2023-09-05 12:55:24
Members of the Brazilian Pact for Renewable Hydrogen present public policy proposals to the MDIC
Members of the Brazilian Pact for Renewable Hydrogen, made up of the Brazilian Association of Wind Energy and New Technologies (ABEEólica), Brazilian Association of Photovoltaic Solar Energy (ABSOLAR), the Brazilian Biogas Association (Abiogás) and the Brazil-German Chamber of Commerce and Industry of Rio de Janeiro (AHK Rio), delivered a series of public policy proposals to the representative of the Ministry of Development, Industry, Commerce and Services (MDIC) for the development and improvement of the national green and renewable hydrogen (H2R) market.
With a list of 17 structuring measures for promoting the production and use of H2R in the country, Eduardo Tobias, coordinator of ABSOLAR’s Green Hydrogen Task Force, Tamar Roitman, executive manager of Abiogás, Riomar Jorge, from the technical and regulatory board of ABEEólica, and Loana Lima, deputy executive director of AHK Rio, officially delivered the proposals to Marcelo Dourado, coordinator of the Thematic Chamber of Neoindustrialization, Market and Competitiveness of PNH2 and director of decarbonization and green finance at MDIC.
INTERSOLAR
The award ceremony took place on August 31 of this year, during Intersolar South America, held in São Paulo and considered one of the biggest events in the world in the field of solar energy, in a panel that dealt with public policies to encourage H2R in the Brazil. The panel also had the participation of Federal Deputy Arnaldo Jardim, President of the Special Commission for Energy Transition and Green Hydrogen in the Chamber of Deputies, who had already received the proposals in an event on August 15 at FIESP. Also, on the panel, each entity presented its initiatives in favor of the development of the renewable hydrogen market and proposed public policies in addition to the 17 measures of the Pact.
Among the measures proposed by the group, the inclusion of renewable hydrogen in the National Energy Policy, more favorable financing conditions and reduction of the tax burden (PIS/COFINS, ICMS, IPI, II, IR and CSLL) and tax credits for the productive chain for the production of hydrogen from a renewable source, among others (see complete list below).
A ABSOLAR
For Eduardo Tobias, coordinator of ABSOLAR’s Green Hydrogen Task Force, in addition to policies to reduce the cost of producing hydrogen from a renewable source versus that from a fossil source, it is essential to create programs that generate demand for the product in the domestic market, following the example of what was done in the past for ethanol, biodiesel, and renewable electricity sources. “Hydrogen from a renewable source is still more expensive than that from a fossil source. Therefore, current consumers of fossil hydrogen have no economic reason to replace it with a renewable source. Hence, the need for the government to act, even if for a predetermined period”, explains the executive.
Proposals of the Pact for Renewable Hydrogen to the MDIC
Definition of renewable hydrogen: hydrogen produced from solar, wind, biomass, biogas, ethanol, geothermal, tidal and/or hydraulic sources, whether onshore or offshore, without direct emission of non-biogenic carbon dioxide into the atmosphere in its cycle of production;Inclusion of hydrogen in the National Energy Policy;Inclusion of hydrogen within the scope of competence of the ANP as a regulatory and inspection agency (with due regard for the competences of ANEEL, ANA, ANTAQ, environmental agencies and other authorities in their respective spheres of regulation and inspection); Equalization of hydrogen as biodiesel for the issuance of CBIOS and contemplated within Renovabio for decarbonization of the fuel sector; Amendment to the EPZ Law with incentives and facilitating its creation and operation. EPZs as development hubs for hydrogen projects in Brazil to serve the foreign and domestic markets; Reduction of the tax burden (PIS/COFINS, ICMS, IPI, II, IR and CSLL) and tax credits for the renewable hydrogen production chain ;Creation of the national carbon market (by law) as a driver of green technologies in Brazil;Explicit classification of projects for the production of renewable hydrogen and its derivative products as infrastructure projects for the purpose of qualifying for REIDI and the issuance of incentivized debentures;Exemption of sectoral charges to hydrogen projects such as CDE, PROINFA, CCC and others that affect the share of consumption. Application of REINTEGRA and extension of SUDENE (benefits of reduction of 75% of income tax). Allow the framing of hydrogen production in the Presumed Profit regime for the next 15 years, regardless of the billing limit, and with presumption rates of Favorable IR and CSLL; Encouraging the training of professionals capable of working in the renewable hydrogen market and training new professionals at technical and higher levels (technology, bachelor’s and teaching degrees); Not creating additional environmental licensing requirements (eg declaration of interference prior, decommissioning) and authorizations (eg with the ANP) for the production of renewable H2 when compared to other fossil-sourced hydrogen projects; Addition of renewable hydrogen in gas pipelines, taking into account technical and safety premises; Increased access limit to Climate Fund for hydrogen projects (currently at BRL 80MM/year); BNDES – FINEM: reduction of BNDES remuneration for renewable hydrogen and ammonia projects from 1.5% pa to 1.1% pa (such as photovoltaic systems of the type A and energy from solid waste); FINEP: creation of an incentivized financing program for renewable hydrogen and ammonia projects (like the programs made for 2G ethanol in the last decade); Low-cost financing also for the acquisition of machinery, inputs or to expand production capacity to manufacture the equipment needed to produce renewable hydrogen.
About the Pact for Renewable Hydrogen
Signed by the Brazilian Association of Wind Energy and New Technologies (ABEEólica), Brazilian Association of Photovoltaic Solar Energy (ABSOLAR), Brazilian Biogas Association (ABIOGÁS) and the Brazil-German Chamber of Commerce and Industry of Rio de Janeiro (AHK Rio), the Brazilian Pact for Hydrogen was created to accelerate the development of the Brazilian renewable hydrogen (H2R) market, both for export and for domestic consumption.
objectives of the pact
With a focus on boosting the renewable hydrogen economy in Brazil, the Pact has six main objectives: (i) contribute to the definition of a regulatory framework; (ii) develop the hydrogen application market; (iii) promote socioeconomic development through the hydrogen economy; (iv) promote renewable hydrogen in the country; (v) disseminate renewable hydrogen opportunities to its associates and Brazilian society; and (vi) increase the competitiveness of the production and use of hydrogen as energy.
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