H2 InfrastructureH2 Infrastructurein Brazilin Brazil

H2 InfrastructureH2 Infrastructurein Brazilin Brazil

Outline

Questions Macro Problem Micro Problem Existing Infrastructure Existing R&D Centers Opportunities Suggestions Proposed Legislation

QuestionsQuestionsQuestionsQuestions

• Should Brazil create policies to foster the development of the Hydrogen industry and R&D at university labs?

• Or, should Brazil wait for other countries in Latin America to take the lead in H2 infrastructure and R&D?

Source: O Globo, Agencia Estado, e Folha

Macro - ProblemMacro - ProblemMacro - ProblemMacro - Problem

1.5 billion people lack access to energy in 2008 expected to be 1.3 billion by 2030. Current energy matrix needs finite resources

Source: IEA 2009

Projected Prices / BarrelProjected Prices / BarrelProjected Prices / BarrelProjected Prices / Barrel

Source: AEO 2010

Macro - ProblemMacro - ProblemMacro - ProblemMacro - Problem

Infrastructure projects (PAC US$ 605.5 billions): US$ 65 billion for 54 Hydropower Dams, US$ 300+ billion for sub-salt rigs

Source: IEA 2009

38.4%

Micro - ProblemMicro - ProblemMicro - ProblemMicro - Problem

Brazilian agencies:

• Are co-financing the sub-salt operations

• Have relaxed the rules for oil refineries

• Have granted licenses for the construction of 56 thermal power plants (coal)

• Did not approve the construction of 28 Small to Medium scale Hydropower plants.

Existing Existing InfrastructureInfrastructureExisting Existing InfrastructureInfrastructure

Source: David Mares Natural Gas Pipelines in The Southern Cone

Natural Gas issues with:• Bolivia (pricing)• Paraguay (pricing)• Argentina (distribution)

Petrobras (2009) :• 9.219 Km pipelines• 425 new initiatives (ANP)

Consumption of Natural Gas

increased.

Existing Infrastructure - Nat. GasExisting Infrastructure - Nat. GasExisting Infrastructure - Nat. GasExisting Infrastructure - Nat. Gas

Existing Infrastructure - BiofuelExisting Infrastructure - BiofuelExisting Infrastructure - BiofuelExisting Infrastructure - Biofuel

Existing InitiativesExisting InitiativesExisting InitiativesExisting Initiatives

ITA Engineering School:• 8000 applicants / 150 spots• Best research center in Brazil• Currently researching the bio-diesel engines• No funding for H2 research in regular transportation or aviation

• CEPEL - Center for Research in Electric Energy

• Limited funding from Fed Gov and Petrobras (Oil Company)

• CIETEC – The Technology–Based Business Incubator Center

• FAPESP - Government R&D fund

OpportunitiesOpportunitiesOpportunitiesOpportunities

Brazil fleet is 27,8 million cars (2009). Flex Fuel cars are 85% of new vehicles. Gasoline is more expensive in BR than in the US

Source: Courtesy of NHA and EPA report

Current ProjectsCurrent ProjectsCurrent ProjectsCurrent Projects

Cost ApproachCost ApproachCost ApproachCost Approach

Health costs: emphysema, asthma, and other pollution diseases

Environmental costs: pollution related to fuels, smog and fumes

Social costs: internal migration, violence, landslides, heat waves, and other climate change effects on people

Infrastructure costs: economic growth will increase energy need

Maximize the benefits for the tax payers by investing in projects with low CO2, using clean tech such as H2.

Source: Courtesy of EPA

Proposed LegislationProposed LegislationProposed LegislationProposed Legislation

Create cascade incentives for contractors and new entrants

Access government subsidized funds only as a result of investments in solutions to decrease CO2 emissions

Dedicate part of the sub-salt oil royalties to finance R&D towards the creation of processes to extract Hydrogen from existing Natural Resources

Create legislation for security and storage related to the use of Natural Gas, Oil, Ethanol, Hydropower and other renewable sources of energy to generate Hydrogen.

SuggestionsSuggestionsSuggestionsSuggestions

Source: DOE - NREL

Final SlideFinal SlideFinal SlideFinal Slide

Thank You!

Ana Carolina C. Murphy

acm2134@columbia.edu

acmurphy@microempowering.org