Mexico, US Sign Agreement to Promote the Hydrogen Industry
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Mexico, US Sign Agreement to Promote the Hydrogen Industry

Photo by:   Cytonn Photography - Unsplash
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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Fri, 03/03/2023 - 12:56

The Mexican Hydrogen Association (AMH2) and the Fuel Cell and Hydrogen Energy Association (FCHEA) will join forces to promote the deployment of hydrogen as an energy vector in Mexico and the US.

AMH2 and FCHEA stressed they will work together to promote collaboration between the energy sectors of the neighboring countries, as well as the exchange and development of technology in the hydrogen industry, including fuel cells. The agreement was signed by Frank Wolak, CEO, FCHEA and Israel Hurtado, Executive President, AMH2. The associations will now build a practical platform to form a basis for hydrogen development.

The agreement will make it possible to develop joint commercial projects as well as case studies and research. Moreover, the associations will work on the exchange of best practices regarding hydrogen and fuel cell codes and regulations, as well as on identifying and overcoming technological barriers to the production, distribution, storage and use of hydrogen. Likewise, they will build networks between members through commercial missions, conferences, exhibitions, workshops, webinars and meetings. “Cooperation between the two parties should be practical, efficient and mutually beneficial to actively promote and strengthen the hydrogen and fuel cell sector in Mexico and the US,” the document reads.

According to the ING Economic and Financial Analysis department, the US has great potential for green hydrogen production. Between 2021 and 2022, the North American country signed the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). These acts have spurred investor interest and project announcements in the hydrogen sector with US$13 billion of tax credits between 2023 and 2032 for clean hydrogen projects as well as US$9.5 billion of funding through 2026 for the development of a clean hydrogen program. “These two pieces of legislation are highly expected to reduce clean hydrogen production costs, attract developers to advance their projects, and put the US on a level playing field with Europe for clean hydrogen development this decade,” said ING. 

On a national scale, a 2021 study by McKinsey reported that Mexico could become a leader in hydrogen production and exportation since its geographic location and renewable energy potential would allow the country to save up to 64% in production costs compared to other key producers. Moreover, Hurtado pointed out that this industry could detonate investments of US$60 billion, create 3 million jobs and drive a manufacturing chain around it. This would benefit the country’s economy and at the same time push the energy transition forward.

Photo by:   Cytonn Photography - Unsplash

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