Brazil is setting its sights on becoming a major player in the low-emission hydrogen sector, with Thymos Energia estimating that the country needs to invest a substantial $28 billion in hydrogen projects by 2030. This ambitious endeavor aims to produce 20 million tons of hydrogen per year, a goal that could potentially increase to 38 million tons per year, considering projects in various stages of development.
Hydrogen, particularly the green variety produced from renewable sources or via carbon capture and utilization systems (CCUS), is a crucial component in the fight against carbon emissions, especially in energy-intensive sectors like industry and heavy transport. However, while Brazil is making strides in hydrogen investments, it’s still a long way from achieving a net-zero CO2 emissions scenario.
According to Thymos, reaching the net-zero emissions target would require a low-carbon hydrogen production capacity of around 72 million tons per year. This is over three times the capacity represented by projects that have reached the Final Investment Decision (FID) stage. Brazil is moving in the right direction, but there’s more work to be done.
In 2022, the world consumed 95 million tons of hydrogen, with the majority (62%) produced through natural gas reforming. Brazil is making its mark in this industry with the establishment of the National Hydrogen Plan in August 2021. However, initiatives to develop a hydrogen industry in the country date back to 2003.
The Senate is also considering Bill No. 725/22, which aims to create mechanisms for hydrogen inclusion in the national energy sector. One of the proposals is to transport hydrogen via gas pipelines by 2050, opening up new possibilities for this versatile and eco-friendly energy carrier.
Brazil’s commitment to a multi-billion-dollar investment in low-emission hydrogen reflects a broader global trend towards cleaner energy solutions. Hydrogen’s ability to decarbonize industry and transportation sectors has put it in the spotlight, and Brazil’s endeavors are a testament to its dedication to sustainable practices and reducing carbon emissions.