Brazil can adopt green hydrogen

Brazil had 4 projects mapped in 2021, among 990 in the world, CNI study shows.

A study by the CNI (National Confederation of Industry) points out that sustainable hydrogen is one of the most promising solutions for the future of energy and represents a great opportunity for Brazilian industry to decarbonize, that is, drastically reduce emissions of carbon dioxide and other greenhouse gases. In the confederation’s opinion, the new mechanism is a way for the industry to maintain its relevance in the face of the energy transition and help the country meet the goals and commitments agreed in the climate agreements.
Estimates from the Hydrogen Council show that, considering only the large projects in the sector, announced as of 2021, investments will reach US$500 billion by 2030. The mapping is part of the study Sustainable Hydrogen: Perspectives for the Brazilian Industry, carried out by the National Confederation of Industries (CNI). The material will be disclosed at the meeting “Industry Strategies for a Low Carbon Economy”, which will take place on August 16 and 17, in São Paulo.

In addition to the economic advantages for the country, sustainable hydrogen is also extremely viable for Brazil in terms of production. “We have all the conditions to be protagonists of the decarbonization process of the world economy through clean technologies such as green hydrogen,” says the president of the CNI, Robson Braga de Andrade.

The survey carried out by the CNI identifies two forms of sustainable production of hydrogen suitable for use in the industrial sector: green hydrogen, produced from renewable sources, such as solar and wind without greenhouse gas emissions, and blue hydrogen, obtained from natural gas and with reduced emissions through carbon capture and storage technology.

“The consolidation of Brazil as a hydrogen producer has the potential to generate jobs, attract new technologies and investments and develop business models, in addition to inserting the country into a relevant position in the global value chain, which can positively alter the trade balance from the country. country,” says Robson.

The confederation highlights that the development of this type of solutions in the country depends on structural measures, including the development of an industrial policy that encourages the production of equipment and the provision of services, with tax incentives for the decarbonization of sectors, contributing to sustainable economic development.

Among the sectors that would benefit the most from the immediate use of sustainable hydrogen production, CNI highlights the industrial sectors of refining and fertilizers, since they are large consumers of this raw material. In the case of branches such as steel, metallurgical, cement and ceramics, the adoption of sustainable hydrogen would be in the short and medium term.

In addition to appearing as an opportunity to decarbonize domestic industry, green hydrogen could also be exported, especially to Europe. Among Brazil’s potential partners in this business is Germany, which has made agreements with several countries for the purchase of sustainable hydrogen for final use and the modernization of its production system. In exchange, the country would sell or transfer German production technology.

To encourage the structuring and consolidation of this market in the country, the CNI proposes the creation of the Sustainable Hydrogen Industry Observatory, a platform for disseminating information and analysis on technologies and public policies aimed at the national industry.

“The focus is on building regulatory frameworks that provide security for investments, encouraging research and development of technologies, adopting the best international practices and promoting studies that adequately measure the potential of the segment”, concludes the president of the CNI.