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 the availability of around R$6 billion in investments to support the decarbonization of industrial sectors through hydrogen hubs. This initiative is in partnership with the Climate Investment Funds (CIF).

 

Reviewed: October 2024