Associations in the Brazilian renewable energy sector have recently signed a pact to collaborate and accelerate the growth of the country’s low-carbon hydrogen market.
The Brazilian Pact for Renewable Hydrogen involves the Brazilian-German Chamber of Commerce and Industry of Rio de Janeiro, alongside Abeeólica, Absolar, and Abiogás. The coalition aims to increase the competitiveness of hydrogen produced from renewable sources by defining a regulatory framework, conducting joint projects, and developing the hydrogen value chain in Brazil.
Brazil has the potential to generate significant amounts of solar, wind, and biomass energy, making the production of hydrogen from renewable sources a competitive possibility in the country. Offshore wind energy, in particular, has garnered attention, with large-scale projects underway in the country. The Brazilian coast has a potential of more than 700 GW, making it an attractive location for offshore wind projects close to ports that organize hydrogen hubs.
Brazilian executives believe that hydrogen is an important solution to boost the energy transition and decarbonize sectors that are difficult to decarbonize today, such as the heavy transport, truck and ship, and steel sectors. The president of Abeeólica also pointed out that hydrogen is already a reality in Brazil, with EDP Brasil inaugurating its green hydrogen pilot plant in Complexo do Pecém in January of this year, and Unigel set to launch the first industrial scale project in the country. The plant will use wind energy to produce 10,000 tons of hydrogen from electrolysis and 60,000 tons of green ammonia per year.
In addition to wind energy, biogas also has the potential to enter the renewable hydrogen market. Gabriel Kropsch, the executive director of Abiogás, believes that renewable hydrogen from biogas is an immediate solution for the decarbonization of the most widely used route in the world today, as the biomethane molecule is the same as that of natural gas, but 100% renewable. This renewable hydrogen can be obtained using the same processes and existing infrastructure, making it a competitive option.
Rodrigo Sauaia, the president of Absolar, sees Brazil becoming a leader in the production, consumption, and export of hydrogen with ambitious policies that accelerate green reindustrialization. He believes that with the right public policies, programs, and incentives, Brazil could produce the most competitive renewable hydrogen in the world in the near future.
The Brazilian-German Chamber of Commerce and Industry of Rio de Janeiro is responsible for the bilateral relationship between Brazil and Germany, and the recent pact’s signing means that both countries can mutually benefit. Germany has invested in the development of a renewable hydrogen market in Brazil through the H2 Global and H2 Brasil programs. Last year, the first public call for bids for the global purchase of hydrogen was launched, in which several Brazilian companies participated.