RIO DE JANEIRO, June 5 (Reuters) - Brazil's Eletrobras

, Latin America's largest utility, signed a memorandum

of understanding with infrastructure company Prumo to produce

green hydrogen in a port in Rio de Janeiro, which could lead to

development of a pilot plant, the two firms said.

The memorandum, signed on Wednesday at an event in Rio, also

opens the door for studies on large-scale projects, the firms

said.

The agreement will see Eletrobras supply hydroelectric

power to companies looking to set up low-carbon hydrogen

projects in Rio's Port of Acu, operated by Prumo, which is

controlled by EIG Global Energy Partners and Abu Dhabi's

Mubadala Investment Company.

Eletrobras and Prumo plan to start by evaluating the

viability of a green hydrogen pilot plant, with up to 10

megawatts (MW) of capacity.

"Eletrobras is starting to play a strong role in the

hydrogen economy... We want to develop demand, help customers

make competitive hydrogen production viable," said Italo

Freitas, Eletrobras' vice president of commercialization.

Eletrobras has moved forward with several deals in the

hydrogen sector this year. Last month, it closed a partnership

with Green Energy Park to supply energy to a future hydrogen

project in the northeastern state of Piaui.

The new deal is in line with Prumo's vision of Port of Acu

as a hub for solutions in energy transition, said a

representative of the firm.

The strategy is to have at the port the production of

renewables and the industries that use them, which would reduce

transportation, storage and other costs, as well as cutting down

on carbon emissions.

Among the companies looking to settle in Acu is mining giant

Vale, which is studying the construction of an industrial

complex to produce low-carbon iron ore products.