Brazil is strategically positioned as one of the global leaders in green hydrogen (H2V) production, developing a robust Hydrogen Valley architecture that promises to transform the country's energy and industrial matrix. With announced investments exceeding R$ 454 billion and more than 111 initiatives under development, Brazilian territory is emerging as an innovation laboratory for the global energy transition.
The architecture of Brazilian Hydrogen Valleys
Unlike isolated production projects, Brazilian Hydrogen Valleys function as integrated industrial ecosystems, connecting the entire value chain: production, transportation, storage, transformation into byproducts, and export. This systemic approach represents a fundamental competitive advantage over other global players.
The concept is materialized in geographically strategic hubs, taking advantage of the country's abundance of renewable resources and already established port infrastructure. Currently, 15 Brazilian states are developing projects related to H2V, highlighting the national reach of this energy transformation.
Pecém Complex: the epicenter of the green revolution
The Pecém Industrial and Port Complex (CIPP), located 50 kilometers from Fortaleza, is consolidating itself as a national benchmark and one of the largest H2V hubs globally. Its structure is distinguished by an innovative governance model: 70% belongs to the Government of Ceará and 30% to the Port of Rotterdam, guaranteeing direct connection with European markets.
Impressive numbers:
- Total investments of approximately R$ 21.4 billion.
- Planned electrolysis capacity of 5 GW (surpassing the current total renewable capacity of Ceará)
- 200 hectares dedicated exclusively to H2V production.
- Pecém-Rotterdam export corridor established in May 2021
Among the anchor projects, the following stand out: Fortescue Future Industries (R$ 20 billion for a 1.2 GW plant), Casa dos Ventos (2.4 GW of electrolysis), AES Brasil (800,000 tons/year of green ammonia), and the Norwegian company Fuella AS (R$ 9 billion). EDP already produced the first H2V molecule in Brazil in December 2022, technologically validating the hub.
Other strategic hubs under development.
Rio Grande do Norte stands out for its focus on research and development, housing the first Brazilian laboratory for the production of sustainable aviation fuel (SAF). The state, the country's largest producer of wind energy, develops partnerships between Petrobras, SENAI, and private companies for diversified industrial applications.
Rio de Janeiro, through the Port of Açu, a hub structure with a planned capacity of 400,000 tons/year of green ammonia, integrating steelmaking decarbonization solutions with hot-dip galvanized iron (HBI).
Pernambuco advances in technological innovation with the Green Hydrogen TechHub at the Port of Suape, a private investment of R$ 61 million focused on improvements in electrolysis efficiency and digital traceability platforms.
The state of Rio Grande do Sul stands out for its distributed industrialization approach, with 12 companies participating in a government program totaling R$ 102.4 million in subsidies, projecting 20,000 direct and indirect jobs over the next five to ten years.
Regulatory framework: foundation for sustainable growth
Law No. 14,948, enacted in August 2024, established a solid foundation for the sector through three structuring pillars:
- Regulatory: ANP as the regulatory body for production, transportation, and marketing.
- Governance: National Low-Emission Hydrogen Policy with specific development programs
- Certification: Brazilian Hydrogen Certification System (SBCH2) with international interoperability.
The certification system, while voluntary, offers strategic benefits including access to ESG financing, integrity against double counting of emissions, and alignment with premium international market requirements.
Strategic business opportunities
Green ammonia as an export vector
Green ammonia has become the most economically viable route for transporting H2V over long distances. For Brazil, this represents a double opportunity:
- Import substitution: The country heavily imports nitrogen fertilizers. Local production represents supply chain security, reduced exchange rate volatility, and a green seal for Brazilian agribusiness.
- Maritime market: Growing demand for low-carbon fuels in international shipping, with progressive mandatory regulation starting in 2027.
Sustainable aviation fuels
Projected demand for SAF in Brazil reaches 3 billion liters in 2027 and 9 billion in 2037. ANP already allows blending of up to 50% SAF in fossil fuel, with mandatory use for international aviation starting in 2027.
Industrial decarbonization
Sectors that are difficult to electrify find a strategic solution in H2V:
- Iron and steel production through direct reduction of ore.
- Oil refining for desulfurization and hydrotreating
- Chemical, glass, cement and paper industries
Challenges and strategic realism
Despite the well-founded optimism, significant obstacles remain. The current cost of electrolyzers (US$4-6/kg of H2V) will only reach true competitiveness in 2030. Electrolysis requires 9-10 tons of water per ton of H2V produced, demanding robust reuse infrastructure.
The suspension of Unigel's flagship project in Bahia in September 2025, due to financial difficulties, highlights execution risks. Disagreements in international certification standards and slow development of domestic demand represent additional challenges.
The risk of an "export enclave"—a low value-added model—demands strategic attention to the development of downstream industries within the national territory.
Global competitive perspective
According to BloombergNEF, Brazil could produce H2V at US$1.47/kg by 2030, among the most competitive costs globally. The consulting firm Hinicio positions the country as the second most attractive market for H2V in Latin America in 2024, with an upward trajectory to first place in 2025.
Currently, only 5 MW are operational, but 72 MW already have a final investment decision and 10.8 GW are in the approval phase. The potential by 2030 reaches 41 GW of installed capacity.
Final considerations
Brazil has built exceptional strategic foundations for leadership in the global green hydrogen market. The combination of abundant natural resources, a robust regulatory framework, massive international investments, and an expanding innovation ecosystem creates a sustainable competitive advantage.
Success, however, will depend on the disciplined execution of the announced projects, the development of domestic demand, and the ability to add value to the production chain. The moment calls for cautious optimism: the foundations are laid, but building the energy infrastructure of the future will require resilience, public-private coordination, and a long-term strategic vision.
