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Climate & Environment
26 December 2024

Brazil Unveils 12 Low-Carbon Hydrogen Projects

The Ministry of Mines and Energy selects innovative projects to drive industrial decarbonization and sustainability.

The Ministry of Mines and Energy (MME) has taken a significant step toward decarbonizing Brazilian industry with the recent announcement of the selection of 12 low-carbon hydrogen hub projects. This initiative is part of the National Hydrogen Program (PNH2), which aims to consolidate sustainable hydrogen hubs across Brazil by 2035, underscoring the country's commitment to energy transition and sustainability.

The chosen projects, which were part of the public call notice, were presented by prominent companies including CSN Group, EDP Renováveis Brasil, Neoenergia, Atlas Agro, Petrobrás, Prumo Logística, Copel GET, Solatio Holding Gestão de Projetos Solares, Eletrobras, Cemig Geração e Transmissão, Ecohydrogen Energy, and the Industrial Port Complex of Suape.

These proposals feature varied production methods for hydrogen, utilizing sources such as electricity from the National Interconnected System (SIN), wind energy, solar energy, ethanol, biomass, and more. The production capabilities of these projects will see significant variation, ranging from 1,000 to as high as 350,000 tons of hydrogen annually. Overall, the Ministry received 70 proposals from 20 states, ensuring representation from all regions of Brazil.

The twelve selected companies are now set to enter the next phase, which involves presenting their projects in greater detail to clarify project specifications and determine how resources from the Climate Investments Funds – Industry Decarbonization (CIF-ID) can be effectively allocated to support their viability.

According to Thiago Barral, National Secretary of Energy Transition and Planning of the MME, "The results indicate the great potential of low-carbon hydrogen hubs as an inducer of industrial decarbonization in Brazil. The proposals indicate the use of hydrogen for the production of green steel, aluminum, fertilizers, refining processes, and e-methanol production." This statement highlights the importance of hydrogen as Brazil strives toward lowering its carbon footprint and enhancing industrial sector sustainability.

Among the innovative projects selected is the Uberaba Green Fertilizer (UGF), spearheaded by Atlas Agro. This ambitious initiative seeks to produce green fertilizers utilizing hydrogen sourced exclusively through electrolysis powered by renewable energy. Not only does it promote sustainable agricultural practices, but it also integrates with the International Transition Accelerator Program (ITA), signaling its significance on the global energy transition stage.

Minas Gerais is also represented by another impactful project—the Hydrogen and Ammonia Hub led by Cemig, which is expected to advance the energy transition and promote sustainable industrial solutions within the state.

The project selection process adhered to rigorous criteria, and among others selected are proposals from major companies such as Petrobrás, Eletrobras, Neoenergia, and CSN, alongside strategic hubs located at ports like Suape (PE) and Açu (RJ).

The selected projects will now progress to the detailing phase, during which the allocation of resources from the CIF-ID international fund will be negotiated. This next step is integral to ensuring the selected projects’ success and the broader goals of Brazil's energy strategy.

With the potential for hydrogen hubs to fundamentally transform Brazil's approach to industrialization and environmental sustainability, the country's future appears increasingly promising. The effective implementation of these projects may catalyze significant advancements along the path to decarbonization, showcasing Brazil's proactive stance on global energy challenges.

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