South Korea's Hyundai Motor Co. plans to dispatch representatives to Brazil's Bahia state between March and April to scout potential locations for green hydrogen production, Governor Jerônimo Rodrigues announced on Friday, signaling Bahia's ambition to become a hub for clean fuel like Ceará.
Rodrigues stated the initiative aims to position Bahia as a key player in green hydrogen revolution in Brazil, a critical solution for global decarbonization. The governor's international test drive of a hydrogen-powered vehicle established a new level of interest from local stakeholders because they wanted to learn more about the technology.
"I met with Hyundai, and what we need to do is produce the fuel. Hyundai already has a partnership with Senai Cimatec, and the state government is closely monitoring the initiative," Rodrigues said during a press conference in Camaçari, part of the Salvador metropolitan region.
The visit will assess industrial areas in Camaçari and Feira de Santana as sites for prospective investments which will include upcoming manufacturing facilities. Rodrigues expressed optimism that Hyundai could emulate Chinese automaker BYD, which has invested in electric vehicle production in the state.
Rodrigues stated that green hydrogen production should proceed faster so that it can become available in the region. Initial discussions about the project started when Rodrigues visited India and South Korea with president Luiz Inácio Lula da Silva.
Automakers Advance Hydrogen Plans in Brazil
The Brazilian automotive industry now considers hydrogen because both carmakers and government officials search for methods to reduce carbon emissions from electric vehicle transportation and especially from heavy-duty trucks. Hyundai has spent almost thirty years developing hydrogen technology through its production of more than 38000 Nexo fuel cell passenger vehicles which it sells together with its hydrogen-powered trucks and buses that operate in various countries.
The Chinese automotive manufacturer GWM has started testing its 39-ton hydrogen-powered truck in Brazil after introducing over 2000 of these vehicles to the Chinese market.
The two companies' executives stressed that partnerships serve as essential elements for expanding hydrogen operations throughout Brazil. GWM has established cooperative relationships with the São Paulo state government while working together with USP and IPT and Senai Cimatec research organizations.
Ethanol Seen as Strategic Advantage
Brazil's extensive ethanol infrastructure provides a competitive advantage for hydrogen production. Hyundai collaborates with the University of São Paulo (USP) Toyota and Senai on a groundbreaking initiative to create hydrogen through ethanol using high-temperature reforming technology.
The current method will produce hydrogen fuel at existing fueling stations by using Brazil's ethanol distribution system which will help heavy transport vehicles to adopt hydrogen fuel.
Challenges Remain Despite Policy Support
Despite growing interest, hydrogen adoption faces significant hurdles, including high vehicle and fuel costs, limited refueling infrastructure, and competition from other low-carbon fuels like biofuels.
However, recent policy initiatives and regulatory frameworks introduced in 2024, alongside research and pilot programs, are fostering momentum. Industry players plan to showcase hydrogen technologies at the COP30 climate summit.
"We believe hydrogen is the fuel of the future," stated Hyundai executive Fernando Yamaguchi, reflecting cautious optimism regarding the technology's long-term potential in Brazil and worldwide.
