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Colombia regulates zero-emission hydrogen generation and geothermal energy

Arnes BiogradlijaBy Arnes Biogradlija26/07/20223 Mins Read
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The new regulation establishes the institutional framework for the development of the hydrogen market in Colombia, defining the competencies of the different ministries that play an important role in the economy of this new energy vector.

The National Government, through the Ministry of Mines and Energy, continues to promote the diversification of Colombia’s energy matrix towards one that is cleaner and more environmentally friendly.

To achieve this goal, the Ministry has made progress in the regulation of new technologies that allow the country to move towards carbon neutrality, such as geothermal energy and zero and low emission hydrogen, which is why it regulated articles 14, 15, 21 and 23 of the Energy Transition Law.

“The new regulation includes guidelines for the development and export of zero and low-emission hydrogen in the country, as well as the regulation for the development of activities aimed at generating electricity through geothermal energy. From the beginning of the Government we proposed to diversify the country’s energy matrix and today we are leaving Colombia with one of the most sustainable matrixes in the world”, said the Minister of Mines and Energy, Diego Mesa.

Regarding hydrogen, the new regulation establishes the institutional framework for the development of the hydrogen market in Colombia, defining the competencies of the different ministries that play an important role in the economy of this new energy vector.

Similarly, the decree establishes guidelines for the Ministry of Environment and Sustainable Development and the Ministry of Mines and Energy to define key issues for the future export of sustainable hydrogen, such as the definition of certificates of origin. Likewise, these ministries will be in charge of defining the emissions threshold allowed to classify low-emission hydrogen, in order to continue promoting alternative hydrogen production technologies that contribute to the decarbonization of the country.

Another key issue defined by the decree is the creation of an information reporting system for the hydrogen market, with the objective of organizing and obtaining systematized information on the different activities of the value chain at national level.

The decree also provides guidelines for entities, according to their competencies, to analyze issues such as: hydrogen storage, innovation promotion programs and regulatory sandboxes (this instrument will allow entrepreneurs to explore innovative business models in regulated industries).

On the other hand, regarding geothermal energy, the second decree defines the procedure for requesting exploration and exploitation permits and their registration in the geothermal registry, their duration, the activities included in the exploration and exploitation phases of the resource, the information to be reported by the developer, the rules for overlapping projects and their assignment, as well as the sanctioning regime.

The issuance of these regulations will provide legal certainty to investors and will promote the development of electric power generation projects with geothermal sources, while increasing the knowledge of the Colombian subsoil.

It is worth remembering that this Government managed to inaugurate the first two green hydrogen production pilots in the country (located in Cartagena), as well as the first electricity generation projects through the use of geothermal energy (located in Casanare).

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