Green hydrogen is emerging as a promising source of “clean” energy amid growing environmental awareness and necessary energy transformation. Indeed, the sector is attracting unprecedented interest from governments and experiencing increased investment globally.
According to the IAE (International Energy Agency) and BCG (Boston Consulting Group), global investment in green hydrogen-related projects will be between $6 and $12 trillion between 2025 and 2050.
One of the countries at the center of this energy revolution is Brazil.
A survey recently conducted by McKinsey&Company assessed that Brazil is fully capable of achieving a prominent position in the international market as an exporter of green hydrogen. In fact, Brazil is considered a country with a diversified energy matrix and high availability of renewable sources to support green hydrogen production in a sustainable manner. In addition, Brazil is one of the largest producers of hydrogen from natural gas. Its vast availability of natural resources and industrial infrastructure provides a solid foundation for the development and large-scale production of green hydrogen.
In this article we explore the growing interest in green hydrogen globally, focusing on the key role Brazil could play in this energy transformation.
What does it take to make green hydrogen?
The production of green hydrogen occurs through a process known as water electrolysis, in which water molecules are split using an electric current. During electrolysis, hydrogen and oxygen are separated, and the end result is hydrogen.
What makes green hydrogen such an attractive option is the energy source used to power the electrolysis process. For the hydrogen produced to be truly green, the electricity must come from clean, renewable sources, such as solar or wind power. Only with these sustainable energy sources can it be ensured that the entire hydrogen production cycle is carbon-free, thus contributing significantly to the fight against climate change.
Thus, this methodology is an important step forward in the energy sector, as it offers a way to drastically reduce the use of fossil fuels, especially in energy-intensive industries. In addition, green hydrogen promises to significantly reduce carbon emissions, thus helping to mitigate the environmental and climate impacts associated with energy production.
Brazil as a world producer
Since 2023, Brazil has had an entity focused on the development of renewable energy sources. It is called ABHIC – Brazilian Association of Hydrogen and Sustainable Fuels and was created with the goal of promoting the hydrogen and sustainable fuels sectors in the country, while helping to regulate and structure the market.
It is therefore no coincidence that several local governments are also moving to support the development of the Brazilian market. For example:
- the government of Ceará approved, in August last year, to join the Brazilian Renewable Hydrogen Pact
- the governors of the Northeastern states and the World Bank signed a memorandum of understanding in late September 2023 in Brasilia, DF, to stimulate the development of the green hydrogen supply chain in the region
- the government of Piauí announced in late October 2023 that it had signed a partnership with the German group Solar Outdoor Media to install a photovoltaic plant in the municipality of Buriti dos Lopes with the aim of producing ammonia and green hydrogen
Also:
- distributor Neoenergia and Unifei (Federal University of Itajubá), in Minas Gerais, recently signed a memorandum of understanding to encourage the development of green hydrogen research
- Sengi Solar, a Tangipar Group photovoltaic module manufacturer, has chosen the state of Paraná to build its first green hydrogen factory.
Finally, ANEEL-Brazilian National Electricity Agency opened a strategic public call in March 2024 for the development of green hydrogen research and innovation projects. The goal is to accelerate the country’s economy while also contributing to the energy transition through the promotion of the fuel.
At Roncucci&Partners, we are able to support Italian SMEs that intend to embark on a green internationalization path focused on green hydrogen and sustainable fuels especially in the booming Brazilian market.
At Roncucci&Partners we help companies develop themselves and their business, embrace change and evolve to thrive in a world that is increasingly complicated, insidious and requires great expertise. We do this by applying punctual methods and rigorous strategies, the result of many years of experience and the richness of the numerous success stories we have conducted all over the world. Passion and method are indeed our guides to enhance the present and build the future.
