Brazil's President Lula signs hydrogen legal framework into law

Brazil's President Luiz Inacio Lula da Silva signed into law the bill establishing a legal framework for low-carbon hydrogen, the Ministry of Mines and Energy (MME) said on Friday.

The law provides regulatory security and credibility to Brazil in the global hydrogen market and brings a series of initiatives to develop this industry. Among them are incentives to boost the production of low-carbon hydrogen in the country, such as the Special Incentive Scheme for Low Carbon Hydrogen Production (Rehidro) and the Brazilian Hydrogen Certification System (SBCH2). Both will be effective from January 1, 2025 for five years.

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The bill also establishes a limit of 7 kg CO2-equivalent per kg of hydrogen for producing the low-carbon fuel, promoting sources like wind, photovoltaics, and ethanol.

Energy minister Alexandre Silveira said the framework is fundamental to fostering the national supply chain for inputs and equipment as well as for the development of Brazil's nitrogen fertiliser production, reducing external dependence and guaranteeing food security.

Currently, Brazil has 57 GW of low-carbon hydrogen projects in different levels of maturity, of which those at more advanced stages represent a BRL 212 billion (USD 36.7bn/EUR 33.8bn) in investments, MME noted.

(BRL 1.0 = USD 0.173/EUR 0.160)