Hydrogen and biomethane: a perfect couple?

An article published this week by the Mattos Filho law firm highlights the synergy of two new regulations in the State of Espírito Santo, Brazil:

• “Gerar Hidrogênio” program, for the generation of renewable energy from the “sustainable hydrogen” chain and

• ARSP Resolution No. 065/2023 on the distribution of biomethane in the piped gas system

“Gerar Hidrogênio” aims to encourage the production, storage and use of sustainable hydrogen, including the generation of energy from biomass and biofuels, defined as renewable sources, as well as solar, wind, hydraulic, tidal and geothermal. It also encourages research and development of related innovative products, services and processes.

The ARSP Resolution, on the other hand, seeks to encourage the decarbonization of the economy and provides that concessionaires prioritize biomethane to serve the captive market, obviously at a competitive price in relation to natural gas.

A few days ago, Mattos Filho itself held the event “New Biomethane Energies - What you need to know”. Carbon Credit Markets shares some notes from the inspiring presentation by Alessandro Gardemann, president of ABiogás and director of GEO:

• pre-salt “caipira” (ref. huge Brazilian offshore deep sea oil reserves)

• significant offer, complementary to solar and wind power

• animal origin: dispersion

• sugar cane origin: concentration locations

• sanitation origin: at the “doors of cities”

• “cheap” storage for 2-3 days

• hydrogen by electrolysis and hydrogen by methane are complementary

• “one wants the C and the other wants the H”

• methane, fossil or biological origin, identical molecules

Still on the “Gerar Hidrogênio” program, as the decree defines “sustainable hydrogen” being that obtained by production such as “carbon neutral emissions” or “carbon negative emissions”, it excludes the traditional modality “without capture, use or storage of carbon” (CCS/CCUS).

Concludes Mattos Filho, “while the definition of the central public policy within the scope of the National Hydrogen Program is still being discussed at the federal level, the states have been anticipating to grant incentives in the implementation and operation of Green Hydrogen plants and industries that will use hydrogen in their production process, for example, for the production of green ammonia or green steel.”

Located in Espírito Santo, the port of Tubarão, in whose complex there are several pelletizing plants, is one of the largest for the export of Brazilian iron ore.

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