SPR warns that a conceptual error could invalidate the hydrogen bill in Peru

On January 18, the Standing Committee of the Congress of the Republic witnessed the unanimous approval of the substitute text for bills 3267, 3272, and 4374, aimed at promoting green hydrogen as a clean and renewable energy source in Peru. This bill establishes that the Ministry of Energy and Mines (Minem) will promote the generation, production, and use of green hydrogen in industry from renewable energy sources , primarily as an energy carrier, as a fuel, and as an input in industrial processes nationwide to meet domestic demand and international markets, either as hydrogen itself or as byproducts such as fertilizers, organic liquids, methanol, and others. While the Peruvian Renewable Energy Association (SPR) supports promoting the implementation of green hydrogen in multiple sectors of the Peruvian energy matrix, it points out a conceptual error in the definition adopted in the bill, which describes it as an energy carrier produced with low greenhouse gas emission technologies. In a letter addressed to José Neil Meza Segura, Director General of the Directorate General of Energy Efficiency at the Ministry of Energy and Mines , the SPR (Popular Hydrogen Society) expressed its opposition to the proposed definition and offered what it considers the correct one. "This statement contains a serious inconsistency with the global definition of green hydrogen, which is produced through water electrolysis using renewable energy, such as solar or wind power, and has no greenhouse gas emissions, distinguishing it from other forms of hydrogen obtained from non-renewable sources," the letter states. In this regard, the proposed definition does not apply to green hydrogen but rather to blue hydrogen, which is produced from natural gas using SMR (Solidary Magnetic Reduction). However, blue hydrogen differs from gray hydrogen in that it uses carbon capture and storage (CCS) technologies to reduce CO2 emissions. Although it emits less CO2 than gray hydrogen, its production process still has an environmental impact. Therefore, the SPR believes that the bill does not define green hydrogen correctly, which could have negative implications in the future. According to the Association, approving the bill with this flawed definition will have negative consequences for the development of these types of projects in Peru. For example, they may not be eligible for international financing, and their production may not be certified as green hydrogen because it does not come from renewable sources according to international standards. "For all the reasons explained, we believe it is necessary for the multi-sectoral working group, whose objective is to promote the development of green hydrogen in the country, to establish a single, accurate definition to guide the regulation of this industry, which is based on the use of zero-emission renewable energy," the SPR emphasizes in the statement. In short, the SPR is not opposed to promoting green hydrogen in the country; on the contrary, it advocates for a bill that provides clarity, transparency, and clear rules for both local and international investors, where definitions are not distorted.