Brazil's Low-Carbon Hydrogen Revolution: 12 Projects Compete for International Funding
Key Ideas
  • Brazil selects 12 low-carbon hydrogen hub projects to compete for $1bn of international funding.
  • Projects plan to produce hydrogen from various sources like grid-connected electricity, wind, solar, and biomass.
  • Brazil aims to use hydrogen for green steel, aluminum, fertilizers, refining processes, and e-methanol production.
  • The Ministry of Mines and Energy sees low-carbon hydrogen hubs as a key driver for industrial decarbonization in Brazil.
Brazil has chosen 12 low-carbon hydrogen hub projects to vie for $1 billion of international funding. These projects aim to produce hydrogen from sources like grid-connected electricity, wind, solar, ethanol, biomass, and more, with annual output capacities ranging from 1,000 to 350,000 tonnes. The Ministry of Mines and Energy considered technical and financial aspects, including end-use plans, before selecting these projects from 70 proposals across all 20 Brazilian states. The projects will now advance to develop detailed plans, with the best ones expected to compete for resources from the Climate Investments Funds – Industry Decarbonization CIF-ID. The projects signify the potential of low-carbon hydrogen hubs to drive industrial decarbonization in Brazil, with applications in green steel, aluminum, fertilizers, refining, and e-methanol production. In October 2024, MME pledged $1.09 billion to support hydrogen hub development, with CIF offering low-cost financing. Brazil has been progressing in establishing its clean hydrogen industry, including adopting a National Policy for Low-Carbon Hydrogen Production and providing subsidies to foster growth.
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