Brazil's First Green Hydrogen Law: A Game Changer for Sustainable Energy

Brazil’s First Green Hydrogen Law: A Game Changer for Sustainable Energy

The state of Rio Grande do Norte has officially become the first in Brazil to establish a legal framework for green hydrogen and the low-carbon industry. With the signing of Law No. 12.336/2025 by Governor Fátima Bezerra, the state is set to create a secure and attractive legal environment for investments, paving the way for multi-billion projects aimed at energy transition and sustainable neo-industrialization.

The new legislation, announced in an extra edition of the State Official Gazette on Thursday (31), provides fiscal, regulatory, and programmatic guidelines for the sector and establishes the North Rio Grande Hydrogen and Green Industry Program (PNRH2V). One of the key projects included is the Green Industry Port, which anticipates investments of R$ 5.6 billion and positions Rio Grande do Norte as a strategic hub for hydrogen production in Brazil.

Key concepts defined in the new law include:

– **Green Hydrogen**: Produced through water electrolysis using only renewable energy, certified internationally.
– **Renewable Hydrogen**: Generated from sources like solar, wind, biomass, or geothermal through chemical or biological processes.
– **Low-Carbon Hydrogen**: Defined as having emissions lower than 7 kg of CO₂ equivalent per kilogram of hydrogen, assessed through a life cycle analysis.

The PNRH2V aims at developing the green hydrogen value chain, promoting innovation, job creation, and social inclusion, while also fostering public-private partnerships, encouraging exports and domestic use of hydrogen and its derivatives, transitioning public transport fleets to eco-friendly fuels, and addressing energy poverty in rural areas.

The governance structure includes three main bodies: the State Council of Energy Policy and Green Industry (CEPEH2V), linked to the Governor’s Office; the Management Committee (COGEHRN), which includes 21 entities such as universities and state secretaries; and six thematic chambers covering topics from regulation to market development.

The law mandates that hydrogen production companies must be Brazilian and comply with specific regulatory approvals, ensuring connection to renewable energy sources. Producers are also required to seek certification based on international and federal standards for emissions and origin.

To incentivize growth in the hydrogen sector, the law introduces the Special Incentives Regime for the Green Hydrogen Sector (RNVerde), allowing eligible companies to benefit from tax incentives linked to regional development programs. This offers an opportunity for companies to utilize a high percentage of renewable energy, enhancing sustainability in operations.

Moreover, the legislation has specific environmental requirements, ensuring that water use is managed sustainably, favoring desalinated or reused water and requiring environmental licensing for operations.

As part of the ongoing energy transition, Petrobras has selected Alto do Rodrigues to host its first pilot plant for renewable hydrogen, expected to start operations in the first half of 2026. The investment of R$ 90 million will leverage solar energy to produce low-emission hydrogen.

This initiative reflects a proactive approach toward a sustainable future in Brazil’s energy landscape and can serve as a model for other regions aiming to transition toward green energy solutions.

Popular Categories


Search the website