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Although China dominates, Brazil has a chance to grow
Green hydrogen is one of the major protagonists of the transition to clean energy. However, one of the essential components for producing it — the electrolyzer — is still dominated by China, which controls around 60% of global production. However, with good planning and investment, Brazil can take advantage of this dependence and transform it into a strategic opportunity.
Why does China lead the electrolyzer market?
China's dominance is no coincidence. After all, the country has invested for decades and improved its production chains, producing electrolyzers at lower costs. Furthermore, with its experience in alkaline electrolyzers, it is able to offer competitive prices to buyers all over the world, including Brazil. It is no wonder that Chinese electrolyzers can reduce the costs of Brazilian projects by up to 30%.
Opportunities for Brazil in the green hydrogen market
Thanks to its abundant renewable sources, Brazil has a unique opportunity to enter this market. Furthermore, the country has a diverse renewable energy matrix, which puts it in a strategic position to develop a local green hydrogen industry. However, success depends on overcoming some challenges, such as the high initial cost. Tax incentives, partnerships and financing could accelerate this process.
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Green hydrogen: essential for decarbonization
Since green hydrogen is seen as one of the main alternatives for decarbonizing energy-intensive sectors, such as transportation and heavy industry, Brazil has enormous potential to position itself as an exporter. However, to compete, it needs to invest in efficient and cheap electrolyzers. Thus, partnerships with foreign manufacturers — mainly from China — can accelerate the absorption of technology and reduce dependence on imports.
Chinese electrolyzers: advantages and challenges
Chinese electrolyzers are indeed cost-effective, but they do raise some concerns. Despite their attractive price, relying on a single country for a key technology can be risky. Therefore, adopting diversification strategies is crucial for Brazil, as this would strengthen its supply chain and reduce vulnerabilities in situations of global instability.
Competition with Europe and opportunities for Brazil
Although China leads in alkaline electrolysers, Europe still holds the advantage in proton exchange membrane (PEM) technology, ideal for intermittent renewable sources. Thus, Brazil can balance costs by adopting European and Chinese technologies. With a diversified strategy, the country can reduce risks and ensure a more resilient supply chain.
Brazil: potential to lead in Latin America
Therefore, Brazil has everything it needs to become a leader in the green hydrogen market, both for meet internal demand and for export. With a strategic vision and adequate incentives, the country could finally consolidate its position in Latin America and become a relevant supplier in the global clean energy market.
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