Inside Brazil’s Bold Push to Lead the Global Green Hydrogen Race

Brazil's southern state of Rio Grande do Sul is positioning itself as another Brazilian key player in the emerging green hydrogen market, with ambitious plans to develop local supply chains and attract significant investment, state officials and industry representatives said.

The "Conexão Indústria" (Industry Connection) program, a partnership between the state's industry federation (FIERGS), the state government, and investment promotion agency Investe RS, aims to foster economic development by strengthening local supply chains for new investments, particularly in green hydrogen.

Fabrício Forest, Investment and Commercial Promotion Director at Investe RS, highlighted the agency's role in this initiative. Created just over a year ago as part of the state's long-term development plan, Investe RS focuses on attracting investments, promoting trade, and enhancing the state's image.

A McKinsey study commissioned by the state government identified 10 high-potential areas for green hydrogen production within Rio Grande do Sul, considering factors such as proximity to wind farms, power plants, industrial hubs, ports, and transmission grids.

Projections for the green hydrogen industry in the state by 2040 include the creation of 41,000 jobs and an addition of R$62 billion (approximately $12.2 billion) to the state's GDP. Internal consumption of hydrogen is projected at 600,000 tonnes, indicating a strong domestic market for green ammonia, green methanol, and fuel for heavy transport, rather than solely relying on exports.

"The idea of the green hydrogen market, as shown by McKinsey, does not necessarily require us to export this green hydrogen for projects to be viable," Forest stated, emphasizing the significant local market potential.

In a tangible step towards realizing this potential, the state government last year launched a public tender offering up to R$30 million in subsidies for green hydrogen projects. Out of 16 proposals, four projects were selected as winners: Tramontina, Biate, Ambar, and Ambiental Plastic (Rodoplast). These projects are now moving forward with the effective production of green hydrogen in the state.

Alberto Machado, Executive Director for Oil, Gas, Energy, and Hydrogen at ABMAC, underscored the importance of developing a complete value chain within Brazil. "We have to ensure Brazil's autonomy in all aspects, not just in hydrogen production," Machado said, advocating for the generation of wealth, employment, and income through the export of equipment and technology.

Machado also noted the relevance of biomass as a route for hydrogen production in Brazil, potentially offering lower emissions depending on the electricity source. He highlighted that hydrogen in Brazil is seen more as an energy source for industry and a raw material for products like ammonia and urea, rather than primarily for electricity generation.

"The demand that already exists for hydrogen, currently produced from natural gas, is what will be replaced by green hydrogen, plus natural growth," Machado explained, projecting a four to five-fold increase in overall hydrogen demand.

Rio Grande do Sul is considered to be at the forefront of green hydrogen development in Brazil, with a robust environment of innovation, public policies, and incentive tools. "We are really a few steps ahead of most Brazilian states in terms of the environment for the production and exploration of green hydrogen," Forest concluded, pointing to ongoing construction and operationalization of plants in the state.

Brazil’s Hydrogen-Powered Ship Could Revolutionize Global Shipping

A Brazilian project which presents revolutionary features is about to change the way ships travel across oceans through its creation of the JAQ H2. This 50-meter ship operates at sea and generates green hydrogen fuel for its own needs. The project which Grupo Náutica and the Institute for Technological Research (IPT) developed will create an energy-independent system that eliminates all carbon emissions while developing new methods for naval engine operation.

The JAQ H2 which is now being built in Guarujá, in the state of São Paulo, will reach its operational status in 2027. The new system represents a major technological advancement from the previous model which used 36-meter JAQ H1 to demonstrate hybrid propulsion and achieve an 80% CO2 emission reduction during COP30. The H2 system will generate hydrogen through its onboard electrolysis system which uses water as its input. The hydrogen gas produced through this process will power the ship engines which produce only water vapor as their emissions.

The president of Grupo Náutica, Ernani Paciornik, declared that the company is developing its business from an experimental stage into a sustainable operational system which can generate profits. The project solves an essential problem which hinders the shipping industry from achieving its decarbonization goals because the industry depends on diesel engines and its operations need diesel fuel for extended distances and its battery systems have weight constraints. The JAQ H2 system produces its own fuel, which removes the requirement for outside fueling, while it also helps Brazil lead worldwide maritime energy transformation efforts.

