The initiative marks a critical step in Brazil’s ambitions to become a global leader in carbon-neutral technologies, aligning with recently approved federal legislation that establishes a favorable framework for low-emission hydrogen investments. It also reflects coordinated efforts among federal and state governments, local industrial bodies, and private sector stakeholders to consolidate Ceará’s status as a green energy hub.
Fortescue Future Industries (FFI), a subsidiary of the Fortescue Metals Group, has finalized engineering for the Pecém plant and is actively negotiating construction contracts with potential suppliers and engineering companies. The company has already secured key environmental approvals, including the installation license from Ceará’s environmental agency (Semace), and aims to commence groundwork by the end of the year. A final investment decision is expected in 2025, following ongoing feasibility and regulatory assessments.
This project is a centerpiece of Brazil’s burgeoning green hydrogen landscape, which has attracted over R$188 billion in announced investments nationwide, with Ceará alone accounting for more than 40 memorandums of understanding within the sector. The Pecém plant is designed not only to generate renewable hydrogen but also to supply green ammonia, capitalizing on the growing global demand for cleaner maritime fuels and sustainable industrial inputs.
Parallel partnerships further strengthen the region’s positioning. Fortescue has forged cooperation agreements with the Porto do Açu in Rio de Janeiro for a 300 MW green hydrogen and ammonia facility, envisioned to produce up to 250,000 tons of green ammonia annually. The Porto do Açu project includes plans to integrate solar and offshore wind power, expanding Brazil’s renewable energy matrix and industrial diversification in the Southeast. The MoUs with port operators underline the strategic role of Brazil’s major deep-water ports in anchoring the country’s low-carbon transition.
Moreover, AES Brasil, a key player in renewable energy, has signed a pre-contract with the Pecém Complex to investigate a green hydrogen facility with a capacity of up to 2 GW, targeting 800,000 tons of green ammonia annually for export. This indicates a broader industrial momentum toward hydrogen value chains in Northeast Brazil, reinforcing the region’s comparative advantage of abundant renewable resources combined with strong logistics infrastructure.
Despite global challenges faced by the green hydrogen sector—including project delays and cancellations in Europe and other regions due to high costs and policy uncertainties—the Brazilian initiatives remain robust. Fortescue continues to incorporate market and regulatory developments into its project planning, affirming Brazil’s unique competitive edge through vast renewable potential and supportive government frameworks.
Industry experts highlight that green hydrogen and derivatives like green ammonia could revolutionize several heavy industries across Brazil, including fertilizer production, steel manufacturing, and maritime transport, contributing to the country’s decarbonization goals and economic modernization.
As Brazil navigates its path toward cleaner, more diversified energy sources, projects like Fortescue’s Pecém facility exemplify the blend of international capital, local industry engagement, and policy alignment necessary to translate ambitious environmental commitments into operational reality.
The green hydrogen plant and associated ammonia production facilities at Pecém and Porto do Açu are expected to create thousands of jobs during construction and operation phases, while fostering the development of green metal supply chains critical to the emerging hydrogen economy. Fortescue’s flagship vessel, the Green Pioneer, demonstrated the feasibility of ammonia-fueled shipping by circumnavigating multiple continents this year—symbolizing the tangible link between Brazil’s green hydrogen production and global maritime decarbonization.
With groundwork underway and regulatory incentives crystallizing, the ambitious green hydrogen projects in Ceará and Rio de Janeiro could be the catalysts for establishing Brazil as a major exporter of renewable energy carriers, helping meet global energy demand sustainably while driving domestic industrial growth.
This article was curated and published as part of our South American energy market coverage.
