Colombia watch: GEB readies hydrogen plans as group issues gas warning

Grupo Energía Bogotá (GEB) is seeking to play a major role in Colombia's plans to be a global hydrogen leader, according to CEO Juan Ricardo Ortega. 

But local developers must overcome challenges related to financing and project costs if they are to successfully compete on a global scale, he warned. 

"This is a great challenge for a country like ours," Ortega said. "Access to capital is our main concern. If we don't achieve reasonable costs, it’s quite unlikely that we can carry out these investments."

ECOPETROL TAX BURDEN

State oil company Ecopetrol will be responsible for providing a fifth of total revenue that the government hopes to raise from its proposed tax reform, CEO Felipe Bayón said on Thursday. 

Under terms outlined in a reform package presented to congress last month, Ecopetrol's tax bill would be impacted by new levies on exports, the non-deductibility of royalties, taxes on dividends and the removal of an offshore tax-free zone, among other factors. 

"We have analyzed the impact of the reform ...  [and] it's not insignificant," Bayón said during an energy event organized by the Colombian Engineers’ Association (ACIEM).

He underlined the importance of incentives for natural gas production to ensure Colombia's future energy security, highlighting offshore blocks as key to long-term supply. 

NATURAL GAS

Energy consumer association Asoenergia urged the government to reconsider plans to phase out fossil fuels, warning that long-term supply could be threatened.

"There is not enough renewable energy to meet demand," Asoenergia president Sandra Fonseca warned during the ACIEM event.

"Not all consumers are going to have access to electrification, nor is all of the electricity produced going to be sourced from renewables," she said, adding that new large-scale hydroelectric projects should also not be ruled out.