CFE and PEMEX Enter Green Hydrogen Partnership in Mexico

CFE considers the possibility of an alliance with PEMEX to develop a green hydrogen project at one of PEMEX’s refineries.

Iris Cureño, Head of the Monitoring and Evaluation Unit for Priority Projects at CFE, said in an interview that PEMEX, being the largest consumer of hydrogen in Mexico, presents a significant opportunity for synergy.

Currently, Mexico consumes about 220,000 tons of hydrogen annually, with 98 percent produced captively for PEMEX’s internal use. Hydrogen is essential in refineries to produce low-sulfur fuels, thus reducing environmental pollution. However, most refineries use natural gas to produce hydrogen, which results in carbon dioxide emissions. Green hydrogen, produced through electrolysis with renewable energy, is emission-free.

PEMEX’s 2023 Sustainability Plan recognizes a long-term business opportunity in national production and export of hydrogen surpluses. The plan projects potential revenues of US$4 billion by 2050 from a joint venture with CFE to produce green hydrogen. Víctor Rodríguez Padilla, the incoming Director of PEMEX, stated on Aug. 26 that the company would make a significant effort to advance renewable energy projects, expanding beyond oil, gas, and condensates. However, detailed plans have yet to be disclosed.

Potential Site for Hydrogen Project

Cureño identified the Salina Cruz refinery, officially known as Antonio Dovalí Jaime, as a potential site for the hydrogen project. This aligns with the industrial plan to promote the Interoceanic Corridor of the Isthmus of Tehuantepec. “The most important thing is that where (hydrogen) is produced, it is consumed,” she noted.

CFE envisions three main applications for green hydrogen: storage with hydrogen fuel cells, as a chemical for refining and production of green ammonia, and combining it with natural gas to produce electricity. However, current levelized costs remain high. To address cost challenges, CFE is collaborating with Mexican academic institutions to develop national green hydrogen technology, reducing dependency on imported equipment.