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Massa plans to send to Congress bills to stimulate the production of hydrogen and LNG

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LNG

The project declares national public interest the liquefaction of natural gas destined for the export of LNG, with the aim of develop the value chain of the LNG industry, promote exports and promote the technological development of the sector.

In this sense, it is proposed the creation of a Promotion Regime for large projects which includes the transportation of natural gas for the production of LNG, its liquefaction, storage and transportation; and its commercialization and export. Those who present projects will be beneficiaries within the first 3 years of its sanction (extendable for another three by the application authority).

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Grants fiscal benefits to projects that commit at least a certain investment and a minimum production capacity of tons of LNG per year.

The benefits they include income tax, VAT refund, exemptions for importing goods; and favorable conditions regarding export duties that vary according to the FOB price of LNG exports.

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It establishes a “Commitment to fiscal and regulatory stability”. Guarantees a percentage of free application of the currencies obtained from LNG exports for thirty years and exchange regulatory stability for the payment of financial debts.

It also guarantees the transportation and supply of natural gas for the project and includes the possibility of access a firm export authorization of LNG 365 for 30 years.

In return, demand national content integration requirements and contribution to local development that are escalating periodically, as a condition of maintaining the benefits. The objective is to ensure that the projects, as time goes by, incorporate locally produced goods and inputs.

Hydrogen

A second project contemplates the creation of a regime to promote hydrogen with low carbon emissions and other greenhouse gases, with the objective of promote the value chain and contribute to the decarbonization processes of the energy and production matrices, as well as promote scientific and technological development.

The initiative covers the types of hydrogen blue, pink and greenits vectors, and emphasizes the equipment of the value chain and the incorporation of goods and services with a high technological content.

Demands levels of carbon and greenhouse gas emissions and hydrogen production “following the highest international safety and environmental standards”.

Regarding incentives, it grants tax benefits differentials by type of hydrogen, which they include income tax, VAT refund, exemptions for importing goods; and favorable conditions regarding export duties that increase ten-yearly.

As in the case of LNG, fiscal stability and access to the Free Exchange Market for payment of financial debts and availability of foreign currency from exports are guaranteed.

are required national content integration requirements differentiated by type of hydrogen, which are escalated periodically, as a condition of maintenance of benefits with the purpose that the projects, as time passes, incorporate locally produced goods and inputs. In addition, activities must be carried out local research and development.

Source: Ambito

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