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ROLIM GOULART CARDOSO

Certification and the race

to lead the global hydrogen

market: where Brazil stands?

www.rolim.com

By Alice Khouri, Vivian Marcondes and Lucas Ribeiro

Climate change’s impacts, allied to the increase in world energy demand, imposes an urgent need for
technological alternatives compatible with a sustainable pattern of development. The International
Renewable Energy Agency (IRENA) has long argued in favour of using hydrogen to achieve full
decarbonization . However, in order to achieve this, at very least the following strategic steps will
1
have to be taken: raising current production five-fold, with the vast bulk been sustainable hydrogen ;
2
reduction in production costs of renewable power generation; improving technologies, economies of
scale and competitive supply chains; and finding the answers on how to develop hydrogen certifications
that communicate worldwide.
The scenario launched a race among countries endowed with clean government updated the triennial plan, assigning three specific goals:
energy resources to be the main hydrogen world-exporters. Brazil (i) disseminating pilot plants by 2025; (ii) consolidate Brazil as the most
has an opportunity to be in a leading position in this race since it is competitive low-carbon hydrogen producer worldwide by 2030; and
endowed with an abundance of renewable energy sources: solar and (iii) consolidate, by 2035, low-carbon hydrogen hubs.
wind energy, and also critical natural resources such as rare metals.
However, as advantageous Brazil’s position is, it will not be sufficient Under these new developments, strategy-wise, it is clear that the current
alone, and key supportive policies will be essential to scale hydrogen government is eager to scale the low-carbon hydrogen national market;
production, especially those related to hydrogen certification. yet, it must beware of the urgency required to meet net zero pledges
and, consequently of the scale that sustainable hydrogen must reach in a
The current government has advanced on the regulatory front by short period of time. Certification is crucial to advance this objective and,
further structuring the national strategy and its goals. In 2021, the in this aspect, the Brazilian National Hydrogen Strategy has been silent.
Brazilian Government published its National Hydrogen Program
(PNH2), as well as the Triennial National Plan 2023-2025. In its first Consistent certification schemes will be crucial to an effective
version, the plan was targeted with criticism, unlike other countries such renewable and low-carbon hydrogen market. Harmonizing certification
as the United States , United Kingdom , Australia and Germany , the criteria in specific and crucial aspects can facilitate international trade,
3
6
5
4
Brazilian version lacked specific targets and objectives. More recently, support global emissions reductions through greater transparency
though, after a public consultation process, on August 16, this year, the of environmental externalities, and support the competitiveness of
markets. On the contrary, incompatible certification requirements
create technical barriers to trade, hinder efficiency and lead to
deficient interoperability of global markets.
Several countries have already adopted some degree of certification
requirements. Germany has adopted TÜV SÜD , the European Union
7
has the CertifHy and REDII , and California has established the Low
8
9
Carbon Fuel Standard (LCFS) , all of them focusing on the renewable
10
nature of energy, on the life cycle carbon footprint, and additionality.
Brazil needs to quickly position itself in this key aspect, otherwise it risks
missing the opportunity of leading this crucial race.

1 IRENA (2022) World Energy Transitions Outlook
2 Pursuant to Irena, global hydrogen production must scale to 614 megatonnes per year, to reach 12% of the final energy demand by 2050. IRENA (2022). World Energy Transitions Outlook
3 Available at: https://www.hydrogen.energy.gov/clean-hydrogen-strategy-roadmap.html
4 Available at: https://publications.parliament.uk/pa/cm5803/cmselect/cmsctech/1257/report.html#:~:text=The%20BESS%20doubled%20the%20UK’s,this%20coming%20from%20
electrolytic%20hydrogen
5 Available at: https://www.dcceew.gov.au/energy/publications/australias-national-hydrogen-strategy#:~:text=Australia’s%20National%20Hydrogen%20Strategy%20sets,major%20
global%20player%20by%202030
6 Available at: https://www.bmwk.de/Redaktion/EN/Hydrogen/Dossiers/national-hydrogen-strategy.html
7 Available at: https://www.tuvsud.com/de-de
8 Available at: https://www.certifhy.eu/
9 Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0082.01.ENG&toc=OJ:L:2018:328:TOC
10 Available at: https://ww2.arb.ca.gov/our-work/programs/low-carbon-fuel-standard
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