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

2. QuestionsQuestions 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? Source: O Globo, Agencia Estado, e Folha

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

4. Projected Prices / Barrel Source: AEO 2010

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

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. Existing Infrastructure Source: David Mares Natural Gas Pipelines in The Southern Cone 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. 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 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

11. OpportunitiesOpportunities 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 Source: Courtesy of NHA and EPA report

12. Current Projects

13. Cost Approach 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 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. Proposed Legislation 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.

15. SuggestionsSuggestions Source: DOE - NREL

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