The future hydrogen economy in Brazil will probably rely on renewable resources, mainly on hydropower and biofuels, which are plentifully available in the country. In this work, major issues concerning energy supply and demand within Brazil are reviewed with special consideration given to renewable sources of energy for hydrogen production and for use as direct fuel for fuel cells. Although the fuel cell installed capacity in the country is very limited, several government-funded research activities have been carried out in many universities and institutes. The major research focus is concerned with PEM, DMFC, DEFC and SOFC. In addition, reforming and catalysis processes have been receiving the attention of the Brazilian research community with emphasis on renewable ethanol as cell fuel. The potential for hydrogen production from renewable energy sources is believed to be large, but remains a subject of debate.