Brazil selects low-carbon hydrogen hub projects

In Brazil, the Ministry of Mines and Energy (MME) recently released the result of the selection of low-carbon hydrogen hub projects, aimed at the decarbonization of Brazilian industry. In total, 70 proposals were received, with projects from 20 states, covering all regions of Brazil. The proposals included hydrogen produced from electricity (connected to the National Interconnected System – SIN) power grid, wind, solar, ethanol, biomass and other sources. The amount of hydrogen produced per project ranged from 1,000 to 350,000 tons per year. 

To analyze the proposals, an evaluation methodology was used that considered the information declared by the proponents based on eligibility and prioritization criteria, as provided for in the call notice.

The MME technical team took into consideration technical, financial, and potential aspects of the hub project, which included the volume of hydrogen produced and the indication of what the industrial use of the hydrogen to be produced will be with a focus on decarbonization. The location of the project – whether in an industrial hub or port area – the indication of a buyer, R&D actions, environmental aspects, and the number of partners involved in the proposal were also taken into account. 

The Proposal Selection Committee was coordinated by the MME and included the participation of representatives from the Civil House of the Presidency of the Republic, the Ministry of Finance (MF), the Ministry of Development, Industry, Commerce and Services (MDIC), the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the National Electric Energy Agency (Aneel), the National Bank for Economic and Social Development (BNDES) and the Energy Research Company (EPE). 

The proposals selected in this stage will be invited to participate in the next phase of the process, which will consist of presenting the projects in detail to better characterize the data provided in the project and how CIF-ID resources can be allocated to support its viability. The best-evaluated project proposals will be able to compete for resources from the international fund Climate Investments Funds – Industry Decarbonization CIF-ID, in which Brazil is participating under the coordination of the Secretariat for International Affairs (SAIN) of the Ministry of Finance, with the participation of the MME and MDIC. 

The National Hydrogen Program (PNH2), through the Triennial Work Plan 2023-2025, established as a goal for the Brazilian hydrogen strategy the consolidation of low-emission hydrogen hubs in Brazil by 2035.  

To achieve this goal, the MME, in collaboration with the Brazil-UK Hydrogen HUB (HUB H2) within the framework of the Brazil-UK cooperation, held an* Expression of Interest to identify proposals to support the development of low-carbon hydrogen hubs on a commercial scale. The United Nations Industrial Development Organization (UNIDO) also participated in the role of secretariat.