Why a German company will produce green hydrogen generators in Brazil

Germany’s Neuman & Esser signed a protocol of intent with Brazil's Minas Gerais state to invest up to 45mn reais (US$9mn) in the production of green hydrogen generation equipment. 

Based in Belo Horizonte, the company will produce green hydrogen generators through electrolysis and ethanol and biomethane reformers, and develop other technologies. 

BNamericas spoke with Neuman & Esser’s local managing director, Marcelo Veneroso, about the venture.

BNamericas: Why did the company decide to make this investment now?

Veneroso: Our greatest expertise is in hydrogen compression technology for processes in refineries, gas compression in automobiles, industrial processes, etc. but we didn’t have in our line the part of gas generators. 

About five years ago, we acquired Hytron, a company that originated in the laboratories of [Universidade Estadual de Campinas], which has the know-how for hydrogen generation solutions. 

With this [acquisition], we’ll have technologies for hydrogen generation via electrolysis or ethanol or biomethane reformers. 

Hytron will maintain our basic engineering supply and innovation division, and Neuman will do the detailing and construction of the equipment.  

We have another company in the group, Arcanum, in Germany, which specializes in biomethane, and we want to bring it to Brazil to work in the area of renewable energy, including hydrogen. 

BNamericas: Why is compression technology critical to the hydrogen chain?

Veneroso: This gas needs to be compressed to be transported, in a much higher order than, for example, natural gas, as is the case with CNG [compressed natural gas]. In addition, its handling is more delicate, because it is a highly flammable and volatile gas. 

We handle, compress, transport and integrate the hydrogen generation systems. 

BNamericas: What’s the client profile for these systems?

Veneroso: Here in Minas Gerais, there are steel mills, mining firms, cement plants, and a huge road network. And the companies today are aware of the commitments to reduce pollutant emissions.  

In the steel industry, hydrogen [can be used]. In mining and the cement industry, fossil fuels can be replaced by this gas.

For vehicles, hydrogen is the ideal fuel outside cities, for medium and long distance trips, due to its greater autonomy than battery cars. 

BNamericas: Have you closed contracts for the equipment supply?

Veneroso: We have an order from an oil company for an electrolyzer that will be part of an experiment to obtain synthetic fuels, including diesel and even aviation kerosene. 

Meanwhile, we’re developing such equipment for a thermoelectric generator in the Port of Pecém, [Ceará state], which uses coal and wants to mitigate carbon emissions by adding some hydrogen to the burning. In addition, it would use the gas to cool the plant's turbines. 

We also have some agreements with companies that will invest in green hydrogen in Brazil, as well as with state governments, such as those of Minas Gerais and Ceará.