Mexico, United States Forge Ambitious Plans for Green Hydrogen

The United States is set to allocate US$9.5 billion to its green hydrogen strategy, says Lauren Coughlin, Commercial Attaché, US Embassy in Mexico. This investment will primarily focus on establishing regional hydrogen plants and electrolysis technology, aimed at producing 10 million metric t per year (mmtm/a) of clean hydrogen by 2030, with projections reaching 50 tons by 2050. 

Green hydrogen is often hailed as the vital component missing from the puzzle of transitioning to low-carbon energy. With its diverse range of potential applications, this energy carrier can bridge the gap between renewable energy generation and challenging-to-decarbonize sectors like steel, cement, aviation, and long-haul transportation. 

In the United States, hydrogen production still heavily relies on hydrocarbon feedstocks, but a significant shift may be imminent. In June 2023, the US National Clean Hydrogen Strategy and Roadmap was unveiled, outlining a path toward producing 50 million t of clean hydrogen by mid-century, aligning with the government's commitment to achieving net-zero carbon emissions by the same timeframe. 

Tim Radcliff, Managing Director of Sustainable Infrastructure, Denham Capital, describes the strategy as comprehensive and ambitious, as it offers incentives to stakeholders across the value chain. The initial objective is to reach 10 million t of clean hydrogen by 2030, escalating to 20 million t by 2040, while simultaneously reducing the cost of clean hydrogen to US$1 per kilogram by 2031.

Mexico Prepares for Green Hydrogen

Mexico is gearing up for hydrogen production, with a proposal in place to issue guidelines for its production and to develop a National Low-Emission Hydrogen Strategy. The signing of the H2:30 Initiative, for example, underscores the country’s commitment to accelerate the integration of hydrogen into the energy transition. This initiative aims to identify opportunities and strengthen technical, technological, economic, and legal capabilities to propel the hydrogen economy in Nuevo Leon by 2030.

In Mexico, green hydrogen projects have attracted investments of around US$20 billion, says Israel Hurtado, President and CEO, Mexican Association of Green Hydrogen. In a press conference, the executive recalled that just a production plant in Oaxaca, announced by President Andrés Manuel López Obrador, involves an expenditure of US$10 billion.

A hydrogen-ammonia plant is also considered in Campeche, representing an investment of US$1.1 billion. Hurtado adds that US Ambassador Ken Salazar said that the "Mexinol Pacific" project would involve an estimated investment of US$2.2 billion. Another project in Durango, led by Dutch companies, represents an investment of US$1.2 billion, while another by a French company announced in Baja California has a value of US$2.5 billion. 

"Many of these projects involve the production of clean hydrogen through electrolysis, storage, and injection into natural gas networks or pipelines, taking advantage of the country's pipeline infrastructure. They are also focused on electricity generation and the replacement of gray hydrogen in the industrial refining processes of PEMEX," says Hurtado.

Eduardo Sánchez, Director General, Renewable Energy Agency of Nuevo Leon, highlights that 70 organizations and 59 entities are participating in hydrogen initiatives, including consultancies, potential consumers, energy companies, research centers, and suppliers.