The Ministry of Mines and Energy publishes for comments new regulation regarding production and use of cero and low emission hydrogen
On April 18, the Ministry of Mines and Energy (“MME”) published for comments a draft decree that seeks to regulate articles 21, 22 and 23 of Law 2099 of 2021, known as the Energy Transition Law. According to the MME, the draft decree purports to set the mechanisms, conditions, and incentives to promote the use of hydrogen to the effect of integrating this energy vector in the electricity public utility services, the energy storage and the decarbonization of sector such as transportation, industry, and hydrocarbons.
In general, the draft decree seeks to establish the responsibilities of multiple public agencies to regulate various aspects of the green and blue hydrogen value chain. Find below a table with the different allocation of responsibilities that the draft regulation proposes:
| Entity | Allocated responsability |
| Ministry of Mines and Energy/ Ministry of Environment and Sustainable Development | Establish incentives different form tax benefits for green and blue hydrogen. |
| Establish an origin certification mechanism for hydrogen produced within the country. | |
| Establish requisites od procedure to develop activities of carbon use, capture and storage for hydrogen production, as well as the requisites for the verification and monitoring systems. | |
| Regulate the use of geological formation to store hydrogen. | |
| Ministry of Mines and Energy | Determine the conditions under which hydrogen production will be classified. |
| Establish technical and quality condition for the infrastructure destined to the supply of hydrogen for vehicle use. | |
| Regulate the transport of hydrogen through dedicated ducts. | |
| Regulate the production of synthetic fuels with hydrogen and the production of derivates. | |
| Establish quality and technical condition for the storage of hydrogen in tanks. | |
| Implement and information system for agents and other actors of the hydrogen value chain to obtain information on production, distribution, transport and storage. | |
| Establish the framework for the creation of a regulatory sandbox to promote the development of hydrogen projects. | |
| Ministry of Transportation/ Ministry of Environment and Sustainable Development | Establish requisites, procedures, conditions and incentives to use hydrogen in the transport sector. |
| Review the technical and security requirements to transport hydrogen through roads. | |
| Ministry of Commerce, Industry and Tourism | Establish the conditions to guarantee the importation of auto parts and spare parts for hydrogen propelled vehicles. |
| National Directory of Taxes | Determine the tariff schedules for hydrogen propelled vehicles. |
| Ministry of Science, Technology and Innovation | Create programs to promote the formation of scientific, technical and technological capacities to develop technologies associated with the hydrogen industry. |
| Energy and Gas Regulation Commission | Regulate the storage of hydrogen destined to re-electrification and final delivery to the electric grid. |
| Establish conditions for the injection and transportation of hydrogen to in the Nacional System of Natural Gas Transportation. | |
| Evaluate the necessary regulatory adjustments to use hydrogen in the energy and gas sectors. |
In addition to these assignments, the draft decree also introduces a definition of green and blue hydrogen projects. Its initial article clarifies that for the purpose of the regulations to be issued on the matter, hydrogen shall be considered an energy vector used as fuel or as an industrial supply.
The Ministry will receive comments on the Draft from the public up until next Friday, April 22nd.
To obtain further information and advice regarding this topic, do not hesitate to contact Posse Herrera Ruiz.
Álvaro José Rodríguez
alvaro.rodriguez@phrlegal.com
Mariana Sánchez
mariana.sanchez@phrlegal.com
