The green hydrogen industry has become a recurring topic among politicians and investors, while the sector still needs further advances. In this scenario, the ABIHV (Brazilian Green Hydrogen Industry Association) presented candidates running for the Presidency of Brazil in 2026 with an agenda of proposals for the development of the sector in the country, including measures focused on regulation, financing, infrastructure, demand, and international integration.

The report includes estimates from LCA Consultores. According to the document, the low-carbon hydrogen industry could mobilize $ 25 billion (R$ 135 bi) in productive investments by 2034, while generating an estimated additional impact of $ 58,6 bi (R$ 301 bi) on GDP, $ 6,2 Billion (R$ 32 bi) in net tax revenue, and up to 608,000 jobs. The association emphasizes that these figures are conditional estimates, rather than forecasts.

The focus of the report’s presentation was to highlight the importance of energy planning for the development of the market, including the energy needs of green hydrogen projects, particularly in relation to transmission planning, the regulatory and incentive framework, and strategic planning for industrial and energy policy.

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According to the document, energy costs are considered a central factor in the deployment of projects. The agenda estimates that electricity can account for around 60% to 70% of the levelized cost of hydrogen.

The report also points to the Northeast of Brazil as a potential concentration point for production. The region has large wind and solar power projects that could be integrated into the market and is also developing export infrastructure, including the Port of Pecém in Ceará and the Port of Suape in Pernambuco, which are positioned as major international hubs.

ABIHV also argues that market formation is another necessary step to unlock long-term investments. The association points to the need to prioritize hydrogen demand in fertilizers, steelmaking, refining, chemicals, sustainable aviation fuels, and maritime transport. According to the association, hydrogen could contribute to the decarbonization of all these sectors while also stimulating the consumption of surplus renewable power generation in the Northeast, should the industry be established in the region.

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Among the productive chains considered priorities are fertilizers and low-emission ammonia, steelmaking, methanol and synthetic fuels, refining, the chemical industry, electrolyzers, electrical components, engineering, and specialized services.

Pilot Projects Supporting the Green Hydrogen Thesis

ABIHV presented several projects linked to green hydrogen in Brazil. The projects are mainly focused on the production of fertilizers, fuels, and chemicals using renewable energy sources.

For example, in the fertilizer sector, Swiss company Atlas Agro is building a $1.2 billion project in Uberaba, Minas Gerais, to produce nitrogen fertilizers using solar and wind resources. The plant is located in the Uberaba Industrial Complex and is known as Uberaba Green Fertilizer. The facility will use air, water, and renewable electricity as its only raw materials.

Renewable electricity will be used to produce green hydrogen through water electrolysis. The hydrogen will then be converted into ammonia and nitric acid to produce granular and liquid zero-carbon ammonium nitrate (AN).

The project aims to produce 500,000 tons of ammonium nitrate (AN) annually and is expected to become operational by 2028. The UGF’s green nitrogen fertilizer will replace imported gray fertilizers produced using natural gas and coal, making it the first project of its kind in the Southern Hemisphere.

Other projects highlighted in the report are mainly concentrated in the Northeast. The Port of Pecém has $ 14,5 Billion (R$ 74.4 bi) in announced investments from different companies in green ammonia, green hydrogen, e-methanol, and other e-chemicals.

Among the companies involved is Casa dos Ventos, a major wind power company in the region that recently partnered with TotalEnergies, as well as multinational companies including Australia’s Fortescue, France’s Voltalia, Qair, and EDF, among others.

Another investment center in the Northeast is the Port of Suape in Pernambuco, which has at least $ 3,50 Billion (R$ 18 bi ) in announced investments across different projects.

In Rio Grande do Norte, Spanish company Acciona Energía, together with Danish company Nordex, plans to build a $ 2 billion project that includes a wind farm, a solar plant, and its own port terminal.