Brazil does not currently produce this energy source, but if a number of planned projects take shape, it could become a global protagonist of the emerging market, with particular prominence in the country\u2019s Northeast Region, which comprises nine states.<\/p>\n
Initial steps have been taken, especially in the state of Cear\u00e1, which in February launched<\/a> the Green Hydrogen HUB project. This partnership involves the state government and the Federation of Industries of Cear\u00e1 (FIEC) in attracting investors, the Federal University of Cear\u00e1 (UFC) in technological development, and the Industrial and Port Complex of Pec\u00e9m (CIPP) in the municipality of S\u00e3o Gon\u00e7alo do Amarante, which will house the hub.<\/p>\n Since then, Cear\u00e1\u2019s secretariat for economic development has signed 12 memoranda of understanding (MOU) with companies from a number of different countries, interested in building electrolysis plants to produce green hydrogen for export. Di\u00e1logo Chino<\/em> has mapped these projects and investments in the infographic below.<\/p>\n Electrolysis is the process of subjecting water (H2O) to an electric current. This charge separates the hydrogen (H2) and oxygen (O) molecules, to generate gas. If the electricity used to convert water into hydrogen comes from a clean source, such as wind or solar, there is no GHG emission in the process. This is where the name \u201cgreen\u201d hydrogen comes from.<\/p>\n Among the companies that signed MOUs is the Australian firm Enegix, which promises to invest<\/a> US$5.4 billion to make its plant, named Base One, the largest green hydrogen plant in the world. The project foresees an annual production of 600,000 tonnes of gas.<\/p>\n This production could benefit a range of industries. Though the hydrogen-powered car market is in its infancy, one kilogram of the gas can power a car for 100 kilometres<\/a>, so production on the scale of Base One could, for example, supply six million vehicles per year, if each one runs ten thousand kilometres on average.<\/p>\n \u201cIn 15 or 20 years, the Northeast could play a crucial role in the international green hydrogen market,\u201d Cear\u00e1\u2019s Secretary of Economic Development and Labour, Maia Junior, told Di\u00e1logo Chino<\/em>.<\/p>\n \u201cThis will be one of the vectors of the new economy, and Cear\u00e1 has created the infrastructure and tax conditions to be well placed [in this market], in addition to having ideal wind and sun.\u201d<\/p>\n In 15 or 20 years, the Northeast could play a crucial role in the international green hydrogen market<\/p><\/blockquote>\n Maia Junior\u2019s assertions are based on the fact that Cear\u00e1 has the only active Export Processing Zone<\/a> (EPZ) in Brazil, ensuring tax and foreign exchange benefits. In addition, the Northeast region of Brazil has reliable winds<\/a>, with stable wind speed that also does not frequently change direction. It also has a high average solar irradiance<\/a>, which means there is good potential for the production of both wind and solar energy.<\/p>\n Another factor that helps the Cear\u00e1 hub is that the Port of Rotterdam, Europe\u2019s largest maritime terminal, owns 30% of the Port of Pec\u00e9m. As Dutch entities are also developing a project for production, import and distribution of green hydrogen, this corporate relationship would facilitate exports<\/a> to Europe of hydrogen produced in Cear\u00e1.<\/p>\n According to Maia J\u00fanior, Cear\u00e1 is still attracting investors but, for the projects to go beyond being primarily on paper, innovation is essential.<\/p>\n That\u2019s where the Federal University of Cear\u00e1 (UFC) comes in, which has created partnerships with companies that want to integrate with the hub project, aiming at technological development and training of professionals.<\/p>\n In September, the university signed an agreement with China\u2019s MingYang Smart Energy, a manufacturer of renewable energy equipment, such as photovoltaic panels and wind turbines, as well as technology for offshore plants.<\/p>\n The agreement provides for an exchange between university professors and students and MingYang technicians, creating a joint research programme, as well as an offshore pilot project at Pec\u00e9m. <\/div>\u201cGroups from the UFC will visit MingYang plants and exchange information for the creation of offshore wind production equipment that is well suited to our coast. When these plants are operating offshore, they will be another source to supply our hub,\u201d says Augusto Albuquerque, a professor at the UFC. \u201cWe are creating partnerships to exchange knowledge. Our dream is to have a large green hydrogen development centre at the university,\u201d he adds. Today, however, the dream is still only on paper.<\/p>\n In the neighbouring state of Rio Grande do Norte, a national leader<\/a> in wind energy production, the electricity generated by the wind could also supply green hydrogen plants. Three companies have signed MOUs with this state to set up green hydrogen plants that will use energy supplied by future offshore wind farms.<\/p>\n Elsewhere in the Northeast, two companies foresee the installation of green hydrogen plants in the Port of Suape, in Pernambuco state. Away from the region, Australia\u2019s Fortescue also has plans<\/a> for a plant at the Port of A\u00e7u, in Rio de Janeiro.