EDP, the Portuguese energy company, remains committed to Brazil as a strategic destination for its global investments in the energy sector.
Despite recently closing the capital of its local subsidiary, EDP Brasil, the company’s global CEO stated that they are evaluating new ventures in the country related to the energy transition. One potential project under consideration is the establishment of a green hydrogen plant aimed at exporting to Europe. With Brazil’s abundant renewable energy resources, EDP sees an opportunity to produce green hydrogen at a competitive cost. This initiative aligns with the company’s commitment to contributing to Brazil’s energy transition and creating value in the country.
The delisting of EDP Brasil from the B3 stock exchange is part of EDP’s strategy to simplify its business structure and foster growth in Brazil. The company operates through two platforms in the country: its integrated energy business subsidiary, which encompasses distribution, generation, and transmission, and EDP Renováveis, focused on developing and operating large-scale renewable power plants. By integrating these platforms more closely, EDP aims to maximize value creation and drive Brazil’s energy transition.
EDP intends to invest approximately 30 billion reais over the next five years in Brazil. While the company aims to maintain its presence across all segments, it is open to divesting certain assets to recycle capital and reinvest in more promising areas, such as solar energy and transmission lines. This approach reflects EDP’s commitment to adapting to changing market dynamics and focusing on areas that offer greater potential for growth and sustainability.
Recognizing the significance of green hydrogen in decarbonizing challenging sectors, EDP is exploring opportunities to participate in a green hydrogen auction in Germany. The company envisions establishing an industrial project in Brazil and exporting green hydrogen to Europe. This endeavor would involve collaboration between EDP, renewable energy suppliers, and specialized companies in chemistry and gas transport. Brazil’s abundant natural resources for renewable energy, coupled with the cost-effective production of green hydrogen, positions the country as a promising player in the global green hydrogen market.
Germany’s first auction for green ammonia, a derivative of renewable hydrogen, presents a crucial opportunity for Brazilian projects. The auction exclusively seeks to purchase renewable fuel produced outside the European Union. Brazil, with its vast renewable energy potential, stands to benefit from this initiative. EDP’s interest in the auction underscores the company’s ambition to expand its green hydrogen production capabilities and contribute to the global energy transition.
