Low-Carbon Hydrogen legal framework is approved in the Brazilian Chamber

(TN) Bill (PL) No. 2,038/2023, which creates the legal framework for low-carbon hydrogen, was approved by the Chamber of Deputies. Now, the text goes to President Lula for sanction. The Bill provides for the National Low Carbon Emission Hydrogen Policy – ​​coordinated by the Ministry of Mines and Energy (MME) – and establishes incentives to develop this industry in Brazil.

The approved project brings the governance of the hydrogen certification process, prepared by the Management Committee of the National Hydrogen Program (Coges-PNH2), which proposed the creation of the Brazilian Hydrogen Certification System (SBCH2).

“With this new instrument, Brazil will have more legal security with predictability for investments in hydrogen projects, in addition to contributing to the decarbonization of the Brazilian energy matrix. Another important step towards a fair and inclusive energy transition”, says minister Alexandre Silveira.

The project follows the best practices adopted internationally and represents what the MME considers to be the most appropriate for Brazil to position itself in the global low-carbon hydrogen market, bringing the credibility and transparency necessary for this product to be commercialized.

“We are moving forward, every day, to establish the solid foundations for Brazil to certify the quality of the hydrogen that will be produced here, providing more development, innovation and opportunities for our country. I would like to take this opportunity to congratulate and highlight the relevant work that the Chamber of Deputies and the Federal Senate carried out to approve this mechanism that is so fundamental for future international negotiation processes”, highlights Alexandre Silveira.

Defining the legal-regulatory framework for hydrogen was one of the priorities of the 2023-2025 Three-Year Plan of the National Hydrogen Program (PNH2). Now, the Bill goes to presidential approval. The Brazilian government’s commitment is to expand the offer of competitive financing for the development of low-carbon hydrogen projects in the country, hence the importance and need for the legal framework.

Within the strategy established within the scope of the National Hydrogen Program (PNH2), Brazil intends to have low-carbon hydrogen hubs consolidated in the country by 2035. To date, Brazil already has more than US$30 billion in hydrogen projects hydrogen announced.