Brazil begins to receive new investments and may become one of the main countries in the production and export of green hydrogen

After investments, Brazil is in a position to become a protagonist in the production and export of so-called green hydrogen, according to estimates by the Hydrgen Council, an initiative that brings together CEOs of 92 global companies. This is a market that is expected to reach USD 2,5 trillion globally by 2050, accounting for about 20% of all energy production in the world.

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Paulo Alvarenga, chief executive for South America at Thyssenkrupp, states, “As is happening in Europe, it is fundamental to insert green hydrogen as a strategic component in the Brazilian energy production matrix”.

André Clark, General Manager of the Brazilian operation of Siemens Energy, says that the company is already negotiating in the country with industries interested in being pioneers in the use of green hydrogen. According to him, the company will soon announce the first pilot projects.

“It's still new, it's a cutting-edge technology, but we believe that hydrogen will play an important role in the sustainable energy transition and in the coupling of sectors in the country and, therefore, we decided to allocate our hub to serve Latin America in Brazil”, says Clark .

Brazil in the energy transition to green hydrogen

According to the International Renewable Energy Agency's Green Hydrogen Cost Reduction report, falling renewable energy costs and improved electrolysis technologies could make green hydrogen more competitive for investment by 2030.

As countries seek to make investments and strategies to decarbonize the economy, this source tends to play an increasingly important role in the global energy matrix. But for that, production costs need to fall for it to be economically viable worldwide.

The price of renewable electricity is the single largest cost component for the local production of green hydrogen, which creates production opportunities in locations around the world that have ideal renewables, capable of favoring competitiveness in investments.

According to analysts, investments in green hydrogen could give Brazil a very competitive cost for domestic consumption and export to markets such as Europe.

Investments in green hydrogen

This energy source has pros and cons that we should be aware of. Its advantages are that it does not emit polluting gases either during combustion or during the production process, hydrogen is easy to store, which allows its subsequent use in other uses and at times different from its production.

Green hydrogen can also be turned into electricity or synthetic fuels and used for domestic, commercial and industrial purposes.

However, green hydrogen also has negative aspects. Such as the highest cost. Energy from renewable sources, essential to generate such fuel, is more expensive to generate, which, in turn, makes it more expensive to obtain hydrogen.

Another negative point is that the production of hydrogen in general and green in particular requires more energy than other fuels. Hydrogen is a very volatile and flammable element, requiring high safety requirements to prevent leaks and explosions.