Brazil: President enacts law for hydrogen development

In the context of a ceremony held at the Pecém Port Complex, Brazilian President Lula da Silva, together with the Minister of Mines and Energy, Alexandre Silveira, enacted bill 2308/2023, which establishes a legal framework for low-carbon hydrogen.

The new law contemplates a series of initiatives for the development of the hydrogen industry in Brazil, among which the Special Incentive Regime for the Production of Hydrogen with Low Emissions stands out. These incentives will be aimed at encouraging research, development and innovation in hydrogen production and its value chain, and will be valid for five years from January 1, 2025.

In this line, the legal-regulatory framework also includes the creation of the Brazilian Hydrogen Certification System. This defines the structure, governance and competencies for voluntary certification by emissions intensity, based on product life cycle analysis.

Brazil’s National Agency of Petroleum, Natural Gas and Biofuels will be the entity in charge of regulating the hydrogen sector, promoting the use of low-carbon energy sources for its production, such as wind energy, photovoltaic energy and ethanol for its production.

It should be noted that the enactment of the bill was one of the priorities of the 2023-2025 Three-Year Plan of the National Hydrogen Program (PNH2).