Green Hydrogen in Brazilian Industry: Opportunities, Costs, and Adoption Roadmap

What is green hydrogen

Green hydrogen is produced by water electrolysis using electricity from renewable sources (solar, wind, hydro). The process separates H₂O into hydrogen (H₂) and oxygen (O₂), with zero direct CO₂ emissions. It differs from grey hydrogen (produced via natural gas reforming, with emissions) and blue hydrogen (grey with carbon capture).

The color classification is relevant for the regulatory market: CBAM and SBCE differentiate hydrogen by the carbon intensity of production, not just the source.

Why Brazil has an advantage

Brazil combines unique conditions to become one of the world's largest green H₂ producers: abundant and low-cost renewable energy (Brazil has some of the lowest wind and solar energy costs globally), port infrastructure for export (especially in the Northeast), available water in strategic regions, and domestic demand in steelmaking, chemicals, and refining.

The projected production cost in Brazil is US$ 1.5-2.5/kg H₂ by 2030, globally competitive.

Industrial applications

Steelmaking: Replacement of coke/coal as a reducing agent in iron production. The DRI (Direct Reduced Iron) route with green H₂ is the most promising technology for "green steel." Pilot projects are already operating in Europe (HYBRIT/SSAB).

Chemicals: Feedstock for green ammonia (fertilizers), green methanol, and other basic chemicals. Decarbonizing ammonia production is one of the most immediate applications.

Refining: Replacement of grey H₂ already used in hydrotreating and hydrocracking processes.

Heavy transport: Fuel cells for long-distance trucks, ships, and potentially aviation (via SAF — Sustainable Aviation Fuel).

Challenges and timeline

Cost: Still 2-3x more expensive than grey H₂, but parity is expected by 2030 with scale and electrolyzer cost reduction.

Infrastructure: Storage, transport (pipelines, ships), and distribution still under development.

Regulatory framework: Brazil is advancing regulatory frameworks for green H₂, including tax incentives and special processing zones in the Northeast.

Realistic timeline: 2025-2028 — pilot projects and first commercial plants. 2028-2032 — industrial scale, export to EU. 2032+ — broad integration in steelmaking, chemicals, and transport.

How to integrate green H₂ into your roadmap

The Decarbonization Planner in CarbonOS models green H₂ adoption scenarios considering projected costs, emission impact per facility, feasibility timeline, and comparison with other decarbonization levers on the MAC curve.

Schedule a demo and evaluate when and how to integrate green hydrogen into your roadmap.