A huge decision to make R$6bn ($1.09bn) available to the development of clean hydrogen hubs, has been made by the Brazilian Government. This money will support the clean hydrogen hubs, whilst also developing the ability to decarbonise hard-to-abate sectors.

It has been made clear that the Ministry of Mines and Energy initiative has a plan to establish hydrogen hubs throughout Brazil. The Ministry aims for this to be complete by 2035 and along with this, the Ministry also aims that this plan will leverage the country’s abundant energy resources. It was officially marked by the Minister of Mines and Energy, Alexandre Silveria, that $1.09bn in investments would be dedicated to the hydrogen hubs.

The expectation of these hydrogen hubs, is that they are expected to integrate hydrogen production, storage and transportation, with the intention of connecting different sectors throughout the economy.

Furthermore, it has already been agreed that the plans will be conducted through a partnership with the Climate Investment Funds (CIF). The benefits of carrying out the plan this way, is that it will mean it provides ‘low-cost financing to boost projects in the sector.’

Soon a public call for project proposals will be launched and it has been made clear that any bidders must meet eligibility criteria, whilst also aligning with CIF objectives. These bidders must also show that they are focused on decarbonising hard-to-abate industrial sectors.

A final benefit of this project, is that the approach that the Brazilian Government has taken, neatly aligns with the recent developments that have been made within Brazil’s hydrogen sector.

Minister of Mines and Energy, Alexandre Silveria, commented, “Structuring these hubs will allow us to meet not only local demand but also to become a competitive country in the global hydrogen market. Selected proposals will have the opportunity to be part of Brazil’s investment plan to access financing, covering everything from engineering projects to equipment acquisition and working capital.”