SAP and GIZ Develop Blockchain Technology to Certify Green Hydrogen Exported from Brazil to Europe

2. June 2023 Marian Willuhn

Hydrogen exported from Brazil to Germany could in future be certified as green hydrogen via blockchain. The software manufacturer SAP and the Society for International Cooperation (GIZ) are working on such a project through a public-private partnership. The partners in Brazil signed a corresponding declaration of intent in the presence of Federal Minister Robert Habeck (Bündnis 90/Die Grünen) and a delegation from the Federal Ministry for Economic Affairs and Climate Protection.

Brazil is traded as a major exporter of green hydrogen. Large amounts of hydropower, wind power and photovoltaics offer good conditions for large-scale electrolysis. According to the EU’s hydrogen strategy, ten million tons of green hydrogen are to be imported into the EU every year by 2030. The catch: it has to be green hydrogen and proof of the sustainability of hydrogen is not easy to implement.

In mid-February, the EU Commission decided by delegate act what “green” means in this context. Basically, the aim is to ensure that the import of green hydrogen does not result in existing renewable energy systems that previously supplied households being used exclusively for electrolysis, while households use fossil-based electricity. Then the supply of green hydrogen would be a zero-sum game from a climate protection perspective. To prevent that, the commission laid down the conditions Additionality, simultaneity and regional origin fest.

The project is about proving these conditions in such a way that European energy importers can enjoy legal certainty. Therefore, the exact conditions for the energy companies in Brazil are first defined in accordance with the EU standards and then recorded in software. The software should then be able to analyze and evaluate the entire supply chain. The project will first be carried out at a pilot company in Brazil, so that the fully developed software can then be made available to other energy suppliers in Brazil. SAP stated that once the software is complete, it will help all energy companies of all sizes.

The Green Token from SAP is a blockchain-based control chain that uses a digital twin to provide a transnational insight into ESG parameters such as the origin of raw materials, recycling and child labor. The Green Token, which is based on recognized standards such as ISCC PLUS, ISCC EU and REDcert2, will be used for the first time in the pilot project.

“We are very pleased to be working with GIZ on this project,” says Sabine Bendiek, Chief People and Operating Officer and Member of the Executive Board of SAP SE. “We want to create the conditions for certification data to be exchanged and evaluated in a tamper-proof, cost-efficient and traceable manner throughout the entire value chain.”

The Federal Ministry of Economics is funding the project.