Chemical company Unigel has signed an MoU with thyssenkrupp nucera to increase the capacity of its hydrogen plant in Brazil from 60MW to 240MW of water electrolysis.

The plant is being developed by Unigel in Bahia and is due to be completed by the end of 2023.

In its first 60MW stage, the plant will have an initial capacity of 10,000 tonnes of green hydrogen per year and 60,000 tonnes of ammonia per annum.

Slated for 2025, the second phase will increase production of green hydrogen and ammonia to 40,000 tonnes and 240,000 tonnes, respectively.

Unigel announced an investment of $120m to build Brazil’s ‘first’ green hydrogen plant in July last year.

Thyssenkrupp stated that green hydrogen and green ammonia will be offered to customers in the steel, oil refineries, and ammonia industries seeking to decarbonise their value chains. Unigel will use green ammonia in its own value chain.

Roberto Noronha Santos, CEO of Unigel, said: “Unigel’s green hydrogen plant will be the first on an industrial scale in Brazil. We continue to negotiate strategic partnerships to enable the new phases of the project.”

Werner Ponikwar, CEO and Chairman of thyssenkrupp nucera, commented: “Brazil has not only set ambitious climate protection plans but is also implementing them. This includes, in particular, consistently exploiting the opportunities offered by green hydrogen… With our technologies for the development of a hydrogen economy, we are making our contribution to paving the way for the green transformation.”