These efforts are encompassed to what is included in Law 2099 of 2021, where hydrogen was recognized as a Non-Conventional Energy Source (“FNCER” for its Spanish acronym) and Law 2169 of 2021, which declared projects for the production and storage of green hydrogen to be of public utility and social interest. Additionally, the National Government created a Roadmap, where it described the way in which this energy vector will be integrated into our daily lives, in order to incorporate it, among others, in the residential sector, transport and non-interconnected areas, framed within the Program for the Rational and Efficient Use of Energy (Resolution MME 40156 of 2022).
Decrees 1476 of 2022 (D. 1476/22) and 1537 of 2022 (D. 1537/22) are issued with the aim of regulating some articles of Laws 2099 of 2021 (articles 21 and 23) and 2169 of 2021 (article 30).
In the case of Green Hydrogen, D. 1476/22 authorized these projects to use energy taken directly from the grid and not only that produced by connecting it directly to a FNCER source, authorizing the integration of these projects into our national interconnected system (SIN for its Spanish acronym). However, it conditioned the use of said energy to be backed by FNCER, resulting in the need to (i) sign a power purchase agreement from FNCER sources and (ii) have renewable energy certificates issued by a third party, under international standards, same which must be verifiable through a public consultation platform.
On the other hand, it generated a series of responsibilities for different authorities for the development of norms and rules applicable to hydrogen projects, namely:
- Ministry of Environment and Sustainable Development (“MADS” for its spanish acronym), will have various transversal and joint responsibilities with other ministries to issue the regulations applicable to these projects (described below).
- Ministry of Mines and Energy (“MME”), is responsible for (i) defining the requirements to be met to build infrastructure dedicated to the supply of hydrogen for vehicular use, in addition to the way in which it must be supplied (Art. 2.2. 7.10), (ii) implement an information system applicable to agents and actors in the hydrogen value chain, to organize and obtain systematized information on the different activities at the national level (art. 2.2.7.1.13) and (iii) adopt additional provisions to develop the uses and applications of hydrogen and its derivatives in the energy and gas sectors (art. 2.2.7.1.14)
- Ministry of Transportation (“MT”), is responsible for issuing and updating the requirements, procedures, conditions and incentives for the use of hydrogen in the transportation sector (art. 2.2.7.1.8), which must be carried out in coordination with the MADS.
- The Ministry of Commerce, Industry and Tourism (“MCIT”) is responsible for establishing the conditions to guarantee the importation of auto parts and spare parts for hydrogen-powered vehicles (par. of art. 2.2.7.1.8).
- Ministry of Science, Technology and Innovation (“MCTI” for its spanish acronym), must establish programs to promote training, research, technological development and innovation, related to technologies linked to the value chain of the hydrogen industry (art. 2.2.7.1.11).
- Energy and Gas Regulatory Commission (“CREG” for its spanish acronym) must (i) make the regulatory adjustments for the use of hydrogen for the provision of the public utilities of energy and gas (Art. 2.2.7.1.7) and (ii) the conditions for the injection and transportation of hydrogen in the National System of Transportation, gas distribution and in multi-purpose pipelines (Art. 2.2.7.1.7).
- Joint:
- MADS and the MME, (i) must define the maximum threshold of greenhouse gas emissions for hydrogen to be considered of low emissions (art. 2.2.7.1.4); (ii) enables them the possibility of adopting a public mechanism for the certification of origin of the hydrogen produced in the country (art. 2.2.7.1.5); (iiiiii) indicates the obligation to establish the guidelines, requirements and methodologies for the use of geological formations for hydrogen storage (art. 2.2.7.1.6).
- MADS and the MT must review the technical and safety requirements for the transport of hydrogen by road (art. 2.2.7.1.9)
- MADS, MT, MME, MCIT, MCTI, are in charge of establishing mechanisms and conditions to promote low-emission hydrogen (art. 2.2.7.1.4)
On the other hand, the second decree (D. 1537/22), defined the process to obtain the declaration of public utility and social interest of projects and/or execution of works for the production and storage of Green Hydrogen, setting the procedure that the interested parties must follow to obtain it.
This procedure must be carried out before the MME and requires that the interested party file the application signed by the Legal Representative accompanied by the following requirements: (i) description of the project in electronic media, (ii) certification of the owner company stating that the project does not overlap with other areas where there is a declaration of public utility and general interest, (iii) certification of the legal nature of the company, (iv) concept of connection issued by the Mining and Energy Planning Unit (“UPME” for its spanish acronym), issued in accordance with the provisions of Res. CREG 75/21, (v) geographic information of the area to declare in public utility and social interest in the MAGNA-SIRGAS format, (vi) copy of the professional license of the person who carried out the topographic survey, (vii) administrative act from the Directorate of the National Prior Consultation Authority of the Ministry of Internal Affairs related to the origin of prior consultations, (viii) certificate from the National Land Agency regarding the existence of indigenous reservations and (ix) a certificate from the Special Administrative Unit for the Management of Restitution of Dispossessed Lands, indicating whether the area overlaps with an area macrofocalized or microfocalized by said unit, or if the area has been included in the registry of lands dispossessed or forcibly abandoned.
If the documents are correct, the MME will issue an administrative act of declaration of public utility and social interest, which will be a very useful document for future developers and interested parties, in order to carry out activities related to obtaining the necessary land to develop the activity. This declaration will be valid for 2 years from its execution, extendable if the interested party has already started the expropriation process.