Could you summarize Unigel’s footprint and your recent investment in green hydrogen and green ammonia?

We are active in three main business lines: acrylics, styrenics and agrochemicals, with units in several states in Brazil (Sergipe, Bahia and São Paulo) as well as Mexico. We are the largest manufacturer of ammonia in Brazil, and the only manufacturer of urea and ammonium sulphate in the country. We are investing in the first industrial-scale green hydrogen and green ammonia production plant in Brazil, with output starting in 2024. During the first phase, we will produce 10,000 t/y of green hydrogen and 60,000 t/y of green ammonia. The total investment will be US$1.5 billion, of which US$120 million will go into the first phase. What was the rationale behind this investment?

The location in Camaçari petrochemical pole offers certain advantages, notably we own one of the only two ammonia ports that exist in Brazil. Also, Brazil’s electrical matrix is powered from renewable sources.

Our plant will be the largest green hydrogen and green ammonia facility in the world. There will soon be bigger plants in China and the Middle East, but it is certainly an important milestone. Could you give more figures about the energy required and the production costs?

Unigel’s project will be a zero carbon solution for countless applications. For the initial stage of the project, Unigel purchased three electrolyzers from thyssenkrupp with a total output of 60 MW of energy.

The products will be offered to clients that see green hydrogen and green ammonia as an important solution to their decarbonization challenges. The potential applications include using hydrogen as a raw material in steel production and oil refining and as fuel for several types of vehicles, as well as the use of ammonia as a replacement for fossil fuels in bulk carriers and container ships.

Green ammonia can also be used to strengthen Unigel's portfolio of sustainable products, as it is also a raw material in the production of fertilizers and acrylics. In addition to using ammonia as a raw material, Unigel also began producing this input last year, after opening the two fertilizer plants that gave rise to Unigel Agro. The company also operates one of the only two ammonia terminals in Brazil, at the Port of Aratu, in the state of Bahia.

These products are already an offshoot from other initiatives promoted by Unigel, including its partnership worth over R$1 billion with Casa dos Ventos – one of Brazil's largest generators of energy from renewable sources for the production of wind energy. What are the main challenges for Brazil’s chemical industry?

The main challenge is the price of natural gas, which is very expensive compared to other countries, and this is despite the fact that Brazil is rich in oil and gas resources. While there has been new regulation in the gas market, there is not enough infrastructure to distribute the gas, so new companies are not investing. As a result, end users have very few options to source the gas. In Brazil, we only produce 20% of the country’s demand for nitrogen-based fertilizers, so in theory there is an opportunity there to invest and grow, but the price of natural gas is a serious obstacle.

Additionally, energy prices are expensive, and for green hydrogen we need very strong energy infrastructure, which is also lacking in Brazil. Finally, logistics is a big challenge in the country. We have poor rail infrastructure, and shipping is not competitive, so most transportation is by road, which is very costly if you consider the continental size of our country. Would you like to add a final message for the readers of GBR and the delegates of APLA?

We are very proud to be investing in low-carbon energy, but also in global food security by producing fertilizers. Brazil can currently feed one billion people, and by strengthening our investments we will be able to feed even more.

Besides, Unigel has strongly invested in schools for many years in Bahia and Sergipe. We have strong circular economy programs, and now the investment in green hydrogen is going to create 500 jobs in Bahia just in the first phase of the investment.