Hydrogen economy

Mexican industry and government begin to think about hydrogen.

Green hydrogen is a high potential alternative fuel made with renewable energy and there is a growing buzz around it in Latin America.

Mexico, with an abundance of renewable energy potential, has a natural endowment that could be leveraged to drive growth in the sector. Unfortunately, the current political environment means that projects are likely to develop slower than desired.

A promoter of hydrogen in Mexico explained, “We have some of the best conditions in the world to create hydrogen from water using photovoltaic and wind energy. There is a huge potential but we need to get the early adopters moving, most likely industry, these will be followed by sustainable transportation and finally power generation.”

“We have some of the best conditions in the world to create hydrogen from water using photovoltaic and wind energy.”

Promoter of hydrogen, Mexico

There is growing pressure on countries and companies to comply with global sustainability commitments and move towards zero admissions. Therefore, it is in the interests of industry to advance towards hydrogen as a power source for industrial activity sooner rather than later. This is already happening in renewables with many industrial groups signing power purchase agreements directly with wind and solar energy generators.

An industrial consultant with an interest in hydrogen commented, “The industrial groups are the ultimate beneficiaries of a switch to hydrogen so by being first movers, they can help to stimulate the growth of the market and private investment. The pressure on industry will only grow under the United States-Mexico-Canada agreement (USMCA), they should act now.”

“The pressure on industry will only grow under the United States-Mexico-Canada agreement (USMCA), they should act now.”

Industrial consultant, Mexico

The most significant barrier to the growth of the hydrogen economy in Mexico is the government. President Andrés Manuel López Obrador (AMLO) has been staunch in his defence of traditional energy sources based on fossil fuels. An energy industry executive has some optimism, “The reform of the electricity industry is a terrible message for investment, however, given its notorious unconstitutionality, it will be challenged and Mexico cannot ignore its international commitments forever.”

A representative of the renewable energy association in Mexico believes the government’s position isn’t sustainable, “The blackouts must be a wake-up call – energy sovereignty is not the same as energy security. It will become more and more expensive [to ignore renewables], PEMEX’s financial statements emphasise the huge cost of feeding inefficient industries and ‘white elephants.'”

The promoter of hydrogen in Mexico also has some optimism for the medium term, “It seems to me that there is an opportunity to sell the idea to the federal government that betting on hydrogen would create their own legacy, separate from the renewables initiatives of previous governments.”

There are also some allies in government who have a more favourable view of renewables and hydrogen than the leadership, according to the representative of the renewable energy association, “Marcelo Ebrard (Secretary of Foreign Affairs) and Claudia Sheinbaum (head of government of Mexico City), are supportive, are sensitive to innovation and environmental protection. With them you have to start raising awareness about the potential that exists with green hydrogen.”

In fact, hydrogen already appears in the Programme for the Development of the National Electricity System 2020-2034, which suggest some interest in a gradual adoption of hydrogen.

Important Notice
While the information in this article has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability is or will be accepted by Deheza Limited or by its officers, employees or agents in relation to the adequacy, accuracy, completeness or reasonableness of this article, or of any other information (whether written or oral), notice or document supplied or otherwise made available in connection with this article. All and any such responsibility and liability is expressly disclaimed.
This article has been delivered to interested parties for information only. Deheza Limited gives no undertaking to provide the recipient with access to any additional information or to update this article or any additional information, or to correct any inaccuracies in it which may become apparent.

Most recent in Energy

Power Play

Mexico’s renewable energy race in the presidential arena.

Methanol Marvel

Sinaloa's sustainable industrial revolution in Mexico.

Green horizons

Chile's ENAP and global partners forge the path to hydrogen future. 

Suriname’s oil dream

Total's investment sparks economic transformation.

The green Chile

Chile’s hot renewable energy aspirations...

IBAMA said no!

Brazil’s environment agency stops Petrobras from drilling in the Foz do Amazonas basin.

Batteries not included

With a new operating model, Bolivia dumps the Germans in favour of the Chinese to exploit its lithium reserves.

Petro against petroleum

Petro plans to accelerate Colombia’s energy transition with ban on new exploration contracts.

Renewable leadership

Latin America is aiming for 70% renewable energy but how is it progressing?

Water harvesting

Saint Kitts and Nevis look for rainwater harvesting sites to improve access to water.