Colombia: the hydrogen roadmap (September 2021) and Law 2099 include hydrogen in the energy transition

Colombia's Ministry of Mines and Energy published a hydrogen roadmap on 30 September 2021, after a public consultation period that closed on 15 August. The document sets short-, medium- and long-term goals and assumes, according to the IDB (BID), domestic demand of 1.6–1.8 million tonnes of hydrogen in 2050 (Minister Diego Mesa spoke during the presentation of about 1,850 kt). A few months earlier, Law 2099 of July 2021 had recognised hydrogen as an energy source eligible for tax incentives.

The energy transition law

Ley 2099 of 2021, known as the energy transition law, included green hydrogen among the unconventional sources of renewable energy (FNCER) and blue hydrogen among the unconventional energy sources (FNCE), and extended to hydrogen projects the tax incentives of Law 1715 of 2014. In practice this means tax relief and other benefits, provided the project is registered with UPME, which issues the certificates.

The roadmap

The roadmap envisages development in several phases, from pilot projects and regulation to development of the domestic market and potential export. The sectors mentioned include industry (including refining and ammonia production), heavy transport and the power sector. Colombia has both natural gas resources (for blue hydrogen) and hydro, solar and wind energy for green hydrogen.

Regional context

Chile had earlier published its own hydrogen strategy (November 2020). The Colombian approach stands out for including hydrogen in the energy transition law, which immediately gives projects access to the tax incentives already familiar from Law 1715.

What next

The roadmap is a directional document; specific mechanisms and incentives require implementing acts, including the registration of projects with UPME in order to obtain the certificates entitling them to incentives. For investors, it will matter how the criteria for blue and green hydrogen are defined in practice.

What this means for Poland and Europe

Colombia, like Chile and Uruguay, is building a hydrogen policy, but starts from relatively small domestic demand. For Europe, what matters is whether these countries will be able to provide certification consistent with EU requirements for RFNBO fuels.