Brazil: Hydrexia LLC and GH2 Global Join Forces
Brazil is emerging as a key player in the hydrogen industry, leading the way in South America with its growing commitment to developing low-carbon hydrogen technologies.
While the country is ahead of its regional counterparts, Brazil’s hydrogen sector is still in the early stages of development. However, with strategic partnerships and favourable legislation, Brazil is well-positioned to become a significant hub for hydrogen production and innovation.
Hydrexia LLC and GH2 Global join forces
‘Hydrexia LLC’, a leading hydrogen solution provider and GH2 Global (GH2), a key player in the development and deployment of hydrogen solutions in Brazil, have recently announced that the two companies will form a partnership to jointly develop the hydrogen markets in Brazil and South America.
Under the framework of the intended partnership, Hydrexia will use its technological strength by providing its technology solutions along with technical support to help advance hydrogen applications in the local markets.
Meanwhile, GH2 will act as a unified channel to integrate Hydrexia’s state-of-art magnesium-based solid-state technology for transportation, storage and hydrogen refueling stations. Both companies will jointly optimize the latterly mentioned technologies to address the specific project needs in the Brazilian market and beyond.
The newly formed partnership signifies Hydrexia’s continued advancement in its global business expansion and demonstrates its ability to identify and unlock growing new global markets. The added business presence in South America provides Hydrexia with an extended global geographical coverage of its business operations following recent successful market entries in Malaysia, India, and Australia in the first half of 2024.
Andy Tran, the chief executive officer of Hydrexia U.S. operation
“We are extremely excited about forming this strategic partnership with GH2 and collaborating with a new local partner as we tap into yet another new market. I strongly believe that our combined technology and marketing strengths will significantly help enhance the hydrogen applications in Brazil. We look forward to working closely with GH2 to ensure the success of our planned technology and market integrations catering to the needs of local markets,”
“We are delighted to have established this strategic channel partnership with Hydrexia. Hydrexia has clearly demonstrated its technology and solution capabilities to promote hydrogen applications in our local markets, With our joint efforts, there is much to be leveraged from a standpoint of technology and market.
I am confident that our planned partnership will yield positive results to enhance the development of hydrogen markets in Brazil and South America as a whole,” commented Bias Augusto Dare, the managing director of GH2.
Brazil introduces legal framework for hydrogen
In the last week, Brazil has introduced new legislation which will aim to help efforts for a transition to a low-carbon economy. The introduction of this comprehensive legal framework designed to boost its hydrogen industry and capitalize on its vast renewable energy resource.
One of the cornerstone elements of this framework is the establishment of a detailed classification system for different types of hydrogen, categorized by their carbon emissions. For example, ‘green hydrogen’ which is produced using renewable energy sources like wind and solar, is prioritized under this new framework.
This classification system ensures that Brazil’s hydrogen production aligns with international sustainability standards and helps attract global investments.
In terms of financial incentives, the framework introduces substantial tax benefits aimed at encouraging both domestic and foreign investments in the hydrogen sector. Companies involved in the production or use of low-carbon hydrogen can benefit from tax credits, significantly reducing the costs associated with adopting this clean energy technology.
These tax credits were controversially vetoed by president Luiz Inacio Lula da Silva last week, however, they are to be added to this new bill. Specifically, the tax credits could reduce the cost of hydrogen production by up to 30%, making it more competitive with fossil fuels.
The bill also includes provisions for financial support dedicated to research and development (R&D) in hydrogen technologies. This includes funding for projects that explore new methods of hydrogen production, storage, and transportation. The Brazilian government has earmarked over BRL 2 billion (approximately USD 400 million) for R&D initiatives over the next five years, reflecting
While Brazil’s hydrogen industry is not perfect, this new legal framework provides a robust foundation for future growth. With clear guidelines, substantial financial incentives, and a focus on sustainable practices, Brazil is positioning itself to not only lead South America in hydrogen production but also to become a key player on the global stage.
By 2030, Brazil aims to produce over 10 million tons of low-carbon hydrogen annually, which could meet a significant portion of both domestic and international demand.
