Shell, Brazil’s Porto do Açu to build green hydrogen plant – Reuters (NYSE: SHEL)

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Shell (NYSE: SHEL) and Brazil’s Porto do Açu have agreed to jointly build a 10 MW green hydrogen plant in Brazil’s Rio de Janeiro state to be completed within three years, executives told Reuters on Thursday.

Açu, a major industrial complex and port, is owned by Prumo Logistic, which is in turn controlled by US PE firm EIG Global Energy Partners.

Two subsequent, optional phases in the project would bring production to 100 MW by 2029, under the terms of the memorandum disclosed to Reuters, with the first phase alone likely requiring $ 20M- $ 40M in investment.

“The idea is to test the market for green hydrogen in Brazil,” Prumo Logistic’s Mauro Andrade told Reuters. “Everyone talks about green hydrogen, but in the market today the number of off-takers is still limited.”

Separately, Air Liquide said it signed a 10-year contract with Shell to buy renewable energy to power industrial and medical gas production operations in Italy.

Shell (SHEL) shares are “trading very cheaply, with its free cash flows available at very attractive yields,” Gavin Barwell writes in a bullish analysis newly published on Seeking Alpha.

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