Hydrogen Policy in Brazil: An Emerging Path to Green Re-Industrialization?

Brazil has set the ambitious goal of becoming the world’s most competitive hydrogen producer by 2030, leveraging its vast renewable energy potential. The development of a market for low-carbon hydrogen and ammonia is central to Brazil’s green industrial policy and its strategy for re-industrialization. While the country holds strong prospects for green hydrogen production, it presently lags behind current frontrunners, with most low-carbon hydrogen projects still in early stages. The recently introduced Hydrogen Act and accompanying tax credits are pivotal in shaping a policy framework, fostering low-carbon hydrogen production and usage. In the absence of a national hydrogen strategy, some states, most notably Ceará, have pushed ahead attracting considerable investments for hydrogen production and export in the past years. Internationally, Brazil has begun reasserting its engagement in hydrogen governance, hosting key global forums, and advancing bilateral and multilateral hydrogen cooperation. This chapter elaborates on these trends and provides a comprehensive review of policy objectives and initiatives, stakeholders, pilot projects, and international cooperation efforts related to the endeavour of creating a market for low-carbon hydrogen in Brazil.