The 125-year history of IPT in applied science will provide essential support for both testing the electrolysis system and maintaining secure hydrogen storage during actual navigation operations. The project includes a strong partnership network which consists of global manufacturer GWM, SENAI Pernambuco, and Porto do Açu in Rio de Janeiro, which functions as an essential testing center and research facility.

The JAQ H2 project which has potential to bring revolutionary changes remains in its experimental phase. The project faces technical challenges because hydrogen has low energy density which demands special storage systems and the team must find ways to improve electrolysis and reconversion process efficiency. The technology needs additional research to achieve both commercial viability and scaling capacity according to current requirements. The project establishes a definite path toward future navigation because it focuses on developing new vessel designs that optimize energy usage while decreasing harmful emissions.

Brazil Emerges as Global Hub for Renewable Hydrogen as Investment Surges

Brazil is becoming a global force in the renewable hydrogen sector. In 2026, the country will receive investments of more than R$100 billion ($20 billion). The South American nation is trying to use its unique energy resources to become one of the leading global producers of hydrogen with low carbon emissions, which supports the worldwide energy transition that is currently taking place. 

Industry analysts and recent reports from BN Americas and Eixos indicate that 2026 will be a "watershed year" for the sector. Projects currently advance from their initial study phase together with existing memorandums of understanding to reach Final Investment Decisions (FID), which represent the point when projects begin to receive funding and construction work starts.

A Strategic Shift in Energy Production

Hydrogen produced from renewable sources through biomass, biogas, solar and wind power systems provides a sustainable hydrogen solution which produces almost no carbon emissions when compared to conventional hydrogen production methods that extract hydrogen from natural gas or coal. Brazil has an advantage because its electricity grid generates more than 90 percent of its power from renewable sources during peak usage times.

According to most experts in the field, the era of renewable hydrogen has reached its operational phase. This new phase creates also new possibilities for development. The industry is targeting multiple markets which include green ammonia production for fertilizers and methanol manufacturing for the chemical sector and Sustainable Aviation Fuel (SAF) production.

Domestic Demand vs. Export Ambitions

Most of the world continues to concentrate on sending hydrogen to Europe because Germany will see a 30% increase in hydrogen demand by 2030. The country currently depends on foreign sources for all its methanol needs and 85% of its nitrogen-based fertilizer requirements.

Brazil seeks to establish a domestic hydrogen market to decrease its need for foreign products while achieving carbon reductions in its large-scale agricultural and manufacturing operations. This industry will develop rapidly because investors plan to invest more than R$100 billion until 2026. The country will produce 800,000 tons of low-carbon hydrogen annually by 2030 which will establish it as one of the world’s leading hydrogen producers. 

Furthermore, the European Union serves as a primary export market because Germany and the Netherlands have rising demand for renewable energy sources. The projects in Ceará will create about 42,000 jobs which shows how the industry creates major economic benefits for society — the port of Pecém in Ceará is positioning itself as a crucial point for this development. 

Moreover, the production cost of hydrogen in Brazil will become more affordable because its production cost will decrease to between $1.25 and $1.50 per kilogram between 2030 and 2040. This development will make Brazil more appealing to international buyers in the hydrogen industry.

Regional Hubs and Technological Innovation

The state of Ceará has emerged as a frontrunner because the Port of Pecém has received more than $30 billion in declared investments. However, the country is experiencing widespread innovation. The state sanitation company Sanepar in Paraná is investigating how to convert biogas from sewage treatment plants into hydrogen, which experts believe can be implemented throughout the country.

The field of technological development now includes various methods that go beyond electrolysis. Brazil has abundant ethanol resources together with residual biomass, from which only 5% of its total capacity serves as feedstock for biogas production. This situation enables the country to develop alternative methods for hydrogen extraction and production of urea and methanol.

Overcoming Barriers

However, the existing problems remain despite people maintaining their positive attitude. The process of exporting hydrogen to Europe needs strict carbon intensity certification requirements. The European Union will impose regulatory restrictions on "green" hydrogen transportation when it depends on fossil fuel transportation methods.

