Green Hydrogen, Ammonia Production to Double by 2030

Aslan Energy Capital, a subsidiary of LNG Alliance Pte Ltd, signed a Memorandum of Understanding to acquire 35,000ha of land in Sonora to develop green hydrogen. This move is part of the company’s plan to develop the Aslan Net-Zero Energy Mexico (ANEM) project.

The project is aimed at pioneering the production of green hydrogen and green ammonia from solar energy. The project is scheduled to commence operations by 2028, with an initial phase targeting nearly 600,000t of green ammonia annually. By 2030, production capacity is set to double through a second phase. The plan will be developed over a 10-year period and will be divided into four phases.

Aligned with Mexico's Sonora Plan, the collaboration aims to leverage on Mexico’s renewable resources to bolster renewable energy. Aslan’s ANEM project is expected to play a crucial role in reducing fertilizer prices domestically. Additionally, it will leverage Sonora's abundant solar radiation to power its operations.

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.

More efforts to develop this industry exist in Mexico. Israel Hurtado, President, Mexican Association of Green Hydrogen and Sustainable Mobility (AMH2), mentioned that he will present a proposal to the incoming government to promote the development of green hydrogen in the country. He explained that the potential investment by 2050 is US$60 billion, which could create up to 3 million jobs. "Current projects have potential investments of US$20 billion from private players. PEMEX estimates that its hydrogen market could be worth US$4 billion by 2040," he highlighted. Green hydrogen is poised to be one of the fuels of the future, as it is more environmentally friendly and can generate a broad value chain to drive economic development, said Hurtado.

At the same time, Claudia Sheinbaum has committed to decarbonizing the energy matrix as quickly as possible by building photovoltaic, wind, hydroelectric, geothermal, and green hydrogen plants, as well as promoting solar panels and water heaters in homes and businesses. In addition, she vowed to promote the circular economy through the processing of organic waste and biomass to produce green energy.