85% Renewable and Rising: Brazil’s Rio Grande do Sul Unveils a Bold Energy Transition Strategy

Rio Grande do Sul, Brazil’s southernmost state, is positioning itself as a vanguard in the global energy transition, leveraging a highly renewable power grid and a strategic focus on domestic green hydrogen consumption to drive industrial decarbonization.

Speaking at the 6th Renewable Energy Forum in Porto Alegre, Rodrigo Huguenim, Energy Director at the State Secretariat for Environment and Infrastructure (SEMA), highlighted that 85% of the state's electricity matrix is already renewable, led by hydro, solar, and wind power.

GREEN HYDROGEN: THE "MISSING LINK"

The state is betting heavily on green hydrogen as a catalyst for sustainable industrial growth. Unlike other regions focusing primarily on exports, Rio Grande do Sul’s strategy centers on establishing a robust domestic market first.

"Our goal isn't just to export hydrogen as a commodity," Huguenim said. "We want to use it to decarbonize our local industry, such as our massive agribusiness and biodiesel sectors, adding value to our products before they reach international markets with a 'green' seal of approval."

In 2025, the state launched a 100 million reais ($17.3 million) tender to support private-sector green hydrogen projects. Four major companies — Be8, Rodoplast, Tramontina, and Âmbar Sul Energia — were selected to spearhead the state’s first production plants.

STRATEGIC PLANNING AND RESILIENCE

Rio Grande do Sul remains the only Brazilian state with comprehensive energy atlas, mapping all its renewable resources, including wind, biomass, solar, and a newly updated hydro-energy atlas released in 2024.

This data-driven approach is coupled with a renewed focus on infrastructure resilience following the catastrophic floods of May 2024. The state has commissioned a specialized study on energy transmission to identify "neuralgic points" and ensure the grid can support the influx of new data centers, battery storage, and hydrogen projects.

"There is no energy transition without transmission," Huguenim emphasized, noting that the state is working closely with federal agencies like the EPE (Energy Research Office) to coordinate long-term grid stability.

BIOMETHANE AND THE "GAS ERA"

The state also sees biomethane as a critical component of its "energy addition" strategy. Rather than simply replacing fossil fuels, Huguenim argues that the world is entering an era of gases where biomethane and hydrogen will complement existing sources to ensure energy security and cost-effectiveness.

With 40% of its GDP tied to agribusiness, Rio Grande do Sul has a ready-made market for green fertilizers produced via hydrogen and biomethane, potentially reducing the state’s dependence on imported methanol and nitrogen-based inputs.