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HIF Global to save significant capital expenditure on Brazil's $4 billion hydrogen plant

HIF Global's Latin America Chief Executive said that the company expects to see a significant reduction in costs for its green hydrogen plant in Brazil, and hopes to secure funding for the first of four modules by the middle of next.

Victor Turpaud, an interviewee, said that the 'e-fuels manufacturer' had?put up a price of $4 billion for the plant at Port of Acu in Rio de Janeiro, Brazil. However, they expect to reduce capital expenses by installing four modules in order to meet demand, rather than doing it all at once, and optimizing the installation process.

Turpaud stated that "we have managed to reduce capital expenditure significantly." "We are now below $1 billion per module and continue to optimize until we reach well below $1. billion."

Each module will produce 220,000 tons of methanol per year by splitting water molecules with electrolyzers and then combining this gas with carbon from industrial operations in the area.

Methanol can be converted into e-fuels that, according to their supporters, are carbon-neutral and offer an alternative to existing fossil fuels such as gasoline.

Turpaud stated that the site at Port of Acu is in the process of obtaining a permit for producing eKerosene, also known as E-sustainable Aviation Fuel (eSAF).

While eSAF is still expensive to produce the costs are falling rapidly and Brazil could be a major producer and consumer, he said.

Turpaud stated that electricity was not a viable option for decarbonizing air travel. Turpaud said, "The only way to decarbonize the huge aviation industry is by using SAF."

Turpaud said that Turpaud believes the uncertainty over the rules and regulations governing decarbonization in transport?sectors - including shipping - is slowing down progress globally.

He said that it is more difficult for an offtaker who does not know what the requirements of the other party are to agree to a long-term purchase contract for fuel for decarbonization.

HIF Global is currently working on securing carbon dioxide supply agreements with companies that provide electricity and other businesses.

Turpaud stated that "this year, we are focusing on closing these contracts so we can begin a financing program by the middle next year."

(source: Reuters)