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Peru: Government publishes Law for the promotion of Green Hydrogen

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In brief

On 24 March 2024, Law No. 31992, Law for the Promotion of Green Hydrogen (“Law“) came into force.

Below, we share the most relevant topics of the Law:

  1. The Law seeks to promote the research, development, production, transformation, storage, conditioning, transportation, distribution, commercialization, export, and use of green hydrogen as a fuel and energy vector. To this end, it declares these activities to be of national interest.
  2. The Law defines green hydrogen as an energy vector produced with low greenhouse gas emission technologies.
  3. The Ministry of Energy and Mines (MINEM) promotes the generation, production, and use of green hydrogen in the industry from renewable energies as an energy vector, as a fuel, and as an input in industrial processes nationwide, either as hydrogen or by-products such as fertilizers, organic liquids, methanol, etc.
  4. MINEM will formulate sectoral energy policies and plans for the development of the green hydrogen value chain, from its production to its final use. As such, the following conditions shall be guaranteed:
  • Territorial planning for the establishment of productive poles of development centers and green hydrogen production and transformation plants.
  • The granting of economic and tax benefits for research, production, transformation, transport, commercialization, export, and use of green hydrogen as a fuel and energy vector.
  • The industrial application of green hydrogen as a fuel for the following uses: vehicles, agriculture, industrial, air transport, maritime transport, public and cargo transportation, and other non-energy applications that require fossil fuels.
  • To promote the development and production of green hydrogen at an industrial level from surplus renewable energy and for its application as a blend in the gas grid.
  • Obtaining international financing to promote green hydrogen development and production projects.
  • The timely provision of the complementary regulatory framework for the development of green hydrogen.
  1. The MINEM shall publish in the regulations of the Law, the necessary requirements to obtain the green hydrogen green origin certification.

Within 180 calendar days from the entry into force of the Law (19 September 2024), the regulations and the additional framework necessary for its application shall be published.

We trust that this information will be useful to you. Should you require legal advice on this matter for your company, please do not hesitate to contact us.

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Author

Ines Vazquez is a partner in Estudio Echecopar. Prior to joining the Firm, she was the head of Latin America Power's Legal Department for two years, during which she gained wide experience and was exposed to transactions in multiple jurisdictions. She has worked on privatization and concession procedures in the electric power sector for private clients, as well as in bidding processes of public services concessions in general. She also has a solid background in corporate law, mergers and acquisitions, financing, and has participated in several acquisition transactions and sale of companies, assets and shares participations, including mergers, spin-offs, reorganizations and other structures, both domestic and international. Additionally, Ines has contentious and non-contentious construction practice based on domestic and international arbitration, advising both private and state owned companies.

Author

Claudia Cruces is a lawyer with a focus on power regulation and renewable energies. She has participated in bidding process for the concession of public services, projects and power purchase agreements in the sector. Also, has advised several private companies and public entities regarding the analysis of the regulations. She has also developed practice in national and international arbitrations in power matters.
She is also experienced in mergers and acquisitions, financing, and has participated in the acquisition transactions and sale of companies, assets and shares participations, including mergers, spin-offs, reorganizations and other corporate structures in the sector.
She has advised private companies in the development and operation of generation, transmission and distribution activities. As part of the advice, she has accompanied the clients in procedures before the authorities for the granting of the permits; sanctioning procedures, tariff procedures and controversies. As well, she has experience structuring and negotiating power purchase agreements, construction agreements, operation and maintenance agreements, and transmission agreements.

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