The industry currently faces a dual problem: it receives investment funding yet lacks skilled workers and companies capable of building large industrial facilities. The industrial sector will need to hire more technical staff because it transitions from conducting pilot tests to operating full-scale industrial facilities.

Even so, it is possible to state that the economic basis for the "Brazilian Hydrogen Rush" remains strong because production expenses in Brazil will be much lower than European rates, which will reach $1.25 per kg while current European prices exceed €8 per kg.

Hyundai Eyes Green Hydrogen Production in Brazil’s Bahia State

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.

Brazil Researchers Develop Low-Cost Catalyst to Boost Ethanol-to-Hydrogen Production

Researchers in Brazil have developed an advanced catalyst that significantly improves the efficiency and stability of ethanol-to-hydrogen conversion, offering a potential pathway to lower-cost, low-carbon hydrogen production, according to Agência Fapesp.

The study, led by Fabio Coral Fonseca of the Institute for Energy and Nuclear Research (Ipen) and published in the International Journal of Hydrogen Energy, demonstrates that fine control over the processing of perovskite-type ceramic materials can enhance hydrogen yields while eliminating the need for expensive noble metals.

Hydrogen is widely viewed as a key component of the global energy transition, particularly when produced from renewable sources. In Brazil, abundant ethanol derived from biomass presents a strategic opportunity for hydrogen generation through ethanol steam reforming (ESR), a high-temperature process in which ethanol reacts with steam to produce hydrogen and carbon dioxide.

The research focuses on improving catalysts used in ESR. Instead of applying nickel to the surface of ceramic materials through conventional impregnation methods, the team incorporated nickel directly into the perovskite crystal structure during synthesis. Under controlled conditions, the metal “exsolves,” forming highly stable nickel nanoparticles firmly anchored to the surface.

This approach enhances catalytic stability, reduces carbon deposition and prevents particle agglomeration at high temperatures, common issues that degrade conventional catalysts.

A key finding of the study is that calcination temperature plays a decisive role in performance. Catalysts calcined at 650°C delivered the best results, achieving 100% ethanol conversion, producing more than four moles of hydrogen per mole of ethanol, and maintaining stable operation for up to 85 hours with minimal coke formation. Higher calcination temperatures reduced surface area, limited nickel exsolution and weakened performance.

Fonseca emphasized that manufacturing conditions are as important as material composition. “A relatively simple adjustment in processing completely changes performance,” he noted.

Beyond ethanol reforming, the team is also exploring direct ethanol fuel cells as an alternative route for energy conversion. Their broader research into metallic exsolution in perovskites includes prior collaboration with U.S. institutions supported by the São Paulo Research Foundation and the National Science Foundation.

The scientists are now advancing toward highly controlled epitaxial thin films to study catalytic behavior at the atomic scale, using advanced characterization tools at Sirius, Brazil’s synchrotron light source.

By demonstrating that abundant, low-cost metals such as nickel can achieve high catalytic performance when properly engineered, the research outlines a promising route to reduce reliance on noble metals and strengthen sustainable hydrogen production, particularly in Brazil, where ethanol infrastructure is already well established.

Green Hydrogen (H2V): Debunking Myths and Why Brazil Cannot Miss the Energy Transition Race

 Green hydrogen (H2V) is recognized by many as the most significant contributor to the global energy transition and the most potent option to decarbonize the earth. However, H2V, like any other innovative technology at the beginning, is not widely accepted and is still not very much understood by the public. Consequently, misinformation and myths that are not going away keep on being circulated through social media. 

The first step is to ensure that these misconceptions are blown away through the provision of simple and factual information. If not, public perception may turn into a barrier for a technology that has the potential to change the energy landscape, industrial practices, and climate policy not just in a region but globally.

Myth #1: Green Hydrogen Is Too Difficult to Store

One of the primary myths surrounding green hydrogen is that it has always been a difficult factor related to its storage. The truth is that hydrogen can be stored very securely and also very conveniently, especially if in the form of gas.

The most common technique is the compression of hydrogen gas into high-pressure cylinders made from either steel or carbon-fiber-reinforced composite. The pressures for which these cylinders are built to last is typically between 200 and 350 bar. This means green hydrogen can be stored at locations that are very similar to those for conventional gas, like the case of compressed natural gas (CNG), but only using specially designed containers for higher pressures.

