Tango Solar Makes Billion-Dollar Green Hydrogen Plant Investment

Tango Solar is set to invest US$1.7 billion in Sinaloa for green hydrogen production, marking a significant step toward sustainable energy in the region. The boost of the green hydrogen industry in Mexico could revolutionize the country's energy landscape, offering cleaner alternatives and contributing to global environmental efforts.

The Tango Solar North photovoltaic green hydrogen complex will consist of a photovoltaic solar park and a hydrogen generation plant that will operate through electrolysis. Olivier Crambade and Philippe Michel Esposito, Founders of the energy company, emphasized that the investment has been carefully calculated, taking into account a preparation and construction period of 5.5 years, followed by 40 years of operation and maintenance, and concluding with a two-year dismantling and abandonment phase.

The photovoltaic solar park will have a capacity of 921MW in direct current and 787MW in alternating current, enabling the electrolysis of 663,759m3 of water annually to produce 41,485t of green hydrogen. This green hydrogen will serve as a vital component for clean, secure, and sustainable energy, with potential applications in decentralized energy supply for transportation, industry, and construction sectors. This initiative is poised to significantly contribute to the social and economic development of both the region and the country, the firm stated.

The produced hydrogen will be transported to the El Oro compression station and made available for truck refueling within the plant premises. Additionally, the project entails the construction of a 10.88km connection line from the CFE maneuvering substation to the project's reducing SE, as outlined by Tango Solar. The company underscored that green hydrogen production will play a crucial role in reducing reliance on fossil fuels and advancing Mexico's environmental objectives by mitigating polluting emissions, including CO2 and other greenhouse gasses.

PEMEX's projections suggest a substantial growth trajectory for the green hydrogen market in Mexico, reaching US$1 billion by 2030, US$3 billion by 2040, and US$4 billion by 2050, presenting a considerable opportunity for industry development. PEMEX's Sustainability Plan, released in 2023, outlines various green and blue hydrogen projects slated for implementation in the coming years.

The Mexican Hydrogen Association (AMH2) highlighted the importance of PEMEX's Sustainability Plan in the face of the energy transition. The plan includes the development of a green and blue hydrogen pilot project at the Deer Park Refinery from 2025 to 2029 and proposes the importation of green hydrogen to Nuevo Leon from the North American Gulf Coast from 2030 to 2035. 

Starting in 2035, the state-owned company plans to scale up green hydrogen production to a national scale, while exploring surplus exports. AMH2 suggests that these surplus quantities could be directed toward export markets such as the United States and Canada, thereby solidifying the North American Clean Hydrogen Regional Market as per the USMCA agreement. 

AMH2 said that by accomplishing these goals, PEMEX could play a pivotal role in achieving the objectives outlined in the National Electric Sector Development Program (PRODESEN) by integrating green hydrogen into the energy mix. By 2036, PEMEX aims to collaborate with CFE in blending 30% green hydrogen with 70% natural gas in its Combined Cycle Power Plants, thus advancing Mexico's transition toward cleaner and more sustainable energy sources.