Mexico, Canada Sign MOU to Collaborate in Green Hydrogen

In an effort to promote cooperation between Canada and Mexico in the development of green hydrogen and fuel cell technologies, energy associations from both countries signed a memorandum of understanding (MOU).

The Canadian Hydrogen and Fuel Cell Association (CHFCA) and the Mexican Hydrogen Association (AMH2) signed a MOU which defines several areas of collaboration; these include: the development of codes and standards, joint government policy initiatives, exchange of market intelligence, and the development of a hydrogen strategy for Mexico. The Mexico-Canada alliance will seek the implementation of specialized centers and the development of industrial projects, as well as energy conversion to hydrogen, heavy transportation, fueling infrastructure, refining and chemical production, hydrogen blending in natural gas, and carbon capture, utilization and storage.

"We look forward to partnering with our Mexican colleagues to promote hydrogen economies in our respective countries. This is a great opportunity to increase trade within the North American context, as we share many similarities in our energy and transportation sectors. The exchange of best practices is in our mutual best interest," said Mark Kirby, president and CEO of CHFCA.

Likewise, Israel Hurtado, president of AMH2, said the Mexican association was extremely pleased to be part of this binational collaboration. "We trust this collaboration will allow us to share market intelligence and best practices with our Canadian colleagues and add value to green hydrogen projects in Mexico."

Canada is a top leader in the development and commercialization of green hydrogen and fuel cells and is considered a pioneer in this area. For instance, the Canadian government launched a national strategy in December 2020 to anchor hydrogen as a key part of its path to net-zero carbon emissions by 2050 and make Canada the green hydrogen world's leading supplier.

According to a recent study conducted by McKinsey & Company for the Hydrogen Council, Mexico could have up to 65 percent lower green hydrogen production costs compared to other countries due to the advantages offered by the USMCA Agreement and the country's privileged geographical position.

"It is estimated that by 2025 and due to advances in technology and its massification in the energy matrix, the costs of green hydrogen will be reduced to those comparable to gray hydrogen," said Hurtado during his participation in the first edition of H2 Hydrogen Expo.

Mexico lacks a National Hydrogen Strategy, unlike other Latin American countries that are already developing national strategies, such as Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, El Salvador, Panama, Trinidad and Tobago, and Uruguay.

Despite not having a national strategy, Mexico expects to generate its first green hydrogen production in 2022. According to AMH2, there are four projects underway in the states of Guanajuato, Durango, Baja California and Sonora that could achieve the first green hydrogen production throughout the year, at an expected investment of US$1.5 billion in2022.