Brazil's President Luiz Inacio Lula da Silva has signed a law establishing a regulatory framework for low-carbon hydrogen, according to the Ministry of Mines and Energy (MME). The new legislation aims to enhance Brazil's credibility in the global hydrogen market and includes several initiatives to advance the sector.
The law introduces the Special Incentive Scheme for Low Carbon Hydrogen Production (Rehidro) and the Brazilian Hydrogen Certification System (SBCH2), both set to take effect from January 1, 2025, for a period of five years. These measures are designed to stimulate the production of low-carbon hydrogen in Brazil.
The legislation also sets a carbon limit of 7 kg CO2-equivalent per kg of hydrogen, promoting the use of renewable energy sources such as wind, solar photovoltaics, and ethanol.
Energy Minister Alexandre Silveira emphasized that the framework is crucial for developing Brazil's national supply chain for hydrogen inputs and equipment, as well as for enhancing domestic nitrogen fertilizer production. This aims to reduce external dependencies and ensure food security.
Currently, Brazil has 57 GW of low-carbon hydrogen projects at various stages of development, with advanced projects representing an estimated BRL 212 billion (USD 36.7 billion/EUR 33.8 billion) in investments, the MME reported.
