Brazil's Eletrobras partners with GEP on green hydrogen

Axia Energia SA

14/05/2024 16:33

By Leticia Fucuchima
       SAO PAULO, May 14 (Reuters) - Brazil's Eletrobras
 ELET6.SA , Latin America's largest utility, has signed a
memorandum of understanding with Green Energy Park (GEP) to
study opportunities for green hydrogen production, the companies
said on Tuesday.
    
    WHY IT'S IMPORTANT
    Brazil has been looking to develop a green hydrogen industry
as part of efforts to unlock new sectors to power its energy
transition, with government dubbing it a "real possibility" for
the country to expand its footprint in renewables.
    Green hydrogen can be obtained by the electrolysis of water
using renewable power and has emerged as an important way to
lower emissions from sectors that are hard to decarbonize, such
as transport and steel-making.
    
    EXPORT GOAL
    Under the deal, Eletrobras would provide long-term renewable
energy supply to GEP's 10.8 gigawatt green hydrogen project in
Brazil's northeastern state of Piaui.
    GEP expects to export future production from the plant to a
hub in Krk, Croatia, as well as ports in Britain, the Middle
East and East Asia in order to supply industrial consumers.
    
    KEY QUOTES
    "With this important partnership, we are aligned with the
strategy of contributing to the decarbonization of the economy
and energy security," Eletrobras CEO Ivan Monteiro said.
    "Renewable electricity is the cornerstone of our green
hydrogen production process, and we are delighted to have it
secured from Eletrobras," GEP's CEO Bart Biebuyck said.

 (Reporting by Leticia Fucuchima
Editing by Marguerita Choy)
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