Neoenergia is investing 30 million reais in a research and development project for a green hydrogen power plant in Brasília, set to be operational by 2025.
Neoenergia, a significant entity in Brazil’s energy sector, has showcased its green hydrogen investments to the country’s Minister of Mines and Energy, Alexandre Silveira. The presentation took place during the Minister’s visit to the Puertollano power plant in Spain, which is operated by Iberdrola, Neoenergia’s parent company, and is Europe’s largest producer of green hydrogen.
Powered by a 150 kW photovoltaic plant, this facility aims to supply hydrogen for the transport sector, including buses and light vehicles. This project is part of a larger portfolio, featuring five regional cooperation agreements for green hydrogen projects in Rio Grande do Norte, Ceará, Pernambuco, Rio Grande do Sul, and Rio de Janeiro, with total investments exceeding 500 million reais.
The approval of PL 2.308/2023 by the Federal Senate, establishing a regulatory framework for green hydrogen production, is expected to enhance legal certainty for investors. Eduardo Capelastegui, CEO of Neoenergia, believes this legislation will promote the growth of green hydrogen technology in Brazil, leveraging the country’s existing electricity infrastructure and renewable energy resources.
While Neoenergia’s investments in green hydrogen are notable, it’s essential to compare these efforts with global benchmarks. The 30 million reais project in Brasília, supported by a relatively modest 150 kW photovoltaic plant, appears small when juxtaposed with larger international projects. For instance, the Puertollano power plant in Spain includes a 100 MW solar park and a 20 MW green hydrogen electrolysis system. This disparity underscores the need for Neoenergia to scale up its initiatives to remain competitive globally.
The technological capabilities demonstrated at the Puertollano plant, operational since 2022, offer a blueprint for similar projects in Brazil. However, replicating such large-scale projects poses significant challenges, including technological transfer, cost management, and infrastructure development. Neoenergia’s reliance on relatively smaller solar installations may limit the efficiency and economic viability of their green hydrogen production.
The establishment of a regulatory framework through PL 2.308/2023 is a positive step towards fostering investor confidence. However, the actual impact of this legislation will depend on its implementation and the extent to which it addresses the specific needs of the green hydrogen sector. Comparative analysis with regions like the EU, where robust regulatory mechanisms support large-scale green hydrogen projects, can provide valuable insights for Brazil’s policymakers.
