Green Hydrogen: Brazilian Projects Focus on Energy Exports

Nearly ten years ago, during a speech at the United Nations, then-president Dilma Rousseff suggested the idea of “storing wind.” Her 2015 comment quickly turned into a source of ridicule, spawning countless internet memes.

Years later, the concept behind that statement is becoming a reality with the development of green hydrogen projects in Brazil. According to a 2024 survey by the National Confederation of Industry, more than R$188 billion (around USD 36 billion) is expected to be invested in green hydrogen plants in the country in the coming years.

Green hydrogen is produced through water electrolysis, which splits H₂O molecules into hydrogen and oxygen using renewable electricity (such as wind or solar power). This method is carbon-free, and the hydrogen produced can be stored as gas or liquid and easily transported. Hydrogen cells can supply power to industries such as steel, refining, and others, replacing fossil fuels and significantly reducing carbon emissions.

“Green hydrogen is storing wind. You turn wind into liquid energy and export it anywhere. The same applies to solar energy. Hydrogen makes it possible to turn sun and wind into energy that can be transported anywhere—even without transmission lines,” summarized former Petrobras CEO Jean-Paul Prates.

Nearly 20 projects are in this field across Brazil, from Porto do Açu in Rio de Janeiro to Piauí, including the Pecém Complex in Ceará, Minas Gerais, and Bahia. Most are geared toward exporting stored energy to Europe and Asia.

However, Jean-Paul notes that Brazil is still in the early stages of green hydrogen development. With over 30 years of experience in the energy sector in Brazil and abroad, he explains that current projects in the country follow international trends.

“We’re at ground zero. What does that mean? Most projects are still on paper. The fact that we haven’t reached large-scale plants with firm supply contracts and defined market pricing doesn’t mean we’re unprepared—it’s just that the global market itself isn’t ready.”

A Sustainable Future

In Jean-Paul’s view, green hydrogen is key to a sustainable future.

“This is the future for Brazil, especially for our Northeast. Although no plants have been inaugurated yet, there’s real progress. Some serious projects are conducting offshore studies for potential energy supply from the sea,” he added.

According to the Brazilian Green Hydrogen Industry Association (ABIHV), Brazil’s significant step was the approval of Law No. 14,948 in August 2024, which established the Legal Framework for Low-Carbon Hydrogen and the Development Program for Low-Emission Hydrogen. The program provides R$18 billion tax incentives for clean energy development from 2028 to 2032.

Challenges for the New Technology

Despite positive economic and environmental outlooks, experts point to challenges in deploying this clean energy technology.

“Hydrogen projects are underway, but oil companies are accelerating production because they know resource limits are coming. Many are preparing for the hydrogen market and investing in R&D. If we wait too long, we’ll end up buying ready-made solutions from others, as happened with wind and solar energy,” warned Ricardo Lúcio Ribeiro, professor at the Federal University of Rio Grande do Norte and head of its Energy Transition Group.

Jean-Paul also emphasized the need for a stable business environment for investment. He cited the recent issue of generation cuts that led wind and solar plant operators to file lawsuits claiming more than R$2 billion in damages.

“We can attract green industries that consume 100% clean and renewable energy. But credibility and investment appeal are undermined by situations like the current one, where wind farms are seeing nearly 70% revenue losses due to production cuts,” said Prates.

Source: Metrópoles

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