Brazil – The imminent boom of green hydrogen

published on 10th July 2023

The global race to produce green hydrogen continues stronger than ever. Green hydrogen is in a kind of a gold rush and can leverage the energy transition to a more sustainable one, especially in carbon-intensive sectors.

The Project “H2 Brazil”, created and developed by GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) for the corporate development of hydrogen with partnerships between Brazil and Germany, highlights a significant growth of interested parties in regard green hydrogen production in Brazil.
Currently, around 42 projects in different stages of development were mapped in several Brazilian regions, with a strong presence in the Brazilian northeast, which stands out for its higher solar capacity. The project also points out that it identified more than 800 companies and institutions in 12 sectors of the green hydrogen value chain in five regions of Brazil. 

The Brazilian potential

In order to make the Brazilian green hydrogen more competitive, it will be necessary that the price of renewable energy in the country reaches values around US$ 10/MWh (~BRL 50/MWh) and US$ 30/MWh (~BRL 150/MWh), according to estimation presented in the “Intersolar Summit Nordeste”.

An important point for the competitiveness of green hydrogen is the cost of transportation and storage. The geographic location of the northeast ports and the presence of industrial consumers can be a great differential for Brazil and put it in the lead of the green hydrogen race. Besides the advantageous climatic and geographical conditions for the production of clean energy in large quantities.

New agreements between Brazil and Germany

Earmarking approximately R$ 21 million for green hydrogen projects, the bilateral agreement between Brazil and Germany signed in March 2023, during the EEBA (Brazil-Germany Economic Meeting) aims to select up to ten projects of small and medium enterprises (SMEs), startups and research and technology organizations in both countries.

The objective is to accelerate the technological routes and connection with companies producing and consumers of green hydrogen, connecting ongoing energy transition projects.

Cooperation agreement for green hydrogen development in Brazil

A cooperation agreement was signed in May/2023 by a series of business leaders of the renewable energy sector aiming to develop the green hydrogen market in the country.

The so called "Brazilian Pact for Renewable Hydrogen" involves associations such as: Brazilian Wind Energy and New Technologies Association (ABEEólica), Brazilian Photovoltaic Solar Energy Association (ABSOLAR), Brazilian Biogas Association (ABIOGÁS) and the German-Brazilian Chamber of Commerce and Industry in Rio de Janeiro (AHK Rio). 

One of the objectives of the Pact is to contribute to the definition of a regulatory framework, develop the renewable hydrogen application market, enable socioeconomic development through the renewable hydrogen economy; promote hydrogen from renewable sources in the country, disseminate renewable hydrogen opportunities to its members and the Brazilian society and increase the competitiveness of renewable hydrogen production and use.

Find out which marketing models work in Brazil.


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