Brazil Implements Legal Framework for Low-Carbon Hydrogen Industry
Key Ideas
  • Law No. 14,948/2024 establishes regulations for low-carbon hydrogen exploration and production in Brazil under the supervision of ANP.
  • ANP is granted new powers to regulate, authorize, and monitor hydrogen activities, including exemptions for certain uses and ownership transfers.
  • The law also introduces the National Policy for Low-Carbon Hydrogen, incentives for the industry, and development programs to promote eco-friendly hydrogen production.
  • Additionally, amendments to existing laws aim to facilitate the development and commercialization of low-carbon hydrogen and its derivatives in Brazil.
Brazil has taken a significant step towards fostering a low-carbon hydrogen industry with the publication of Law No. 14,948/2024. This legislation, featured in an extra edition of the Official Gazette of the Union on August 2, 2024, outlines a comprehensive legal framework for the exploration and production of low-carbon hydrogen in the country. The law entrusts the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) with the responsibility of regulating, authorizing, and monitoring hydrogen-related activities. ANP's new attributions include granting production authorizations, allowing exemptions for specific uses, and overseeing different stages of the hydrogen value chain such as import, export, and commercialization. Moreover, the law introduces the National Policy for Low-Carbon Hydrogen, which aims to provide a strategic direction for the growth of the industry. It also establishes incentives for companies operating in the low-carbon hydrogen sector, creates special regimes to promote production, and initiates development programs to support eco-friendly hydrogen initiatives. Furthermore, the amendments to existing laws accompanying this new legislation seek to streamline processes and facilitate the adoption and commercialization of low-carbon hydrogen and its by-products. Overall, the enactment of this law signals Brazil's commitment to promoting sustainable energy practices and positioning itself as a key player in the global transition to cleaner fuel sources.
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