AMH2 – State policy would attract large-scale hydrogen investments in Mexico
There are 16 hydrogen projects with estimated investments of 20 billion dollars in this market. Due to its strategic location, this country is positioned as a crucial player in the global market for the export of hydrogen and derivatives to the rest of North America and Europe.
The establishment of a clear national policy that prioritizes hydrogen as a key element in Mexico’s energy transition, as well as the design of a solid regulatory framework, would attract large-scale investments in the hydrogen industry, reveals the study Clean Hydrogen Industrial Strategy for Mexico, prepared by the consulting firm EMR for the Mexican Association of Hydrogen and Sustainable Mobility (AMH2) .
The document, presented today by Israel Hurtado, president of AMH2 , identifies significant barriers and opportunities for developing a hydrogen economy in the country.
Among the main challenges, he points out the existence of few specific incentives for hydrogen projects, which limits the interest of investors.
During the presentation of this document,
Israel Hurtado pointed out that in order to continue advancing further in the development of the hydrogen industry in Mexico, clear policies and regulations, investment in research and development, as well as a State Policy on clean hydrogen are required.
said Hurtado,
Mexico does not have a national hydrogen strategy, it is usually called for by governments, but today we are taking a step forward and presenting this Industrial Hydrogen Strategy, from the industrial point of view, from the point of view of companies and from the point of view of the Association,
The study also mentions obstacles such as inadequate tax policies and a lack of established standards for the production, transportation and storage of clean hydrogen.
The study states,
Addressing these challenges is crucial to ensuring the safe and efficient scalability of clean hydrogen infrastructure in Mexico,
However, the document highlights that our country has significant opportunities to emerge as a leader in the production of green hydrogen.
He explains that the country’s abundant renewable energy resources, especially in solar, wind and geothermal energy, offer a great advantage, so by taking advantage of these resources, Mexico has the potential to produce competitive green hydrogen, both for domestic consumption and for export.
In addition, he notes, existing natural gas infrastructure, such as pipelines and storage facilities, can be repurposed for hydrogen transportation and distribution, reducing upfront investment costs.
The study also highlights the potential for hydrogen to play a key role in industrial decarbonisation, particularly in sectors such as oil refining, cement production and steel manufacturing.
He says that integrating hydrogen into these high-emission industries would not only reduce Mexico’s carbon footprint, but would also increase energy efficiency and promote energy security by diversifying the country’s energy matrix.
The Industrial Hydrogen Strategy for Mexico highlights that the development of a hydrogen economy in Mexico generates important employment opportunities that cover the entire hydrogen value chain, from production and logistics to research and development of new technologies.
Furthermore, he explains that Mexico’s strategic location as an exporter of green hydrogen to North America and Europe positions it as a crucial player in the global hydrogen market.
The document highlights that in order to capitalize on the opportunities that exist in the hydrogen industry, it is necessary to establish a National Hydrogen Policy, since it is essential to have a clear and coherent regulatory framework to guide investments, standardize procedures and guarantee the safe development of projects.
Likewise, incentives and regulations need to be developed, for which the Government must implement fiscal incentives, such as tax exemptions, incentives and subsidies, to encourage private investment in hydrogen projects.
Furthermore, developing robust safety regulations and technical standards is vital to ensure the long-term success of the industry.
Another factor that the study identifies as a priority is to promote public-private partnerships, since collaborations between government and industry players are necessary to promote innovation, technological advances and infrastructure development.
He also mentions that Mexico should continue to build partnerships with countries like Denmark, to benefit from knowledge sharing, technology transfer and financing opportunities. This also positions Mexico as a key player in the global green hydrogen supply chain.
The document highlights the technical training required to design, implement and maintain hydrogen systems, as well as having adequate and modernized infrastructure for the storage and transportation of this energy vector, as a major area of opportunity.
Mexico has a high potential for the production of green hydrogen, which is why 16 projects at different stages of development are currently opening up space, driven by the need to reduce carbon emissions and with investments estimated at 20 billion dollars.
The study highlights,
In addition, there are 20 pilot project initiatives in various regions of the country for the production, consumption and export of clean hydrogen and its derivatives for different uses and applications, such as heavy transport and industrial decarbonisation,
AMH2 estimates that the clean hydrogen industry could generate investments of 60 billion dollars over the next 20 years.
Also present at the event were Congressman César Rendón; José Luis Sánchez, ERM consultant; Dieter Femfert, vice president of AMH2; Renata Herrera, secretary of the AMH2 Council; Mads Knudsen, from the Danish Embassy in Mexico; and Manuel Tamayo, treasurer of AMH2.
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AMH2 – State policy would attract large-scale hydrogen investments in Mexico, source