Mexico’s president Andrés Manuel López Obrador has told reporters that an unnamed developer will put $10bn towards a green hydrogen project in the southern Mexican state of Oaxaca.
“It is a financial economic fund from Denmark,” he hinted at a press conference, adding that “they are going to produce green hydrogen to replace fossil fuels” in shipping.
However, he did not provide any further details on the expected size of the hub nor its development timeline.
All signs would point to Danish fund Copenhagen Infrastructure Partners being the party involved. It had confirmed in August that it is developing a project in Oaxaca, which had been highlighted in an August letter from López Obrador to US president Joe Biden.
However, the developer has also been extremely reluctant to provide any additional details on this proposed facility, with a spokesperson telling Hydrogen Insight at the time: “We will provide further updates as the project progresses.”
When pressed by news agency Reuters on the latest comments from López Obrador, Copenhagen Infrastructure Partners declined to comment on whether the $10bn investment referred to their facility or not.
Regardless of its developer, the project is likely to be the first large-scale green hydrogen project in Mexico, which produces nearly all of its H2 from unabated fossil gas for use in refining.
López Obrador, elected in 2018, has faced criticism after he suspended renewable energy auctions as part of his suite of nationalisation measures, with critics arguing that this has effectively stymied wind and solar development in the country.
While Mexico has had a mandate in place since 2015 that 35% of its electricity must come from renewables by 2024, as of December 2022 this hovered at 29%.
However, despite not having a national hydrogen strategy in place, the Mexican government had signed a pact with the US and Canada in January to work towards a North American clean hydrogen market, although this appears to still be at the discussion stage.