Eletrobras signs green H2 deal with Siemens

Brazil's state-controlled utility Eletrobras signed a preliminary agreement with Germany's Siemens Energy to develop a green hydrogen pilot plant, adding to regional momentum surrounding the emerging resource.

In their memorandum of understanding, Eletrobras and Siemens will begin studies on the production, marketing and demand for green hydrogen.

Eletrobras said its research and development unit Cepel has been studying the production of green hydrogen for two decades and plans to bring its expertise to the project. Production would initially focus on the domestic market.

Siemens sees Brazil as its future hub for green hydrogen development in Latin America, the company's head of new energy business in Latin America Andreas Eisfelder said in a statement.

Eletrobras has 51GW of installed generation capacity, equivalent to 30pc of Brazil's total installed capacity. Of that total, roughly 96pc comes from renewable sources, the underpinning for green hydrogen.

This is the third green hydrogen project announced in Brazil in recent weeks. In March, Australia's Enegix Energy reached an agreement with the Ceara state government to invest $5.4bn in a green hydrogen project that it says would be the world's largest of its kind. Fortescue Future Industries (FFI), a subsidiary of Australian mining company Fortescue Metals Group, and Brazil's Prumo Logistica also signed a preliminary deal to develop green hydrogen at Prumo's Acu Port in Rio de Janeiro state.

Elsewhere in the region, Chile is advancing green hydrogen regulations to support emerging projects.