Neoenergia signs green hydrogen MoU with Brazil's Pernambuco state

Brazilian utility company Neoenergia SA (BVMF:NEOE3) announced that it will take part in a green hydrogen pilot project to be set in Brazil's Pernambuco state.

On Thursday, the Pernambuco state government and the energy company signed a memorandum of understanding (MoU) to cooperate on developing the project within the state's Suape Port - Governor Eraldo Gueiros Industrial Complex.

The partners will look into ways to make the demand for green hydrogen viable and prepare the Suape Port to become a production hub in the future. The port has a petrochemical complex and is strategically positioned to provide a range of services for overseas markets, which makes the green hydrogen cooperation of extreme importance for the country, according to the statement.

Initially, the agreement will have a one-year term, which can be extended, Neoenergia said.

The MoU is aligned with the strategy of Neoenergia's parent company, Spanish utility group Iberdrola SA (BME:IBE), which is involved in a number of green hydrogen projects at home. Its Brazilian subsidiary boasts an installed energy mix that is over 80% renewable. Once ongoing projects are finalised, renewables will make up for 90% of Neoenergia's installed capacity in 2022, the company added.

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