Photo: Tauan Alencar / MME

Foz do Iguaçu, 3 October 2024 - The Brazilian Ministry of Mines and Energy (MME) and the United Kingdom’s Department for Energy Security and Net Zero (DESNZ) jointly launched a public Call on Thursday, October 3rd, at Foz do Iguaçu, in Paraná state, Brazil, to identify proposals for Brazilian low-carbon industrial-hydrogen cluster projects.

The initiative was announced by Brazil’s Minister of Mines and Energy, Alexandre Silveira, and the UK Climate Minister, Kerry McCarthy, during the multilateral events of the Clean Energy Ministerial and Mission Innovation (CEM-MI) in Foz do Iguaçu, Brazil. The Call invites a consortia of private sector businesses to express their interest in, and to put forward initial proposals for, developing low carbon hydrogen-industrial clusters to help deliver the next phase of Brazil’s National Hydrogen Strategy, accelerate industrial decarbonisation and support the delivery of Brazil’s national climate and energy transition goals.

This Expression of Interest (EOI) is being supported by the Brazil-UK Hydrogen Hub (H2 Hub) – a sector-specific country platform launched in 2023 at COP28 whose secretariat is coordinated by the United Nations Industrial Development Organization (UNIDO). The Hub will support the EOI by identifying and mobilising a suite of international financial and technical assistance to accelerate the deployment and investment in these projects.

In particular, the new Climate Investment Funds’ (CIFs) ‘Industry Decarbonisation Programme’ – with funding from the UK, and also launched at the Clean Energy Ministerial and Mission Innovation (CEM-MI) on Thursday – will be targeted for an initial bid for a first large tranche of concessional funds that have a track record of leveraging up to $10 in co-funding for every $1 invested. This new programme represents the world first large-scale concessional finance programme for industrial decarbonisation.

During the bilateral event at CEM-MI, the Minister of Mines and Energy of Brazil, Alexandre Silveira, who oversees the Hydrogen Hub launched at COP28 with the support of the UK and UNIDO, emphasised the significance of the Call: 

"This public call is a crucial milestone in advancing Brazil's role as a global leader in the energy transition. Low-carbon hydrogen is a key element for the decarbonisation of our industry. The partnership with the United Kingdom and the support from UNIDO will enable us to accelerate the identification of international funding mechanisms for the implementation of these projects."

UK Minister for Climate Kerry McCarthy expressed her enthusiasm about the collaboration:

“We’re delighted to be working in close partnership with Brazil and UNIDO through the Brazil-UK Hydrogen Hub to identify the most promising low-emission industrial-hydrogen clusters that can turbocharge Brazil’s hydrogen transition and industrial decarbonisation.

“This is just the first step in this UK-Brazil partnership to develop a groundbreaking model to drive financial and technical assistance to clean energy solutions, creating jobs and driving growth”.

UNIDO Country Representative in Brazil, Clovis Zapata, highlighted the organisation's role in supporting the implementation of the Hydrogen Hub: 

“With the coordination of the Hydrogen Hub Secretariat, UNIDO aims to catalyse global efforts to drive the decarbonization of the Brazilian industry, which is one of the most urgent needs of the energy transition. Our role is to ensure that Brazil leads the development and application of low-carbon hydrogen technologies. This international cooperation constitutes a unique opportunity for the country to strengthen its industrial base, attract investment and generate a wide range of benefits for national stakeholders.”

How to get involved The Brazil-UK Hydrogen Hub is a co-convened multilateral country platform which aims to mobilise and co-ordinate international technical and financial assistance to accelerate the development of low-emission hydrogen in Brazil.

Brazilian private sector companies and organizations planning or interested in developing commercial-scale hydrogen projects within industrial clusters are invited to express their interest in benefitting from the initiative by a deadline of 23:59 (BRT) 2nd November 2024. To be eligible for funding, projects must be led by a Brazilian registered business, collaborating with a wider project team within the cluster, to produce and supply low-emission hydrogen to identified industrial off-takers and be operational no later than 2035.

The H2 Hub will also seek to identify and mobilise additional international technical and financial assistance to develop a pipeline of hydrogen-industrial projects.

For further information about the H2-Industrial clusters expressions of interest, including the eligibility criteria and the application process, please visit https://www.gov.br/mme/pt-br/programa-nacional-do-hidrogenio-1/iii-planejamento-energetico/chamada-publica-de-hubs-de-h2.  All enquiries relating to the expression of interest should be directed to pnh2@mme.gov.br.