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Unigel Collaborates With Citi in Brazilian Green Hydrogen Venture

By June 2, 2023 2   min read  (302 words)

June 2, 2023 |

unigel collaborates with citi in brazilian green hydrogen venture e1685710590831

In a recent development, Unigel, a Brazilian chemicals industry leader, has joined forces with financial powerhouse Citi to help locate a strategic ally for its forward-thinking green hydrogen production initiative in Bahia, Brazil.

This innovative green energy venture, which is anticipated to necessitate an investment ballparking around $1.5 billion, is part of Unigel’s strategic maneuver to raise crucial funds while ensuring financial robustness. This information comes from insiders well-versed with the issue at hand.

The green hydrogen project, marking a debut of its kind on a Brazilian industrial scale, has sparked considerable intrigue. Approximately 20 international conglomerates have allegedly shown interest in purchasing a stake in this cutting-edge endeavor. Unigel’s goal is to divest a fraction of the venture to gather the essential funds for its effective completion.

While still in its infancy, the project’s initial phase necessitates a substantial $120 million investment. Unigel’s financial constraints have led to the deferment of a sizeable project involving the establishment of a sulfuric acid facility in Camaçari, Bahia. The firm’s economic predicaments were further intensified by the falling profit margins in the chemical and fertilizer industries, notably in urea, over the past year.

Due to the sulfuric acid project being put on hold till 2024, Unigel has paused payments to its suppliers and is actively involved in dialogues to set fresh payment deadlines, as per individuals acquainted with the situation.

Unigel’s choice to pursue a strategic ally for its green hydrogen venture reflects the firm’s dedication to acquiring necessary financing while also utilizing the skill sets and resources of prospective collaborators. Green hydrogen has come up as a hopeful contender for clean energy production, providing a sustainable and renewable substitute for conventional fossil fuel-based energy sources.

 

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