Brazil Advances Low-Carbon Hydrogen and Carbon Capture Regulation

Aug. 13 – The government also signed significant decrees for the energy industry. The first regulates the implementation of the National Low-Carbon Hydrogen Policy.

The decree puts into practice mechanisms for governance, certification, tax incentives, and investment promotion, laying the groundwork for the National Hydrogen Program (PNH2) and the Low-Carbon Hydrogen Development Program (PHBC). It also outlines the structure of the Brazilian Hydrogen Certification System (SBCH2), defining the governance and institutional roles of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the Electric Power Trade Chamber (CCEE), and the National Institute of Metrology, Quality and Technology (Inmetro).

According to projections by the Ministry of Mines and Energy (MME), Brazil has the technical potential to produce up to 1.8 gigatonnes of low-carbon hydrogen annually. More than US$ 290 billion in private investments have already been announced for projects across 18 Brazilian states. These initiatives are at various stages of development, ranging from research and pilot-scale testing to industrial projects undergoing technical and economic feasibility assessments. Against this backdrop, the 2023–2025 Triennial Work Plan identified 65 actions aimed at strengthening the low-carbon hydrogen value chain.

Carbon Capture and Storage

The government signed a decree establishing the conditions for carbon dioxide capture, pipeline transport, and geological storage activities (CCS/CCUS) in Brazil. The regulation implements Articles 26 through 29 of Law No. 14.993/2024 (the “Fuel of the Future” Law) and establishes the regulatory framework for the development of these activities. It stipulates that operations will require authorization from the ANP, a process divided into two stages: exploration and assessment of the storage area, and actual operation. Rules regarding the monitoring and termination of activities are also outlined. Furthermore, the decree mandates that the Ministry of Mines and Energy (MME), supported by the Energy Research Office (EPE), develop a national infrastructure plan to guide the implementation of carbon capture, transport, and geological storage sites, with updates required every two years.

The regulations encourage infrastructure sharing among different projects—based on principles of open access, transparency, and non-discrimination—thereby fostering the creation of multi-user hubs. The decree also acknowledges various technological pathways for carbon capture and storage and establishes that operations may only be terminated after the stability of the stored carbon has been verified, following a minimum monitoring period of 20 years.