Electrolysis or ethanol? Study compares strategic paths for hydrogen production in Brazil.
- REDAÇÃO H2RADAR
- 3 minutes ago
- 1 min read
A recent study presents a comparative analysis of the main hydrogen production routes in Brazil, evaluating two central alternatives from a techno-economic and public policy perspective: water electrolysis powered by renewable electricity and steam reforming of ethanol. The research highlights that the country occupies a unique position in the international energy landscape, combining a predominantly renewable electricity matrix with a consolidated bioenergy chain based on sugarcane ethanol—a condition that opens up multiple paths towards a hydrogen economy.
Costs, competitiveness, and the role of public policies in technological choice
The analysis uses the Levelized Cost of Hydrogen (LCH) concept to decompose variables such as initial investment, operating costs, energy input prices, and financial parameters, in addition to conducting sensitivity analyses involving electricity and ethanol prices, discount rates, and utilization factors.
The results indicate that steam reforming of ethanol tends to present more competitive costs in the short and medium term, mainly due to lower capital intensity and the availability of raw materials in the country. Electrolysis is gaining competitiveness in scenarios of falling renewable electricity costs and reduced CAPEX for electrolyzers, potentially establishing itself as a strategic alternative in the long term.
