Brazil is attracting a mix of investment commitments in offshore wind and green hydrogen as the country seeks to reduce emissions and become a global renewable fuel supplier.
"We see a lot of synergies between offshore wind and production of green hydrogen," says Andre Themoteo, analyst at Brazilian wind power association Abeeolica.
Brazil has the potential to produce green hydrogen on offshore platforms, which can use desalinated seawater, he adds. "It takes low-cost energy to produce green hydrogen, and wind power is already offered at a very competitive price."
Last week, Singapore-based renewable energy company Enterprize Energy signed a memorandum of understanding (MOU) with the Rio Grande do Norte state government to develop offshore wind energy that it would use to desalinate water and produce green hydrogen and green ammonia for the chemicals, fertilizer and broader fuel sectors.
Last week, Prumo Logistica, which controls the Acu port in Rio de Janeiro state, filed an environmental application for a 2.16GW offshore wind farm.
In March, Fortescue Future Industries (FFI), a subsidiary of Australian mining company Fortescue Metals Group Logistica, signed a preliminary deal with Prumo to develop green hydrogen at Acu. Under the deal, the two companies would develop offshore wind and solar capacity to power a 300MW electrolyzer and related installations to produce 250,000 t/yr of green ammonia.
The concept of combining offshore wind with green hydrogen is already taking root in other markets, such as the UK.
Despite Brazil's green hydrogen potential, the country still lacks a regulatory framework and certification standards to develop an export market, Themoteo says, adding that Brazil needs to determine which government agency will be responsible for regulating the emerging sector.
Brazil already has 15.6GW of wind energy capacity, but it is all onshore, and wind still only accounts for 10pc of the country's installed generating capacity.
The country aims to become carbon-neutral by 2050.
