CGN Brasil, a Chinese multinational, has expressed its interest in investing resources to construct a green hydrogen plant in Bahia, Brazil.

This initiative aligns with CGN’s strategy to expand its renewable energy production in the region. Bahia, according to data from Senai Cimatec, has the potential to produce over 60 million tons of green hydrogen per year.

The formal acceptance of CGN’s proposal by the Bahian government is expected to be sealed on May 30, during an event commemorating the inauguration of the Tanque Novo Wind Complex. This complex will be CGN’s fourth plant in the region and the first to be delivered to the state following the pandemic.

CGN considers Brazil the country with the world’s lowest production cost for hydrogen-to-vehicle (H2V) due to its abundant solar and wind energy potential. Currently, pilot projects for green hydrogen production are underway in Bahia, Ceará, Rio Grande do Sul, and Rio de Janeiro.

In collaboration with a local Bahian company specializing in renewable projects, CGN has already identified the potential to generate up to 14 GW of energy for green hydrogen production. André Martini, Director of Business Development at CGN Brazil, states, “We believe that by 2030, we can achieve large-scale national production, and we are prepared to enter this emerging market.”

Green hydrogen, produced through electrolysis using renewable energy sources, has gained significant attention as a potential solution for decarbonizing various sectors, including transportation, industry, and power generation. Unlike hydrogen produced from fossil fuels, green hydrogen does not release carbon dioxide when used, making it an environmentally friendly option.

The investment by CGN Brasil in a green hydrogen plant in Bahia has the potential to accelerate the development of the green hydrogen sector in Brazil. It capitalizes on the country’s renewable energy resources and positions Brazil as a key player in the global energy transition.