On the technical side, hydrogen storages are not yet developed. It is a problem where the engineering has reached the point of application and the solutions are already in use.

Myth #2: Transport and Distribution Are Major Barriers

There is another belief that green hydrogen cannot be transported or distributed at a large scale. Actually, hydrogen can be distributed through pipelines the same as natural gas, though at higher pressures and with materials that do not succumb to hydrogen embrittlement.

Steel and metal alloys are used widely for preventing the corrosion and degradation of the materials. Hydrogen given high pressure is stored and transported through the pipelines that are meant for such purpose and allows long-distance transport. Furthermore, hydrogen can also be transported by ordinary gas transport trucks that are modified to take the higher pressure.

In simpler terms, while the distribution of hydrogen is difficult, it is not impossible.

Myth #3: Electrolyzers Are Too Expensive and Depend on Scarce Materials

Electrolyzers generally use catalysts made with platinum-group metals, which include platinum, iridium, ruthenium, and palladium. The extraction of these metals takes place in different parts of the world, like South Africa, Russia, and Canada. The total amount of these metals available to the world is not too much, but still, the current supply is reliable and ongoing.

What is more, the technological advances are quickly changing the electrolyzer designs. Among the advances are the use of polymer electrolyte membranes, the enhancement of recycling methods, and the search for alternative materials. There is nothing that points to the supply-chain issues becoming an unbeatable obstacle to the green hydrogen's production process.

The Largest Energy Transition in Human History

Humanity depended on natural energy sources, like trees, wind, and water, for almost three hundred thousand years. Fossil fuels eventually appeared on the scene only two hundred years ago, causing the environment severe degradation.

The development of green hydrogen indicates a deep change in the carbon-intensive model. It is the biggest energy transition of all time. Like all paradigm shifts, there come myths and opposition. But if Brazil is to take part in the global hydrogen competition it will have no option but to counter the false tales with truth.

Brazil’s First Biogas-to-Hydrogen Pilot Plant: A National Milestone

In the fourth quarter of 2025, the Federal University of Paraná (UFPR) inaugurated Brazil’s first pilot plant dedicated to producing renewable hydrogen from biogas at its Polytechnic Center in Curitiba.

The project, funded through Copel GeT’s R&D program, is unprecedented in the country. It uses organic waste generated daily by UFPR’s university restaurant to produce high-purity hydrogen without consuming water.

This process relies on anaerobic biodigestion to generate biogas, followed by dry catalytic reforming, thermochemical conversion, PSA purification, compression, storage, and conversion into electricity via fuel cells.

“Through biomass, we turn waste into biogas, energy, and fertilizers. Everything that enters the process is reused,” explains Leandro Foldran, R&D manager at Copel GeT.

Paraná as a Secondary Front

In contrast, fertilizer operations in Paraná play a supporting role in Brazil's industrial map. While relevant for regional supply and operational balance, these assets lack the scale, export potential and strategic integration seen in Ceará.

From an investor and policy perspective, Paraná represents continuity. Ceará represents transformation. However, if the Paraná project gains scale, it could represent a profound change in the hydrogen market, especially if we consider the production capacity that this type of hydrogen could achieve in relation to the organic waste produced by both large cities and agribusiness.

Why This Project Matters for Brazil’s Energy Future

Brazil has one of the world’s largest untapped biogas potentials, yet currently exploits less than 5% of its available organic waste. Converting this resource into hydrogen dramatically increases its economic value and strategic importance.

With hydrogen prices potentially reaching US$ 3 to US$ 3.50 per kilogram at scale — below current global benchmarks — biogas-based hydrogen could become one of Brazil’s most competitive energy assets.

More than a scientific breakthrough, UFPR’s pilot plant is proof that Brazil can lead the global transition to low-carbon energy.

The Bottom Line

Green hydrogen is not a distant promise. It is already being produced, stored, transported, and used, safely and efficiently. The real challenge lies not in technology, but in overcoming misinformation and accelerating deployment.

