Green hydrogen gains ground as key energy commodity in Brazil

Given this expected increase in demand, the interest of Brazilian companies in investing in the «new energy commodity» has also grown, says head of the Brazilian Hydrogen Association (ABH2) Paulo Emílio Valadão.

«A year ago, all we had were seven associated firms. Today, we have 43, and another eight are being associated. This shows the interest in the area, with promising possibilities from the environmental and public health standpoints,» said Valadão during one of the sessions of the first Global Symposium on Sustainable Solutions in Water and Energy, in Foz do Iguaçu, Paraná state.

The meeting, which brings together authorities, representatives from society and the private sector, as well as experts in water, energy, land ecosystems, and climate change, kicked off on Monday (Jun 13).

To be developed as fuel, hydrogen requires a great deal of energy. If its production does not use energy sources damaging to the environment, it is referred to as «green hydrogen,» a concept that has grown more and more appealing to international investors.

Among the possible answers devised by the Brazilian authorities in a bid to meet this growing demand for alternative and sustainable energy is using the energy from offshore structures to produce the hydrogen fuel, which may be exported over land (by pipelines or trucks) or by sea (on ships).

Potential

In Valadão’s view, the country has other production possibilities not harmful—or not very harmful—to the environment.

«We have great potential for the use of wind and solar energy, and we have an enormous coastline that enables us to use the ocean to generate energy. In addition, we produce a significant amount of ethanol, biogas, biodiesel, and biomass waste, which are other sources for hydrogen production,» he pointed out.

As it stands today, the cost of hydrogen from fossil fuels stands at around $1.4 a kilo, Valadão went on to note. As for electrolysis, whereby hydrogen is removed from the water, costs range from $5 to $7 a kilo.

«There are also interesting prospects for using biomass, where production comes at a competitive cost, and also for exploring natural hydrogen. It's estimated to cost less than the one from fossil fuels,» the head of ABH2 argued.

Natural hydrogen is reported to occur in at least four locations in the country, he added. «In other words, we should have wells in Brazil producing natural hydrogen in the future,» he said.

Regulation, norms, and standards

In order to foster this development, the association said it has created a council bringing together «companies, universities, and government agencies to outline regulation, norms, and standards aimed at opening the market for this new energy commodity in Brazil.»

Valadão added that ten Brazilian states can already be considered green hydrogen hubs: Bahia, Ceará, Minas Gerais, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, and São Paulo.

Organized by the United Nations Department of Economic and Social Affairs (UN Desa) and Itaipu Binacional, the Global Symposium on Sustainable Solutions for Water and Energy aims to «share and explore best practices on the sustainable use of water and energy.»