Brazil, Germany in talks for hydrogen pilot project

Brazil is in talks with Germany for a pilot project to produce green hydrogen from its abundant renewable energy sources, but it must first overcome logistical bottlenecks, industry specialists said in a recent webinar co-hosted by the Brazilian government and Germany's Konrad Adenauer Foundation (KAS).

Brazil already has one of the world's cleanest energy mixes, with both a strong biofuels industry and a heavily renewable power generation matrix. But the country has yet to tap into its renewable energy base to produce green hydrogen.

Small steps are underway. Brazil began holding public hearings in July to define a regulatory framework for hydrogen fuel. And the government included green hydrogen in its long-term energy plan for 2050, which is expected to unlock potential financing.

"Brazil still does not have public policies for green hydrogen. Currently, this is still not a big problem," said Lavinia Hollanda, the executive director of Escopo Energia. "But in the near future, we need to develop a long-term plan so we have the infrastructure in place when it is needed."

According to estimates by the hydrogen research laboratory at the Rio de Janeiro federal university, green hydrogen has the potential to account for 8pc of Brazil's total energy consumption by 2050.

Brazil also has potential to be a green hydrogen exporter in the medium term. Details of the talks that Brazil's mines and energy ministry is holding with its German counterpart for the pilot project are still sketchy, but the objective would be to export the new fuel to Europe. The EU recently unveiled plans to build 40GW of hydrogen electrolyzing capacity by 2030, leaving the door open for Brazil to supply the trade bloc, said Giovani Machado, director of energy economics and environmental studies at the energy ministry.

Green hydrogen is produced using biomass, biofuels such as ethanol or biogas as feedstock. Domestically, hydrogen is well suited as a liquid fuel to power batteries that could be used in electric long-haul trucking and aircraft equipped for such technologies, two areas of demand that are largely limited to liquid fuels such as diesel or natural gas at present, according to Hubertus Bardt, an economist at the German Economic Institute.

"Development of the technology over the next decade could be remarkable, especially with the strong demand from heavy vehicles, such as city bus systems, which would allow a more centralized distribution infrastructure for the hydrogen fuel," thus reducing costs, according to Paulo Emilio de Miranda, the head of the hydrogen research laboratory.

"We need shipping capacity that does not exist today with new technology to store and carry hydrogen, as well as pipeline and storage facilities. It will mean big investments," Machado said, adding that there are no current technologies in place to transport and store liquid hydrogen via pipelines or shipping, which would require policies to lead major infrastructure investment.