Brazil Boosts Green Hydrogen Sector with Tax Incentives and New Initiatives
Key Ideas
- Brazil establishes a new legal framework for low-carbon hydrogen and introduces tax incentives to attract investment.
- 70 proposals for low-carbon hydrogen hub projects are received by the government by December.
- President Luiz Inacio Lula da Silva approves the Energy Transition Acceleration Programme (PATEN) to support clean technologies, including green hydrogen.
In 2024, Brazil's green hydrogen sector saw significant progress as the government introduced measures to boost investment and development. The government first set up a new legal framework for low-carbon hydrogen, followed by a tax incentive program to encourage investments in this sector. Subsequently, the government received 70 proposals for low-carbon hydrogen hub projects, indicating a strong interest in this technology. To further support the transition to clean energy, President Luiz Inacio Lula da Silva approved the Energy Transition Acceleration Programme (PATEN) in January. This strategic initiative aims to provide financial support for various clean technologies, with a specific focus on green hydrogen. The government's proactive stance on decarbonization indicates a promising future for Brazil's green energy sector, particularly in the field of hydrogen production and utilization.