Alejandra Lagunes, Senator, the Green Party Parliamentary Group (PVEM), presented a draft decree to boost the green hydrogen market in Mexico. Experts pointed out that national policies to regulate development and speed up bureaucratic procedures are needed for the industry to take off.
The project aims to create, implement and promote a national program for the use of green hydrogen, as well as limit the production of gray and blue hydrogen, both using fossil fuels, to promote the transition to renewable energy via green hydrogen. If the agreement gets approved, the Ministry of Energy (SENER) would have six months to develop a national policy on the use of green hydrogen. After this period, SENER and CFE would have another six months to conduct a feasibility study to create a hydrogen subsidiary company.
Israel Hurtado, President, the Mexican Hydrogen Association (AMH2), pointed out that the initiative will help develop the sector in Mexico. However, this will be a long process. "We are talking about a new industry but there are companies that already produce hydrogen and other gases used in industrial processes. It would be good to consult them to encourage the creation of a competitive market in prices and costs," he said. Hurtado stressed that the basis of this initiative will be to establish regulatory issues and official standards to produce green hydrogen. Additionally, he underscored that it would be necessary to analyze the technological challenges ahead, such as involving communities in production projects and creating human capital for the green hydrogen industry.
According to AMH2, Mexico’s position as an optimal location for renewable energy production could diminish costs for hydrogen production by up to 64% in comparison to other countries that do not have the same energy potential. Nonetheless, Jorge Mañón, Director General of National Content and Promotion of the Energy Sector, Ministry of Economy, stated that green hydrogen still needs a bigger boost to become competitive in Mexico.
"Green hydrogen must have similar prices to natural gas to become competitive. Rather than using it to generate electricity, we could include hydrogen in low or moderate amounts in natural gas streams. This would give it an initial push, by incorporating it into the pipeline network," Mañón said.
Dieter Femfert, Commercial Director, Cryoinfra, a company specializing in industrial gasses, stressed that the regulation of green hydrogen will be crucial for the industry to grow fast. “We need a policy focused on speeding up procedures so that these technologies take off more quickly," he said.