Colombia aims to become a world leader in hydrogen energy generation from various sources, especially in the production of green and white hydrogen. This journey began with the enactment of Law 1715 of 2014, which aims to promote the development and use of non-conventional energy sources, provides the first definitions of Blue, White, and Green hydrogen, and creates incentives for generating electricity from non-conventional sources (NCRES). such as the 50% deduction of the investment in the income tax return, the exclusion of VAT on equipment, the tariff exemption and the accelerated depreciation of assets.
The previous law was regulated in some parts through Decree 829 of 2020 and in this way the guidelines were established to request the tax benefits referred to in the law.
Following this path, the National Government issued the " Hydrogen Roadmap" , in which four (4) lines of action were established on which a series of measures and instruments have been defined aimed at guaranteeing the correct development of the low-emission hydrogen market, such as: 1) Legal and regulatory skills, 2) Market development instruments, 3) support for infrastructure deployment and 4) Promotion of industrial technological development.
With the enactment of Law 2099 of 2021 , " which establishes provisions for the energy transition, the revitalization of the energy market, the economic reactivation of the country, and other provisions," new definitions were introduced, such as: " Green Hydrogen: Hydrogen produced from Non-Conventional Renewable Energy Sources, such as biomass, small hydroelectric plants, wind, geothermal heat, solar, tidal, among others; and is considered a Non-Conventional Renewable Energy Source (NCRES); and Blue Hydrogen: Hydrogen produced from fossil fuels, especially from the decomposition of methane (CH4), which has a carbon capture, utilization, and storage (CCUS) system as part of its production process and is considered a Non-Conventional Renewable Energy Source (NCRES) ." The law also extends the application of the tax benefits defined in Law 1715 of 2014 to green and blue hydrogen and declares projects intended for the provision of this service to be of public utility. public power generation, transmission or distribution, which implies that the expropriation of the assets or rights necessary for this purpose can be decreed.
The previous regulation also stipulated that " the Ministry of Mines and Energy will promote the conversion of mining and hydrocarbon projects that contribute to the energy transition.
For this purpose, the National Hydrocarbons Agency and the National Mining Agency may design mechanisms and agree on conditions in current and future contracts that include and incentivize energy generation through Non-Conventional Energy Sources (NCES), the use of alternative energy sources, and carbon capture, storage, and utilization. For this reason, the Board of Directors of the National Hydrocarbons Agency issued Agreement No. 6 of September 28, 2023 , which establishes criteria for the administration of hydrocarbon contracts and agreements in order to incentivize hydrocarbon exploration and promote the Just Energy Transition process, and determined the criteria for the conversion of contracts for unconventional reservoirs (YNC) and the allocation of up to fifty percent (50%) of the remaining investment for energy generation through non-conventional energy sources (NCES). Likewise, Law 2169 of December 22, 2021, ratified the declaration. The projects and/or execution of works for the production and storage of green hydrogen are of public utility and social interest, which results in the application of the effects indicated in Law 56 of 1981, that is, the expropriation measures previously described.
Through CONPES 4075 of March 29, 2022 , the energy transition policy was established, whose general objective is to " consolidate the country's energy transition process through the formulation and implementation of intersectoral actions and strategies that promote the country's economic, energy, technological, environmental, and social growth in order to advance its energy transformation." With the issuance of Decree 895 of May 31, 2022, the tax benefits for green and blue hydrogen projects were regulated. These benefits include a 50% tax credit on the investment made, starting in the tax year following the start of operations; VAT exemption on equipment; tariff exemption; and accelerated depreciation of assets.
Now, in order to access the tax benefits, the UPME issued Resolution 319 on August 12, 2022, which established the requirements and procedures for the evaluation of applications for the issuance of certificates that allow access to the tax benefits for green and blue hydrogen.
The National Government, through the issuance of Decree 1476 of August 3, 2022, determined the mechanisms, conditions, and incentives to promote local development, innovation, research, production, storage, transport, distribution, and use of hydrogen intended for the provision of public electricity service, energy storage, and decarbonization of sectors such as transport, gas, hydrocarbons, mining, and industry. It established that hydrogen will be considered an energy vector used for energy storage, as a fuel, or as an industrial input, and defined green and blue hydrogen projects.
Subsequently, Decree 1537 of August 4, 2022, regulated the procedure for issuing the administrative act declaring the public utility and social interest of projects for the generation, transmission, and distribution of electrical energy, as well as projects and/or the execution of works for the production and storage of green hydrogen . Law 2294 of May 19, 2023, the National Development Plan, redefined green and white hydrogen as: "Green Hydrogen : That produced from Non-Conventional Renewable Energy Sources, such as biomass, small hydroelectric plants, wind power, geothermal heat, solar power, tidal power, among others; and is considered a non-conventional renewable energy source (NCRES)."
Hydrogen produced with self-generated electricity from non-conventional renewable energy sources (NCRES) and electricity taken from the national interconnected system (SIN) will also be considered green hydrogen, provided that the self-generated electricity delivered to the SIN is equal to or greater than the electricity taken from the SIN; for this latter case, the Ministry of Mines and Energy will establish the procedure to certify this balance based on the measurement systems already established in the regulation.
And " White Hydrogen: It is hydrogen that is produced naturally, associated with geological processes in the Earth's crust and is found in its natural form as a free gas in different geological environments, whether in layers of the continental crust, in the oceanic crust, in volcanic gases, and in hydrothermal systems, such as in geysers, and is considered a non-conventional source of natural gas (NCNF)." The Ministry of Mines and Energy, through Resolution No. 40234 of 2023 , resolved to delegate to the National Hydrocarbons Agency (ANH) " the preparation of the inputs and the necessary support for the continuity in the formulation and design of the public policy under the responsibility of the Ministry of Mines and Energy, regarding the following energy resources: geothermal, wind energy and hydrogen, carbon capture, storage and utilization (CCUS); as well as the geological alternatives for the underground storage of Carbon Dioxide (CO2), through the use of Non-Conventional Energy Sources (NCES). And for this purpose, both entities signed the supplementary document of the inter-administrative agreement GSC-314 of 2023. "
Finally, we have Decree 2235 of 2023 , which amends Decree 1073 of 2015 and Article 235 of Law 2294 of 2023 regarding white hydrogen projects, establishing the conditions and general guidelines for the implementation of white hydrogen projects in the country . This constitutes a brief compilation of the regulations issued by the Colombian government authorities for the implementation of hydrogen-based energy generation projects, thus contributing to the energy transition roadmap for the decarbonization of the environment established by the National Government.
In this way, Colombia becomes a benchmark in the regulation of hydrogen as a non-conventional energy source in Latin America, establishing tax benefits for the development and implementation of projects for the generation, transmission and distribution of electricity through hydrogen and guaranteeing self-generation and consumption of the same in the country. Law 1715 of 2014, S ARTICLE 5.
Definitions, item 16.
Non-Conventional Energy Sources (NCES).
These are globally available energy resources that are environmentally sustainable, but which are not used or are used marginally in the country and are not widely traded.
Nuclear or atomic energy and non-conventional renewable energy sources (NCRES) are considered to be non-conventional renewable energy sources (NCRES).
Other sources may be considered as NCRE as determined by UPME.