Brazil has great potential to become an exporter of hydrogen and its derivatives and other sustainable fuels to Germany, Sérgio Costa, president of hydrogen and sustainable fuels association ABHIC, told BNamericas.
Examples include green ammonia – a key input for fertilizer production – e-methanol, which can be used directly in industries and shipping, road and air transport, and sustainable aviation fuels, like e-jet fuels and e-diesel.
Costa (pictured) highlighted that Germany launched a national hydrogen plan, which envisages doubling hydrogen usage to 10GW or even 15GW, with 70% being imported.
He said Brazil has several competitive advantages, such as a relatively low levelized cost of electricity, shorter distance to Europe compared with Chile – another potential hydrogen player in Latin America – and abundance of water.
“We’re in talks with the federal government, showing what is happening in Europe. Hydrogen has to be treated as a commodity,” he said.
Last week, Costa et with green economy, decarbonization and bioindustry secretary Rodrigo Rollemberg to discuss green hydrogen regulations.
ABHIC is also eyeing domestic ammonia production. “Today, Brazil is dependent on importing ammonia for fertilizers, and the big supplier is Russia, which is at war,” Costa said.
Another key segment in Brazil is public transportation, which relies primarily on diesel, increasing costs, as much of the fuel is imported and creates pollution.
Costa cited a study by consulting firm McKinsey that projects a US$200bn investment potential in the country by 2040.
“We’d need to double the installed capacity to meet hydrogen demand, which would imply the need for offshore wind, for example. And with that we could make a leap of industrialization in Brazil,” he said.
ABHIC also represents organizations working with gray, brown and blue hydrogen, i.e., companies that use hydrogen produced from fossil fuels but are committed to transition to the sustainable economy with gren hydrogen.
The association is a partner of German hydrogen and fuel cell association DWV, which was founded in 1996.