National Petroleum Agency’s Director-General Rodolfo Saboia says regulator needs mandate; lack of resources could be an issue

12/07/2024

---

Rodolfo Saboia — Foto: Leo Pinheiro/Valor

Brazil’s Petroleum Agency (ANP) is gearing up to regulate the hydrogen market, but according to the agency’s director-general, Rodolfo Saboia, a lack of resources could hinder this effort. Mr. Saboia mentioned Tuesday that the agency is “like a player waiting to enter the field” regarding hydrogen. He added that while the ANP is preparing to engage in the market, it still needs the official mandate.

“The ANP is observing the developments in hydrogen regulation and its integration into Brazil’s energy mix,” Mr. Saboia said at an event hosted by the Federation of Industries of the State of Rio de Janeiro (FIRJAN) on Tuesday. “It is expected that the ANP will be tasked with regulating hydrogen, but we are currently in the position of a player waiting to enter the field and unable to act yet.”

Mr. Saboia, whose term ends on December 22, noted that ANP staff are independently preparing and qualifying themselves to become hydrogen specialists. “The agency needs to await the legal mandate to allocate resources, which are currently scarce, for personnel training,” he said.

ANP staff have emphasized in recent months that the agency is facing a resource shortage. Mr. Saboia stated that it is difficult to specify which operations are delayed due to the situation, but he acknowledged a backlog of demands. “There is an opinion from the TCU [a public spending watchdog], for example, stating that the lack of personnel impacts the regulation of the new gas market. We haven’t had a public exam since 2015, and the budget has been declining for over 10 years,” he said.

Industry experts attending the FIRJAN event agreed on the need to advance hydrogen market regulation. Paulo Emílio Valadão de Miranda, president of the Brazilian Hydrogen Association (ABH2) and a professor at the Federal University of Rio de Janeiro (UFRJ), emphasized the importance of strengthening Brazil’s domestic market to position the country as a future hydrogen exporter. “Brazil has the potential to develop a significant internal market for the energy use of hydrogen, which will help decarbonize societal activities,” he said.

A bill regulating so-called green hydrogen, which has low carbon emissions, was approved by the Senate on July 3 and, due to modifications, will return to the Lower House for further consideration. The Senate included provisions for hydrogen production from hydropower, ethanol, biogas, and biomethane. The original text only allowed for solar and wind generation.

*Por Kariny Leal — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/