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Governor Signs Contract for Green Hydrogen Plant in Candiota and Boosts Energy Transition and Low-Carbon Economy in Rio Grande do Sul

Written by Hilton Libório
Published on 12/02/2026 at 15:13
Updated on 12/02/2026 at 15:14
Governador do Rio Grande do Sul e representantes de empresa exibem contrato assinado para implantação de planta de hidrogênio verde em Candiota no Centro Administrativo do Estado.
Governador assina contrato para planta de hidrogênio verde em Candiota e impulsiona transição energética e economia de baixo carbono no Rio Grande do Sul/ Foto: Mauricio Tonetto/Secom
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The Governor of RS Officializes New Investment in Green Hydrogen in Candiota, Strengthening the Energy Transition and Accelerating the Decarbonization Strategy of the State, with a Focus on Innovation, Solar Energy, and Sustainable Regional Development.

According to an article published by the RS state this Wednesday (11), the Governor Eduardo Leite signed the contract for the implementation of a green hydrogen plant in the municipality of Candiota, in the Campanha region, consolidating another strategic step for Rio Grande do Sul in the energy transition and in strengthening a low-carbon economy.

The signing took place at the Fernando Ferrari Administrative Center (Caff) in Porto Alegre, formalizing the agreement between the state government, through Badesul, and the company Âmbar Sul Energia S.A. The project was selected under the Green Hydrogen Chain Development Notice (H₂V-RS), coordinated by the Secretariat of the Environment and Infrastructure (Sema), in partnership with the Civil House.

The initiative positions the State as a leader in the national climate agenda. At the same time, it signals a concrete change in the energy profile of a region historically linked to coal. Already, the investment in Candiota is part of a set of public policies aimed at decarbonization and sustainable development in Rio Grande do Sul.

Governor Signs Contract for Green Hydrogen in Candiota and Strengthens Rio Grande do Sul

The act conducted by the Governor represents a decisive step in consolidating the green hydrogen chain in the State. The industrial plant will be installed in Candiota, a municipality traditionally recognized for coal-fired power generation, which adds even more symbolic relevance to the project within the energy transition strategy of Rio Grande do Sul.

The proposal provides for the production of hydrogen from photovoltaic solar energy. In practice, the electricity generated by solar panels will be used in the water electrolysis process, separating hydrogen and oxygen without direct carbon dioxide emissions. Therefore, this is an energy alternative aligned with global emission reduction targets.

Furthermore, the project was selected under the H₂V-RS notice, a state initiative aimed at developing the renewable hydrogen production chain. Thus, the government seeks to structure a favorable environment for technological innovation, attracting investments, and promoting the internal use of clean fuel, strengthening the regional economy.

The signing of the contract transforms planning into concrete action. Consequently, the State advances from the normative structuring phase to the practical execution of sustainable industrial projects.

YouTube Video

Green Hydrogen Drives the Energy Transition in Candiota

The choice of Candiota as the site for the industrial plant is not random. Historically associated with coal mining, the city is now part of the new economy of the energy transition. This change signals a gradual transformation strategy based on the diversification of the productive matrix.

Green hydrogen is considered a strategic energy vector, especially for industrial sectors that are difficult to decarbonize, such as steelmaking, fertilizers, and heavy transportation. Thus, its production in the state can expand internal use possibilities and reduce dependence on fossil fuels.

Additionally, the project aligns with a vision of a just transition. The Governor himself emphasized that the process is not about an abrupt rupture, but a responsible migration to a model with a lower environmental impact. Thus, the investment in Candiota combines climate responsibility with economic opportunity.

While other regions of Brazil prioritize the export of renewable hydrogen, Rio Grande do Sul also bets on consolidating a robust internal supply chain. Therefore, the goal is to strengthen the local market, generate skilled jobs, and stimulate new businesses. The energy transition ceases to be an abstract concept and gains industrial scale.

