Mexico's Green Hydrogen Push: A Global Energy Opportunity

Green hydrogen is emerging as a key player in the global energy transition, and Mexico  is no exception to this trend. With a series of projects underway and significant investment,  the country is seeking to position itself as a major player in the production and use of this  clean energy source. 

There are currently 26 green hydrogen projects underway — 18 in different stages  of development and eight in planning — spread across 14 states, with a total estimated investment  of US$21.227 billion.  

These initiatives have the potential to generate 3 million jobs and prevent the emission  of 53 million tons of CO₂ during the period 2030–2050.  

Among the most notable projects is the plant in Salina Cruz, Oaxaca, announced by former President Andrés Manuel López Obrador, which involves an investment of US$10 billion from a Danish  fund. 

The project in Campeche is a hydrogen-ammonia plant with an estimated investment of  US$1.1 billion.  

There is also the “Pacífico Mexinol” project in Sinaloa, announced by former US  Ambassador Ken Salazar, which seeks to produce green and blue methanol, with an  investment of US$2.2 billion.  

Likewise, there is a project in Durango, developed by companies with Dutch  participation, with an investment of US$1.2 billion; and the project in Baja California, which  stems from the announcement by a French company of an investment of US$2.5 billion in green  hydrogen projects in the country. 

These projects not only seek to supply the domestic market, but also to position Mexico  as an exporter of green hydrogen, taking advantage of its strategic location and natural  resources. 

Investments in green hydrogen in Mexico are distributed across various regions of the  country, with projects also underway in states such as Sonora, Guanajuato, Yucatan, Nuevo  Leon, and San Luis Potosí, among others.

The Mexican Hydrogen Association (H2México) estimates that by 2050, investments in  this sector could reach US$60 billion. 

The diversification of production is not limited to hydrogen: It is projected to reach an  annual production of approximately 196,707 tons of green hydrogen, along with the  production of 970,000 tons of green ammonia, and 2. 1 million tons of methanol (green and  blue), products intended for various applications ranging from mobility, through industrial  decarbonization, to power generation in combined cycle power plants. 

These projects not only seek to supply the domestic market, but also to position Mexico  as an exporter of green hydrogen, taking advantage of its strategic location and natural  resources. 

Investments in green hydrogen in Mexico are distributed across various regions of the  country, with projects also underway in states such as Sonora, Guanajuato, Yucatan, Nuevo  Leen, and San Luis Potosí, among others. 

Mexico can learn from international experiences in green hydrogen development. Chile was the first country in Latin America to establish a National Green Hydrogen  Strategy, with the goal of producing 25GW by 2030 at a competitive cost. It currently has  13 projects in development and has attracted the interest of multinational companies.  Colombia has made significant progress since the publication of its hydrogen roadmap in  2021. It already has two green hydrogen pilot tests in Cartagena that use solar-powered  electrolysers.  

Spain has made a strong commitment to green hydrogen, tripling its targets for the next  six years and submitting the largest number of projects to the European Hydrogen Bank.  Projects such as the Iberian Hydrogen Corridor will facilitate the export of green hydrogen  from Spain to Europe.

What is needed? 

The Mexican Hydrogen and Energy Transition Association, made up of nearly 60  companies, has been a catalyst for growth in the sector. Not only does it act as a bridge  between developers, investors, and authorities, but it has also actively promoted the  generation of technical and regulatory proposals, such as the Roadmap and the Clean  Hydrogen Industrial Strategy. 

In these documents, the Association proposes the promotion of a new national value chain  that includes everything from the manufacturing of hydrogen vehicles to electrolysers, storage  tanks, and hydrogen-powered electric turbines. 

One of the main challenges identified by H2México is the absence of a National Green  Hydrogen Strategy. Unlike other countries that have already drawn up concrete plans,  Mexico still lacks a public policy that articulates the development of this industry.  

Collaboration between the government and the private sector will be key to unlocking the  potential of green hydrogen in the country. H2México has proposed specific commitments to  the state, from designing a clear regulatory framework and establishing fiscal and financial  incentives to guaranteeing access to renewable energy for its production. 

This would enable current projects, which already account for almost 10% of the total  amount of the Mexico Plan announced by President Claudia Sheinbaum, to become a real  lever for economic and sustainable development.

The push for green hydrogen in Mexico is undoubtedly a strategic move that combines  investment, innovation, and the urgency to adapt to the demands of the global energy  transition.  

Consolidating an industry based on this technology will not only enable the country to  achieve important decarbonization goals, but also position it as a global leader in clean energy  generation and in restructuring its industrial model for a sustainable future.