In an effort to jumpstart investment in the young sector, the Colombian government has authorized a slew of tax breaks for clean hydrogen projects.
According to a regulation issued, blue and green hydrogen projects would be eligible for the same tax benefits as non-conventional renewable energy projects.
Income tax discounts of up to 50%, exemption from value-added tax on equipment and services, and expedited depreciation are among the benefits.
Last September, Colombia’s mines and energy ministry released a long-term roadmap for clean hydrogen, outlining goals for up to 3GW of electrolysis capacity by 2030 and widespread use of fuel-cell vehicles.
The plan sets a target of 50 kilotons of blue hydrogen capacity obtained from natural gas during the same time period, in addition to mentioning the great potential for green hydrogen generation from renewables — via water electrolysis.
Over the next five years, investments in the industry are likely to range from US$2.5 billion to US$5.5 billion, with 10,000-to 15,000 employment produced.
Ecopetrol, a state-owned oil business, and Promigas, a gas company located in Barranquilla, have already begun pilot programs to assess the economic potential of green hydrogen generation by electrolysis.