If Brazil acts decisively, it will not only decarbonize its economy but also secure a strategic position in one of the most important energy markets of the 21st century.

The race has already begun.

Green Hydrogen: Ceará Becomes Brazil’s Most Strategic Energy Transition Hub

Brazil is quietly but decisively repositioning itself for the global energy transition, and Ceará has emerged as the centerpiece of this strategy. At the Port of Pecém, the country is backing a US$ 33,1 million green hydrogen (H2V) investment, placing the Northeast of Brazil at the forefront of one of the most competitive and capital-intensive energy markets of the coming decades.

While other regions host smaller or more experimental initiatives, the Pecém project stands out for its scale, logistics and export-oriented design, signaling Brazil government's ambition.

The H2Mover-Pecém is an advanced and environmentally friendly hydrogen project that has managed to get R$ 33.1 million through the highly regarded Northeast Call of Nova Indústria Brasil. This considerable sum is planned to be spent on a project that will ultimately transform heavy transport in Brazil, where the first step will be in the Pecém Industrial and Port Complex (CIPP) in Ceará.

The main aim of the project is to decarbonize the heavy mobility segment, which is still largely untouched and difficult, in Brazil. H2Mover-Pecém is an alliance of several companies, with Grupo Cordeiro as the leading player, and Grupo Unilink Transportes and the AECIPP as partners. The plan is based on a shared infrastructure that is the key to its operation. It will have a stationary pilot plant that is capable of producing up to 100 kilograms of green hydrogen per day, and this will include integrated compression and storage systems. The immediate practical use of the project is further supported by the establishment of a mobile refueling unit, which will be dedicated to heavy vehicles working in the complex, thus making it an integral part of the project.

The first fleet of operational equipment will be a showcase of new technology, consisting of five units, among which are vehicles with hydrogen engines (H2-ICE) and electric vehicles powered by fuel cells (FCEV). A very advanced digital platform made in partnership with the Federal Institute of Ceará (IFCE) will also come into play in monitoring the operational quality, the amount of energy consumed, light emissions that would have occurred and thus avoided.

The H2Mover-Pecém has set itself a 36-month technological development schedule which is clear and intended to be executed in the most efficient manner possible. It is expected that the first vehicles will start operating in 2028 and the transition to the commercial phase will be in 2029. The whole project is built in such a way that it can easily be taken to other areas, not just Pecém, and nationwide highways and logistic corridors can then benefit from it. The whole thing is a win-win; H2Mover-Pecém becomes an essential component of the upcoming Green Hydrogen Hub of Ceará, being a supplier of the real hydrogen consumption, power independence of the CIPP, and ultimately boosting the local job market.

Why the Port of Pecém Matters

The Port of Pecém is widely regarded as one of the most promising green hydrogen hubs in Latin America. Its advantages include:

• Direct access to deep-water port infrastructure, suitable for large-scale exports
• Proximity to renewable energy sources, particularly wind and solar
• Strategic positioning for shipping routes to Europe and Asia, two of the largest future hydrogen markets

By participating in a US$ 33 million hydrogen initiative at Pecém, Petrobras is aligning itself with international decarbonization agendas and signaling readiness to compete in a market expected to attract hundreds of billions of dollars globally over the next decades.

A Strategic Bet on the Energy Transition

The hydrogen project in Ceará for Petrobras is not just a matter of symbolism, in fact, it is a matter of strategy. Green hydrogen is more and more perceived as a crucial solution for the decarbonization of difficult-to-abate sectors such as steel, chemicals, shipping, and aviation. With its hydrogen ambitions rooted in Pecém, Brazil, and  companies like Petrobras, obtains:

• Early access to a rapidly growing global market
• A base for collaborating with international partners
• An avenue for enhancing its portfolio of non-fossil fuel products

This step, for example, could strengthens Petrobras' story of moving from an oil producer to a wider energy company.

Ceará as a Gateway to Brazil’s Hydrogen Future

The emphasis on Ceará reflects a broader shift in Brazil’s energy geography. With modern infrastructure, renewable abundance and global connectivity, the state is fast becoming Brazil’s primary gateway to the hydrogen economy.

The message is clear: the future of energy diversification is being built in the Northeast of Brazil, and it starts at Pecém.