BNDES is launching a program aimed at the hydrogen agenda. The initial objective is to support pilot projects generated using renewable energy to encourage the production and storage of zero-carbon fuel in the country. Subsequently, the Bank will expand its financing lines, including support for large plants capable of exporting hydrogen.
Green hydrogen is a fuel capable of storing electrical energy from clean and renewable sources such as wind and solar, among others. Stored, it can be transported and later generate energy again.
In addition to industrial energy use, hydrogen can also be used as a raw material for the production, for example, of ammonia for fertilizers, and as a fuel for transport. In all cases, the end result is just the production of water vapor. As a result, there are no carbon emissions, in other words, it is a zero carbon product.
In this pilot initiative, BNDES will support enterprises producing or using green hydrogen, as well as technological development initiatives. The maximum financing amount is R$300 million.
The estimated final interest rate for financing is equivalent to the “bald” Long Term Rate (TLP), that is, without additional remuneration, considering the blend of resources from the Climate Fund (whose rate is a fixed 1% p.a., added to the BNDES remuneration) with FINEM (the rate of which is TLP or Selic, added to BNDES remunerations). The Climate Fund's participation is limited to 50% of the value of financeable investments or R$80 million, whichever is lower.
Last month, BNDES published its Accreditation Policy for Stationary Energy Storage Systems, Batteries and Electrolyzers, which defines which equipment can be financed by the Bank in a hydrogen plant installation.
“This is the beginning of an agenda, focused on Green Hydrogen projects. We are already working to make new solutions viable, including support for low-carbon hydrogen exporting plants and studying the possibility of financing costs in foreign currency to enable the implementation of large plants in the country, capable of exporting the fuel”, reveals the Director of BNDES Infrastructure Credit Grant, Solange Vieira.
The importance of hydrogen for a low-carbon economy arises from its potential to contribute to the reduction or elimination of emissions. This challenge is even more relevant in the current scenario where more and more countries and economic agents are committing to net zero emissions by 2050.
In the opinion of the Superintendent of the Energy Area at BNDES, Daniel Barreto, “Brazil has the potential to be a major exporter of low-carbon hydrogen, through production through different sources and technological routes. Furthermore, there are opportunities to add value in the production chain such as the production of green steel, ammonia and methanol, for example, as well as to integrate the development chain of new adjacent technologies, crucial for achieving a low-carbon economy” .
This is the BNDES program to support investments in the generation and local distribution of renewable energy (solar, wind, hydraulic, biomass), in technological development (such as energy generation or conversion projects, electrical energy storage or use of green hydrogen, among others) and in the production chain of the renewable energy sector.
More information at:
https://www.bndes.gov.br/wps/portal/site/home/financiamento/produto/fundo-clima-energias-renovaveis
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