Brazil's energy ministry has entered into a partnership with the Washington-based Climate Investment Fund (CIF) to disburse 6bn reals ($1.1bn) for the implementation of hydrogen hubs in the country.
The programme will aim to promote decarbonisation of industrial activities in Brazil through use of low-carbon and renewable hydrogen. A call for projects supplying hard-to-abate sectors will open, according to the ministry, but no dates have been released yet.
CIF will provide "low-cost financing" to help cover "everything from engineering projects to the acquisition of equipment and working capital", the ministry said.
Establishing hydrogen hubs across the country by 2035 is one of the goals of Brazil's hydrogen programme. The hubs will feature production, storage and transportation facilities connecting to local demand from different sectors.
The funds will leverage Brazil's "vast wealth of energy products and the creativity of our industrial sector", energy minister Alexandre Silveira said.
The announcement comes a few days after Brazil finalised a law to create a tax credit scheme for low-carbon and renewable hydrogen production. The programme will allocate R18.3bn for producers and consumers of low-carbon hydrogen in 2028-32.
