HDF Energy Plans US$2.5 Billion Investment in Mexico for Hydrogen

French company HDF Energy plans to invest US$2.5 billion in Mexico for the development of seven hydrogen projects between 2024 and 2030. Cristina Martín, Vice President for Latin America, HDF Energy, expressed that three of the seven projects will be in Baja California Sur, aimed at supplying and generating stable, efficient, and sustainable electricity, representing a capital injection of US$1 billion.

"We have a first project in the final development phase in Los Cabos. It is a solar park with a hydrogen chain and a storage system that converts the input into electricity," explained Martín in an interview with Milenio. Another US$1 billion will be allocated to the Yucatan Peninsula for three similar projects. "We want to support (the Interoceanic Corridor project) with the production of stable electricity and also with the production of hydrogen for industrial use,” said Martín.

Martín explained that only US$500 million will be allocated of the US$2.5 billion investment. However, she stated that this is not a figure set in stone, as it could be higher as more industries arrive in this area.

HDF Energy is betting on hydrogen due to the expected demand from the chemical industry companies planning to settle in the area, but also from railway transportation players that could use it.

HDF Energy already has a project in development called Energía Los Cabos (ELC I), which is currently in the final stage of the development phase and will begin construction in 2Q24.

The company will allocate US$330 million for the construction of this hydrogen-based project, considering a photovoltaic solar generation capacity of 152MW, which, in turn, will allow 380MW/h in storage, enabling the production of 190GW/h annually.

Starting in 2025, HDF Energy will initiate the construction of two more projects in Baja California Sur and three additional projects in the Yucatan Peninsula. 

Recently, CFE announced its plans to award contracts for several "sources of uninterrupted long-duration energy backup based on hydrogen,” as part of a green hydrogen program. The project involves more than one 5kW hydrogen backup source, and CFE has outlined a delivery schedule with 16 locations and 52 equipment requests.