Green Hydrogen May Generate Billion-Dollar Investments: AMH2
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Green Hydrogen May Generate Billion-Dollar Investments: AMH2

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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Wed, 02/22/2023 - 13:41

A study by the Mexican Hydrogen Association (AMH2) and an international consulting firm revealed that the adoption of green hydrogen in Mexico as an alternative fuel for energy production could generate US$60 billion in investments. Meanwhile, new regulations and development targets are needed to drive the industry forward.

Israel Hurtado, President, AMH2, said Mexico could be a leader in green hydrogen production as well as an exporter. “Several studies point out that Mexico could save up to 64% in green hydrogen production costs compared to other countries because of our geographic location and renewable energy potential. Moreover, we could export it to Europe or Asia since we have access to the Pacific and Atlantic oceans and a free trade agreement with the US and Canada,” he said.

Hurtado pointed out that Mexico could be a global reference point regarding all hydrogen-related industrial developments, including the marketing of electrolyzers, pipelines, turbines, electric vehicles and fuel cells, among others. “The green hydrogen industry represents immeasurable opportunities for the country. A study revealed that this business could detonate investments for US$60 billion, 3 million jobs and a manufacturing chain around it,” Hurtado said in an interview with Indigo Energia.

According to Hurtado, green hydrogen could be used to decarbonize natural gas through a process called blending, achieved by mixing green hydrogen with natural gas.  This is already being done in the UK and Chile, and there are pilot projects in the US. 

In Mexico, there are about 10 green hydrogen projects under development. CFE announced that it has the plan to produce and generate electricity with green hydrogen to replace natural gas. In its 2023-2027 business plan, PEMEX committed to replace gray hydrogen with green hydrogen. In addition, CEMEX will introduce green hydrogen into some of its plants. “At the end of the day, progress is made slowly, but it is there,” Hurtado stressed. 

Hurtado also highlighted the importance of creating a sound policy framework for hydrogen production, storage and power production. “We need safety, operations, maintenance and operational standards. In fact, AMH2 is working to advance in the regulation of green hydrogen production in renewable plants," he said.

Finally, Hurtado underscored the need to develop a development roadmap to identify the challenges, opportunities and barriers in the green hydrogen chain. “We need specific goals to drive the industry forward and become global leaders,” he commented.

Photo by:   Envato Elements

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