Hydrogen is the most abundant element in the known universe. This perhaps justifies the high expectations associated with the production and commercialization of hydrogen as an energy vector. Moreover, given that today it is possible to produce this element from renewable sources (i.e. renewable hydrogen, also called green hydrogen).

Indeed, green hydrogen promises to play a crucial role as a fuel, as it can provide energy to electric vehicles equipped with a fuel cell (i.e. a device that transforms hydrogen into electricity). Additionally, hydrogen-based fuels could be useful for supplying energy to air and maritime transport, usually considered as non-electrifiable sectors.

Considering the above, many countries have decided to establish a legal framework for the commercialization and production of green hydrogen. Following this trend, on June 5, the Legislative Assembly of Bolivia received Bill No. 170-23, for the Promotion and Development of the Green Hydrogen Industry.

Here are some of the most notable aspects of Bill No. 170-23:

• Scope of Application: It aims to be mandatory for each and every actor involved in the green hydrogen production and value chain in Bolivia.
• Green Hydrogen: For the purposes of the Bill, green hydrogen is defined as hydrogen derived from a water electrolysis process. Therefore, in its current state, the Bill does not recognize other renewable means of hydrogen production (e.g. photoelectrocatalysis).
• Regulatory Framework: It does not specify industry regulations but outlines general guidelines (e.g. the participation of Bolivia's Autonomous Territorial Entities) that must be considered by the Ministry of Hydrocarbons and Energy and the Ministry of Environment and Water when issuing the corresponding regulations.
• Regulatory Sandbox: It tasks the government with creating guidelines to establish a Regulatory Sandbox. This could be positive for the market, as it would allow green hydrogen production and commercialization projects to be carried out without the need for licenses and permits (or at least limit these).
• Incentives: It provides for economic and tax benefits to encourage the production and commercialization of green hydrogen, as well as to increase its consumption or that of its derivatives.
• Supervision: It states that activities related to the green hydrogen value chain will be supervised and inspected, within the framework of the law, by a new government institution to be created by the Ministry of Hydrocarbons and Energy.
• Investment Mechanisms: It establishes that the state can partner with private investors for the production and commercialization of green hydrogen. These partnerships could be (i) private commercial companies, (ii) public companies, (iii) mixed-economy companies, (iv) accidental associations, or (v) joint alliance instruments.
• Certification: It requires a "green origin certification." This suggests that producers and/or marketers would need a certificate guaranteeing that the hydrogen they produce and/or market comes from renewable sources.

In summary, while some of the listed aspects are positive for fostering industry development (e.g. Regulatory Sandbox), others could benefit from improvements (e.g. the definition of green hydrogen). In any case, we can only wait to see if the Legislative Assembly opts to approve this Bill, which the Bolivian energy market so urgently needs.