Firjan: Potential of US$70 billion in offshore wind and hydrogen projects in Rio state

By Firjan

(Machine translation)

June 11, 2024

Across the country there are 94 requests for offshore wind and hydrogen installation projects, with an installed capacity of 234KW (GigaWatts). Of these, Rio de Janeiro registered 14 orders with the potential to generate 24 GW, with investments of around US$70 billion. These resources could be used to boost the economy of Rio de Janeiro and the potential demand for thousands of jobs throughout its implementation.

Thus, the state of Rio de Janeiro will be able to lead the country towards the decarbonization of its energy sources. The challenge lies in the efficient management of these complementary sources to our energy matrix, enabling the development of new supply chains and security of supply, cost accessibility and social justice; that is, inserting these new projects in a way that does not affect national competitiveness.

The information is contained in the document "Transition and Energy Integration in Rio," an analysis produced by the Federation of Industries of Rio de Janeiro (Firjan), based on 2024 data from Ibama (Brazilian Institute of the Environment and Renewable Natural Resources), EPE (Energy Research Company) and private projects. The study was presented at the Macaé Energy 2024 event, which takes place in the municipality of Norte Fluminense from June 11th to 13th.

To download the study "Energy Transition and Integration in Rio” click on https://bit.ly/3RkpcSp

Promoted by Firjan SENAI, Sebrae/RJ and Macaé City Hall, the first edition of the forum brings together in the city of North Fluminense the main industry players, institutions and public authorities to debate knowledge about the dynamics of these markets, efficiency, transition and the energy integration, and the necessary technologies to get everything off the ground as soon as possible.

"To this end, it is important that the country advances in the Green Legislative Agenda and approves the regulation of instruments as soon as possible to guarantee an attractive business environment for investment," states the acting president of Firjan, Luiz Césio Caetano.

The main instrument for starting this development is the approval of PL 576/2011, currently underway in the National Congress, for the regulation and installation of offshore wind farms in the country. "This legislative agenda needs to be addressed today so that potential investment becomes a reality in the next 5 to 10 years. The longer we delay these discussions, with the inclusion of the known 'pork,' the longer we delay the transformation of potential into employment, income and taxable reais", adds Caetano.

Fluminense potential

In Rio, if the 24 GW are used, for example, for the production of low-carbon hydrogen, these projects would have the capacity to produce 114 thousand kton/year of hydrogen with an energy equivalence of 0.21 MMbpd (6% of national production of oil), or 42 million liters of C gasoline per day (33% of the country's sales), and/or 45 million m3/day of natural gas (150% of Brazil's industrial natural gas consumption).

The document also brings contributions from important market agents with analysis of the scenario and perspectives for the sector. Rystad Energy comments on the global scenario and the Ministry of Mines and Energy (MME) talks about the use of biofuels.

The ANP (National Agency for Petroleum, Natural Gas and Biofuels) debates the role of the regulator in the energy transition and the EPE presents energy planning. The company Prumo demonstrates how Porto do Açu, in the North of Rio de Janeiro, is preparing to become an energy hub; ABEEólica (Brazilian Wind Energy Association) comments on the challenges and opportunities of offshore wind farms in Rio and Brazil, just as the Brazilian Hydrogen Association (ABH2) talks about hydrogen production in the state of Rio de Janeiro and in the country.

Also present in the survey, the government of the state of Rio, via the Secretariat of Energy and Economy of the Sea (Seenemar), explains Rio's offshore wind pilot project and the city of Macaé talks about the repositioning of the municipality as an energy capital.