Brazilian academics Gláucia Fernandes, Matheus Ayello, Joo Henrique de Azevedo, and Felipe Gonçalves claim that the country has the potential to be one of the world’s largest producers of green hydrogen because of its advantages in having a largely renewable electrical grid.
Internally, hydrogen offers promise for use in a variety of industrial fields, from agriculture to fertilizers, and it can also be used as a replacement for fuels with a high carbon content. Moreover, it can be utilized as an energy vector to store renewable energy during times of high electricity output and low demand.
Since power makes up 80% of CAPEX, lowering the cost of renewable sources is crucial for green hydrogen to become more competitive. Due to the nation’s high energy prices, it is important to think about energy contracting business models to ensure that the source used doesn’t cost more than $25 US/MW (CHIAPPINI, 2022). Moreover, tracking of the energy source used by contracts, which supports business models for the generation of green hydrogen, is done in Brazil.
Moreover, there is a propensity for producing green hydrogen using electrical energy from offshore wind sources. Brazil could get a significant competitive advantage from this arrangement. By 2040, Brazil might meet up to 40% of the energy demand in Europe, replacing Russia, if all of Brazil’s anticipated offshore wind energy is used for H2V production.
When discussing green hydrogen, the usage of water is a crucial topic because a sizeable volume must be taken into account during the production process. Reusing polluted aquifers is an option in addition to using sea water. H2V can be made from water that is unfit for human consumption, and by collecting this water, the source is really regenerated because the contaminating water is taken out of the system. Brazil is a good place to research this scenario.
With the prevailing competitive differentials, the nation has a huge potential to differentiate itself in this market. In order to establish a hydrogen economy that works well with the other sources of the energy matrix, a strategic perspective is required. Important steps have been taken in this process with the passage of PL 725/22, proposed by Senator Jean Paul Prates (PT/RN), and Resolutions No. 2 and No. 6 of the National Energy Policy Council (CNPE).
The creation of governmental and private financing lines is combined with close international cooperation in the development of hydrogen. To draw private investment, regulatory regimes must be clear and consistent. The Hydrogen for Development Partnership (H4D), a global program to promote the deployment of low-carbon hydrogen in poor nations, was just unveiled by the World Bank Group.