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Green Hydrogen H2 News

AES Brasil considers green hydrogen industry beyond energy supply

Arnes BiogradlijaBy Arnes Biogradlija07/11/20222 Mins Read
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The CEO of the electric business, Clarissa Sadock, stated: “AES Brazil has been researching a bigger engagement in the green hydrogen industry, which goes beyond the delivery of energy to the manufacturing of renewable fuel.”

In order to work on the process as a whole, both for energy generation and potentially also for hydrogen, we are in discussions with suitable partners. since it makes sense to have integration between the two stages even for financial reasons,” the CEO said during a conference call on third-quarter results.

She noted that the generator had signed a pre-contract for a fuel production plant with the Pecém Industrial and Port Complex in September, progressing with its first green hydrogen project in Brazil.

The pre-contract, which is a development of the memorandum of understanding that was signed in December 2021, permits the electric company to carry out technical and business feasibility studies for the production of up to 2 GW of green hydrogen and up to 800 000 tons of green ammonia annually.

According to Sadock, the plan is to export its hydrogen production, mostly to European nations, via the Ceará terminal.

The CEO emphasized, “We will work internally to create this product… which is still more expensive than other types of hydrogen,” adding that, in her opinion, government subsidies will be required to make the green fuel commercially viable.

Agenda for Regulation 2023
The CEO predicted during the conference call that 2023 will be significant for the regulatory agenda of the electrical sector, particularly for the principles of modernization and opening the free market included in the bill (PL) 414, which is currently awaiting a vote in Congress.

She also called attention to the discussion in PL 414 that focused on planning for the renewal of water concessions.

The CEO of AES claims that this goal “makes sense” for the government, which would expect money that wouldn’t come for a few years, as well as for generators, who would hold assets in their portfolio for longer. The corporation is interested in renewing its water concessions, according to Sadock, “depending on the conditions” that are provided.

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