The Brazilian government has taken significant steps to boost its clean hydrogen sector with two major initiatives:
- USD 3.4 billion in tax credits for clean hydrogen producers, starting in 2028 through competitive auctions.
- USD 1 billion investment in low-carbon hydrogen hubs to decarbonize hard-to-abate industries.
Brazil’s vast renewable energy resources uniquely position the country to produce clean hydrogen at competitive costs.
This shift will enable Brazil to produce green ammonia, vital for decarbonizing its fertilizer industry and reducing reliance on imports. This is a game changer for Brazil as it is the 4th largest consumer of fertilizers globally but heavily dependent on foreign supply.
Additionally, Brazil’s abundant biogenic CO₂ from existing bioenergy industries can unlock the potential for e-fuels production like e-methanol and e-SAF, further accelerating the country’s transition to a low-carbon economy.
Exciting opportunities ahead for Brazil’s hydrogen sector!
