The Ministry of Mines and Energy (MME) on December 20 said the 12 projects plan to produce hydrogen from grid-connected electricity, wind, solar, ethanol, biomass and more, with outputs ranging between 1,000 and 350,000 tonnes per year.

Having received 70 proposals from all 20 Brazilian states, MME says it considered technical and financial aspects of the projects, including end-use plans.

The proposed projects will now be invited to participate in developing further plans, with the “best-evaluated” projects expected to compete for resources from the international fund, Climate Investments Funds – Industry Decarbonization CIF-ID.

“The results indicate the great potential of low-carbon hydrogen hubs as an inducer of industrial decarbonisation in Brazil,” said MME National Secretary of Energy Transition and Planning, Thiago Barral.

“The proposals signal the use of hydrogen for the production of green steel, aluminium, fertilisers, in refining processes and production of e-methanol.”

The CIF programme is aimed at supporting heavy-emitting industries in developing countries to decarbonise.

In October 2024, MME pledged $1.09bn to support the development of hydrogen hubs across the country, with CIF expected to provide “low-cost financing.”

Last year, Brazil made significant steps in laying the groundwork for its domestic clean hydrogen industry, including adopting its National Policy for Low-Carbon Hydrogen Production and other subsidies.