The president sanctioned last Friday (2/8) the project of Law No. 2308 / 2023, which creates the legal framework for low-carbon hydrogen, in a ceremony held at the Pecém Port Complex, in Ceará.
The new law creates tax incentives to stimulate hydrogen production and actions to decarbonize the Brazilian energy matrix, through measures such as the Rehidro (Special Incentive Regime for Low Carbon Emission Hydrogen Production).
According to the text, tax incentives granted to companies producing green hydrogen, from 2028 to 2032, in the amount of R$18,3 billion. Among them are the suspension of PIS, COFINS, PIS-Importation and COFINS-Importation for the purchase or import of equipment (new or rented) to enable green hydrogen projects in the country.
Another source of resources to encourage the sector will be through the PHBC (Low Carbon Hydrogen Development Program). Its purpose will be to finance the energy transition based on the use of green hydrogen.
The sanctioned text also provides that it will be up to the ANP (National Agency for Petroleum, Natural Gas and Biofuels) authorize the production, import, transport, export and storage of hydrogen. Only Brazilian companies based in Brazil will be able to produce the fuel.
The law also defines the intensity for classifying low-carbon hydrogen, at a limit of 7kgCO2eq/KgH2. This favors the use of low carbon emission sources, such as wind, photovoltaics and ethanol.
Another highlight of the legal framework is the Brazilian Hydrogen Certification System (SBCH2), which establishes the structure, governance and competencies, in addition to voluntary certification, by emissions intensity, based on life cycle analysis.
The new law also presents incentives for research, development and innovation for hydrogen production and the various production routes in order to establish technological neutrality.
“When I see these people talk about green hydrogen, solar energy, wind energy, biomass, green hydrogen, I keep thinking: which country in the world can compete with Brazil? Which country in the world is capable of competing with our country on this issue of energy transition?”, stated the president.
“This is yet another public policy that strengthens the country as a global protagonist in the fair and inclusive energy transition. Today, you, President, make a historic project a reality, which creates a new industry for Brazil, lighting the flame that will revolutionize the planet's energy matrix. It is technological and industrial development in the national hydrogen production chain”, stated the Minister of Mines and Energy, Alexandre Silveira.
According to the government, more than 57 GW in hydrogen projects have already been announced in the country, especially in the states of Bahia, Ceará, Piauí, Pernambuco and Rio Grande do Norte. The hydrogen projects already registered in the MME, that is, which are in more advanced stages, total R$212 billion in investments.
Regulation needs to be fast
For the president of H2 Verde, Luiz Piauhylino Filho, the sanction of the bill was an important step towards consolidating this new economy in the country, but the regulatory process needs to be quick, as Brazil is at least three years behind on this topic.
The expert also highlights the need for government support in training qualified labor and developing the components industry.
“Another opportunity that has been discussed is the industrialization of the country so that we can bring to Brazil this new industry that will manufacture this equipment. We are talking about several items that Brazil does not produce. Otherwise, we will repeat the model of panels and inverters, where we only import and do not consolidate the industry in the country”, said Piauhylino.
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