Legal framework for green hydrogen goes to the Federal Senate

PL goes to senators for consideration on an urgent basis
4 minute(s) of reading
Marco Legal do hidrogênio verde segue para o Senado Federal
Green hydrogen bill was approved by the Special Committee. Photo: Roque de Sá/Agência Senado/Reproduction

O PL (Bill) 2,308/2023 which establishes the regulation mark for the production of green hydrogen was approved in Wednesday (12) for the Special Committee in the Senate It is he follows Now to analysis of senators, in emergency regime

A proposal define rules and benefits to stimulate the industry in hydrogen fuel in the country and seeks to contribute to decarbonize the Brazilian energy matrix and determine tax breaks It is financial for the sector.

The project creates the national politics of low carbon hydrogen, which covers the National Hydrogen Program, the PHBC (Low Carbon Emission Hydrogen Development Program), the Brazilian Hydrogen Certification System and the Special Incentive Regime for Rehydro (Low Carbon Emission Hydrogen Production).

The text says that the PHBC has the goal to create source of resources to the energy transition, through green hydrogen. 

One of the goals of the program is the goal creation for the development of the product's internal market and incentives for use in industrial sectors that are difficult to decarbonize, such as fertilizers, steel, cement, chemicals and petrochemicals, in addition to the use of green hydrogen in heavy transport. 

At original idea, the text predicted the development of green hydrogen, renewable hydrogen and the support to the actions of energy transition. With the text by Otto Alencar (PSD/BA), there will be tax credit for the hydrogen industry that will be awarded through prior competition.

The rapporteur included amendments and, according to them, the ANP (National Petroleum, Natural Gas and Biofuels Agency) will be responsible for authorizing the production, import, transport, export It is storage of hydrogen. However, production will only be permitted for Brazilian companies based in Brazil.

Senator Cid Gomes (PSB/CE), president of the Special Committee, said that an agreement is being reached with the Ministry of Finance what is around R$ 13.3 billion which will be used for incentives to the implementation of green hydrogen policy in Brazil.

Changes to the PL

The rapporteur decided to accept five amendments suggested, so partial or total. The main change was the postponement from 2027 to 2028 for the start of the granting of tax credits for the sale of low-emission hydrogen, produced in the national territory. 

The other changes were:

  • Addition of another year to the benefit granting period, which will be valid until 2032;
  • Inclusion in Rehidro of biofuel producers, such as ethanol;
  • Inclusion of an amendment so that when defining the beneficiaries of the tax credit, projects with the lowest intensity of greenhouse gas emissions from hydrogen produced or consumed are prioritized;
  • Projects that have greater potential for “densification” of the national value chain are given priority;
  • Amendment that expands the competence of ANEEL (National Electric Energy Agency) to offer contributions to the ANP.

Cid Gomes stated that he will present other suggestions that were not accepted by the rapporteur, such as the concept of additionality, which refers to a green hydrogen evaluation criteria considering European standards.

Already Otto Alencar stated that the improvement allows encouragement to adding value to the hydrogen produced in the country and prevents Brazil from becoming just an exporter of tax incentives.

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Viviane Lucio
Journalist graduated from UNIP (Universidade Paulista) and specialist in scientific journalism from Unicamp (Universidade Estadual de Campinas). He has experience in producing news, reports, photography, communications and press consultancy.

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