(epbr) Vale’s president, Eduardo Bartolomeo, highlighted that the company, the largest individual consumer of energy in Brazil, could guarantee the demand for national green hydrogen with the production of green steel and consumption of biofuels in its fleet.
Jean Paul Prates, president of Petrobras, reiterated the possibility of the company using green hydrogen, produced by the company, to decarbonize its refining activities.
Recently, the companies signed a protocol of intentions aimed at developing low-carbon solutions, such as hydrogen, green methanol, biobunker, green ammonia and renewable diesel – and CO2 capture and storage technologies.
“If we want to go to zero and make the famous green steel, there is no way not to go with hydrogen (…) Our relationship with Jean Paul from Petrobras arises from this possibility”, said Bartolomeo.
Last year, Vale began industrial complex projects – called megahubs – in the Middle East, to produce hot briquetted iron (HBI) and steel products with reduced carbon emissions.
According to the executive, the choice of the Middle East as the location for the megahubs was due to the highly competitive price of natural gas. However, he believes that green hydrogen may be able to enable the installation of these centers in Brazil, bypassing natural gas.
“We have a very specific vision in relation to Brazil. Studies, and we had this conversation with Petrobras, shows that Brazil will become the most competitive country in hydrogen”, believes Bartolomeo.
“Brazil is a hydrogen hotspot and Vale can anchor this demand, and together with Petrobras there is no mention (…) If we were to supply only the ships we control, it would mean 18% of the Brazilian energy matrix. There are more or less 18 GW of energy”, he added.
Decarbonization in refining
Currently, Petrobras represents the largest consumer of gray hydrogen – of fossil origin – in the country, used in fuel refineries. Annually, the company produces 500 thousand tons of fossil hydrogen, and is studying replacing it with renewable hydrogen (biomass and electrolysis) in its refining processes.
“We are probably pioneers in thinking about hydrogen projects with Brazilian offtakers. We are ourselves offtakers”, said Jean Paul Prates.
According to Prates, Vale and Petrobras can take the first steps to reduce uncertainties regarding the price and demand for green hydrogen in Brazil.
“We will work to resolve these uncertainties, have price and scale, and the ability for these main offtakers to be ourselves”, he stated.
Prates also recalled the importance of offshore wind projects being studied by Petrobras, to enable green hydrogen. The company filed an environmental licensing request for 23 GW and is studying another 14 GW in partnership with Equinor.
“It is important to talk about offshore wind projects now (…) The upstream of this process (production of green hydrogen) is necessarily offshore wind alongside hydrogen plants.”
Brazil Energy Insight 
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