Policy & Regulation

23 Apr 2021

Brazil to Issue Hydrogen Regulations in 60 days

23 Apr 2021  by   
Brazil's national energy policy council (CNPE) plans to issue hydrogen regulations by late June as part of a national hydrogen strategy.

The mines and energy ministry, the science and technology ministry and government-controlled energy research company Epe are drafting the regulatory framework to address production, storage, transport and distribution infrastructure and safety.

The hydrogen regulations are part of a broader government initiative – dubbed "Future Fuel" – that aims to encourage the use of low-carbon fuels, including green naphtha, biokerosene and renewable marine fuels. It would replace diesel by creating "green corridors" where heavy vehicles will have guaranteed access to biomethane, LNG or natural gas to fuel trucks.

Because Brazil's electricity generation mix is already 83pc renewable, the country has the potential to become a global low-cost hydrogen supplier, mines and energy minister Bento Albuquerque says.

The new regulations will also address the potential for blue hydrogen and carbon storage. Green hydrogen is derived from renewable energy such as solar and wind farms, while blue hydrogen uses natural gas combined with carbon capture and storage.

The national hydrogen plan will analyze domestic demand potential for hydrogen, including the energy, transport, fertilizers, chemicals and steel industries.

Three preliminary green hydrogen projects have surfaced just over the past month, involving state-controlled utility Eletrobras and Germany's Siemens; Australia's Enegix Energy with the Ceara state government; and Australia's Fortescue Future Industries (FFI) and Brazil's port operator Prumo Logistica.

The government announced the hydrogen plan as a US-sponsored international climate summit gets underway. This week Brasilia also proposed a $1bn/yr international payment to fight Amazon deforestation.

Elsewhere in South America, Chile is advancing hydrogen regulations and funding to support emerging projects as well.

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