Brazil

Country: Brazil

Document type: Policy document

Title: National Hydrogen Program (official announcement only)

Released: August 2022 (formal publication of National Energy Council Resolution No. 06/2022)

Summary Points:

In August 2022, Brazil’s Federal Government published a resolution which established the National Hydrogen Program (PNH2). Among its objectives, the policy seeks to decarbonise the economy, to value and encourage national technological development, and to develop a competitive hydrogen market.

The Ministry of Mines and Energy National Hydrogen Program – PNH2 webpage is found here.

The National Energy Council resolution that established PNH2 also established a Management Council to coordinate and supervise the planning and implementation of the Program. Five thematic groups were initially set up to deal with the following issues:

  • Strengthening of the Scientific-Technological Bases and Innovations.
  • Training of Human Resources.
  • Energy Planning.
  • Legal and Regulatory-Normative Framework.
  • Market Opening and Growth and Competitiveness.

In August 2023, media reporting (English translation) highlighted key aspects of the 2023-2025 Triennial National Plan of the National Hydrogen Program as presented by the Ministry of Mines and Energy, including a focus on low-carbon hydrogen production, including renewable energy sources, biomass and fossil fuels with carbon capture, and storage or use, and nuclear.

Among the highlighted goals included in the 2023-2025 Triennial Plan are:

  • Disseminate pilot plants in the country by 2025.
  • Consolidate Brazil as the most competitive country in the world in the production of low-carbon hydrogen by 2030.
  • Consolidate, by 2035, low-carbon hydrogen hubs in the country – bringing together hydrogen producers and consumers, power generators, and distribution and transport logistics.

Priorities also included progressing a legal framework for hydrogen and plans to substantially increase investments in R&D and Innovation for low-carbon hydrogen (reported as rising from BRL$29 million in 2020 to BRL$200 million in 2025) and expand financing capacity for projects.

An October 2023 media report discusses the regulatory framework status.

In June 2023, the EU pledged this week to invest €2.0 billion in hydrogen in Brazil as part of its Global Gateway investment programme.   In November 2023, in a related announcement, the EC president together with the Brazilian President announced EU support to build a large hydrogen project in the Brazilian State of Piaui. This project is part of the €2.0 billion Global Gateway investment in the hydrogen value chain in Brazil.

In August 2024, the legal framework for low-carbon Hydrogen was sanctioned by the President of Brazil: the law brings a series of initiatives to develop the industry in Brazil, including:

  • A Special Incentive Regime for the production of Low Carbon Emission Hydrogen (the incentive would be valid for five years, starting January 2025).
  • The Brazilian Hydrogen Certification System (SBCH2), which establishes the structure, governance, and competencies, as well as voluntary certification, by emissions intensity, based on life cycle analysis.
  • The Bill defines the National Agency of Petroleum, Natural Gas and Biofuels as the regulator of hydrogen and establishes a limit intensity of 7kgCO2eq/KgH2..

In October 2024, the Brazilian Government announced a public call to identify proposals for low-emission hydrogen hub projects. It was noted that the sector could access part of the R$6 billion (US$1 billion) in funding available within with the Climate Investment Funds Industrial Decarbonisation (CIF-ID) Program (also announced in October) in which the Brazilian Government is participating. In December 2024, the Brazilian Government announced the selection of 12 projects to be invited to participate in the next stage of the process, which consists of presenting the projects in detail to better characterize the data reported on the project and how CIF-ID resources can be allocated to support its feasibility (the release noting that the best evaluated project proposals may compete for funding under the CIF-ID program).

 

Reviewed: January 2025