Brazil Chamber approves Hydrogen bill, but removes subsidies

(epbr) The Chamber of Deputies approved the Hydrogen bill (PL 2308/2023), which regulates the production of low-carbon hydrogen, establishes voluntary certification and provides federal tax incentives. The proposal goes to the Senate.

– The bill considers low-carbon hydrogen to be hydrogen that, during production, emits up to 4 kg of CO2 for every 1 kg of hydrogen. This opens up space for production with fossil sources associated with carbon capture.

– The proposal also creates the Brazilian Hydrogen Certification System (SBCH2), to voluntarily certify the intensity of greenhouse gas emissions in hydrogen production.

– Rapporteur Bacelar (PV/BA) removed from the final text the subsidy package that was initially planned for the production of low-carbon hydrogen, after agreement with the economic team.

– Granted, however, the right to relief from federal taxes on investments through the Special Incentive Regime for Low Carbon Emission Hydrogen Production (Rehidro).

– On Monday, three associations – Brazilian Association of the Green Hydrogen Industry (ABIHV), Abeeólica and Absolar – defended the maintenance of the stimuli in the final text.

– According to the entities, the exclusion of incentives could cause investments to migrate to other countries that offer large subsidies.