Title : Energy transition and neo-industrialization in Brazil - Windows of opportunities
Abstract:
In a scenario where climate change has been a topic of much debate, there is concern about mitigating greenhouse gas emissions and the demand for more excellent energy supply. This impasse has been discussed through a gradual transition of the global energy matrix, considering that the main renewable alternatives, such as wind, solar, and green hydrogen, must coexist with already consolidated fossil sources, such as oil and natural gas. , pointing out that in a short and medium-term scenario, the energy transition and energy coexistence are more than concepts but rather the sector's modus operandi. This article will discuss natural gas, the fossil fuel with the lowest level of greenhouse gas emissions, and CCS (Carbon et al.) technology, a promising technology that simultaneously captures CO2, and can produce value-added products. Both are included in Brazil's current energy policy and the reindustrialization agenda. Natural gas plays a significant role in the energy trilemma by trying to balance the energy industry's three main challenges: energy security, environmental sustainability, and affordability. It is the fossil fuel with the lowest level of greenhouse gas emissions compared to others, such as coal and oil. Furthermore, as gas enables combustion with high thermal efficiency, reductions in the intensity of energy consumption in industry, commerce, or homes can be achieved. Regarding the industrial sector, specifically the chemical sector, it is known that, in recent years, the Brazilian chemical industry has lost its share in meeting domestic demand through local production despite the growth in the consumption of chemical products in the country. This important industrial sector is facing a marked process of deindustrialization, resulting from several factors, such as the absence of long-term public policies, the price of natural gas and raw materials, and tax and logistics costs. This structural problem has led to a growing trade deficit since the beginning of the 90s, from US$ 1.2 billion to a jump of US$ 65 billion in 2022. The pressure for global decarbonization has led to increased projects of carbon capture and storage (CCS) worldwide. According to a report by the International Energy Agency (IEA), this is one of the leading technologies that can significantly reduce emissions from fossil fuels. Some movements can be pointed out in Brazil, such as the oil company Repsol Sinopec Brasil, which announced at the end of 2022, in partnership with the Pontifical Catholic University of Rio Grande do Sul and the German startup DACMa MnbH, the beginning of a pioneering project in America Latina which envisages the development of CO2 capture technology through the construction of an experimental plant capable of capturing around 300 tons of CO2 from the atmosphere.
