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Brazil latest market news and intelligence

01 December 2022

The following has been compiled and circulated by Department for International Trade.

United Kingdom and Brazil sign agreement to avoid double taxation 
The United Kingdom and Brazil signed a Double Taxation Agreement (DTA). The Agreement will provide relief from the double taxation of income in both countries. It is the most significant development in the trade relationship between the United Kingdom and Brazil in many years and represents a concrete response to demands from businesses in both countries. The main benefits of the bilateral agreement will be to: provide tax certainty and predictability to business, facilitating long-term investments; help tackle tax evasion by providing for the exchange of information between the two countries; intensify trade and investment between Brazil and the United Kingdom, strengthening the bilateral relationship. [British Government]

Brazil bets on offshore wind to boost the economy and industry from renewable resources and energy transition
Brazil is focusing on the offshore wind energy market to boost the economy and industries. The country already has 170 GW of offshore wind projects. In addition, the source will serve as a major impetus for the energy transition.
For the president of the Brazilian Wind Energy Association (Abeeólica), offshore wind power will be a great outlet for Brazil to strengthen in the energy transition. The entity is also planning to create an industrial structure, to put Brazil on the energy transition route, to attract technology, capital, innovation, generating jobs and income. Through the development of offshore wind power and green hydrogen, in the opinion of the president, Brazil can assume the global leadership of energy and, especially, renewable energy. [Click Petróleo e Gás]

Siemens Energy signs agreement for green hydrogen project development with large-scale production in Bahia
Siemens Energy and Quinto Energy signed a memorandum of understanding (MOU) for the development of a large-scale generation green hydrogen project in Bahia. The feasibility study estimates the production of 1 million tons of green hydrogen annually. This is the largest project ever announced in the world. The companies are working together to make the first stage happen in 2025. The megaproject has 20 GW of installed capacity and can generate 65 TWh of electricity per year. [Click Petróleo e Gás]

Ceará signs with World Bank in $4 billion Green Hydrogen action
The State of Ceará has shown itself as the only representative of Brazil in an agreement with the World Bank, which provides for the development of Green Hydrogen.The programme is called H4D: Hydrogen for Development. The project advances investment of $ 4 billion. "This invitation is a recognition of the role of the State of Ceará in Brazil in relation to green hydrogen, which is very good," the secretary told the newspaper. [Petronotícias]

Prumo Logística and TotalEnergies sign agreement for offshore wind in Açu Port
Prumo Logística, responsible for the development of the Port of Açu, and TotalEnergies announced a Memorandum of Understanding (MoU) for studies aiming at the installation of logistical support bases in Açu to support wind projects that will be developed by TotalEnergies on the coast of the port. With this signature, TotalEnergies will develop for up to two years feasibility studies for the deployment of offshore wind farms with up to 3GW of power in the state of Rio de Janeiro. The intention is to use the Açu Port as a logistics hub in all phases of the project, as a support base for construction, in the installation and operation phase of TotalEnergies offshore wind projects. [Portos e Navios]

Fortescue and the government of Ceará signed an amendment to prioritize green hydrogen in Pecém
The Government of Ceará and Fortescue Future Industries (FFI) signed an amendment to the Memorandum of Understanding (MoU) signed in mid-2021, so that the Australian company prioritizes the green hydrogen project at the Pecém hub. The intention is to start the production of fuel from electrolysis with large-scale renewable energies already in 2027. According to FFI, the company has started feasibility studies and is working to obtain licenses for the Pecém Project. On the other hand, the local government is committed to supporting the availability of land for the project, including hosting transmission lines and substations for access to the network connection point. [EPBR]

Ultragaz buys NEOgas and targets biomethane 
Ultragaz announced, in November, the acquisition of NEOgás, carrier of compressed natural gas, for an evaluation of R$ 165 million. The compressed gas distributor will be an opportunity to commercialize renewable alternatives to natural gas. According to a company statement, "The acquisition marks Ultragaz’s entry into the compressed natural gas distribution segment and, in addition, NEOgás is an ideal platform to enable opportunities for distribution of biomethane". [EPBR]

Enel Green Power begins expansion of the largest wind farm in Brazil with investments of R$2.5 Billion 
Enel Green Power Brasil started the construction of the Lagoa dos Ventos V (399 MW) park, the second expansion of the Lagoa dos Ventos complex, the largest wind farm currently in operation in South America. Enel is investing about R$ 2.5 billion in the construction of it, in the municipality of Dom Inocêncio, in Piauí. The first expansion of the wind complex started in 2020 and it is already partially in operation, expected to be 100% completed by the end of the year. Currently, the complex has about 1 GW in operation and, when it is fully ready, will have installed capacity greater than 1.5 GW.  [Petronotícias]

Brazil's Geo Biogas to transform biomethane into SAF
Brazilian renewable energy company Geo Biogas will begin small-scale production of sustainable aviation fuel (SAF) using biomethane as feedstock. The $2.8mn plant will be in Maringa, Parana state. Geo Biogas, in partnership with Parana's state university, developed the technology. The company said that similar plants can be built in locations with SAF demand that have access to biogas, helping meet future demand for the renewable fuel. [Argus Media]

SENAI invests R$ 8 million in innovation cluster in Suape
The National Service of Industrial Learning (SENAI) announced that it will make an investment of R$ 8 million in the structuring of the SUAPE Cluster of Industrial Innovation in the Industrial Port Complex of Suape. The goal is to drive research, engagement and innovation programmes and projects for sectors such as logistics, renewable energy, environment, aerospace and advanced manufacturing. For this, the cluster will aggregate several distinct structures, such as the TecHub of Green Hydrogen.  [Diário de Pernambuco]