TITLE:
Can Brazil Become a Green Hydrogen Powerhouse?
AUTHORS:
Rafael Kelman, Luana de S. Gaspar, Florian S. Geyer, Luiz A. N. Barroso, Mario V. F. Pereira
KEYWORDS:
Green Hydrogen, Strategy, Brazil, Export
JOURNAL NAME:
Journal of Power and Energy Engineering,
Vol.8 No.11,
November
30,
2020
ABSTRACT: This
paper assesses the feasibility of green hydrogen production in Brazil. By green
hydrogen, it is
meant the hydrogen produced by the electrolysis of water by consuming
electricity produced by renewable sources. The country has large areas with
high solar irradiation and favorable wind velocities that help to make wind
power and solar PV economical alternatives. Other factors include lower investments
and lower grid integration cost with respect to global average, because of the
large share of hydropower. As known, hydro plants respond well to the
short-term variability of renewable production. Local regulations also
incentivize renewable energy. For example, it is possible, according to market
rules, for a hydrogen producer to sign a financial Power Purchase Agreement
(PPA) contract with a producer or trader to secure a firm, renewable energy supply
for the electrolysis process. This market-driven factor, and other key factors,
such as low price of electricity, are considered in an economic feasibility
model. Results from this model suggest that Brazil could become a green
hydrogen powerhouse for the internal market and potential exports to Germany
and other European countries.