After attracting the world’s largest electric vehicle producer, BYD, the Brazilian northeastern state of Bahia is now gearing up to develop its green hydrogen potential.

With world-class renewable resources, which already account for 93% of its energy mix, Bahia is set to have a long-term potential to produce up to 84 million tonnes/year of green hydrogen. That would require 4,656 terawatt-hours per year of renewable power, using all the potential of wind and solar PV generation in the state.

According to the GH2 Bahia Atlas study published by the state government, Bahia could produce 2,046 gigawatts of solar photovoltaic and 366 GW of wind power. Currently, the country produces 10 GW of wind energy – accounting for 30% of the national production –, and around 3 GW of solar power. With planned and under-construction projects, Bahia’s installed capacity will increase to 28 GW of solar and 21 GW of wind in the coming years.  

The strategic advantages for the state to become a leading green hydrogen producer go beyond wind and solar, governor Jerônimo Rodrigues tells Kallanish. Bahia has a stable regulatory framework, strategic existing infrastructure (port, road and rail), fiscal incentives, a growing skilled workforce and mapping intel to support investors.

Bahia is the fifth-largest Brazilian state in terms of area. It is bordered by eight states and has a long Atlantic Ocean coastline. With a diverse climate, including semi-arid regions, water supply could be deemed a major issue for its planned hydrogen economy. Yet, the government says water availability, estimated at 69.2 billion cubic metres/year, isn’t an issue. The ultimate potential for green H2 production would demand 1.3 Bcm/y of water, less than 2% of total water availability, the government says.

“We are working to decarbonise our energy, industries and transportation matrix and to promote a sustainable, just transition locally and globally,” says Rodrigues. “[However] we don’t want to be exporters only. Are exports important? Yes. Is decarbonisation a planet-wide issue? Yes. But we don’t want to pay this bill again.”

The governor stresses the need to add value internally and to ensure state participation in this planned new industry, something he says didn’t happen with oil and other commodities such as sugar and cocoa.

“We don’t want to export wind, sun, biomass; it is not only about decarbonising Europe and the US. It’s about reindustrialisation,” he adds.

Green hydrogen can primarily help decarbonise Bahia’s industries – oil refining, petrochemical, agricultural, pulp, mining, steelmaking and others. Additionally, it can be used to store excess renewable energy production and decarbonise transport.

Currently, hydrogen demand in the state is concentrated on two companies: Acelen (oil refining) and Unigel (ammonia production). The latter will launch Bahia’s first industrial-scale electrolyser this year, supplied by thyssenkrupp nucera. Production will start at 10,000 t/y of green H2. By 2027, the project is planned to produce 100,000 t/y of green H2 and 600,000 t/y of ammonia.

The Bahia government estimates that 60% of the planned green H2 production will go to exports and 40% to meet Brazilian demand – of which 6% from Bahia. In 2025, the state’s production is forecast at 2.17m t/y with 13.8 GW of electrolysis capacity. In 2030, production rise to 3.5m t/y and 22.19 GW. By 2050, Bahia should produce 8.95m t/y of green hydrogen, running 56.77 GW of electrolysis capacity.

“We are ready to support investors and the development of a green hydrogen industry and other sustainable opportunities,” says Paulo Guimarães, newly-appointed president of BahiaInveste – the state’s investment promotion agency.