Service provider KPMG points out challenges in the cost of production for Brazil to become competitive in the hydrogen sector

Service provider KPMG points out that the main challenge for Brazil to become a competitive country in the hydrogen sector today is the high cost of production, but highlights the great potential for using the resource in the national territory.

In a scenario of strong expansion of investments in the hydrogen sector this Thursday, (28/04), the services company KPMG highlights the strong potential of harnessing the resource in Brazil and points out the main challenges in the sector for the country becomes more competitive. Among them is the high cost of producing hydrogen and the need for more investments in infrastructure, aiming to place the segment at the top of current energy production, as is the case with solar and wind energy.

Brazil has strong potential to become a major competitor in the production of hydrogen, with a focus on states in the Northeast region, points out KPMG

The hydrogen sector in Brazil has become one of the most attractive today due to the resource's production potential in the country and already this week the cornerstone of a green hydrogen enterprise in the state of Bahia will be laid. In this way, the debate about the needs of the sector and how the country can become a major competitor in the production of the resource has been growing.

Thus, the service provider KPMG commented on the sector in the national territory and highlighted that Brazil is a country with great productive potential and can start to take advantage of this hydrogen generation capacity.

This is a totally clean source of energy and, in a scenario of strong discussion about environmental impacts and an industry drive to adopt renewables, the company believes that this is the moment to attract investments and overcome the challenges of the sector in the country.

In addition, there is a strong potential for the export of clean energy with the use of hydrogen and the leader partner of KPMG's Energy and Natural Resources sector in South America, Manuel Fernandes, highlighted: "I think there is a great opportunity to Brazil and the Latin American region, as a whole, which can play an important role in the electric energy map, producing and even exporting clean energy. If we do the right things, Brazil can become a clean energy exporter. We need to take a step forward, have an industrialization policy and even export clean energy”.

High production cost is still the biggest challenge of the hydrogen sector in the country and Brazil needs to overcome this problem

KPMG also commented on Brazil's main challenges currently in the race for competitiveness in the hydrogen sector and highlighted that the biggest problem is the issue of the high cost of production, given that strong investments are needed for undertakings of this type.

Thus, Manuel Fernandes stated that Brazil still does not have an adequate infrastructure to reduce the cost of production to the level of a competitive country on the international scene.

The executive also highlighted that it is necessary to have a technological and structural investment for the country to be able to receive these projects. However, he stated that he can already see a move by the Federal Government to reduce this cost and boost this sector, especially after the launch of the Ten Year Energy Plan 2031, which will also contribute to attracting enterprises in this field.

Finally, the KPMG representative stated that the main focus of the hydrogen sector is still decarbonization and that, to achieve the 2050 plan to reduce the emission of this gas, it is not enough just to wait for investors to come to the country, the Federal Government need to run after this scenario.