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Brazil latest market news and intelligence from DIT

02 June 2022

The below market intelligence has been collated and circulated by the Department for International Trade (DIT).

Shell to partner with Brazil's Açu to build green hydrogen plant
Shell and Brazil's Porto do Açu have agreed to jointly build a green hydrogen plant. The firms signed a memorandum of understanding this month (May) which states that they will build a 10-megawatt green hydrogen plant on the premises of Açu in Brazil's Rio de Janeiro state. The plant is due to be completed by 2025. [Reuters]

Brazil biogas supply set to expand 
Brazilian biogas producers and piped gas distributors, such as Abegás and Abiogas, are joining efforts to find ways to develop more biomethane supply and overcome obstacles to agreements with local distributors. They intend to find ways for natural gas and biomethane to replace more polluting fuel sources. According to Abiogas, Biomethane production is expected to increase roughly sixfold over the next five years to 2.3mn m³/d, up from 400,000 m³/d. [Bioenergy News]

Second biogas plant for Raizen
Brazil's largest sugar and ethanol company, Raizen, has announced it will build its second biogas plant, with a production capacity of 71,233 m³/d (2.5mn cf/d) of biomethane. The plant is expected to be done by 2023. Besides, the company intends to have 39 biogas plants in operation at its mills by March 2031 and 64 over the long term. [Bioenergy News]

To strengthen the natural gas market in BAHIA with the help of biomethane, Bahiagás opens a Public Call to buy more than 2,000 m³/day 
A company from the State of Bahia, Bahiagás, launched its first Public Call for the acquisition of Biomethane. The firm`s intention is to increase the number of suppliers of fuel derived from biogas. The process should welcome manifestations from local producers interested in composing the Company's portfolio of new suppliers and who have the capacity to sell 2,000 m³ per day. With its first Public Call for the sector, Bahiagás becomes a partner of groups of local distributors that have already started projects aimed at the acquisition of renewable fuel. [Click Petróleo e Gás]

Brazil awards 948 MW of renewable power in latest tender
According to the Power Trading Chamber (CCEE), Brazil has awarded renewable power supply contracts to projects with a combined capacity of around 947.9 MW in Friday's tender (27th, May). The contracts represent more than BRL 7 billion in future investments in different energy sectors, such as wind, solar and biomass.  [Renewables Now

Brazil nears 16 GW of installed DG and centralised solar capacity
Brazil is approaching 16 GW of installed solar power generating capacity between distributed generation (DG) and centralised generation plants.The top three states in regards to installed large-scale solar capacity are Bahia with 1.35 GW, Piaui with 1,16 GW, and Minas Gerais with 730 MW. At present, the country has roughly 4.7 GW of solar projects under construction, which are scheduled to commence operations in 2022 and 2023. [Renewables Now]

The New Solid Waste Legal Framework transforms garbage into clean energy
With the sanction of the New Solid Waste Framework in Brazil, garbage will become a new frontier for green investments. The Ministry of Mines and Energy, in partnership with the Ministry of Environment, has already carried out the first energy auction from solid waste, guaranteeing investments of more than R$ 500 million. [Brazilian Government

Brazil’s interest in global carbon credit market grows
In May, the Global Carbon Market Congress in Rio prepared Brazil for the next COP. At this event, sector representatives discussed the huge Brazilian potential in offshore wind energy generation and the necessity of investing in this area. In the sections, the delegates also discussed the green hydrogen perspectives in Brazil and the decommissioning of the oil and gas sector. [Petronotícias

Neoenergia invested more than R$800 million in wind and solar energy parks to expand renewable generation base
Neoenergia, a Brazilian energy company, has increased its investments in renewables projects. There was an increase of 75% in investments in this area, compared to last year. The greatest amounts of them were destined for wind energy projects, such as Neoenergia Oitis, and solar projects, like Neonergia Luzia. According to Laura Porto, the executive director of renewables from Neoenergia, until the end of 2022, the company aims to have more than 90% of installed capacity in renewables. [Petronotícias]

SPIC Brazil and CEPEL sign contract to develop a plant for green hydrogen and green ammonia
SPIC Brazil, one of the largest private energy generators in the country, and the Electric Energy Research Center (Cepel) have signed a contract to develop an engineering project for an integrated green hydrogen (H2V) and green ammonia plant. The initiative aims to evaluate the cost of solutions for real applications in different conditions and scales, given the fact that H2V is considered an important energy vector for decarbonisation and integration of several sectors, mainly industry and mobility.  [Petronotícias]

Growth of Renewables in Brazil will be record in 2022, forecasts international energy agency
According to a new report on the renewable energy market from the International Energy Agency (IEA), the growth of renewable energy generation capacity in Brazil is expected to break a new record in 2022, driven especially by the expansion of solar photovoltaic distributed generation projects. The Agency predicts a total addition of 12 GW of renewable energy in 2022, with the solar photovoltaic source being responsible for more than 8 GW, while the remaining share will come from wind power, hydropower and other sources.  [Petronotícias]