Brazil Commits $1.09 Billion to Establish Clean Hydrogen Hubs

Brazil has announced a $1.09 billion investment in clean hydrogen hubs, aiming to decarbonize industrial sectors and bolster the country's position in the global hydrogen market.

 

The Brazilian government has pledged approximately R$6 billion ($1.09 billion) to support the creation of clean hydrogen hubs, a move aimed at decarbonizing hard-to-abate industries. This funding announcement, detailed by the Brazilian Minister of Mines and Energy, Alexandre Silveira, complements an additional R$18.3 billion in tax credits recently signed into law by President Luiz Inácio Lula da Silva.

 

This initiative is part of a broader collaboration with the Climate Investment Funds (CIF), which involves 15 industrialized nations providing low-cost financing to stimulate projects within the sector. The partnership is designed to leverage Brazil's rich energy resources and industrial creativity to develop low-emission hydrogen hubs by 2035.

 

According to Minister Silveira, the national strategy includes the integration of hydrogen production, storage, and transportation, connecting various sectors of the economy. "Structuring these hubs will not only meet local demand but also position Brazil as a competitive player in the global hydrogen market," Silveira stated.

 

The Ministry of Mines and Energy plans to open a public call for project proposals soon, focusing on low-carbon hydrogen projects that align with the newly established greenhouse gas emissions standards. These standards define low-carbon hydrogen as having emissions up to 7kg of CO2-equivalent per kilo of hydrogen, one of the most lenient thresholds outside China.

 

Selected projects will have the opportunity to be included in Brazil’s investment plan, which could cover a range of needs from engineering projects to the acquisition of equipment and working capital. This approach aligns with recent activities in Brazil’s hydrogen sector, such as the partnership between Prumo Logística and Fuella to develop a hydrogen hub in Rio de Janeiro and Vale's collaboration with Green Energy Park to explore a green hydrogen production facility.

 

Source: FCW Team