Brazil Seeks to Become a Leader in Hydrogen Power

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Brazil established a strong foothold in the production of low-carbon hydrogen when it recently announced details on the Regime for the Production of Low-Carbon Hydrogen (Rehidro) and the Carbon Hydrogen Development Program (PHBC).

The programs aim to make Brazil one of the world's largest low-carbon hydrogen producers.

Among Brazil's goals are the construction of hydrogen pilot projects across all its regions this year; becoming the most competitive hydrogen producer by 2030; and consolidating its hydrogen hubs by 2035.

"We needed this moment with civil society and the productive sector," said Karina Sousa, the director of the government's Transition Department. "Our idea was to present what was discussed within the scope of the Steering Committee of the National Hydrogen Program (Coges-PNH2) and whether what will be presented in the regulatory decree is adequate."

So far, 36 participants in six states have applied for the program's benefits.

Among the participants are Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil), Petrobras (NYSE:PBR) (Rio de Janeiro), EDP (Sao Paulo, Brazil), Itau (Sao Paulo), Braskem (Sao Paulo), Electrobras (NYSE:EBR) (Rio de Janeiro) and others.

Rehidro includes benefits such as import tariff suspensions of some services and products and fiscal benefits.

Meanwhile, the PHBC will have a tax credit program of 18.3 billion reais (about US$3.1 billion) between 2028 and 2032, focused on strategic industries such as fertilizers, steel making, concrete, chemicals and transportation.

In December, Brazil announced the selection of 12 low-carbon hydrogen hub projects to decarbonize its industry. The projects would produce hydrogen from wind, solar, ethanol, biomass and other power plants connected to the national interconnected system.

The approved projects have production capacities of between 1,000 and 350,000 tons of hydrogen per year.

Industrial Info is tracking 63 Power-to-X projects in Brazil that involve the production of hydrogen via electrolysis of water using renewable energy. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project reports.

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