2023-05-31 03:05:00
The promotion and regulation project for the production of hydrogen finally entered the National Congressopening the parliamentary instance, with its technical and political debate, which will obviously be complex.
Yesterday, Fortescue “celebrated” the submission while encouraging the text to be “discussed and improved”, already calling for reforms for the “viability of the projects”. He proposed considering “access to financing at competitive costs”, “infrastructure works and expansion of the national electrical system” and “an adequate tax regime”. He marked his objection with the national initiative.
The Rio Negro government of Arabela Carreras and the Interested companies, including the Australian Fortescue, demanded that presentation by Economy. It arrived and coincided with the presidential campaign. It happened in the unwanted time.
Thus, parliamentary sources warn of the serious political difficulties for its treatment in Congress in the remainder of the year, added to its technical peculiarities because it is a foundational regulation.
Last July, President Alberto Fernández anticipated the formalization of the initiative in the short term and promised it to the Río Negro presidentduring a meeting at the Olivos Residence and where Senator Alberto Weretilneck also attended, who left with the mission of a preliminary project.
This letter was delivered in September to the Minister of Economy, Sergio Massa, who opened his consultations and concluded his project last week, which was formally presented on Monday by the Executive Power to the Chamber of Deputies.
For those days, Carreras repeated that Economy promised a rapid elevation for approval before the end of 2022 and she warned of the difficulties for 2023 due to her electoral scenario.
Fortescue, who announced an investment plan for 8.4 billion dollars in 2021, had expressed a similar rush for his business definitions. Over time, the investment group detected other deadlines set by the cadre of the national ruling party and rescheduled its calendar, aware that the regulation would only be resolved in Congress with the next parliamentary integration.
The standard offered
The initiative proposes the law “for the Promotion of Hydrogen with low carbon emissions and other greenhouse gases”, fixing three types for their generation. Includes Green Hydrogen, which is encouraged by the Río Negro government, and constitutes that “obtained entirely from renewable energy sources; and those originating from fossil fuels (Blue) or nuclear energy (Pink).
The alleged rule includes 50 articles and in the first ones it alludes to its objectives, such as “establishing a national regulatory framework”, “contributing” to “decarbonization” and “to encourage the development of the entire hydrogen value chain”.
The regime for the Promotion of Hydrogen will promote “its research, development, production, transportation, and national and international marketing.”
Provides a term of validity of 30 years and sets promotional benefits for incorporated companiesthat offer “new investments in capital goods and infrastructure” for hydrogen generation plants, and their energy parks.
Among the requirements, the scheme requires the incorporation of “national content” in the process, which starts from 35% for the initial five years and then, in the second stage, it will be 45% until the thirtieth year, to then go to 50%. These percentages are modified in the blue Hydrogen (from 20% to 40%) and pink (from 30% to 50%).
Besides, the creation of the records of projects and suppliers of the value chain are establishedas well as a Fund with contributions from the beneficiaries of the regime (equivalent to 0.5% of the declared investment).
Another planned formation is the Hydrogen Agency (ANHIDRO), intended to “define stages and processes of the value chain” and, among other roles, “audit the beneficiaries in the regime.”
In relation to the benefits, the “accelerated amortization” is proposed in the Income Tax and the “early refund of VAT”as well as, “exemptions for the import of goods for the various stages”, which “will be applied for 10 years from the effective date of this law.
Grants fiscal stability by determining that there will be no increase in “the total charge determined at the time of project presentation.” This coverage goes from 10 to 30 years.
Companies “will enjoy a freely applicable amount of up to 50% of the foreign currency obtained in exports linked to the project” to pay “commercial and/or financial liabilities abroad”.
They will not have export duties (withholdings) in the first 10 years for Green and Pink Hydrogen, and it will be 1.5% in Blue. Later, up to the age of 20, the former will have withholdings of 1.5% and it will be double that in Azul. Later they will be 3% and 4.5%, respectively.
Fortescue “welcomed” the shipment, but called for reforms for the “viability” of his plan
Fortescue “welcomed sending the project” to Congress where he understands “it can be debated and improved.” The Australian group requested reforms that “make the projects to be developed in the country viable,” among them, the Pampa that FFI presented to Río Negro for the generation of Green Hydrogen in the Sierra Grande area.
In response to a request from DIARIO RIO NEGRO for the presentation, the company stated that the presentation It is “an important step to make Argentina one of the leaders in the production of green hydrogen in the region”, with “an industry that provides real solutions to face climate change and positions the country at the forefront of the energy transition” .
He asked that in the parliamentary debate” “aspects that make the viability of the projects to be developed in the country” be considered “, such as the “access to financing at internationally competitive costs”“tax regime adapted to the needs” and, also, “infrastructure works and expansion of the national electrical system”.
They hope that “the final text of this law allows Argentina to capitalize on the opportunities that introduces renewable energy and green hydrogen and supports and encourages investment in large-scale projects.”
In the end, he considers “the participation of all the key actors in this discussion important, such as civil society, academia and industry” to “approve a law with broad consensus.”
Supporting quality journalism is essential to maintain an informed society and build a solid democracy.
I want to subscribe
1685515955
#points #project #Río #Negro #Fortescue
