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Home Home - Americas
Green Hydrogen H2 News

Mexico: over 75 GW of renewables are required by 2050 to supply the demand for green hydrogen

Arnes BiogradlijaBy Arnes Biogradlija31/05/20222 Mins Read
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The Mexican Hydrogen Association (AMH2) presented the report “Green Hydrogen: The Energy Vector to Decarbonize the Mexican Economy” as well as the H2 roadmap, which aims to attract investments and give the industry a boost in order to decarbonize the country’s economy.

The deployment of 230 kilotons of green hydrogen, which would cut CO2eq emissions by 5 million tons, is the cornerstone for “strengthening” Mexico’s climate agenda by 2030, according to statistics supplied by the institution.

While demand is predicted to rise gradually, reaching 1,219 kton in 2040 and over 2,700 kton a decade later, owing to a combination of technological advancements, natural gas blending, and direct replacement in the petrochemical industry.

mehiko
mehiko

However, the Mexican Hydrogen Association estimates that by 2050, 79 GW of renewable capacity and 51 GW of electrolysis would be required to meet that demand. For the year 2025, at least 2 GW of solar electricity and 1 GW of electrolysis should be installed.

Meanwhile, by 2040, when 36 GW of renewable energy and 23 GW of electrolysis are expected to be added to what is already operational, this capacity will be bigger.

“And, based on the Solar PV and Electrolysis capacity necessary to meet the predicted demand, the total CapEx to be invested from ’25 to’50 is $59 billion dollars,” the study states.

Similarly, it acknowledges that the H2V industry’s investment in Mexico will generate $46 billion in GDP and more than three million employment between the aforementioned periods, mostly in the production of generation equipment.

Although the AMH2 itself stated that in order to attain these goals, numerous milestones for the deployment of the energy vector in issue must be met. One of the most important is the construction of a short-term H2V-specific regulation, which covers safety and operating regulations.

In the medium and long term, the importance to having an integration plan for SOEs in the H2V industry, as well as the development of the CO2 market’s bases and manuals in strategic and regulatory matters, as well as the reconditioning of the gas pipeline network for H2 and the development of a manual for the transition to green hydrogen with requirements and minimum investment required, was considered.

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