On August 2, 2024, was published in Brazil's Official Gazette of the Union, which establishes the legal framework for low-carbon hydrogen, provides for the National Low-Carbon Hydrogen Policy, institutes incentives for the low-carbon hydrogen industry, establishes the Special Regime of Incentives for the Production of Low-Carbon Hydrogen (Rehidro), creates the Low-Carbon Hydrogen Development Program (PHBC).
This law defines the National Hydrogen Program () as an instrument of the National Low-Carbon Hydrogen Policy.
The National Low-Carbon Hydrogen Policy is part of the National Energy Policy referred to in of August 6, 1997.
Law No. 14,948 defines as:
•Low-carbon hydrogen: hydrogen fuel or industrial input collected or obtained from different sources in the production process and which has greenhouse gas (GHG) emissions, according to life cycle analysis (LCA), with an initial value less than or equal to 7 kgCO2eq/kgH2 (seven kilograms of carbon dioxide equivalent per kilogram of hydrogen produced). This definition value will be in force until December 31, 2030, and may, from that date, be revised by regulation
•Renewable hydrogen: low-carbon hydrogen that can be collected as natural hydrogen or produced from renewable sources for fuel, or industrial uses. This includes hydrogen produced from biomass, ethanol and other biofuels, as well as electrolytic hydrogen, which is produced by using renewable energy sources like solar, wind, hydro, biomass, biogas, biomethane, landfill gas, geothermal and others
•Green hydrogen: hydrogen produced by electrolysis of water, using renewable energy sources
The cap of 7 kgCO2eq/kgH2 was decided based on the inclusion of biofuels in the production of low-carbon hydrogen. The value is almost double the low-carbon limit considered by the (3.4 kgCO2eq/kgH2), the U.S. clean hydrogen (4.0 kgCO2eq/kgH2) or the UK low-carbon hydrogen (2.4 kgCO2eq/kgH2).
Law No. 14,948 created the Brazilian Hydrogen Certification System (SBCH2) to promote the use of hydrogen in a sustainable manner, based on the information contained in a certificate issued by a company certifying the hydrogen product and its derivatives. Thewill be issued to report the intensity of emissions related to the hydrogen product chain.
As a requirement for the Rehidro qualification, the Brazilian government will include the following in the regulations of the law:
•Minimum percentage of use of goods and services of national origin in the production process, exempting the requirement when there is no national equivalent or when the quantity produced is insufficient to satisfy the internal demand
•Minimum investment in research, development and innovation
Tax incentives for Rehidro beneficiaries will be valid for five years, starting on January 1, 2025.
Rehidro beneficiaries are legal entities authorized to:
1Produce low-carbon hydrogen
2Carry out packaging, storage, transportation, distribution or marketing of low-carbon hydrogen
3Generate renewable electrical energy for the production of low-carbon hydrogen
4Produce biofuels (ethanol, biogas or biomethane) for the production of low-carbon hydrogen
For more information, consult the Global: report.