Newly founded Brazilian green hydrogen industry association's (ABIHV) director Fernanda Delgado spoke with Argus about the group's position regarding legislative discussions surrounding hydrogen and its main goals in the Brazilian market. Edited highlights follow.
What are ABIHV's priorities?
ABIHV is focused on public policies currently under discussion in the Brazilian congress.
There are six propositions under discussion today. One goal is unifying voices around the green hydrogen industry in Brazil, from production to distribution and exportation, [while also giving attention to] the supply to the national market, strengthening the producing chain, pushing incentives. But our focus is to speed governmental discussions.
What is ABIHV's opinion on subsidies for green hydrogen?
We have a pointed position regarding subsidies and incentives. We have been bringing data to congress showing we are not asking for anything different from the treatment given to solar and wind power at their beginning.
We are not even asking that [these incentives] be added to power bills via surcharges through [the government's] energy development fund.We ask for this incentive to come from the national treasury and that companies invest upfront before being granted this money. That would be an incentive for electricity, which makes up 70pc [of the costs] of water electrolysis used to produce green hydrogen.
How will green hydrogen investments differ?
Green hydrogen will bring trillions of Brazilian reals in investments by 2027: in capex, jobs, taxes and technology.
We ask that isonomic power — compared with solar and wind power — be first movers. We have an eager domestic market. Exportation is an upside as we are also strengthening Brazil's production chainto meet Europe decarbonization laws.
What are the biggest challenges ABIHV faces?
Establishing a legal framework. There are six legal instruments under discussion, which show how green hydrogen is as an important energy vector.
That is bigger than energy transition. We are talking about the maintenance of national products in the new global green financial order. It is good to have a plurality of legal instruments being discussed, but it is a challenge on how legislators will put this forward.
What are ABIHV's expectations for 2024?
We have many prospects. The upcoming UN Cop 28 climate summit in Dubai is one of them, as a lot of people expect it to be a turning point.
We hear a lot of promises that these discussions will progress, and projects will be sanctioned or at least gain speed in 2023 for 2024. There are some companies that see 2024 as an inflection point for making decisions regarding their investments.
