NL Wind Power Potential to Support Green Hydrogen Production
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NL Wind Power Potential to Support Green Hydrogen Production

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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Wed, 05/03/2023 - 09:59

Experts pointed out that the state of Nuevo Leon has great potential to produce green hydrogen using wind power, resulting in lower costs. By 2050, electrolysis powered by wind power is projected to reach 6.3GW with average costs of U$1.5/kg. 

The Mexican-German Energy Alliance, together with the Ministry of Economy of Nuevo Leon, presented an analysis of the theoretical potential of green hydrogen production based on the availability of renewable energy resources. The study considered renewable energy generation from photovoltaic panels and wind turbines. 

Results showed that Nuevo Leon has a great potential to produce green hydrogen at low costs through wind energy technology, ranging from US$1.62/kg, which represents the most competitive value available in less than 1% of the territory, to US$3.46/kg in 2030. Analysts pointed out that in this range of costs, the state could install up to 32GW of electrolysis systems fed by 57GW of wind power turbines. 

Regarding solar energy, the analysis showed more uniform costs across the state, ranging from US$3.06/kg to US$3.82/kg, mainly due to a fairly homogeneous solar irradiation in the area. However, solar power can only allow the electrolyzer to operate between 2,365 and 2,925 hours/year, while wind turbines can operate between 3,330 and 7,700 hours/year. This difference is reflected in production costs from each source. 

The report concluded that given economic and geographical aspects, the development of large-scale green hydrogen projects could be paired with wind energy projects in the eastern part of the state, around the municipalities of China and General Bravo. Another potentially attractive location for the first small scale projects (<100 MW) could be in the municipality of Higueras, given its abundant wind resource, existence of wind projects in operation and its proximity to Monterrey. 

The document pointed out that by 2050, Nuevo Leon is expected to have an electrolysis potential of 95GW, with costs lower than US$2/kg. With wind power, electrolysis potential will reach 6.3GW, with average costs of U$1.5/kg. Additionally, the report explained that one of the great challenges for this kind of technology is its remoteness to potential consumption centers and the limited electrical transmission infrastructure in the area for energy transport. Therefore, the costs of transport infrastructure should be considered as an additional cost to the project.

Photo by:   Envato Elements

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