On March 24, Law No. 31992, Law for the Promotion of Green Hydrogen ("the Law") came into force.

Below, we share the most relevant topics of the Law:

1. The Law seeks to promote the research, development, production, transformation, storage, conditioning, transportation, distribution, commercialization, export and use of green hydrogen as fuel and energy vector. To this end, it declares these activities to be of national interest.

2. The Law defines green hydrogen as an energy vector produced with low greenhouse gas emission technologies.

3. The Ministry of Energy and Mines ("MINEM") promotes the generation, production and use of green hydrogen in the industry from renewable energies as an energy vector, as a fuel and as an input in industrial processes nationwide, either as hydrogen or by-products such as fertilizers, organic liquids, methanol, etc.

4. MINEM will formulate sectoral energy policies and plans for the development of the green hydrogen value chain, from its production to its final use. As such, the following conditions shall be guaranteed:

  • Territorial planning for the establishment of productive poles of development centers and green hydrogen production and transformation plants.

  • The granting of economic and tax benefits for research, production, transformation, transport, commercialization, export and use of green hydrogen as fuel and energy vector.

  • The industrial application of green hydrogen as fuel for the following uses: vehicles, agriculture, industrial, air transport, maritime transport, public and cargo transportation, and other non-energy applications that require fossil fuels.

  • To promote the development and production of green hydrogen at industrial level from surplus renewable energy and for its application as a blend in the gas grid.

  • Obtaining international financing to promote green hydrogen development and production projects.

  • The timely provision of the complementary regulatory framework for the development of green hydrogen.

5. The MINEM shall publish in the regulations of the Law, the necessary requirements to obtain the green hydrogen green origin certification.

Within 180 calendar days from the entry into force of the Law (September 19, 2024), the regulations and the additional framework necessary for its application shall be published.

 

We hope that this information will be of relevance to you and your company. If you require any further information, do not hesitate to contact us.