Me chame no WhatsApp Agora!

Gabriel de Oliveira Teixeira

Economist and Master's student in Administration from FEA USP-RP and Consultant at Markestrat Group

OpAA78

Green hydrogen: Brazil as a global protagonist

Since the 1970s, the sugar-energy sector has made Brazil unique in the production and use of sustainable fuels on a large scale by encouraging the ethanol market, which, with the creation of flex-fuel cars, in 2003, consolidated definitely stay in the country.

Still at the beginning of the 21st century, there was a great expansion of bioelectricity produced from sugarcane biomass, which has also played a strategic role in terms of sustainability, contributing to the Brazilian electrical matrix being approximately 85% renewable.

Since 2012, the production of biogas from waste from the sugarcane industry, vinasse, straw and filter cake has also gained momentum. One of the products with the greatest potential in the bioenergy market, biogas can be used to generate thermal and electrical energy and, when transformed into biomethane, in light motor vehicles and cargo, helping to reduce the use and import of fossil fuels, such as diesel, and, consequently, to reduce Greenhouse Gas emissions.

Recently, a new opportunity has emerged and the sugar-energy sector can, once again, be a protagonist in this scenario and make Brazil one of the most important players in the global market for yet another product produced in agribusiness, green hydrogen.

With several possible production routes, it has an enormous possibility of use in numerous sectors, and should present an increasing demand in the coming years, which makes it essential that its clean production increases on a large scale. Brazilian industry is capable of overcoming this challenge.

One of the main ways to produce sustainable hydrogen is through the “breakdown” of water molecules into hydrogen and oxygen, a process called hydrolysis. There is great synergy between products from the sugar-energy sector with this process, which can use vinasse water in the production process and bioelectricity generated from biomass, or from burning biogas as the necessary source of clean electrical energy, so that hydrogen can effectively be considered green.

It is also possible to produce hydrogen from the reforming or pyrolysis of biomethane, processes through which it is possible to generate a negative carbon footprint, considering everything from the generation of this raw material to the final use of the hydrogen.

Production using ethanol is also a promising route. There is currently the development of several technologies that use this solution as a basis, such as fuel cells aimed at the transport sector and allowing cars to transform ethanol into hydrogen, which, in turn, is used to generate electricity for the electric motors that power these vehicles.

Sustainable hydrogen is expected to be the new solution for the world's energy system in the coming years. There is a forecast that there will be 280 billion dollars in investments by the year 2030, and 14.5 trillion dollars by 2050, considering the entire value chain that involves production, storage, distribution to the development of new products and business models focused on this product.

It is estimated that low-carbon hydrogen should be responsible for generating 22% of the energy demanded by the world by 2050. Through the use of 660 million tons of the product, there will be a market that could reach 3 trillion dollars per year. This will contribute to reducing the emission of 800 million tons of carbon dioxide in the same period.

The great versatility of hydrogen is a characteristic that makes it important, not only for use in the electrical energy sector, but also in other sectors that are intensive in the use of energy and fossil fuels, such as cement, mining, iron and steel.

In addition to being used as a raw material for the production of fuels and other clean synthetic compounds, such as methanol, green hydrogen is an excellent alternative for the production of ammonia and fertilizers derived from it.

The Brazilian sugar-energy sector is greatly privileged in this scenario as it has resources like few on the global stage, being able to reduce the country's carbon footprint and help it become a global axis of green hydrogen production.

The establishment of rules and the implementation of certification processes that guarantee the low carbon footprint of hydrogen is not only necessary, but can be a differentiator for Brazil in the world market. There are several countries adopting guidelines aimed at the production and export of this product.

Brazil is certainly capable of taking advantage of this opportunity, as there is sufficient expertise in the country to create policies and certifications focused on sustainability.

Among them, RenovaBio stands out, which has already been successful in measuring and encouraging the reduction of the carbon footprint of bioenergy produced in the country, currently focusing on the biofuels production chain. In the United States, the Low Carbon Fuel Standard policy, which has many similarities with the Brazilian program, is already used to certify electricity from the hydrogen producing industry for use in the transport sector. This type of measure can easily serve as inspiration for the Brazilian case, as well as other regulations from Europe and several developed countries.

It is important to highlight the need for sectoral governance that involves bioenergy producing companies, their associations and other agents involved in the sugar-energy sector business chain. to carry out communication campaigns that truly present the reality of Brazilian industry to the world.

It is often seen negatively on the international stage. There are several myths that need to be clarified so that they are known to be untrue. Brazil, today, is an example in terms of sustainability, having one of the strictest forestry codes in the world and one of the cleanest energy matrices today. The dissemination of this information is essential for the success of new investments that will take place in the country.

The National Hydrogen Program is already being implemented in the country and has established goals that should promote the expansion of the Brazilian low-carbon hydrogen market. Data from the Ministry of Mines and Energy show that there are already projects announced for the coming years that reach a total amount of 30 billion dollars.

The opportunity for Brazil and the sugar-energy sector is clear. It is important that the country is now positioned as a major global supplier of bioenergy and sustainable products. We need to show our importance to the world and work so that our agribusiness and its image are more valued every day.