Brazil could offer 15% of green hydrogen exports in the future

Country to host COP 30 in 2025 and attract the attention of international investors and Canadian companies to clean energy projects

By Deborah Oliveira

Brazil has been gaining increasing prominence in the global energy scene in recent years. Due to its territorial expanse and richness in natural resources, the country emerges as one of the most important players in the renewable, clean, and sustainable energy sector. With the potential to accommodate large projects in solar and wind energy and to enter the future market of green hydrogen development (H2V), Brazil has been increasingly dedicated to research and development, as well as partnerships with sector companies, universities, and institutions in projects that reaffirm its commitment to themes such as energy transition and decarbonization.

Notably, Belém, the capital of Pará, will host the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change, COP 30, which will take place between November 10 and 21, 2025. By assuming the presidency of the group of the most industrialized economies, the G20, in 2024, and the UN climate conference, COP 30, in 2025, Brazil will have the opportunity to influence the international debate.

Considered a trend that can strongly contribute to climate solutions by diversifying the energy matrix and offering security, green hydrogen is still in its infancy in this sector due to the high cost of production without involving CO2 emissions. Last year, during the Brazil Climate Summit, the consulting firm BCG pointed out that Brazil could be the third country – behind the USA and Canada – with the best cost-benefit ratio for supplying low-carbon hydrogen. The estimate is that Brazilian exports of this product will represent 15% of global trade.

Green hydrogen production in Brazil, from solar and wind energy, has been evaluated as one of the cheapest forms, and the general market expectation is that by 2050, the country will be the producer with the most attractive costs. Wind farms located in the Northeast, which concentrate the highest winds, offer a conducive environment to favor partnerships with companies specialized in the clean energy sector.

“Brazil has an energy matrix that makes its competitors envious, with growth potential that goes beyond renewable energy, favoring the development of clean energy projects for this sector. We already see a movement of foreign investment funds investing in the country, even though this technology for green hydrogen production is still embryonic,” says Lucas Becker, country manager of Clir Renewables in Brazil and Latin America, a leading company in the clean technology sector, and associated with the Chamber of Commerce Brazil-Canada (CCBC).

The executive recalls that one of the projects that received investments of US $5 billion is the production of green hydrogen in the Industrial and Port Complex of Pecém, in Ceará. The investment was made by the Australian group Fortescue, the fourth-largest mining company in the world and the first to obtain a preliminary license in Brazil. The location is strategic because it will allow exports to the markets of the USA and Europe to continue with lower costs. Low-carbon hydrogen production is still in the regulatory phase in the country, with bills pending in the National Congress and regulations being developed by the Ministry of Mines and Energy (MME).

Becker believes that partnerships with large companies in industry sectors such as mining are one of the paths to the growth of this market, which may involve even small and medium-sized Canadian companies, in addition to the large ones. “The challenges in this sector are many, and Brazil is seeing investments happening. An example is the Canadian pension fund CPP Investments, which made a joint venture with Votorantim Energia to create a holding company aimed at accelerating global energy transition, in solar and hydro assets, and the Canadian Brookfield and the Norwegian Statkraft, which are betting on investment in the country. These companies are investing, and the climate scenario also exposes issues related to risks in this sector, which requires planning and studies that can address these points. For instance, today, 66 companies own solar and wind farms in Brazil. Out of this total, two of them are Canadian,” explains Becker.

The executive also emphasizes the need to recycle experiences to reduce risks, as well as government support. “Canada is a country that invests globally in energy, and Canadian companies already operating here transmit Canadian expertise in the sector. Bringing this experience from abroad is vital. Clir Renewables has a volume of global information, with information and data, and our work is to offer this knowledge so that investors can work more assertively and reduce risks in their projects,” he concludes.