The Netherlands and Brazil want to collaborate more closely on green hydrogen, bio-based raw materials, and a cleaner industry. Together with the Ministry of Climate Policy and Green Growth, TNO is investigating where the greatest opportunities lie. The goal is not only to exchange knowledge but, above all, to set up concrete projects between companies from both countries.
Pressure on the Dutch industry is increasing. Companies must reduce their CO2 emissions while simultaneously finding alternatives to oil, gas, and coal as raw materials. This concerns not only energy but also the carbon required for chemicals, plastics, fuels, and steel. In a climate-neutral economy, other sources must be found for these. The Netherlands possesses the knowledge, ports, industry, and customers for this, but has limited space and limited available biomass. Brazil, on the other hand, has abundant renewable energy, large quantities of biomass, and a strong agricultural sector. According to TNO, the two countries can therefore complement each other well.
Green hydrogen and biogenic carbon
The northeast of Brazil, in particular, is coming into focus. There is an abundance of sun and wind available in that region. This can be used to generate green electricity, which can then be used to produce green hydrogen. That hydrogen, in turn, can serve as a building block for fuels and raw materials for industry.
In addition, Brazil has a large amount of biogenic carbon. This is carbon from plants, trees, and waste streams, rather than from fossil sources. TNO lists sugarcane, bagasse, agricultural residues, and managed forests, among others, as potential sources. These streams can be used for the production of methanol and ethanol. These are important raw materials for the chemical industry, fuels, and plastics. Currently, such raw materials often still come from fossil sources. By using biogenic carbon, the industry can gradually become less dependent on oil and gas.
Four routes for cooperation
TNO identifies four routes that can be further developed. One of these is green pig iron. This is relevant for the steel industry, a sector that consumes a lot of energy and carbon. Brazil has iron ore, an existing steel industry, and access to renewable energy. This makes the country attractive for the production of steel raw materials with a lower climate impact.
A second route is the gasification of agricultural residues. In this process, residual streams are converted into raw materials such as methanol and olefins. Olefins are building blocks for many chemical products, including plastics. If these can be produced from agricultural residues, an alternative to fossil carbon is created. The third route revolves around second-generation biomass. These are residual streams that do not directly compete with food, such as residues from agriculture, forestry, or processing. Such streams are particularly important because the discussion surrounding biomass often revolves around land use and competition with food production. The fourth route is the joint development of new technology in the chemical industry. Dutch knowledge institutions and companies can collaborate with Brazilian parties in this regard. This does not involve isolated innovations, but rather chains in which production, transport, processing, and consumption are interconnected.
The market still needs to pick up speed.
On paper, the opportunities are great. Yet, the step towards real factories and trade flows is not straightforward. According to TNO, the brake is not solely on technology. Much technology is already available or under development. The biggest question is whether companies dare to invest.
Certainty is needed for this. A company does not build a factory without a clear view of its customers. And a buyer will not simply enter into a long-term contract if price, quality, and regulations are still uncertain. Banks and investors also want to know whether a project is sufficiently stable. Certification is added to this. European companies must be able to demonstrate that raw materials are produced sustainably. This is more complicated in international supply chains than in local production. Agreements must be reached regarding origin, CO2 savings, land use, and control. Without that clarity, scaling up remains difficult.
The Netherlands as a link to Europe
The Netherlands has a clear role to play as a gateway to the European market. The Port of Rotterdam and other industrial clusters can receive, process, and transport raw materials. Moreover, Dutch companies have experience in chemistry, logistics, hydrogen, and circular technology.
For Brazil, the cooperation can yield more than just the export of raw materials. The country can add more value itself to biomass and green energy. Instead of merely supplying raw materials, Brazil can also produce semi-finished products or green industrial products. This creates a different type of trade relationship, in which both countries build new industrial supply chains.
European rules create extra pressure
Interest in such supply chains is growing due to European policy. Companies are facing stricter climate requirements, higher costs for CO2 emissions, and regulations regarding the import of products with a significant climate impact. As a result, pressure to replace fossil raw materials is increasing.
For sectors such as chemicals, steel, and aerospace, this is difficult. They cannot solve everything with electricity. They continue to need molecules. The question is where those molecules come from: fossil sources, recycled carbon, biogenic raw materials, or a combination thereof. The collaboration with Brazil fits into this broader search. The Netherlands cannot produce all sustainable carbon itself. Imports will likely remain necessary. The challenge is to do this in a way that is sustainable, verifiable, and economically viable.
From exploration to real projects
TNO and the Ministry now want to involve companies from the Netherlands and Brazil in the next step. This concerns industrial parties, young companies, and SMEs. They are to help convert the promising routes into project plans.
Source: TNO
Photo: lovelyday12, Adobe Stock
