The survey of green hydrogen projects in Brazil shows that there are at least 42 projects in different stages of development in the country.
The mapping done by H2 Brazil, a project born from the partnership of the German Agency for International Cooperation (GIZ) and the Ministry of Mines and Energy of Brazil, has identified at least 42 green hydrogen production projects in the country, which are of different sizes and at different stages. development.
H2 Brazil, which started in 2021 and will continue until the end of 2023, mapped more than 800 companies and facilities from 12 sectors of the green hydrogen value chain in five Brazilian regions.
According to H2 Brazil coordinator José Zloccowick, an interactive tool is available for detailed consultation of projects and actors in each state. The results of the mapping were presented last week at the Intersolar Summit Nordeste, where green hydrogen was one of the main topics.
The study identified green hydrogen centers in port areas as one of the most important business models in the development of green hydrogen in Brazil. These hubs concentrate all the demand of the port’s industrial complexes in one place and can also meet the export demand. In transportation, the production of green ammonia is one of the most important options.
Most of the green hydrogen centers are located in ports located in the northeastern part of the country, where most of the country’s solar energy capacity is also installed.
The production of green hydrogen is seen as a way to utilize Brazil’s huge potential for renewable energy production. Of the projects under development alone, there are 99 GW of solar energy and 25 GW of wind power. Electricity accounts for 73% of green hydrogen production costs.
In the last federal government auction to acquire the sources, held in October 2022 with delivery starting in 2027, wind and solar were priced at BRL 175 ($34.72)/MWh and BRL 171/MWh, respectively. In the wholesale market serving power purchase contracts and large consumers’ own production, incentive energy (which also includes small hydropower plants) of 113 BRL/MWh for supply contracts starting in 2024 is being negotiated.
In order for the green hydrogen produced in Brazil to become competitive, the price level of renewable energy in the country should fall to between 10 and 30 dollars/MWh (149 BRL/MWh), according to estimates from the Intersolar Summit Nordeste.
Although the level of competitiveness is still far from the auction prices – and even more from the price that is considered sufficient to compensate the investments of solar energy producers – transportation and storage costs also make a difference in the production and commercialization of green hydrogen. .
In addition, the geographical location of the ports in the northeastern part of the country and the presence of industrial consumers who could make joint investments in infrastructure could be important to give Brazil a head start in the global green hydrogen race.