"We plan to advance technical cooperation on green hydrogen production in Brazil, the introduction of hydrogen trucks, and small modular reactors (SMRs)."
Hyundai Motor Group Chairman Jeong Seon made these remarks while attending the 'Korea-Brazil Business Roundtable' held in São Paulo, Brazil, on the 28th (local time).
Earlier, in 2024, he met with Brazilian President Luiz Inácio Lula da Silva and announced an investment commitment of $1.1 billion (approximately 1.6 trillion won) to be made in Brazil by 2032. This statement appears to signal the formal launch of related projects. At that time, Jeong (Chairman) identified hydrogen and other eco-friendly initiatives as well as future technologies as key investment areas.
Brazil, home to the Amazon rainforest known as the 'lungs of the Earth,' is actively pursuing aggressive carbon reduction policies. Hyundai Motor Group has determined that there are significant business opportunities in the green energy sector within this context. This is also why Jeong (Chairman) stated at this Business Roundtable: "We will advance local operations in alignment with Brazil's decarbonization policy 'MOVER,' the national hydrogen program, and the national energy plan."
Hyundai Motor Group is expected to first establish an electrolysis plant in Brazil and utilize local renewable energy facilities to produce green hydrogen. Green hydrogen is produced by splitting water using electricity generated from renewable sources. According to a report published last year by the Korea Institute for International Economic Policy, producing green hydrogen requires low renewable energy generation costs. The report analyzed that Brazil's northeastern region, with abundant sunlight and strong winds, possesses 'optimal conditions.' Furthermore, the report noted that the production cost per kilogram of green hydrogen in Brazil is $3.2, ranking second lowest globally after the Middle East (United Arab Emirates: $2.7, Saudi Arabia: $2.9). Additionally, the European Union plans to import 10 million tons of green hydrogen by 2030, and Brazil's northeastern region holds ports close to Europe, making it advantageous for exports.
The supply of Hyundai Motor Group's 'XCIENT Hydrogen Electric Trucks' in Brazil is also anticipated. The Brazilian government is investing heavily in building a green mobility ecosystem, including the introduction of the 'MOVER' program that applies eco-friendly regulations to both domestic and imported vehicles. In March this year, Hyundai supplied eight XCIENT hydrogen electric trucks for a wood logistics decarbonization project promoted by Uruguay, taking its first step into the Latin American market with plans to gradually expand the scope of countries receiving these trucks.
Efforts are also accelerating to deploy SMRs in Brazil. Hyundai Motor Group is working on securing technology and commercializing SMRs through participation in the design of commercially available SMRs in the United States alongside Holtec International, a U.S.-based nuclear power plant specialist company. Two years ago, during a meeting with President Lula, Jeong (Chairman) also expressed strong determination by stating, "We hope to explore cooperation opportunities in the SMR field as well."
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