Environment

Hurdles and opportunities for green hydrogen in Brazil

Brazil has the potential to become a global leader in green hydrogen production, but the country appears to be standing in its own way

Green Hydrogen
Illustration: Corona Borealis/Shutterstock

While it is a technology still in its infancy, green hydrogen is being touted as a way to decarbonize the economy and help countries meet their emission reduction goals. 

Unlike so-called “blue” hydrogen, which requires a lot of energy and emits vast amounts of carbon dioxide — even more so than simply burning natural gas, per a recent study — green hydrogen is obtained through the electrolysis of water. In this process, an electric current powered by a renewable source passes through the water and separates hydrogen and oxygen atoms from each other.

Some researchers say the rapid decrease in the cost of renewables is making green hydrogen more cost-competitive, although we may still be decades away from it being a central energy source. Still, countries are investing in what is considered to be a reliable, next-generation fuel. And Brazil could end up at the center of that revolution.

Currently, the most immediate uses for this source of energy are in the heavy transport and chemical sectors. In the future, it expects — at the very least — to retire other types of hydrogen, which account for a market valued at roughly USD 174 billion a year. That is already higher than the value of annual trade in liquefied natural gas (LNG).

The values could be even higher. According to Goldman Sachs, the green hydrogen economy could become a USD 11.7 trillion investment...

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