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Brazil latest market news and intelligence

09 May 2022

The following news and market intelligence has been compiled by the Department for International Trade (DIT) Brazil.

Enel, Brazilian state Bahia ink MoU for Green H2 Studies
This month, Enel and the government of the Brazilian state of Bahia signed a MoU (memorandum of understanding) regarding the exploration of the potential development of green H2 projects in the federation. The parts are going to conduct technical, commercial, legal and financial feasibility studies into the region's potential for developing a green hydrogen production chain. [Renewables Now]

White Martins Studies Green Hydrogen Project at Porto do Açu (RJ)
A Memorandum of Understanding (MoU) was signed between Porto do Açu and White Martins (a supplier of industrial and medical gases). It intends to assess the feasibility of producing green energy hydrogen at the port complex, which is located in São João da Barra (RJ). The company will use the results to determine the possibility of installing a green hydrogen-producing plant, as well as a plant dedicated to producing green ammonia in the port. [Datamar News]

Government of Rio de Janeiro will provide R$80m to Subsidise Solar Energy Projects and Generate Jobs
In April, the government of the Brazilian state of Rio de Janeiro announced that it is going to provide around R$ 80 million to subsidize solar energy projects. These resources can be destined for different areas, such as Rural Production, education, hospitals and houses. The main objective of the government is to attract investments to the state and generate income and jobs. [Click Petróleo e Gás]

Renewable Energy: Brazil now 6th in the World for Wind Energy Potential; Excellent Results with Solar Source
Brazil rose one position in the Ranking of Total Installed Capacity of Onshore Wind Energy in 2021, when it reached 21.5 gigawatts (GW) of installed capacity in onshore wind power plants, according to Abeeólica (Brazilian Wind Energy Association). Now, the country occupies the sixth place. Besides, as stated by the Global Wind Energy Council (GWEC), last year, Brazil was consecrated the third country to install more wind power plants. [Click Petróleo e Gás]

Schlumberger will Decommission Fields of Trident Energy of Brazil
A contract was signed between Schlumberger, through the Subsea Services Alliance, and Trident Energy of Brazil. The document is valid for 12 months with four possible extensions. It is the first fully-integrated decommissioning project in Brazil using the intervention vessel type LWIV (Light Well Intervention Vessel) in partnership with Helix of Brazil. This operation is part of a global project focused on operation, redevelopment and increase of the production of latent reserves of mature oil and gas assets. [Petronotícias]

Cemig, MG Govt to Invest US$385m to Modernise Rural Electricity
Cemig and the Minas Gerais state government launched an initiative that aims to expand and strengthen the medium voltage network in the interior of the state, making it possible to transform subsistence agriculture of small and medium-sized rural producers into agribusiness. The plan is called Three-Phase Minas Program and it is going to modify thousands of kilometers of the electricity grid in rural areas of the state over the next five years. [Brasil Energy]

Offshore Wind Power Bill Could Be Voted On In May
In May, a project related to Offshore Wind Power will be voted on by the Brazilian Senate. The proposal establishes a regulation designed to provide legal security for investors and protection of the environment and affected populations. The project also adapts other laws to regulate, promote and implement the offshore legal framework. This PL also addresses the concern regarding harmonizing maritime activities, such as navigation, fishing, exploitation of ocean resources, air transportation and socio-environmental aspects. [Brasil Energy]

Biogas: Growth, And An Even Better Outlook
Due to the recent approval of Decree 11.003/2022, biogas and bio-methane are exponentially growing in Brazil, year after year, since it institutes the federal strategy for these areas. According to the recently concluded Outlook for Biogas in Brazil 2021, by Cibiogás, there were 811 biogas plants in the country, which in absolute numbers represent a 20% growth over the number registered in 2020 (675 units). However, the figures still show that the market is well short of its theoretical potential of 84.3 billion Nm³/year. [Brasil Energy]

Petrobras Conducting Market Research for the Decommissioning of Steel Catenary Riser (SCR)
This research aims to map possible suppliers and analyse the supply models practised in the market. Below, you will find the link to access the RFI document, and on it, instructions on how to submit the completed document to Petrobras. The deadline for submission of the RFI is 5th May 2022.

PDE 2031 – Launch of the Decennial Energy Expansion Plan by the Ministry of Mines and Energy
This month, the Brazilian Ministry of Mines and Energy, in partnership with the EPE (Energy Research Company), the Brazilian National Congress and more than 50 civil institutions, has launched the PDE 2031 (Decennial Energy Expansion Plan), which indicates the expansion perspectives for the Brazilian energy sector in the next 10 years, with an integrated view of different sources. This document was based on the international discussions around the Paris Agreement and Brazil is going to present its result at COP27.

The PDE predicts an increment of 30% in the Brazilian energy supply, where the renewables will have great importance, since it determines an increase of more than 80% in the generation of renewable sources in the Brazilian matrix. In this regard, the government of Brazil intends to keep the renewability of its energy matrix close to 50%, compared to 14% of the world average.

On the other hand, regarding the electrical matrix, the plan estimates the reduction of the hydric source and the increase of the distributed generation and the self-produced energy. For example, it is estimated that solar sources are going to expand by 134.5%, while wind power will grow by 54.8%. Thus, it is expected strong growth in renewables- around 40%- mainly solar, wind, natural gas and nuclear (since it cites the feasibility of a nuclear power plant).

Another important point on it is that it brings a new chapter regarding hydrogen: Brazil will be one of the select exploiters of this source, which is known for being safer and more sustainable. It is important to highlight that Brazil has also approved the National Hydrogen Programme, which foresees developments in this sector in the near future. The PDE estimates that the annual hydrogen production from the balance of the available energy resources for hydrogen production by 2050 is around 1,850 Mt/year, with offshore renewable resources standing out with a huge technical potential for hydrogen production. Moreover, it also affirms that, safeguarding the importance of an inclusive approach and flexible paths to the energy transition, avoiding technological closures and using its potential, Brazil has great opportunities with the hydrogen economy, both in the domestic and external markets, and the developments associated with the National Hydrogen Program are strategic.

According to the Brazilian Minister of Mines and Energy, Bento Albuquerque, Brazil has a thriving energy sector that is capable of transforming natural resources into prosperity and well-being for its society. The document also foresees investments of up to £ 512 billion until the year 2031. Of this total, £ 432 billion will be allocated to the oil, natural gas and biofuels sectors. The other £ 848 million are for the generation and transmission of electricity.

Finally, the Minister also announced that the oil sector is looking into decarbonising its production, given the fact that the Plan mentions Petrobras’2022-26 Strategic Plan, which intends to invest in different initiatives regarding this matter, such as methane detection systems.

To access the PDE, click here.

Brazil Renewable Energy Sector Reports

Did you know that Brazil is one of the world leaders in Clean Energy?

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