Georgia Introduces Legislation to Regulate Natural Hydrogen Extraction
Key Ideas
- The Environmental Protection and Natural Resources Committee in Georgia has supported amendments to regulate the extraction and use of natural hydrogen.
- The amendments aim to provide a legal framework for investors interested in natural hydrogen extraction, alongside oil and gas activities.
- The proposed changes grant investors the right to explore and extract natural hydrogen under production sharing agreements and general licenses for oil and gas resources.
- Procedural provisions allow the National Oil Company to conduct operations in areas where no other investor has been granted rights for oil, gas, or natural hydrogen extraction.
The Environmental Protection and Natural Resources Committee in Georgia has reviewed and supported amendments to the Law on Oil and Gas to introduce regulation for natural hydrogen extraction. Nino Enukidze, the First Deputy Minister of Economy and Sustainable Development, presented the draft at a committee session. Enukidze highlighted the global growth in natural hydrogen extraction and the absence of legislative guidance in Georgia, hindering potential investment in the sector. The amendments seek to establish a legal framework permitting investors to explore and extract natural hydrogen alongside traditional oil and gas activities. The changes allow investors to engage in natural hydrogen operations under existing production sharing agreements and general licenses for oil and gas reserves. Moreover, specific provisions empower the National Oil Company to conduct operations on behalf of the state in areas where no other investor holds rights for oil, gas, or natural hydrogen activities. This move is poised to attract investment and drive the development of the natural hydrogen sector in Georgia.