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Powering Brazil’s green hydrogen future

News
NIRAS and GIZ wrap up a transformative partnership that helped shape the Government of Brazil’s new legal framework and roadmap for a blossoming clean hydrogen economy.
In a remarkable stride towards a sustainable future, NIRAS, in collaboration with GIZ and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), has successfully wrapped up an ambitious project to kickstart Brazil's green hydrogen economy.
Running from 2022 to 2024, this project was a key part of the "DKTI Brazilian-German technology partnership" under the Renewable Energies and Energy Efficiency in Brazil programme.
The mission? To confront a key barrier: Brazil’s green hydrogen market wasn’t yet equipped to compete with well-established sectors. Advancing this clean energy revolution requires tailored production methods, a solid regulatory framework, and a skilled workforce. That’s where GIZ and NIRAS stepped in—ready to support Brazil’s policymakers and businesses in laying the groundwork for a vibrant green hydrogen economy.
Dynamic activities and impressive outcomes
To start, the team gave the Ministry of Mines and Energy (MME) the inputs to design a comprehensive H2 programme, setting international benchmarks and developing energy planning scenarios. They explored Brazil's green hydrogen potential and mapped out scenarios up to 2050, ensuring the country is well-prepared for a hydrogen-powered future.
Scenario mapping was followed by regulatory and legislative inputs. The project team provided a roadmap and strategy for green hydrogen, including an international legislative benchmark and a detailed catalogue of measures. They even assessed existing regulations to pave the way for future legislative processes.
Sustainability was at the heart of the project. The team conducted two in-depth environmental and social studies on hydrogen and hosted five international webinars to discuss and analyze a potential H2 certification system in Brazil.
The project also delved into PtX pathways and funding mechanisms, studying the profitability of hydrogen applications and exports. They developed a comprehensive guide to hydrogen project funding, making it easier for investors to get on board.
One of the standout achievements was the feasibility study for a green H2 plant in Paraná. This included everything from technical design and environmental assessments to financial and legal evaluations, and even certification assessments for the conceptual plant.
Progress toward the creation of a vibrant green hydrogen economy is already evident.
In August 2024, Brazilian President Luiz Inácio Lula da Silva signed Law 14.948/2024, which regulates the production of low-carbon hydrogen and introduces voluntary certification. The text also provides for tax incentives for this sector. The adopted new legal framework brings legal certainty, predictability and attractiveness to the announced investments in green hydrogen in Brazil, which already amount to more than USD 30 billion, and strengthens Brazil's leadership in the energy transition and sustainable development. In the future, production companies will be able to receive incentives to buy or import machinery, equipment and equipment for low-carbon hydrogen projects. Over a period of five years, tax incentives of R$18 billion will be granted.
"Today, the president is putting a historic project into practice. They are creating a new industry for Brazil and lighting the flame that will revolutionize the planet's energy matrix. You strengthen national agriculture, guarantee energy sovereignty and food security, because you create a new avenue for the production of ammonia, and therefore urea and our fertilizers, which are so important in the chain of family farms and the national agribusiness," said the Minister of Mines and Energy, Alexandre Silveira.
This successful project marks a significant milestone in Brazil's journey towards a sustainable and climate-friendly energy future. By improving the institutional and regulatory framework, creating decision-making bases for private investments, and strengthening scientific and technical skills, GIZ and NIRAS have laid a solid foundation for Brazil's green hydrogen economy.
With these efforts, Brazil is now equipped with the tools and knowledge to build a robust green hydrogen market, ensuring a secure and environmentally friendly energy supply for households, public institutions, and businesses across the country. The future of green hydrogen in Brazil looks brighter than ever!
Resources (in Portuguese)
Institutions supported
Knowledge products disseminated
Events organised with GIZ & other stakeholders
Dr Felipe Toro
Senior Consultant Green Transition and Project Manager
Stuttgart, Germany