Mauritania Passes Green Hydrogen Law to Boost Renewable Energy Sector
Key Ideas
- Mauritania introduces the Green Hydrogen Code to regulate and incentivize green hydrogen development, offering tax breaks to investors.
- The new law establishes the Mauritanian Agency for Green Hydrogen (AMHV) and sets up an institutional framework under the Ministry of Energy.
- Operators must follow a series of agreements, including a framework agreement with the government and a global agreement approved by the parliament.
- License holders can benefit from tax exemptions, build desalination plants, and aim to export green hydrogen to Europe with a traceability guarantee.
Mauritania has enacted the Green Hydrogen Code to provide a regulatory framework for the development and operation of green hydrogen. This new law offers tax breaks to attract investments in the renewable energy sector. The Mauritanian Agency for Green Hydrogen (AMHV) has been established to regulate activities related to green hydrogen projects. Under the law, developers and their affiliates can benefit from VAT exemptions, tax incentives, and corporate tax breaks.
The process for operators includes signing a framework agreement with the government for a maximum of two years, which can be extended. After fulfilling the requirements, a global agreement defining the terms for developing and producing green hydrogen in the country must be approved by the parliament. License holders can be granted permission to produce green hydrogen for a maximum of 35 years, with the potential for renewal.
Importation of equipment and materials for the project is exempt from VAT, and a 4% tax on annual turnover is applied to licensed subcontractors. Operators are also allowed to build and operate desalination plants for the project. The government aims to export green hydrogen to Europe, ensuring its renewable nature is certified with traceability guarantees. This new law marks a significant step for Mauritania in transitioning to renewable energy and positioning itself as a leading green hydrogen hub in Africa.