H2Mexico Marks 5 Years, Backs Green Hydrogen Push

H2Mexico’s fifth anniversary underscores the rapid expansion of Mexico’s hydrogen sector, set against growing concerns over energy security and the country’s heavy dependence on imported natural gas, which still fuels around 70% of electricity generation. The momentum is significant as hydrogen and Power-to-X technologies gain relevance for decarbonization, industrial competitiveness, and infrastructure integration, with key players such as H2Mexico, PEMEX, CFE, regulators, and investors shaping the pace and direction of deployment. At the same time, policy uncertainty is intensifying calls for a National Green Hydrogen Strategy to align investment, regulation, and long-term emissions targets, and provide clearer direction for the sector’s development in Mexico.

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The Mexican Hydrogen and Energy Transformation Association (H2Mexico) marked its fifth anniversary, underscoring the expansion of the renewable hydrogen industry in Mexico as the country advances a broader restructuring of its energy model. Israel Hurtado, president, H2Mexico, said the organization’s growing relevance reflects a shift from the concept of an “energy transition” toward a more structural transformation of the national energy system. In his view, the notion of transition suggests a temporary phase, whereas current challenges require redesigning the energy framework to ensure competitiveness, energy security and long-term sustainability.

Hurtado pointed to Mexico’s electricity generation mix, noting that nearly 70% of power production relies on natural gas, much of it imported. This dependence, he said, exposes the country to external supply risks and international price volatility, with implications for energy sovereignty and economic stability.

Against this backdrop, H2Mexico has promoted hydrogen and Power-to-X (PtX) technologies as tools to diversify energy sources, reduce emissions and enhance system resilience. Power-to-X refers to the conversion of renewable electricity into alternative energy carriers such as hydrogen, ammonia and methanol. These molecules can be stored, transported and deployed in sectors where direct electrification remains technically or economically unviable. The association’s PtX agenda spans energy storage, smart grids, sustainable aviation fuels (SAF), biogas, synthetic fuels and e-fuels.

Hurtado said the  objective is to transform surplus renewable power into energy-dense molecules capable of supporting industrial processes, logistics, mobility and electricity generation. He added that hydrogen-based pathways enable Mexico to leverage existing infrastructure rather than replace it immediately, facilitating a phased decarbonization strategy.

Among the projects under discussion or development are initiatives involving turquoise hydrogen produced through natural gas pyrolysis. This pathway is considered a lower-emission alternative that utilizes existing gas assets while limiting carbon output. Other emerging concepts include plasmolysis technologies designed to produce hydrogen from natural gas or biogas, potentially improving efficiency and cost structures.

State-owned energy companies are also evaluating hydrogen applications. PEMEX has incorporated the production of geological, or “white,” hydrogen into its 2025–2035 Strategic Plan, aiming to replace the gray hydrogen currently used in refining processes with a more sustainable alternative.

Meanwhile, the Federal Electricity Commission (CFE) has explored blending green hydrogen with natural gas for electricity generation at certain combined-cycle power plants, acquiring new turbines and adapting existing units. These initiatives are reflected in recent editions of the National Electricity Sector Development Program (PRODESEN) and the Electricity Sector Outlook, issued by the Ministry of Energy (SENER) and CFE.

Hurtado said these developments illustrate how hydrogen technologies can be integrated into Mexico’s energy system through hybrid deployment models.

Green Hydrogen by the Numbers

According to H2Mexico’s five-year assessment, the country’s hydrogen ecosystem includes 30 identified projects across 15 states, representing an estimated US$22.36 billion in potential investment. Two of these projects are already operational. The association estimates that the pipeline could generate up to 3 million jobs and prevent 53 million tCO₂e between 2030 and 2050.

Looking further ahead, H2Mexico projects that cumulative investments in hydrogen and related PtX sectors could reach US$60 billion by 2050, based on current project pipelines and global decarbonization trajectories.

Several large-scale projects are proposed or underway. These include a US$10 billion green hydrogen facility planned in Salina Cruz, Oaxaca, announced during the administration of former President Andrés Manuel López Obrador. The Helax-Isthmus project, led by Copenhagen Infrastructure Partners (CIP), aims to produce 900,000t of green ammonia annually for export, powered by 3.7GW of wind and solar capacity.

Additional initiatives include the US$3.3 billion Pacífico Mexinol methanol project in Ahome, Sinaloa,  with a projected annual capacity of 2.1 million tons; a US$1.1 billion hydrogen-ammonia plant in Campeche; and hydrogen developments in Durango and Baja California totaling US$1.2 billion and US$2.5 billion, respectively. Hurtado said Mexico’s geographic location, renewable resource potential and industrial base position the country to compete in both domestic hydrogen deployment and export markets.

However, he identified regulatory development as a central challenge. H2Mexico has repeatedly called for the creation of a National Green Hydrogen Strategy to provide policy certainty, define targets and coordinate public and private sector action. Hurtado noted that many countries have already established hydrogen roadmaps and incentive structures, enabling faster capital mobilization and project deployment. He cited Chile, Colombia and Spain as examples where national strategies have helped structure investment frameworks and accelerate technology adoption.

The association has developed its own technical proposals, including a hydrogen roadmap and a Clean Hydrogen Industrial Strategy. These documents outline policy measures and industrial opportunities spanning electrolyzer manufacturing, storage systems, hydrogen-powered mobility and turbine technologies — positioning hydrogen not only as an energy vector but as a potential industrial development pillar.