The Brazilian Government has approved tax exemptions for a 3GW green hydrogen and ammonia project in the Parnaíba Free Trade Zone, located in the state of Piauí. The project, led by developer Solatio, is planned to be implemented in three 1GW phases per year, with the first phase expected to be operational by January 2029. The majority of the project's output is set to be exported to markets in Europe and Asia, with ongoing negotiations for offtake agreements.The tax exemptions for both capital expenditure (CAPEX) and operational expenditure (OPEX) have been granted to enhance the project's financial viability. The project, designed by Australia's Worley, is estimated to cost $4.3 billion for the entire 3GW capacity, with equity partners yet to be disclosed. The project aims to comply with international green hydrogen standards and operate under a certified long-term contract in Brazil's electric energy market to optimize renewable energy usage. Solatio anticipates achieving a levelised cost of hydrogen (LCOH) below $3/kg to improve competitiveness in the market.Pedro Vaquer, CEO of Solatio, expressed optimism about establishing Brazil as a prominent player in green hydrogen and ammonia production. The project is progressing towards final investment decision in 2025 after obtaining environmental licensing. Brazil's growing presence in the global green hydrogen market is attracting attention, with the country being seen as a potential major supplier due to its abundant low-cost renewable energy resources.