Siemens Eyes Green Hydrogen Opportunities in Mexico

Siemens, the German conglomerate, is reportedly in the planning stages for the installation of a green hydrogen plant at Mexico's Lazaro Cardenas port in the state of Michoacan. This strategic move aligns with Siemens Energy's initiative, led by its Mexican unit, in a region that boasts the country's second busiest port, handling 13.7Mt of cargo in the first half of 2023. 

While Siemens emphasizes the benefits and potential of green hydrogen, there is no explicit mention of its portfolio in Mexico. The company expresses enthusiasm about being at the forefront of the future hydrogen economy. “We are excited to see what this hydrogen economy of the future will look like, and we will be at the forefront of it, every step of the way,” according to the company’s website. 

This development follows President Andrés Manuel López Obrador's recent announcement that Danish investment fund Copenhagen Infrastructure Partners (CIP) will invest US$10 billion in a new green hydrogen plant in Oaxaca, taking charge of constructing one of the planned industrial parks along the Interoceanic Corridor.

Israel Hurtado, President of the Mexican Association of Hydrogen and Sustainable Mobility (AMH2), underscores the transformative potential of green hydrogen in enhancing manufacturing operations across various sectors in Mexico. This includes its application in automobile manufacturing, where hydrogen gas is utilized, as well as in the production of turbines and electrolyzers, opening avenues for novel industries.

Previous studies suggested that Mexico could achieve up to a 64% reduction in green hydrogen production costs compared to other countries, attributing this advantage to its strategic geographical location and renewable energy potential. Additionally, Mexico's advantageous position, with access to the Pacific and Atlantic oceans and free trade agreements with the US and Canada, could position it as a key exporter of green hydrogen to Europe and Asia.

AMH2 estimates that the widespread adoption of green hydrogen has the potential to generate around 3.2 million jobs in Mexico, attract up to US$60 billion in investments, and significantly contribute to the reduction of CO2 emissions by preventing approximately 53Mt by 2050.

However, despite Mexico's immense potential to establish a thriving green hydrogen economy, fostering job growth, reducing emissions, and aligning with climate goals, experts warn that the country currently lacks the necessary infrastructure for large-scale green hydrogen production, especially in the realm of renewable energy.