H2 Infrastructure in Brazil

1. H2 Infrastructurein Brazil • Outline • Questions • Macro Problem • Micro Problem • Existing Infrastructure • Existing R&D Centers • Opportunities • Suggestions • Proposed Legislation

2. Should Brazil create policies to foster the development of the Hydrogen industry and R&D at university labs? Or, should Brazil wait for other countries in Latin America to take the lead in H2 infrastructure and R&D? Questions Source: O Globo, Agencia Estado, e Folha

3. Macro - Problem Source: IEA 2009 1.5 billion people lack access to energy in 2008 expected to be 1.3 billion by 2030. Current energy matrix needs finite resources

4. Projected Prices / Barrel Source: AEO 2010

5. Macro - Problem 38.4% Source: IEA 2009 Infrastructure projects (PAC US$ 605.5 billions): US$ 65 billion for 54 Hydropower Dams, US$ 300+ billion for sub-salt rigs

6. Micro - Problem Brazilian agencies: • Are co-financing the sub-salt operations • Have relaxed the rules for oil refineries • Have granted licenses for the construction of 56 thermal power plants (coal) • Did not approve the construction of 28 Small to Medium scale Hydropower plants.

7. Source: David Mares Natural Gas Pipelines in The Southern Cone Existing Infrastructure • Natural Gas issues with: • Bolivia (pricing) • Paraguay (pricing) • Argentina (distribution) • Petrobras (2009) : • 9.219 Km pipelines • 425 new initiatives (ANP) • Consumption of Natural Gas increased.

8. Existing Infrastructure - Nat. Gas

9. Existing Infrastructure - Biofuel

10. CEPEL - Center for Research in Electric Energy Limited funding from Fed Gov and Petrobras (Oil Company) CIETEC – The Technology–Based Business Incubator Center FAPESP - Government R&D fund Existing Initiatives • ITA Engineering School: • 8000 applicants / 150 spots • Best research center in Brazil • Currently researching the bio-diesel engines • No funding for H2 research in regular transportation or aviation

11. Brazil fleet is 27,8 million cars (2009). Flex Fuel cars are 85% of new vehicles. Gasoline is more expensive in BR than in the US Opportunities Source: Courtesy of NHA and EPA report

12. Current Projects

13. Health costs:emphysema, asthma, and other pollution diseases Environmental costs: pollution related to fuels, smog and fumes Social costs:internal migration, violence, landslides, heat waves, and other climate change effects on people Infrastructure costs:economic growth will increase energy need Cost Approach Maximize the benefits for the tax payers by investing in projects with low CO2, using clean tech such as H2. Source: Courtesy of EPA

14. Create cascade incentives for contractors and new entrants Access government subsidized funds only as a result of investments in solutions to decrease CO2 emissions Dedicate part of the sub-salt oil royalties to finance R&D towards the creation of processes to extract Hydrogen from existing Natural Resources Create legislation for security and storage related to the use of Natural Gas, Oil, Ethanol, Hydropower and other renewable sources of energy to generate Hydrogen. Proposed Legislation

15. Source: DOE - NREL Suggestions

16. Final Slide Thank You! Ana Carolina C. Murphy acm2134@columbia.edu acmurphy@microempowering.org