Brazil places hydrogen at heart of low-carbon strategy

Tax incentives attract multiple proposals for hydrogen hubs as government launches new initiative to speed up transition

Brazil’s fledgling green hydrogen sector advanced in 2024. In August, the government established a new legal framework for low-carbon hydrogen and then shortly afterwards followed up with a new tax incentive programme to spur investment. By December, the government had received 70 proposals for low-carbon hydrogen hub projects. This year, the government looks set to continue its decarbonisation push. In January, Brazilian President Luiz Inacio Lula da Silva approved the Energy Transition Acceleration Programme (PATEN), a strategic initiative launched to financially support a variety of clean technologies, including green hydrogen.   “The Brazilian northeast is a hotspot for green hydro