Mexico has 22TW of green hydrogen potential: Study

Market: Hydrogen, Natural gas
23/09/21

Mexico has the potential to install 22TW of green hydrogen infrastructure, with public transport, power generation and the petrochemical industry key areas for development, according to a study financed by the German foreign development agency, GiZ.

The potential to develop green hydrogen, which is hydrogen produced using renewable energy sources, is particularly large in northwest Mexico where solar power resources are strongest, William Jensen, consultant for the Mexico-Germany Energy Alliance said today.

The study, commissioned by the Mexico-Germany Energy Alliance and designed to provide a blueprint for green hydrogen development across Mexico, identifies public transport, long-distance cargo vehicles, heavy industry, Pemex's refining and petrochemical businesses and power generation and electricity storage as key areas of opportunity.

Green hydrogen use in Pemex's downstream business — including refining and ammonia production — could be worth $1.3bn/yr by 2030, while 1.5GW of electricity generation capacity could be powered by green hydrogen by 2050, according to the study.

By 2050, Mexico's green hydrogen-powered public transport system could represent 1,750 t/yr of demand, serving 250,000 busses and 250,000 cargo trucks and employing 90,000 people.

Mexico committed to cut greenhouse gas emissions by 22pc by 2030 against a 2005 base line during the previous government of Enrique Pena Nieto, rising to 50pc by 2050, under the UN Paris climate agreement. But President Andres Manuel Lopez Obrador's government has largely neglected programs to reduce emissions, with gas flaring more than doubling since 2018, renewable energy development curtailed and coal and fuel oil powered electricity favored.

Amid the lack of federal programs, state governments are taking the lead with more aggressive renewable energy and emissions programs, including Puebla state that has identified the potential to produce 9,850 t/yr of green hydrogen.

Puebla's government has bet on renewable energy and gas projects as a means to generate jobs and investment in the state and hopes to attract the country's first hydrogen investments to support industrialization and public transport.

By Rebecca Conan

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25/11/24

Uruguay's left-wing candidate wins presidency

Montevideo, 25 November (Argus) — The left-wing opposition Frente Amplio will return to power in Uruguay after winning a hard-fought run-off election on 24 November. Yamandu Orsi, former mayor of the Canalones department, was elected president with close to 51pc of valid votes. He defeated Alvaro Delgado, of the ruling Partido Nacional. The Frente will control the senate, but will have a minority in the lower chamber. It last governed from 2015-2020. Orsi will take office on 1 March in one of Latin America's most stable economies, with the World Bank forecasting growth at 3.2pc for this year, much higher than the 1.9pc regional average. He will also inherit a country that has been making strides to implement a second energy transition geared toward continued decarbonization and new technologies, such as SAF and low-carbon hydrogen. He will also have to decide on future oil and natural gas exploration. Uruguay does not produce oil or gas, but has hopes that its offshore mimics that of Nambia, because of similar geology. TotalEnergies has made a major find there. The Frente's government plan states that it "will deepen the energy transition, focusing on the use of renewable energy, and decarbonization of the economy and transportation … gradually regulating so that public and cargo transportation can operate with hydrogen." On to hydrogen Uruguay is already the regional leader with renewable energy, with renewables covering 100pc of power demand on 24 November, according to the state-run power company, UTE. Wind accounted for 49pc, hydro 35pc, biomass 10pc and solar 6pc. Orsi will need to make decisions regarding high-profile projects for low-carbon hydrogen, as well as a push by the state-run Ancap to get private companies to ramp up oil and gas exploration on seven offshore blocks. The industry, energy and mining ministry lists four planned low-carbon hydrogen projects, including one between Chile's HIF and Ancap subsidiary Alur that would have a 1GW electrolyzer. Germany's Enertrag is working on an e-methanol project with a 150MW electrolyzer, while two Uruguayan groups are working on small projects with 2MW and 5MW electrolyzers, respectively. The Orsi government will also need to decide if it continues with Ancap's planned bidding process for four offshore blocks, each between 600-800km² (232-309 mi²), to generate up to 3.2GW of wind power to produce 200,000 t/yr of green hydrogen on floating platforms. The Frente has been noncommittal about the future of seven offshore oil and gas blocks, including three held by Shell, two by the UK's Challenger — which recently farmed in Chevron — and one each by Argentina's state-owned YPF and US-based APA Corporation. The Frente's government plan states that "a national dialogue will be called to analyze the impacts and alternatives to exploration and extraction of fossil fuels." By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Trump’s ‘drill, baby, drill’ risks industry pushback

25/11/24

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25/11/24

Trump’s ‘drill, baby, drill’ risks industry pushback

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Clean NH3 integration needs CoC methods: Hinicio

25/11/24

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25/11/24

Clean NH3 integration needs CoC methods: Hinicio

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Opinion: Bridging the divide

22/11/24

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22/11/24

Opinion: Bridging the divide

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Cost of government support for fossil fuels still high

21/11/24

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21/11/24

Cost of government support for fossil fuels still high

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