The Brazilian government has taken a decisive step towards energy transition and strengthening the green economy with the regulation of the hydrogen market and tax incentive programs for new technologies in the sector. These measures are part of the New Brazil and consolidate the country as one of the world's leading nations in the production and strategic use of low carbon hydrogen.
Besides ensuring a safe regulatory environment and attracting investments of more than R$140 billion, the government has also adopted an industrial strategy focused on densification ofstrengthening the capabilities of the sector's national production chain. Unlike other countries that see hydrogen only as a commodity for export, Brazil is adopting an industrialization strategy based on the use of hydrogen to produce high value added goods, such as:
- Green steel, decarbonizing the steel industry;
- Green fertilizers, reducing dependence on imports;
- Synthetic fuels, for aviation and long-haul maritime transportation;
- Green chemistry, producing sustainable ammonia and methanol;
- Green cement and other green products.
This approach maximizes the economic and technological benefits for Brazil, ensuring that the country not only supplies raw materials to other countries, but also develops its own competitive industry, creating skilled jobs, technological innovation and social prosperity.
Strategic partnership
Reinforcing this strategy, the Ministry of Finance has partened with Germany's Fraunhofer Institute to develop national technology for the production and use of hydrogen.
This partnership has the following goals:
- Create an innovation ecosystem, connecting Brazilian universities, research centers and companies;
- Provide specialized workforce training, preparing professionals to work in the new hydrogen economy;
- Strengthen the national industry, reducing dependence on foreign technology and increasing the sector's competitiveness.
Economic impact and projections for the sector
The export of hydrogen-based green products could generate billions of dollars in revenue and create thousands of skilled jobs. Brazil has the potential to become one of the world's largest exporters of decarbonized products, especially to markets such as Europe and Asia, which are looking for sustainable energy solutions.
- R$18 billion in tax incentives for the development of national technologies by 2032
- Private hydrogen projects submitted total R$ 212 billion
Economic Impacts and Investments
Investments already mobilized or committed:
R$18.3 billion in tax credits between 2028 and 2032 (PHBC – Law 14.990/2024)
R$10.4 billion from the Climate Fund, through green credit lines for ecological transformation, part of which is directed to hydrogen
R$6 billion from the international CIF-ID Fund for hydrogen hubs
- R$500 million in R&D through FINEP, with R$250 million focused specifically on hydrogen
Target regions:
- Ceará (Pecém Free Trade Zone): R$17.5 billion invested by Fortescue in a 2.1 GW plant
- Piauí (Parnaíba Free Trade Zone): R$27 billion invested by Solatio in a 3 GW project
- 12 projects selected under the Pró-Hubs Brasil program, with estimated production ranging from 1,000 to 350,000 tons/year, across 7 different states
The participation of companies such as Petrobras, Eletrobras, CSN, Neoenergia, Atlas Agro, and Vale reinforces Brazil’s leadership in the sector.
Innovation and technology:
- The National Hydrogen Program (PNH2) is already implementing 32 priority actions
- Public investment in research increased from R$29 million (2020) to R$200 million by 2025
- Brazil is preparing a National Technology Challenge for electrolyzer production
- The SisH2 network, composed of 13 laboratories, supports certification, research, and safety
Legal framework and environmental certification:
- Rehidro (Law 14.948/2024) exempts hydrogen production equipment from taxes
- The SBCH2 system certifies the sustainability standards of Brazilian hydrogen
- The PNH2 Steering Committee brings together ministries, public agencies, and the private sector to ensure coordination and effective implementation
Tangible Change in People's Lives
This agenda represents a real opportunity for regional development, quality jobs, and green reindustrialization.
