By Brazil Stock Guide – Petrobras (PETR4 BZ, PBR US) and Brazilian innovation agency Finep launched a 150 million-real ($28 million) funding call to develop an industrial-scale electrolyzer in Brazil, as the country seeks to lower the cost of low-carbon hydrogen and build domestic clean-energy technology.
The information comes from Petrobras. The initiative, announced Tuesday (June 16) at the company’s headquarters, will support the development of equipment that uses electricity to split water into hydrogen. Petrobras said Brazil has only a limited number of companies producing electrolyzers, and none currently manufactures the stack, the key component where the water-to-hydrogen reaction takes place.
The funding will be split equally between Petrobras and Finep, with each contributing 75 million reais in non-reimbursable resources. Petrobras’ share will come from its research, development and innovation budget. Selected companies will also be required to provide matching funds.
The call requires at least 50% local content and allows projects based on existing technologies, provided they deliver measurable technological progress. Petrobras said one of the goals is not only to reduce costs but also to create equipment with innovations compared with electrolyzers produced abroad.
Science, Technology and Innovation Minister Luciana Santos said the initiative is part of a broader federal effort to strengthen strategic technologies tied to industrial policy, sustainability and national sovereignty.
“With this initiative, we reinforce the commitment of MCTI and the federal government to the development of strategic technologies for reindustrialization, sustainability and national sovereignty. We are working together to strengthen an important technology chain, supporting our industry, lowering costs and preparing the country for the challenges of the future,” Santos said.
Petrobras Chief Executive Officer Magda Chambriard said low-carbon hydrogen could play a central role in cutting emissions in sectors such as steel, chemicals and refining.
“Low-carbon hydrogen is one of the most concrete levers for decarbonization. We need to improve scientific development to make it viable and thus make industries such as steel, chemicals and refining more sustainable. The cost of producing hydrogen by electrolysis is still high, and that is why reducing this cost is one of our central objectives. Brazil is well positioned to lead this agenda. Petrobras is moving forward and is committed to a just energy transition,” Chambriard said.
The program will back a structural project involving a network of partners, including at least three companies working on the technological development and at least one scientific, technological and innovation institution.
Renata Baruzzi, Petrobras’ director of engineering, technology and innovation, said the project is intended to cover the process from basic engineering to a pre-commercial prototype.
“We want to reduce external technological dependence and, therefore, the cost of hydrogen, the main barrier to its large-scale adoption. The development must cover everything from basic engineering to a pre-commercial prototype,” Baruzzi said.
Finep President Luis Antonio Elias said the call brings together innovation-support tools in energy to help position Brazil in the hydrogen supply chain.
“Brazil has the conditions to lead the global energy transition, but our goal goes beyond producing clean energy: we want to develop the technologies that will make this transformation possible. This call brings together, in an unprecedented way, the main instruments to support innovation in energy to drive a project capable of positioning Brazil in the hydrogen chain,” Elias said.
Petrobras plans to allocate $4 billion to research, development and innovation in its 2026-2030 business plan. Finep said it has expanded financing for green technologies, allocating more than 12.5 billion reais to sustainable-transition projects and initiatives from 2023 to 2025.