Petrobras to Build $16MM Renewable Hydrogen Plant

Brazilian oil giant Petroleo Brasileiro S.A. (Petrobras) is venturing into renewable hydrogen.

Petrobras said in a news release that it plans to build its first pilot plant for generating renewable hydrogen at the Vale do Açu Thermoelectric Plant, in Alto do Rodrigues, Rio Grande do Norte. The project has a total budget of $16 million (BRL 90 million).

The project, planned in partnership with the Senai Institute for Innovation in Renewable Energy (Senai ISI-ER), will be carried out by WEG, a Brazilian electrification company.

The test plant is expected to start operating in the first quarter of 2026, Petrobras said.

Renewable hydrogen will be generated through the process of water electrolysis using solar energy, which consists of breaking down water molecules using an electric current, separating hydrogen and oxygen, according to the release.

Petrobras Director of Energy Transition and Sustainability Maurício Tolmasquim said, “This is the first step towards future commercial initiatives in the sustainable hydrogen segment. The production of renewable hydrogen from water electrolysis using solar energy not only reduces greenhouse gas emissions, but also promotes the use of abundant and sustainable natural resources in the country”.

The Alto Rodrigues Photovoltaic Plant, which was originally built for research and development purposes, will have its production capacity increased from 1.1 MWp (Megawatt peak) to 2.5 MWp, supplying the electrical demand of the 2 megawatt (MW) electrolysis pilot unit to be installed. The electrolysis plant will be tested in different operating modes, taking advantage of the connection to the electricity distribution grid and the energy storage system already installed in the unit, Petrobras said.

The hydrogen produced will be used for power generation and in studies on the addition of natural gas, feeding microturbines whose performance and structural integrity will be tested with the mixture of these two components, according to the release.

Petrobras noted that it is the first Brazilian company to study the effects of adding renewable hydrogen to natural gas in microturbines.

Potential CCUS and Low-Carbon Hydrogen Projects

In August, Petrobras signed a protocol of intentions with the Espirito Santo state government and Federação das Indústrias do Espírito Santo (Findes) to study carbon capture, utilization and storage (CCUS) and low-carbon hydrogen projects. 

One of the agreement’s goals is to assess the feasibility of implementing a CCUS hub and facilities to produce low-carbon hydrogen for decarbonizing the state’s industries, according to an earlier news release.

William Nozaki, Petrobras Energy Transition Executive Manager, said, “Petrobras is the world's largest CO2 [carbon dioxide] capturer, accounting for about 25 percent of last year's total. This experience qualifies us to design and build CCUS HUBs, a crucial technology for achieving greenhouse gas emission reduction targets by 2050. This contributes to addressing the climate crisis and promoting a just energy transition. The protocol signed today is an important initiative for the company, which is evaluating other project opportunities across the country. We have reduced GHG [greenhouse gas] emissions and identified synergies with the state of Espírito Santo”.

Espírito Santo has significant industrial sectors, and Petrobras noted that it has infrastructure in the state that can be leveraged for CCUS projects and extensive geological knowledge of the region's basin. There are initial plans to install CO2 handling equipment in areas near the Espírito Santo coast and offshore to reach storage reservoirs. Petrobras will be responsible for investments in pipelines, compression stations, wells for CO2 storage, and eventually for the operation of the potential hub, according to the release.

According to Secretary of State for Environment and Water Resources Felipe Rigoni, the agreement represents a “significant strategic milestone” for sustainable development and a cleaner energy transition for Espírito Santo.

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