Internationally, Brazil’s strategic positioning could improve through participation in the H2Global program’s 2026 auctions and possible adoption of the IMO Net-Zero Framework for maritime transport. These developments open export opportunities for hydrogen derivatives such as methanol and ammonia. To capitalize, Brazil must expand infrastructure and secure long-term contracts with key global buyers.
At the national level, Brazil has mapped 42 green hydrogen projects at various stages, with hubs concentrated in port regions like Pecém, which aims to handle a quarter of Rotterdam’s hydrogen imports by 2030. Pilot projects exceeding 130 MW in electrolysis capacity are under evaluation, focusing on industrial consumption, ammonia production, and injection into existing gas networks pending regulatory approval.
The recently approved second hydrogen law guarantees tax credits up to approximately $3.3 billion through 2032, prioritizing hard-to-decarbonize industries and supporting competitive auctions expected to launch in 2025. These measures complement the Ministry of Mines and Energy’s 2023-2025 work plan, which identifies 65 actions to develop Brazil’s hydrogen potential, including leveraging wind offshore and biomass resources.
Despite these advances, production costs and storage remain challenges. Success hinges on converting contractual interest forged at COP30 into concrete investments. If Brazil synchronizes regulatory frameworks, incentives, and market demand effectively, it could emerge as a strategic green hydrogen exporter in Latin America, but the 2026 deadline leaves limited room for delays.
This article was curated and published as part of our South American energy market coverage.
