Georgia Introduces Draft Law to Regulate Natural Hydrogen Extraction
Key Ideas
- The Draft Law on Oil and Gas, with 85 votes, aims to expedite regulations for natural hydrogen extraction in Georgia.
- First Deputy Economic Minister notes the global shift towards natural hydrogen as an alternative to hydrocarbons.
- Georgia currently lacks regulations hindering investors from natural hydrogen projects.
- Amendments aim to simplify and encourage natural hydrogen extraction processes by establishing legal frameworks.
In Georgia, the Draft Law on Oil and Gas was introduced to the plenary session and subsequently adopted with 85 votes. The focus of this legislation is on regulating not just oil and gas operations but also the extraction and utilization of natural hydrogen. First Deputy Economic and Sustainable Development Minister, Nino Enukidze, highlighted the increasing global interest in natural hydrogen as an alternative to traditional hydrocarbons. She pointed out that Georgia's current regulatory framework does not cover natural hydrogen, creating obstacles for investors in pursuing related projects. The amendments proposed in the Draft Law seek to address these gaps by granting the National Oil Company the authority to engage in natural hydrogen operations within designated licensed areas where private investors do not have oil and gas rights. This move is seen as a step towards streamlining the processes and providing incentives for investments in natural hydrogen extraction in Georgia.