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Bill wants to include green hydrogen in the regulatory framework of the Brazilian energy sector

Written by Valdemar Medeiros
Published 31/03/2022 às 14:09
Green Hydrogen - PL - Bill of Law - regulatory-framework-of-the-energy-sector
Energy bill could be cheaper with new PL for the sector’s regulatory framework – image: SenadoGov/Disclosure

Senator Jean Paul Prates created a new bill to include the use of green hydrogen in the regulatory framework of the electricity sector in Brazil  

Senator Jean Paul Prates PT/RN, on Monday (28), presented a Bill that aims to include green hydrogen in the regulatory framework of the Brazilian energy sector. According to the parliamentarian, the use of renewable fuel it is still unknown by a large part of the population, but it is already seen by specialists in the sector as an essential source for the energy transition to a world without carbon emissions.

Learn more about the Bill for the use of green hydrogen in the Brazilian energy sector

The PL was named the hydrogen law and provides that by 2032 a minimum percentage of 5% of hydrogen will be added to the gas pipeline network, a percentage that should rise to 10% by 2050.

In the first period, of the total percentage, 60% must be green hydrogen, which is generated from sources such as solar, biomass, wind, biogas, among others. In the second period, the share of green hydrogen should be 80%.

The bill inserts the fuel in the law 9478/1997, the oil law, placing it within the regulation of the ANP. According to Prates, it is a simple bill, but highly inductive and that provides the essential direction for the investments that have already been announced in the country for the new source, as well as for the various technologies that make it viable. In Brazil, some enterprises are already advanced in requesting environmental licenses for the production of green hydrogen. Most of the projects are located close to offshore wind farms.

States invest in hydrogen projects in the energy sector

O State of Ceará has signed partnerships with private companies to create a hub in the port of Pecém. Until then, there are already R$ 26 billion in projects that include a complex for generating solar energy, wind energy and an electrolysis plant in Pecém. In addition to Ceará, four other states in the Northeast region also have a memorandum of understanding with private companies for the production of green hydrogen, namely: Rio Grande do Norte, Pernambuco, Piauí and Bahia.

Last week, Rio Grande do Sul entered into a partnership with Enerfin of Brazil for the construction of a green hydrogen project in the state. This is the second agreement of its kind, considering that, in December last year, the government of Rio Grande do Sul closed a partnership with White Martins. Despite all this movement, the energy sector sees a lack of regulation, generating uncertainty and insecurity for projects.  

PL seeks diversification in clean energy sources

The Federal Government, with the National Hydrogen Plan, opens the door to hydrogen produced from fossil sources, while the senator's bill aims to find a differentiation in the renewable energy market in Brazil.

The bill brings a legal definition of green hydrogen, covering technologies and generation sources considered renewable. Prates explains that this was done because, depending on the more rigorous concept of green hydrogen used, incentives could be restricted to just one of the various production technologies, while our country has the capacity to produce the fuel in different ways, such as from processing cane, for example.

According to the president of Sindalcool da Paraíba, Edmundo Barbosa, the chemical formula of ethanol shows that it has a lot of hydrogen, and the country has the only technology to transform ethanol into hydrogen. According to the executive, 7,6 liters of ethanol can generate 1 kg of hydrogen.

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Valdemar Medeiros

Journalist in training, specialist in creating content with a focus on SEO actions. Writes about the Automotive Industry, Renewable Energy and Science and Technology

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