<\/p>\n \u201cThe Northeast will become an energy exporter, because it is a large producer of renewable energy, so it can supply the domestic demand and still sell,\u201d says M\u00f4nica Saraiva Panik, director of institutional relations of the Brazilian Hydrogen Association. \u201cThe economic gain will be enormous. Green hydrogen will be a pillar in the global process of decarbonisation.<\/p>\n \u201cIt is not only in Brazil. Green hydrogen can change world geopolitics, because countries will not depend on gas or oil reserves. Whoever has renewable energy will stand out and this puts countries from Latin America, the Caribbean and Africa in the game.\u201d<\/p>\n While companies beneath a number of flags have already announced future green hydrogen plants in Brazil, companies backed with Chinese capital operating in the country are still in the project prospecting phase.<\/p>\n In 2020, China\u2019s State Power Investment Corporation and its Brazilian arm, SPIC Brasil, signed a memorandum that involves the energy research institute Cepel. According to the company, US$3.5 million will be invested in green hydrogen and smart energy research, to support the rational use of energy. The first stage, which has already begun, \u201caims to develop technology for buses and other means of public transport powered by green hydrogen,\u201d SPIC Brasil told Di\u00e1logo Chino<\/em>.<\/p>\n I have no doubt that Chinese companies will make a strong entry into the Brazilian hydrogen market<\/p><\/blockquote>\n In September, the company\u2019s CEO in Brazil, Adriana Waltrick, told<\/a> Brazilian newspaper Valor Econ\u00f4mico that green hydrogen is one of the company\u2019s focuses. \u201cWe are leaders in China in [green] hydrogen, it is a technology that produces zero carbon and can be very useful for Brazil.\u201d<\/p>\n Elsewhere, CTG Brasil, the China Three Gorges Corporation\u2019s Brazilian branch, launched<\/a> its \u201cGreen Hydrogen Strategic Mission\u201d, a call to action for potential partners.<\/p>\n \u201cThe objective is to map the Brazilian market, understand and evaluate the potential of business models, their value chain and associated technologies, which should generate investment opportunities,\u201d CTG Brasil\u2019s director of strategy and business performance, Silvio Scucuglia, told Di\u00e1logo Chino<\/em>.<\/p>\n US$3 billion<\/p>\n Public and private companies can participate in the call. With 18 million Brazilian reals (US$3.2 million) to allocate to the projects, CTG Brasil is seeking proposals geared towards the production, storage and distribution of green hydrogen, also considering projects that aim to use the fuel in areas such as agriculture, transport and industry.<\/p>\n China is the world\u2019s largest producer of hydrogen \u2013 but of the grey type produced from polluting fossil fuels (see infographic). This year, however, it announced<\/a> a mega green hydrogen project in Inner Mongolia, with an investment of US$3 billion.<\/p>\n According to Carlos Peixoto, executive director of the consultancy H2Helium, it is only a matter of time before more robust initiatives emerge in Brazil. \u201cWe haven\u2019t yet seen Chinese companies making much movement here around green hydrogen. But they are certainly getting ready and may suddenly announce something, like an electrolyser from another world. I have no doubt that they will make a strong entry into the Brazilian hydrogen market.\u201d<\/p>\n Today, the Brazilian energy matrix<\/a> is made up of 48% of renewable sources, while globally this rate is 14%. In the electric energy matrix, the difference is even greater. In Brazil, 83% of electricity has a renewable origin, while the world overall derives only 25% of total electricity from renewables.<\/p>\n These advantages, however, have not prevented Brazil from arriving at COP26<\/a> lagging behind in the climate battle. A study<\/a> published by Brazilian organisation Observat\u00f3rio do Clima a few days before the conference showed that, in 2020, Brazilian emissions grew by 9.5%, while across the world they fell by almost 7%, due to the Covid-19 pandemic.<\/p>\n One step forward, two steps back<\/p>\n The survey points out that the country released 2.16 billion tons of carbon dioxide equivalent into the air last year, the highest level since 2006, which, according to the researchers, has a direct link to the deforestation of the Amazon.<\/p>\n![\"Green](\"https:\/\/dialogue.earth\/content\/uploads\/2021\/11\/Green-hydrogen-662x4567.jpg\")
![\"Aerial](\"https:\/\/dialogue.earth\/content\/uploads\/2021\/11\/CKVL3032-1-scaled.jpg\")
Prospecting from China<\/h2>\n
\nThe value of a green hydrogen mega-project announced by the Chinese government in the province of Inner Mongolia
\n\n <\/div>\n <\/div>\nGlobal race for clean sources<\/h2>\n
\nBrazil\u2019s energy matrix contains 48% renewable sources, well above the world average. But it also emitted more greenhouse gases than the global average last year \u2014 largely due to increased deforestation in the Amazon.
\n\n <\/div>\n <\/div>\n
![\"Wind](\"https:\/\/dialogue.earth\/content\/uploads\/2021\/11\/BHYBYK-1-scaled.jpg\")