SNAPSHOT BY COUNTRY Mexico

Mexico is working to develop its nascent hydrogen industry. Currently, there are organizations interested in developing and growing the green hydrogen industry in Mexico. For example, the 23 year old Sociedad Mexicana del Hidrógeno (SMH) has been responsible for promoting research, development, and innovation of hydrogen technologies.

Mexico has committed to reduce greenhouse gas emissions gradually by 50% until 2050, in accordance with the Climate Change Law; while in the Energy Transition Law the obligation is to guarantee access for all to affordable, safe, sustainable and modern energy. Therefore, in the Program for the Development of the National Electric System 2022 2036, the inclusion of green hydrogen generation from 2028 stands out.

Mexico shares many of the characteristics that make Argentina, Brazil and Chile good candidates for competitive production of hydrogen from renewable electricity. The Federal Electricity Commission (CFE) expects its green hydrogen plant to start producing clean fuel in 2023. Green hydrogen can be generated in Mexico because of the highly potential of some states and its large amounts of resources for renewable energy, while having energy infrastructure and demand, adherence to state sustainable objectives, strategic logistics position and public sector allies. For example, Puebla, Tamaulipas, and Nuevo León.

Green hydrogen production could start in 2025, increasing to around 230,000 tons in 2030 and 2.7 million tons in 2050. In order to supply this, Mexico would need 79 GW of new renewable capacity and 51 GW of electrolysis by 2050. The total amount of investment would be in the range of US $59 B in 2025 2050, according to AMH. The demand for green hydrogen in Mexico for large industries, such as cement and mining companies, would create a market of US $700 M per year by 2050, according to the document from the German agency.

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SMH has been working on the National Hydrogen Plan for Mexico, which seeks to identify the national skills and potential to approach the best opportunities in the current situation of Mexico.

The country has four projects in Guanajuato, Durango, Baja California and Sonora, which represent an investment of approximately US $ 1.5 B. The natural resources together with its population, territory and industrial plant make Mexico have the potential to become an important producer of hydrogen and even project itself as an exporter. The country already has a grey hydrogen market, which represents 0.3% of the global market.