Mexico has about 7GW of green hydrogen projects under development without any subsidies lined up
Industry association flags $20bn of prospective investment in as-yet untapped country
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But according to Mexico’s hydrogen trade body, Asociación Mexicana de Hidrógeno (AMH) there are at least 15 projects under development in the Latin American country, worth a total capex investment of $20bn — before the government has put in place any subsidies or regulatory regime to speak of.
Spain’s Dhamma envisages producing nearly 13,000 tonnes of hydrogen per year from 120 MW of solar power (implying around 60MW of electrolysis capacity) in Guanajuato state, while Germany’s Hy2gen is reportedly working on a 200MW hydrogen-to-ammonia plant in Campeche, and Dutch fertiliser firm Tarafert is planning 343MW of electrolyser capacity in three tranches, starting with 69MW in 2025.
Mexico has significant potential for green hydrogen production, having both high levels of solar irradiation (up to 8.06kWh per square metre, according to the Global Solar Atlas) and one of the windiest spots on Earth in its south (with average wind speeds of almost 12 metres per second), according to the Global Wind Atlas.
AMH believes that the biggest market opportunity in Mexico is in heavy-duty transport — despite the country’s huge petrochemicals sector and steel production capacity.
“For the Mexican market, whether Cummins makes this type of vehicle available will depend on the availability of energy,” Machuca said. “And even if [green] hydrogen were available in Mexico, the price of hydrogen will have a lot to do with it.”
The US engineering firm is developing both fuel cells and hydrogen internal combustion engines for heavy trucking, with the aim of full production by 2027.