Rogério Nogueira, the Director of Product and Business Development at Vale, a prominent Brazilian multinational, issues a stark warning that Brazil must not be left behind in the rapidly expanding hydrogen industry.
Nogueira’s message comes at a crucial juncture, underlining the need for Brazil to join the race for hydrogen production. He emphasizes that the key to success lies in recognizing the right timing and creating a synergy between private enterprises and governmental support. Nogueira’s insights were shared during his presentation at Prumo Day, an event held in Rio de Janeiro.
The central tenet of Nogueira’s message revolves around competitiveness. While hydrogen stands as a beacon of clean energy potential, its commercial viability hinges on a set of preconditions. These preconditions, according to Nogueira, demand high-quality iron ore and natural gas at competitive prices. The role of timing is pivotal, as Nogueira stresses that the global competition is fierce, and Brazil’s ability to seize the moment will determine its position in the hydrogen narrative.
One of the critical factors shaping Brazil’s hydrogen journey is the price of natural gas. Nogueira points out that the cost of natural gas in Brazil is significantly higher than in other regions of the world. For instance, in Saudi Arabia, natural gas is priced at a fraction of the cost in Brazil, making it an attractive destination for hydrogen projects. This price disparity underscores the challenges Brazil faces in attracting hydrogen investments. However, Nogueira remains optimistic about Brazil’s potential as a competitive pole for green hydrogen production, emphasizing that the country possesses the natural resources required for success.
Vale, a heavyweight in the Brazilian business landscape, is actively involved in exploring hydrogen opportunities across various geographies. Nogueira’s call to action resonates not just within Vale but across the entire nation. He underscores the need for a unified effort to navigate challenges and harness Brazil’s inherent strengths to make hydrogen production economically competitive on a global scale.
The crux of Nogueira’s message boils down to timing and collaboration. Brazil has a unique opportunity to leverage its resources and capabilities to become a significant player in the global hydrogen industry. However, for this vision to materialize, a concerted effort between the private sector, represented by companies like Vale, and the government is essential. As Brazil grapples with the intricate dynamics of market competitiveness, seizing the moment and creating a conducive environment for hydrogen development will determine its role in shaping the clean energy landscape of tomorrow.
