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Home / News / Market & Investments / Amber bets on green hydrogen to reduce emissions from the Candiota III power plant.

Amber bets on green hydrogen to reduce emissions from the Candiota III power plant.

Renewable H2 will replace grey hydrogen used in the cooling process of the coal-fired power plant.
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  • Photo by Wagner Freire Wagner Freire
  • February 18, 2026, at 16:48 PM
2 min 1 sec read
Amber bets on green hydrogen to reduce emissions from the Candiota III power plant.
Photo: Freepik

Âmbar Sul Energia, controlled by Âmbar Energia and the energy arm of the J&F Group, has signed a contract with the Government of Rio Grande do Sul to implement an industrial plant for the production of green hydrogen in the municipality of Candiota (RS). The fuel will be generated from a photovoltaic plant.

The project was selected in the Green Hydrogen Chain Development Notice (H₂V-RS), coordinated by the Secretariat of Environment and Infrastructure, in partnership with the Civil House. The proposal is part of the state policy to stimulate the H₂V chain, focusing on technological innovation and the reduction of industrial emissions.

In practice, the green hydrogen This will replace the grey hydrogen currently used in the cooling process of the Candiota III Thermal Power Plant, which is fueled by coal. While grey hydrogen is produced from natural gas, green hydrogen will be obtained by electrolysis of water using solar energy, eliminating emissions from the production process.

The initiative is part of the strategy of decarbonisation from the state's production chains. The estimate is to reduce approximately 49.136 kg of CO₂ per year, in addition to consolidating a pilot project with the potential for replication in other industrial units.

The investment will include a state subsidy of R$ 9,8 million, plus a counterpart contribution of R$ 4,2 million from the company. Badesul acts as the financial operator of the tender and will be responsible for monitoring the execution of the resources and the fulfillment of the technical goals.

According to Danilo Dantas, Research, Development and Innovation Manager at Âmbar Sul Energia, the estimated implementation timeline is approximately 21 months, considering equipment acquisition, integration with the existing plant, and system commissioning.

With the signing of the contract with Âmbar Sul Energia, the state government concludes the contracting phase of the Energy Chain Development Notice. Green HydrogenIn total, four companies were selected: B&8, Tramontina, Rodoplast, and Âmbar Sul Energia.

The four selected projects are expected to result in a reduction of emissions of approximately 4.740 tons of CO₂ equivalent per year. With a total investment of R$ 100 million, the call for proposals represents the first public instrument for directly promoting innovation in industrial decarbonization in Brazil at the state level.

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Amber Energy Amber South Energy thermoelectric generation J&F Group green hydrogen Rio Grande do Sul thermoelectric plants
Photo by Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.
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