EDP weighing Brazil green hydrogen plant for exports to Germany, CEO says

By Leticia Fucuchima

SAO PAULO, July 14 (Reuters) - Portuguese power company EDP is preparing substantial investments in Brazil, its CEO told Reuters, including a possible green hydrogen plant that could export to Germany.

Brazil may be key to the EDP's energy transition strategy, CEO Miguel Stilwell said, and a new plant in the South American nation could kick off its green energy exports to Europe.

"We are participating in a (green hydrogen) auction in Germany, to have an industrial project in Brazil and export," Stilwell said, without providing details on production capacity or the value of such an investment. EDP's bid in that green ammonia auction involves a consortium with companies specialized in other areas, such as chemistry and gas transport, he added.

On Tuesday, EDP spent 4.4 billion reais ($917 million) to acquire an additional 32% of its Brazilian unit EDP Energias do Brasil, as part of a strategy to delist the subsidiary and simplify its business structure.

It now operates an integrated energy business subsidiary (generation, transmission and distribution) and EDP Renovaveis, which develops and operates large renewable energy plants.

Stilwell said the company plans to invest around 30 billion reais in Brazil over the next five years to insure those operations "work as integrated as possible."

He added that EDP may sell of some of its assets, such as hydroelectric plants, to reinvest in more promising areas, such as solar energy and transmission lines.

The Portuguese company has already started exploring new fronts in Brazil, including green hydrogen, which could channel tap the company's renewable generation capacity for export to other markets.

"A country like Brazil, which has all these natural resources (for renewable energy), can produce green hydrogen very cheaply," Stilwell said.

EDP is also committed to expanding its business in the traditional segments of the electricity sector in Brazil, such as generation.

Stilwell said the company will continue to study government auctions for energy transmission, and that it awaits guidance for the renewal of its distribution concessions.

($1 = 4.7992 reais) (Reporting by Letícia Fucuchima; Writing by Carolina Pulice; Editing by Brad Haynes and Alistair Bell)