Green Hydrogen Has a Future in Mexico

CFE, CEMEX, and Mexico City’s public transport system Metrobus have expressed their interest in the production of green hydrogen to power their operations shortly.  

CFE launched a trial project in Baja California, to produce green hydrogen. First production is expected to be ready during 1H23, which will be used for power production tests. CFE stated that further tests will be replicated in other states throughout 2024.

In December 2022, CEMEX announced that it will implement hydrogen injection technology in four Mexican cement plants as part of its zero-carbon Future in Action program. By injecting hydrogen into its cement kilns, CEMEX will optimize the combustion process and increase the use of alternative fuels. By 2030, CEMEX aims to reduce CO2 emissions by 47%. During 2022, the cement company accomplished an alternative fuel substitution rate of 34%. 

Israel Hurtado, President, the Mexican Hydrogen Association (AMH2), commented during an interview with Milenio that CEMEX’s announcement was surprising. Until recently, such actions were only taken in Europe. Since 2021, CEMEX has been using green hydrogen in all its European plants and more recently, the company inaugurated a similar project in the Dominican Republic. 

Hurtado pointed out that Mexico City’s administration has expressed interest to create a pilot project for the capital’s first collective vehicle powered by hydrogen on Line 1 of the Metrobus. Mexico City has proven to be keen to look for sustainable transportation alternatives: in December 2022, the Ministry of Mobility reported that the first 25 electric buses had arrived at the port of Manzanillo, Colima. The vehicles will operate on Line 3 of the Metrobus. An electric bus reduces energy use by 80 percent and avoids the emission of 83,570 tons of CO2 in 10 years of operation.

According to Hurtado, large-scale green hydrogen production in Mexico is possible due to the wide variety of renewable energy sources the country can access. However, the industry requires an investment of US$60 billion over the next 20 years, meaning US$3 billion/y is required. “Despite its great potential, it is too early to consider it an energy alternative. There is still a lot of infrastructure to develop,” he said.

During the North American Leaders' Summit, recently held in Mexico City, leaders underscored the importance of hydrogen to boost the green energy transition.