'World won't wait' | Brazil to push harder over offshore wind framework
South American nation is dragging its heels on the job of getting a regulatory framework in place for offshore wind, but action is promised
Brazil aims to complete the passage of a regulatory framework for offshore wind and green hydrogen by the end of this year as Latin America’s largest nation attempts to unlock the potential of new sources of renewable energy.
Silveira also highlighted an upcoming auction for transmission lines to transport solar and onshore wind energy from the country's northeast to power stations down south. With a floor of 16bn reais ($3.3bn), the auction could unlock up to 200bn reais in investments, he said.
Brazil’s President Luiz Inacio Lula da Silva has pledged to improve the South American nation’s performance on sustainability, offering more protection for the Amazon rainforest, for example.
His administration has shown interest in boosting development renewable industries, seen as offering great potential in a resource rich country.
Brazil has a relatively mature onshore wind sector and significant and growing capacity in solar energy, but is yet to begin developing offshore wind and green hydrogen.
Brazil’s Senate approved a legal framework for offshore wind and hydrogen in September last year, but the bill needs to complete its passage into law and the regulatory framework then needs to be fleshed out with enabling legislation.
Lost momentum
Legislative momentum was lost with Brazilian election that took place in October 2022, but industry lobbyists are calling for faster action to kick-start offshore wind and green hydrogen.
Major international companies showing interest in the sector include Corio Generation, Ocean Winds, a joint venture between European utilities Engie and EDP Renewables, as well as oil and gas majors Shell and Equinor.
Brazil has already opened the slow-moving environmental permitting process for offshore wind, attracting scores of applications.
Ocean Winds, for example has submitted applications for environmental permits for five projects totalling 15.2 GW in the Brazilian states of Piaui, Rio Grande do Norte, Rio de Janeiro, and Rio Grande do Sul.
Projects geared to future green hydrogen production are also proliferating around proposed export gateway locations such as Pecem port in Ceara state, Suape in Pernambuco and Porto do Acu, in the state of Rio de Janeiro.
There are, however, concerns, that the bill now making its way through Congress includes stipulations for fees that some critics have likened to royalties in the oil and gas sector.
Gannoum, and others, have warned that such levies could get Brazilian offshore wind tenders, promised for next year, off to a bad start.