Mexico
Analysis

Spotlight: Mexico's green hydrogen pipeline

Bnamericas
Spotlight: Mexico's green hydrogen pipeline

Mexico has added a new batch of projects to its green hydrogen pipeline amid growing interest for the budding industry.

The latest project is located in Campeche state, and stems from an agreement between German developer Hy2gen and the state's authorities to explore a potential green ammonia production project in the area.

The project would run on off-grid wind and solar capacity to power a 200MW electrolyzer, and produce 180,000t/y of green ammonia, according to the Campeche government.

Green ammonia is used as a carrier for green hydrogen, and its ease of transport means an international market for green ammonia is expected to develop sooner than for green hydrogen. Nitrogen is also used in the ammonia production process.

During the administration of President Andrés Manuel López Obrador (AMLO) developing large-scale off-grid wind and solar capacity has proved difficult due to the lack of permits granted. However, many expect this issue to become less stringent after the presidential elections of 2024, regardless of who wins as AMLO cannot stand for reelection.

Other companies that are moving forward with green hydrogen initiatives are H2V2 and H2B2 Electrolysis, who have said they are working on the first green hydrogen generation plant for industrial use in the country. The firms plan to produce custom solutions for industrial companies looking to reduce carbon emissions.

Dutch fertilizer firm Tarafert also intends to build a large green ammonia, urea and hydrogen production plant in Durango state. Late last year, electrolyzer supplier Ohmium said it would provide the firm with 343MW of electrolyzer capacity over three tranches, starting with 69MW in 2025.

Other projects include an initiative by Dhamma Energy to blend hydrogen and natural gas in Guanajuato state, and a power-to-power project that will use hydrogen for storage in Los Cabos, Baja California, owned by HDF, and which is currently undergoing environmental assessment.

Mexican cement producer Cemex has also said it plans to incorporate green hydrogen into its industrial activities. Many industrial producers are assessing green hydrogen pilot projects to reduce emissions, according to local association H2Mex has said.

And public utility CFE will run pilot projects at some of its solar generation facilities with the potential for future expansion.

Legislation and policy

On the legislative front, the few proposals that have emerged have gone nowhere. 

Ruling coalition ally PVEM has sponsored a green hydrogen bill that would draft a national plan and create a CFE subsidiary that would focus solely on green hydrogen. And opposition party PAN, through its presidential candidate Xóchitl Gálvez, started talks in April to study potential regulatory schemes for the new industry.

But both initiatives have failed to make major progress in congress.

Energy ministry Sener has not proposed a national green hydrogen plan, although some states, including Nuevo León, have moved to draft local roadmaps. 

Last year, the leaders of Mexico, the US, and Canada said green hydrogen was a key industry to foster regional energy integration and lower emissions.

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Oil & Gas (Mexico)

Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: Oil & Gas (Mexico)

Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Fujisan Survey, S.A. de C.V.  (Fujisan Survey)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by BNamericas’ content team. However, it may have been au...
  • Company: ATCO México
  • ATCO México, the local subsidiary of Canadian holding group ATCO, is engaged in the development, construction and operation of energy infrastructure. Since its incorporation in ...
  • Company: Grupo Diavaz, S.A. de C.V.  (Diavaz)
  • Grupo Diavaz, S.A. de C.V. engages in the construction, inspection, repair and maintenance of offshore petroleum structures and installations. Through it subsidiaries, it provid...
  • Company: Metalsa, S.A. de C.V.  (Metalsa)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by BNamericas’ content team. However, it may have been au...