The Brazilian Chamber of Deputies has passed the Senate amendments to Bill 2308/23, a crucial step towards regulating low-carbon hydrogen production in Brazil. The bill, once approved by the presidency, will enforce a CO2 limit of 7 kg per kg of hydrogen produced. This legislation aims to boost renewable hydrogen production by including various sources such as solar, wind, and biomass, going beyond just electrolysis. The bill also outlines tax subsidies amounting to BRL18.3bn (US$3.4bn) from 2028 to 2032 with annual caps, supporting the hydrogen sector. Access to these subsidies will be through a competitive bidding process that considers factors like the price difference between hydrogen and other substitutes, project implementation guarantees, and penalties for non-compliance. The focus of the bill is on prioritizing projects with low greenhouse gas emissions and those that can strengthen the national value chain. This move is not only significant for the hydrogen industry but also benefits ethanol suppliers. The legislation is a crucial step towards achieving Brazil's goal of adopting low-carbon hydrogen by the end of 2030, contributing to the country's environmental and economic objectives.