Green hydrogen, a clean fuel produced from renewable sources, is a key component of the global energy transition. Last Friday, Brazil’s National Low-Carbon Hydrogen Policy was approved, an event held at the Port of Pecém in São Gonçalo do Amarante, Ceará. This legal milestone places Brazil at the forefront of sustainable energy production and the fight against climate change.
Green hydrogen is generated through the electrolysis of water, a process that uses electricity from renewable sources such as solar, wind and hydroelectric power to separate hydrogen from oxygen. Unlike traditional hydrogen, which is produced from fossil fuels, green hydrogen does not emit greenhouse gases, and is considered a fuel of the future.
The new legislation establishes the Brazilian hydrogen certification system and incentive mechanisms to increase the attractiveness of clean energy production projects. R$18 billion will be invested in tax incentives over five years, with the aim of decarbonizing industry and transportation. This investment aims to leverage the development of a robust and competitive green hydrogen economy.
According to the Ministry of Mines and Energy, Brazil already has more than R$200 billion in green hydrogen projects announced within the National Hydrogen Program (PNH2). Voluntary certification and federal tax incentives established by the new legislation are essential to ensure that the hydrogen produced is truly sustainable and competitive in the international market.
According to the 2031 Ten-Year Energy Expansion Plan, prepared by the Energy Research Company (EPE), Brazil has the technical capacity to produce 1.8 gigatons of green hydrogen per year, of which 90% can be achieved using renewable energy. This potential places Brazil in a strategic position to become a global leader in the production and export of green hydrogen.
The adoption of green hydrogen as a fuel can bring several benefits, such as reducing carbon emissions, creating green jobs, and diversifying the Brazilian energy matrix. However, the development of this technology faces significant challenges, including high initial implementation costs and the need for adequate infrastructure for production, storage, and distribution.
The National Low-Carbon Hydrogen Policy represents a significant step for Brazil towards a more sustainable and low-carbon economy. With robust fiscal incentives and enormous technical potential, Brazil is well positioned to lead the global energy transition, contributing significantly to the mitigation of climate change and promoting sustainable development.
Amazon Connection Carbon supports initiatives that promote sustainability and environmental conservation, being at the forefront of efforts to decarbonize the economy through innovative and efficient solutions.
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