras ELET3, Latin America's largest utility, signed a memorandum of understanding with infrastructure company Prumo to produce green hydrogen in a port in Rio de Janeiro, which could lead to development of a pilot plant, the two firms said.

The memorandum, signed on Wednesday at an event in Rio, also opens the door for studies on large-scale projects, the firms said.

The agreement will see Eletrobras supply hydroelectric power to companies looking to set up low-carbon hydrogen projects in Rio's Port of Acu, operated by Prumo, which is controlled by EIG Global Energy Partners and Abu Dhabi's Mubadala Investment Company (MUDEV.UL).

Eletrobras and Prumo plan to start by evaluating the viability of a green hydrogen pilot plant, with up to 10 megawatts (MW) of capacity.

"Eletrobras is starting to play a strong role in the hydrogen economy... We want to develop demand, help customers make competitive hydrogen production viable," said Italo Freitas, Eletrobras' vice president of commercialization.

Eletrobras has moved forward with several deals in the hydrogen sector this year. Last month, it closed a partnership with Green Energy Park to supply energy to a future hydrogen project in the northeastern state of Piaui.

The new deal is in line with Prumo's vision of Port of Acu as a hub for solutions in energy transition, said a representative of the firm.

The strategy is to have at the port the production of renewables and the industries that use them, which would reduce transportation, storage and other costs, as well as cutting down on carbon emissions.

Among the companies looking to settle in Acu is mining giant Vale, which is studying the construction of an industrial complex to produce low-carbon iron ore products.