Mexican Senator Alejandra Lagunes Soto of the Green Party (PVEM) has proposed a bill to promote green hydrogen in the Mexican market.
The proposal aims to implement a national plan for the use of green hydrogen and to limit the production of fossil fuels as part of the transition towards renewable energy sources.
Green hydrogen is a renewable energy source that is produced by electrolyzing water using renewable energy sources such as solar or wind power. The process separates hydrogen from oxygen, resulting in a clean, emissions-free source of energy that can be used in various business sectors, including the power and manufacturing sectors.
If Lagunes’ proposal is approved, the Ministry of Energy (SENER) will have six months to draft a national plan for the use of green hydrogen. SENER will then have another six months to carry out a feasibility study regarding the creation of a state-owned green hydrogen company, which would be a subsidiary of the Federal Electricity Commission (CFE).
The proposal has received support from some quarters, but some experts in Mexico’s energy sector are suggesting that the government should take things slow and do its homework first before involving itself so deeply in the hydrogen business. They emphasize the importance of addressing regulatory issues and creating official standards surrounding green hydrogen production.
Israel Hurtado, the president of the Mexican Hydrogen Association, noted that the proposal would help to develop the green hydrogen sector in Mexico but that it should follow months of discussion. “It would be good to consult companies that already produce hydrogen and other gases used in industrial processes to promote the creation of a competitive market in price and cost,” he said.
Jorge Mañon, the general director of the National Content and Promotion of the Energy Sector in the Ministry of the Economy, emphasized that Mexico still has a long way to go before green hydrogen is economically viable. He suggested that, rather than using it to generate electricity, hydrogen could be incorporated in low to moderate quantities in the natural gas streams to receive a boost by being incorporated into the gas pipeline network.
According to the Mexican Hydrogen Association, Mexico’s optimal conditions to produce renewables would result in a lower cost of about 64% to produce hydrogen than other countries that don’t have this same potential. This suggests that Mexico could become a major player in the green hydrogen sector, creating jobs and reducing its reliance on fossil fuels.
The proposal, if approved, could have a significant impact on Mexico’s energy sector, allowing it to move away from fossil fuels and towards a more sustainable future. It will be important to address regulatory issues, create official standards surrounding green hydrogen production, and involve communities in these green hydrogen production projects. Additionally, it will be crucial to prepare the human capital involved in this industry and to address the technological challenges that lie ahead.