Mexico’s Green Hydrogen Investment, Ready for LiftoffBy Cas Biekmann | Fri, 06/25/2021 - 09:24
The Mexican Hydrogen Association (AMH) reported that developing green hydrogen projects in the Mexican market could attract US$1.35 billion in investments, nevertheless, potential for hydrogen stretches far beyond this figure. Even though it is still early for hydrogen in the Mexican market, interest in the renewable technology could soon take off.
“At AMH, we are aware of some projects in Baja California; another in Guanajuato, linked to a solar power plant; another in Durango, which will produce green ammonia; and some in Chihuahua, with a cement-producing company. Those are the initial projects, but there are other companies that bring their own projects for their internal industrial processes involving Green Hydrogen,” said Founder and President of AMH, Israel Hurtado.
Green hydrogen is a renewable fuel, which can be produced via the electrolysis of water. Here, electric currents are used to split water into its components of hydrogen and oxygen. Hydrogen can be used for heating, energy storage and transportation. Many different industries stand to benefit from it, including companies producing chemicals, steel and cement or those refining petrol. Hydrogen can also fuel different vehicles, making it a boon for mobility. Cars, public transport vehicles, subways and even the Mayan Train could run on it, for instance. For renewable energy generators, installing an electrolyzer next to a project could allow it to produce energy around the clock. In the EU and the US, enthusiasm for green hydrogen has already led to various prospective projects.
Hurtado highlighted that various companies have joined the association, which now has 50 associates and 15 strategic allies. Some of the associates include: Enagas, Enlight, Engie, EnelGrupo México, Fermaca, Hitachi ABB, Iberdrola, Mitsubishi, Siemens Energy and SENER, Mexico’s Ministry of Energy.
Mexico’s government opts for a different policy vision when it comes to renewable energy, choosing to bolster state-utility over the previous administration’s strategy to favor private participation in the market. Nevertheless, SENER remains committed to Mexico’s clean energy generation goals, outlined in the 2015 Paris Agreements. “The use of green hydrogen could also contribute to decarbonization and the fight against climate change, with which Mexico could reach the goal set in the Paris Agreement of generating 35 percent of its electricity from clean energy by 2024,” Hurtado explained. In this regard, green hydrogen could become a crucial component for Mexico’s decarbonization efforts. Industry analysts argue that Mexico has a great position to generate green hydrogen, as it boasts plenty of renewable energy capacity potential and is even well-positioned for a budding hydrogen-export market.