The Brazilian Chamber of Deputies has approved Senate amendments to Bill 2308/23, which regulates low-carbon hydrogen production, sending to the presidency for approval. The bill sets a CO2 limit of 7 kg of CO2 per kg of hydrogen produced, benefiting ethanol suppliers, and mandates adoption by the end of 2030. The definition of renewable hydrogen includes production through various renewable sources beyond electrolysis, like solar, wind, biomass, and more.
It also establishes maximum tax subsidy limits for hydrogen production and marketing, totalling BRL18.3bn (US$3.4bn) from 2028 to 2032, with annual caps. Access to these tax credits requires a competitive bidding process, considering criteria like the price difference between hydrogen and substitutes, project implementation guarantees, and penalties for non-compliance. The bill prioritizes projects with the lowest greenhouse gas emissions and greatest potential to enhance the national value chain.
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