Study points out ten locations in RS most suited to the production of green hydrogen

Research contracted by the government of Rio Grande do Sul with the consulting firm McKinsey & Company to map the potential for production and consumption of green hydrogen in Rio Grande do Sul confirmed the initial expectations: the State can be competitive in attracting and developing enterprises that generate this renewable fuel. The work indicated ten locations with more favorable conditions for this activity: Giruá, Uruguaiana, São Francisco de Assis, Dom Pedrito, Vila Nova do Sul, Cambará do Sul/Arroio do Sal, Porto Alegre, Mostardas, Santa Vitória do Palmar and Rio Grande .

These municipalities were highlighted taking into account issues such as the availability of renewable energy, distance from the point of demand and infrastructure (such as power transmission lines and nearby power plants). Hydrogen does not occur isolated in nature, one of the processes for obtaining it is the electrolysis of water (separating hydrogen from oxygen, through electricity).

For hydrogen to be considered “green”, it needs to be produced from renewable sources such as wind and solar. By obtaining pure hydrogen, it is possible to use it for actions such as storing and generating energy through fuel cells (in small, medium and large vehicles, such as cars and trucks), as well as serving as an input for the steel, chemical, petrochemical, agricultural, food and beverage production and for heating buildings.

McKinsey & Company’s work, which cost R$ 4.9 million, was presented this Thursday (16th), at an event held at Instituto Ling, in Porto Alegre, with the presence of several politicians, businessmen and by Governor Eduardo Leite. The governor emphasizes that the State now has a document that confirms the opportunity for Rio Grande do Sul to produce green hydrogen. “It is the first state in Brazil to have a technical study, produced by one of the world’s leading consultancies, with broad participation by specialists and the private sector to support the numbers and which will guide the government’s own actions”, says Leite.

According to the survey, the potential impact of the green hydrogen chain could be, depending on the applications adopted for the fuel, from BRL 3.7 billion and 2 thousand jobs generated to BRL 60 billion in the GDP of Rio Grande do Sul and 40 thousand jobs accumulated until 2040. From the point of view of emissions, the State will be able to avoid up to 8.4 million tons of CO2 per year in the same period.

Sergio Canova, a member of McKinsey & Company’s Southern region office, reiterates that the study indicates that Rio Grande do Sul can be competitive to produce green hydrogen, and can, in addition to feeding the domestic market, reach other regions of Brazil and other countries . “The world’s energy matrix will change and so will Rio Grande do Sul’s”, foresees Canova. Still according to the work, the State could reach an internal demand of around 600 thousand tons per year of green hydrogen in 2040. In addition, it could commercialize from 500 thousand to 900 thousand tons of fuel annually to other states and nations.

The chief secretary of the Civil House, Artur Lemos, points out that this activity implies care for the environment and the mitigation of climate change. He maintains that Rio Grande do Sul has the potential to be a leader in this agenda. The Secretary for the Environment and Infrastructure, Marjorie Kauffmann, adds that the agenda crosses Rio Grande do Sul’s borders. “Why think about the energy transition? Because the world thinks about it today”, comments the secretary. She points out that it is an adaptation that humanity is going through. Marjorie points out that Rio Grande do Sul has characteristics that favor the development of this chain, such as the enormous capacity for generating renewable energy. In terms of onshore (onshore) and offshore (at sea) wind potential, added to solar energy, the state exceeds 300,000 MW of power, which is more than the entire installed capacity of power plants operating in Brazil today.

The fact that it has a port complex and wind power generation makes Rio Grande stand out as one of the main municipalities on the radar of green hydrogen entrepreneurs. “The possibility of production, storage and future logistics (of fuel) passes through the port”, stresses the planning and development manager of Portos RS, Fernando Estima.

He emphasizes that it is possible to use the waterway to move the product through the State, take advantage of cabotage to reach other regions of the country or export it to more distant locations. He recalls that, just as onshore wind generation is already established in the state, the coast of Rio Grande do Sul has ample potential for offshore production, which could feed the production of green hydrogen.

In turn, the mayor of Rio Grande, Fábio Branco, points out that the city is working on a plan to neutralize carbon emissions in the coming years. Within this context, a collaboration term was signed this Thursday between the city hall and the state government with the aim of prospecting opportunities, either through green hydrogen or other actions, to put in place a job and income development program, focused on issues such as climate change and sustainability. Branco adds that one initiative that can be taken in this area is to use, in the future, green hydrogen as fuel for the city’s bus fleet.