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Discover how Brazil can break its dependence on China and lead the green hydrogen revolution with electrolyzer technologies!

Written by Caio Aviz
Published 04/11/2024 ร s 15:41
Brazilian engineer looks at green hydrogen plant with wind turbines in the background - Brazil could overtake China in the green hydrogen revolution.
Engineer observes green hydrogen plant with wind turbines, highlighting Brazil's potential in sustainable technology.
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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 โ€” the electrolyzer โ€” 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.

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 โ€” mainly from China โ€” 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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Caio Aviz

I write about the offshore market, focusing on oil and gas, job vacancies, renewable energy, mining and the economy. Always seeking daily updates and relevant topics, I present rich, considerable and meaningful content.

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