The intensive use of hydropower and the steadily growing proportion of wind and solar energy in the country’s electricity mix create ideal conditions to produce hydrogen. Green hydrogen in particular, which is produced from biomass using pyrolysis processes and steam reforming from biomethane, has been attracting many foreign investors for some time now.
The three-year plan for the national hydrogen strategy adopted by the Brazilian government in August 2023 is considered to be one of the pioneers of this positive development. The package of measures focused on supporting research and development. In addition, funds of various projects related to hydrogen production were approved, which would not be economically viable at the present time without government support.
However, according to a study by Bloomberg New Energy Finance, the production costs of green hydrogen in Brazil could be below the production costs of hydrogen from fossil fuels from 2030 onwards, with sales opportunities totalling billions of dollars. This circumstance ensures that many representatives of the affected economic sector in Brazil are getting involved. A table of current pilot projects can be found in the GTAI article in German language. 60 percent of German companies involved in carbon-neutral gas are also represented by subsidiaries in South America’s largest country.
An important information and exchange platform for both countries is the “German-Brazilian Alliance for Green Hydrogen”, founded in August 2020.
Source: GTAI (German)