Green hydrogen should be allocated to strategic sectors that are difficult to decarbonize, with efficient production and use, and close cooperation between the public and private sectors, highlighting development hubs.
The inclusion of green hydrogen in strategic sectors is essential for the energy transformation. It is crucial that its production and use are carried out efficiently, ensuring that this limited resource can contribute significantly to global decarbonization. Coordination between the public and private sectors is essential to create development hubs that drive the application of green hydrogen.
At COP 28, the green hydrogen production has been recognized as vital to achieving climate goals, especially in reducing carbon emissions. This reinforces the importance of considering sustainable hydrogen as a viable alternative to replace traditional energy sources, keeping global temperatures below the critical 1,5°C. Cross-sector collaboration will shape the future of clean energy, making green hydrogen a central piece in this transition.
Decisive steps must be taken to increase the green hydrogen production, so that it can be used in the most critical sectors, without overloading the generation of renewable energy or financial resources.
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Differentiated approach recommended by Danfoss
Danfoss, a Danish multinational and world leader in the refrigeration, air conditioning, industrial automation and mobile hydraulics sectors for various segments, advises a differentiated approach to green hydrogen, considering its vital role in the transition from fossil fuels.
However, it is essential to focus on how we use and produce sustainable hydrogen more efficiently to reduce costs and demand for renewable energy sources.
It is vital to recognize that renewable hydrogen production is a limited resource that must be allocated strategically, prioritizing sectors that face major challenges to decarbonize, such as heavy industry and long-distance transportation.
Recognition of the importance of green hydrogen
This differentiated approach to green hydrogen production led to the publication of the paper 'Green Hydrogen: A Critical Balancing Act' by Danfoss, available at: https://www.whyenergyefficiency.com/solutions/allsolutions/green-hydrogen-a-critical-balancing-act. Green Hydrogen in Brazil Hydrogen holds significant promise in many countries’ climate strategies, with substantial financing programmes underway globally. However, rapid action is needed.
To meet the goals of the Paris Agreement, global electrolysis capacity must reach over 550 GW by 2030. Green hydrogen production could grow significantly by 2030, but cost challenges are hampering its expansion.
Green hydrogen production in Brazil
In fact, to overcome structural obstacles and unlock the potential of green hydrogen production in Brazil, a close collaboration between public and private sectors.
For João Pratas, Business Development Director at Danfoss Power Electronics & Drives in Brazil, state and federal governments need to develop financing mechanisms that create the infrastructure needed to support production.
Infrastructure required for green hydrogen production
'There is a clear objective to be achieved to guarantee the future of the next generations, and this goal will only be achieved through a clear synergy between different powers. Cooperation between these sectors is vital to overcome logistical and financial challenges, allowing the expansion of green hydrogen in Brazil', assesses the executive.
Investments in transportation and storage infrastructure are essential, as is the development of a favorable regulatory environment. In addition, it is crucial to promote cooperation between public and private sectors to finance and implement large-scale projects.
Sustainable hydrogen development hubs
Brazil has at least 66 low- or zero-emission hydrogen projects, totaling investments of R$188,7 billion, according to a survey by the National Confederation of Industry (CNI). A significant portion of this investment will be allocated to development hubs.
'Development hubs are essential for concentrating resources, attracting investment and promoting technological innovations. These hubs can become centers of excellence, facilitating the exchange of knowledge and cooperation between companies and research institutions,' says Pratas.
Export of green hydrogen from Brazil
If Brazil overcomes structural obstacles and advances in the production of green hydrogen, it is possible that the country will become an export hub. The research 'Green Hydrogen Opportunity in Brazil' revealed that the country could generate R$150 billion per year in the hydrogen market by 2050, with R$100 billion coming from exports of the commodity.
'The export of green hydrogen represents a significant opportunity for Brazil, taking advantage of its natural characteristics that position it as one of the main hubs producing sustainable hydrogen for its own consumption and export.
Finally, Brazil stands out not only for its production capacity, but also for being a country without geopolitical conflicts, which makes it an attractive destination for foreign investments without the concern of international conflicts', concludes the executive.
About Danfoss
Danfoss develops advanced technologies that enable a better, smarter and more efficient future. In growing cities, we ensure the supply of fresh food and optimized comfort in homes and offices by meeting the needs for energy-efficient infrastructure, connected systems and integrated renewable energy.
Our solutions are used in areas such as refrigeration, air conditioning, heating, motor control and mobile machinery. With innovative engineering dating back to 1933, Danfoss today holds leading market positions, employs more than 28 people and serves customers in more than 100 countries. We are a privately held company controlled by the founding family. Read more about us at www.danfoss.com.
Source: © DANFOSS Press