The government’s optimism about the arrival of more investments if the hydrogen promotion bill is approved is based on the acceleration of the energy transition brought about by the global energy crisis as a result of the war in Ukraine, which has been going on for a year now. At Casa Rosada they ask about this sector in developed countries, especially in the European Union, which seek to accelerate decarbonization commitments.
In addition, the official expectation is based on the fact that a consensus law was reachednot only at the level of the government front, but also adding company orders. The draft bill states that This activity could have much greater benefits than other sectors of the economy: free access to foreign currency for 50% of exports, fiscal stability for 30 years and 0% withholdings during the first decade.. Initially, in the first drafts, access to foreign exchange did not reach 30%, and it contained higher export duties. The strong incentives are due to the fact that it is a sector that is very premature at a global level, so the investment risk is very high.
All the parties that participated in the writing of the draft claim to be satisfied. The provinces, the Ministry of Economy, through the Secretariat of Energy and Industry, and Casa Rosada, through the Secretariat of Strategic Affairs, participated in the project. The last part that was finished being outlined was added by Casa Rosada, stating that the export of hydrogen should be accompanied by the location of technological development and industrial production. That’s why The law has a section in which a minimum integration of national content of up to 50% of the projects is demanded.
In any case, provinces that are holding conversations with companies interested in investing told Ámbito that in the congressional discussion they will seek to add some changes, in order to have greater decision-making power in what will be the operation of the National Hydrogen Agency (Anhydrous). It is that although at the moment there were two specific investment announcements (the Australian Fortescue in Río Negro and the American MMEX in Tierra del Fuego) provinces such as Río Negro, Tierra del Fuego, Chubut and Santa Cruz are holding “reserved” conversations with more companies seeking to join. They said that they are multinational companies, especially European, that already work with hydrogen in Africa and the United States.
In the coming months, there could even be an investment announcement greater than that made by Fortescue in 2021, to invest more than US$8 billion. “It will be bigger because it will have twice the surface area,” said an official source. The provinces are even working on binational strategies with Chile, they told Ámbito.
In dialogue with this newspaper, Alejandro Aguirre, Secretary of State for Hydrocarbons of Tierra del Fuego, explained that the “quality of the winds” of that province generates a lot of attraction. “The first steps of the companies do not involve large investments, the scale is small during the environmental stages, but then the civil works have to be launched, with wind turbines that measure more than 100 meters, so in 3 or 4 years it has to make 50% of investments, with very high amounts”, he explained.
Sources from the Australian Fortescue told this newspaper that they are “waiting for progress” on the bill, but who did not have access to the document. In conversations with the Government, they had requested that the regulatory framework contemplate the competitive cost of hydrogen, access to financing at competitive costs, a favorable tax regime, financial and fiscal stability, expansion of the electrical system and coexistence between the law for the promotion of hydrogen and free zones. .
Currently, the announcement of the Pampas de Forstecue Project in Río Negro is in the pre-feasibility stage in which social, environmental and engineering studies are carried out, for the final decision to be made. “The work will continue its course during 2023, but for the progress of the following stages it is essential to have a regulatory framework that defines the bases for the development of this industry”commented company sources.
Source: Ambito
