Aslan Energy Capital, CalYan XGH Sign Green Hydrogen MoU

Singapore-based Aslan Energy Capital (Aslan) has taken a significant step in delivering clean energy solutions by signing an MOU with California-based CalYan XGH Inc. Aslan is expected to supply up to 100,000t/y of sustainable hydrogen from its green hydrogen project in Sonora, Mexico.

Muthu Chezhian, CEO, Aslan Energy Capital, emphasized the importance of the collaboration. “This partnership underscores both parties’ commitment to accelerating the global energy transition and fostering sustainable development. By combining our infrastructure expertise with CalYan’s market leadership in California, we aim to set a new benchmark for sustainable hydrogen production and export.”

Hydrogen supply will be sourced from the Aslan Net-Zero Energy Mexico (ANEM) Project, a large-scale green hydrogen and ammonia production facility, located in Caborca, Sonora. The ANEM project spans 35,000ha along the coastline near Puerto Lobos. Its ideal location provides deepwater marine infrastructure, enabling efficient transport of hydrogen and ammonia to global markets, including the United States.

The ANEM project is set to begin operations in 2028 and will utilize Sonora’s abundant solar resources to generate renewable energy. This is set to power electrolyzers to split water molecules to produce green hydrogen, ensuring a sustainable and carbon-free supply. This initiative highlights Mexico’s broader environmental goals and strengthens the country’s role in the global transition to clean energy.

Additionally, this agreement with CalYan XGH Inc. represents a crucial step toward establishing a reliable and efficient clean hydrogen supply chain to meet California’s growing demand for sustainable energy. Under the terms of the MOU, Aslan will be responsible for delivering hydrogen to the Southern California border, ensuring a steady supply from its Sonora-based facilities. Meanwhile, CalYan will manage the downstream distribution and infrastructure within California, facilitating the integration of hydrogen into key sectors, such as technology data centers and sustainable mobility infrastructures.

“We are excited to be part of Aslan’s transformational journey and to help build a transparent, vibrant hydrogen marketplace for our customers,” commented Yathish Sarathy, CEO of CalYan XGH.

The partnership marks a major milestone in strengthening cross-border clean energy trade while leveraging Mexico’s renewable energy potential. By integrating Aslan’s expertise in green hydrogen production with CalYan’s distribution capabilities, the collaboration aims to accelerate the transition to a low-carbon future and reinforce California’s hydrogen economy.

Gho Wie Min, Vice President of Engineering, Aslan Energy, emphasized the project's potential to transform Mexico's energy landscape positively. Beyond domestic benefits, ANEM aims to supply green hydrogen for various sectors, including data centers and transportation, while ensuring food security through green ammonia production. Excess production will be earmarked for export to the United States via existing railway infrastructure, further enhancing regional economic ties and energy security, reported MBN. 

Mexico´s Green Hydrogen Industry Development

The expansion of the green hydrogen industry has shown significant progress in recent years. Today, there are 24 active projects worth an estimated US$20 billion in investment - four years ago, there were none, according to Israel Hurtado, President, Mexican Association of Green Hydrogen and Sustainable Mobility (AMH2). Today, 21 projects are in their development stage and three in the planning phase. 

Hurtado says the Mexican market has the potential to manufacture electrolyzers, turbines and fuel cells. These initiatives would not only strengthen local production, but would position the country as a strategic player in the transition to cleaner energy. To achieve this, Plan México, promoted by the Sheinbaum administration, along with fiscal stimuli and auctions of hydrogen projects are essential.