The Brazilian Government has made R$6bn ($1.09bn) available to support the development of clean hydrogen hubs that will decarbonise hard-to-abate sectors.
The Ministry of Mines and Energy initiative wants to establish hydrogen hubs in Brazil by 2035, leveraging the country’s abundant energy resources. The Minister of Mines and Energy, Alexandre Silveria, earmarked around $1.09bn in investments for hydrogen hubs.
The plans will be carried out in partnership with the Climate Investment Funds (CIF), which will provide “low-cost financing to boost projects in the sector.”
The hubs are anticipated to integrate hydrogen production, storage and transportation to connect different sectors of the economy.
“Structuring these hubs will allow us to meet not only local demand but also to become a competitive country in the global hydrogen market,” Silveria explained.
H2 View understands that a public call for project proposals will begin accordingly. Bidders will be required to meet eligibility criteria, align with CIF objectives and be focused on decarbonisation hard-to-abate industrial sectors.
The Minister added, “Selected proposals will have the opportunity to be part of Brazil’s investment plan to access financing, covering everything from engineering projects to equipment acquisition and working capital.”
The approach from the Brazilian Government aligns with recent developments in Brazil’s hydrogen sector.
For example, in August (2024) Prumo Logística and Fuella secured the first area reservation contract to develop a low-carbon hydrogen and derivatives hub, located in Rio de Janeiro.
Read more: Prumo and Fuella secure contract for hydrogen hub at Brazilian port
Additionally, Vale partnered with Green Energy Park just last week (October 1) to carry out feasibility studies on the development of a green hydrogen production facility.
The plan comes under Vale’s ‘Mega Hubs’ concept, in which it aims to produce hot briquetted iron (HBI) and other steel products with significantly fewer CO2 emissions than conventional techniques.
Read more: Vale, GEP eye major green hydrogen plant for low-carbon steel production in Brazil
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