European Union Promises to Invest €2 Billion to Develop the Green Hydrogen Economy in Brazil and Generate Thousands of Jobs

European Union Plans Billion Investment in Brazilian Green Hydrogen Sector. Expectation Is That Thousands of Jobs Will Be Created in the Country.

The European Union announced on Monday (12) its plans to invest €2 billion to develop the green hydrogen economy in Brazil, generating thousands of jobs. The announcement was made by Ursula von der Leyen, President of the European Commission, after a meeting with President Luís Inácio Lula da Silva in Brasília.

Investment Is Part of the Global Gateway Program

According to von der Leyen, the European Union aims to import 10 million tons per year of green hydrogen in the next decade. Europeans are looking for a reliable partner for the long term and will work with Brazil to achieve this, generating thousands of jobs.

The investment in green hydrogen is part of the Global Gateway program, an initiative by the European Union launched in 2021 with the mission of mobilizing €300 billion by 2027 for renewable energy infrastructure projects around the world.

No details were released regarding the value of the investment of resources. In her speech, von der Leyen stated that the goal is to promote the entire value chain of green hydrogen, from the production of renewable electricity and its transformation into clean hydrogen to the production of green steel and export infrastructure.

Green hydrogen is considered one of the keys for heavily polluting sectors such as shipping and steelmaking to mitigate their greenhouse gas emissions. Countries with high potential for producing clean energy, the most important input for producing green hydrogen, are natural candidates to generate a new export industry.

Government Aims to Use Green Hydrogen to Decarbonize the Economy

Brazil is one of those countries, and several national and international groups are developing studies to build plants for the external market, generating thousands of jobs. However, a definitive investment announcement for the larger projects has not yet been made.

There is an expectation of global demand for green hydrogen; however, the European Union is in urgent need to develop this market to reduce dependence on fossil fuels imported from Russia.

The federal government also aims to use hydrogen for the decarbonization of the country’s economy and to promote the so-called neo-industrialization of the country. Ursula von der Leyen also announced a donation from the European Union to the Amazônia Fund of €20 million, an amount that can be supplemented by individual investments from the countries.

Additionally, the president stated, also without going into details, that the European Union plans to support with €430 million the fight against deforestation and sustainable practices in the Amazon region. Von der Leyen claims that the forest is a key ally in the fight against global warming.

Understand Better the Fuel of the Future That Promises to Unlock Thousands of New Jobs

Hydrogen, or H2, is the most abundant element in the universe; however, it is not found freely in nature. Industrial processes are required to separate the hydrogen molecules contained in other substances, such as water or methane gas.

That fuel is classified as green when it is produced without the emission of greenhouse gases. The world already consumes large quantities of hydrogen; however, it is not green.

Currently, the main challenge is refining the technology and scaling up to reduce the cost of producing green hydrogen. Various color names are associated with hydrogen depending on the emission intensity of the production process, such as gray hydrogen, blue hydrogen, pink hydrogen, among others.