On Monday (8/22), the Brazilian Center for International Relations (CEBRI) Energy Program and the Australian Embassy in Brazil held a webinar on green hydrogen production in Brazil and the possibilities for Brazil-Australia cooperation. "Australia and Brazil see green hydrogen as a facilitator for the energy transition and an opportunity for economic, social, and industrial development. Both countries have advantages in this area, like the large potential for renewable energy production. This propensity may lead the two to compete, but also presents opportunities for cooperation to develop markets, establish a regulatory framework, and promote the innovation and attraction of investments," highlighted Jorge Camargo, Vice-President at CEBRI's Board of Trustees.
Data from the International Energy Agency (IEA) has identified 990 hydrogen projects worldwide since 2000, and 67 countries have at least one sustainable initiative in the area. Estimates from the Hydrogen Council show that — considering only large-scale projects within 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, conducted by the National Confederation of Industry (CNI).
Recently, the Brazilian government created the National Hydrogen Program (PNH2), and the sector eagerly expects the next three years' plan of action, expected to be released by the end of the year. "We estimate that 96% of the hydrogen produced in Brazil will come from renewable sources. We prefer to use the term low carbon footprint hydrogen instead of green, to foster more diverse routes and technological options, and avoid lock-in, such as the use of hydrogen based on biofuels," pointed out Agnes da Costa, Head of the Regulatory Advisory Office at the Brazilian Ministry of Mines and Energy (MME).
During the debate, the guarantee of origin and certification of energy sources used in hydrogen production were cited as two of the main points to which regulatory agencies must pay attention. "There is a need to identify viable and traceable standards," stressed Agnes. "Another issue is carbon valuation, to create incentives and discourage the use of polluting technologies, without disproportionately penalizing some industries," also noted Dr. Fiona Simon, CEO of the Australian Hydrogen Council that gathers 113 national hydrogen-producing companies.
Australia already has the most structured sector and sees Brazil as a potential partner. Dr. Fiona Simon highlighted that an agreement on carbon pricing in the international market would encourage more investments. Cameron Mathie, Manager of Future Carbon Markets, Australia's clean energy regulator, pointed out his country's investments in renewable sources. "In 2015, 14% of investments in Australia were in renewables, such as hydrogen. Today, they make up 35% of investments," he said.
For Luís Viga, President of Australian mining company Fortescue Metals in Brazil — which recently announced a US$ 6 billion investment in green hydrogen — the cooperation between companies and the public sector exists is essential. However, formulating public policies for the industry in Brazil still lags behind the growing number of projects and the interest of private initiatives. "The sector needs government incentives, as did other renewable energies, as well as mainly regulatory security without protectionism," he defended.
In Brazil about 20 companies are currently investing in green hydrogen. Projects are concentrated in the states of Ceará, Rio Grande do Norte, Pernambuco, Espírito Santo, and Rio de Janeiro. They include companies like Fortescue, Enegix, Siemens, Qair, Neoenergia, White Martins, and Shell, among others.
A study by the CNI reports that in the short and medium term (three to five years), steelmaking, metallurgy, ceramic, glass, and cement appear as potential green hydrogen consumers. Refining tends to be the primary client: today, refineries consume about 74% of the hydrogen in the Brazilian industry.
Click here to watch the debate.