Rio Grande do Sul Accelerates Decarbonization with Governor’s Strategy

The advancement of the green hydrogen plant occurs in a context of more ambitious environmental goals in Rio Grande do Sul. Official data indicates that net greenhouse gas emissions in the State were reduced by 26.8% between 2021 and 2023. This result is part of the Just Energy Transition Plan conducted by the state government.

In this scenario, the actions of the Governor reinforce a public policy based on innovation, structured financing, and institutional partnerships. The contract was signed through Badesul, the state’s development bank, highlighting the role of credit as a driver of the low-carbon economy.

Additionally, the coordination of the notice by the Secretariat of the Environment and Infrastructure, in partnership with the Civil House, demonstrates alignment between strategic areas of government. This integration strengthens the governance of the energy transition and increases security for investors.

Decarbonizing is also generating competitiveness. In an international scenario increasingly attentive to sustainable production chains, the positioning of Rio Grande do Sul can represent a strategic differential.

Meeting between authorities of the Government of Rio Grande do Sul and company representatives during the green hydrogen project presentation in a conference room.
Named H₂V Candiota, the project will replace gray hydrogen with green through the cooling of the Candiota Thermal Power Plant – Photo: Mauricio Tonetto/Secom

Candiota as a Symbol of the New Energy Matrix in Rio Grande do Sul

The implementation of the green hydrogen plant transforms Candiota into a symbol of the new state energy matrix. The city, previously almost exclusively associated with coal, now becomes part of a productive cycle aligned with global climate goals.

This transformation has direct and indirect impacts. First, there is potential for job creation during the implementation and operation phase of the plant. Second, opportunities arise for professional training and regional technological development.

Moreover, the strengthening of the hydrogen chain can attract companies interested in consuming clean energy. Consequently, the industrial ecosystem linked to the energy transition in Rio Grande do Sul expands.

The investment also reinforces the narrative that regions historically dependent on fossil fuels can reinvent themselves. The paradigm shift is gradual but strategic. By stimulating new economic activities, the State creates sustainable long-term alternatives.

Governor Highlights Green Hydrogen as Economic Opportunity in Rio Grande do Sul

During the contract signing, the Governor emphasized that the energy transition is an environmental necessity in light of global climate urgency. However, he also stressed that it represents a great economic opportunity for the State.

The development of green hydrogen in Candiota strengthens an emerging production chain and reinforces the State’s role in the national clean energy agenda. Furthermore, prioritizing the internal use of renewable fuel increases the potential for local value addition.

By structuring technically sound projects, the government lays solid foundations for future sector expansion. Therefore, the signed contract represents more than an isolated undertaking: it integrates a broader strategy for sustainable development. Clean energy, innovation, and regional growth go hand in hand. This is the central message of the project that is beginning to take shape in the interior of the state.

YouTube Video

A New Horizon for Candiota and for the Energy Transition in Rio Grande do Sul

The formalization of the industrial plant for green hydrogen in Candiota symbolizes a strategic turning point in the regional development model. The Governor, by leading this process, consolidates the energy transition agenda as a structural axis of public policy in Rio Grande do Sul.

The project combines planning, financing, and environmental commitment. Moreover, it reinforces the consistent reduction in emissions already observed in recent years. At the same time, it creates concrete perspectives for income generation and economic diversification.

For the population of Rio Grande do Sul, the impact goes beyond the energy sector. It is a transformation that can influence productive chains, professional training, and attract new investments. Thus, the State positions itself competitively in an increasingly environmentally-oriented global market.

The energy future of Rio Grande do Sul is beginning to be built now. With initiatives such as the green hydrogen plant in Candiota, the decarbonization policy ceases to be just a goal and consolidates as an expanding reality.

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Hilton Libório

Hilton Fonseca Liborio é redator, com experiência em produção de conteúdo digital e habilidade em SEO. Atua na criação de textos otimizados para diferentes públicos e plataformas, buscando unir qualidade, relevância e resultados. Especialista em Indústria Automotiva, Tecnologia, Carreiras, Energias Renováveis, Mineração e outros temas. Contato e sugestões de pauta: hiltonliborio44@gmail.com

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