The Bill of Law 1,425/2022 (“Bill”) was approved this Wednesday, August 30, by the Brazilian Federal Senate. Authored by Jean Paul Prates, former senator and current Chief Executive Officer of Petrobras, the Bill proposes a regulatory framework for Carbon Capture and Storage (“CCS”) activities in Brazil, with the following highlights:
- Grant of Exploration of Geological Reservoirs: The Bill stipulates that permanent CCS activities can only be carried out with a Qualified Grant from the Executive Branch (“Grant”). The Grant remains in force for 30 (thirty) years, subject to an amendment for an equal period or to early revocation, in case of occurrence of the circumstances outlined in Article 6 of the Bill. Upon the application for the Grant, a public call shall be made for other entities to express their interest in the requested block of storage within 15 (fifteen) days.
- Environmental Licensing: The Grant does not exempt the requirement for environmental licensing, which must be obtained in accordance with Law No. 6,938/1981, without prejudice to any other applicable licenses.
- Availability of Geological Reservoirs: The list of geological reservoirs eligible for a Grant and their respective CO2 storage capacity shall be published by the Executive Branch, which shall also indicate the entity responsible for conducting the necessary survey to obtain such information. Those interested in conducting CCS activities in other reservoirs not made available by the Executive Branch may apply for the grant, provided they submit the required survey and meet the requirements outlined in the Bill.
- Exclusivity of Brazilian Companies: Read more
