Summary.
The bill proposes using green hydrogen as a clean energy source to support environmental remediation, protect human health and life, encourage employment and domestic and foreign investment, and diversify the energy mix. It establishes a national policy for its promotion, research, development, industrial production, and use throughout the country. Green hydrogen is defined as hydrogen produced by electrolysis of water using electricity from renewable sources, through a process that does not emit carbon dioxide and separates water into hydrogen and oxygen gases for use as a fuel and energy carrier.
The Executive Branch (Órgano Ejecutivo), acting through the National Energy Secretariat (Secretaría Nacional de Energía), would implement and apply the proposed law and issue strategies for the promotion, research, production, transport, and uses of green hydrogen. The Secretariat would issue or cancel permits for its industrial development. These permits would cover investment, development, implementation, production, imports of equipment and technology, storage, transport, and commercialization in the Republic of Panama. A permit would authorize its holder to build, install, and operate a green hydrogen generation plant at the holder’s own expense and risk. It would also authorize ownership, possession, operation, and maintenance of the facilities covered by the permit, subject to the proposed law and its implementing regulations.
The bill declares the production and industrialization of green hydrogen, and the generation or cogeneration of electricity from it, to be matters of national interest. It directs the National Energy Secretariat to prepare a strategy and studies concerning production, imports, exports, distribution, transport, and commercialization within the country. The strategy would include a technical regulatory framework, incentive mechanisms for developing the industry, financing strategies, and promotional plans. Companies with domestic or foreign capital that promote the production, commercialization, and use of green hydrogen would receive the benefit established in the Consolidated Text of Law 76 of 2009, “Establishing Measures to Promote and Develop Industry.” The bill refers to that benefit without amending the cited law.
Handling and safety conditions would be set by the National Energy Secretariat, named in this provision as the Secretaria Nacional de Energía, in coordination with the National Directorate for Fire Safety, Prevention and Investigation of the Meritorious Fire Department of the Republic of Panama (Dirección Nacional de Seguridad, Prevención e Investigación de Incendios del Benemérito Cuerpo de Bomberos de la República de Panamá) and other entities. Each would act within its powers, with participation from the sectors involved. The Executive Branch would issue implementing regulations within 150 days after the law takes effect, which the bill sets for the day after its promulgation in the Official Gazette. The public bodies named in the bill, together with energy, industrial, technology, transport, and commercialization businesses and domestic and foreign investors, are sectors and institutions that its provisions could affect.
What it proposes.
- National policy for the promotion and use of green hydrogen.
- Permits for industrial development and plant operation.
- Strategy, incentives, and handling and safety conditions.
Who it would affect.
- Companies with domestic or foreign capital that promote green hydrogen.
- Holders of permits for green hydrogen generation plants.
- Public bodies responsible for implementation, regulation, and safety.
Key points.
- Establishes a national policy to promote research, industrial production, and use of green hydrogen, defined by electrolysis using renewable electricity.Arts. 1-3
- Assigns implementation of the proposed law and issuance of sector strategies to the Executive Branch through the National Energy Secretariat.Art. 4
- Gives the National Energy Secretariat authority to issue and cancel permits for green hydrogen industrial development activities.Art. 5
- Authorizes permit holders to build, install, and operate a generation plant at their own expense and risk and to maintain the covered facilities.Art. 6
- Declares green hydrogen production and industrialization to be matters of national interest and requires a strategy covering technical regulation, incentives, financing, and promotion.Art. 7
- Extends the benefit under the Consolidated Text of Law 76 of 2009 to companies promoting its production, commercialization, and use.Art. 8
- Provides for institutional coordination on handling and safety conditions, implementing regulations within 150 days, and commencement on the day after promulgation.Arts. 9-11