Imagine a country with a bold plan to shift towards clean energy, but it’s stuck in neutral. That’s what’s happening in Mexico, where a $10 billion bet on hydrogen energy has yet to pay off.
The story begins with a promising start – the government announces an ambitious plan to transition to renewable energy, with a focus on hydrogen and lithium. But things take a turn when it becomes clear that the demand for green energy isn’t as strong as expected. It’s like trying to sell a product that nobody wants to buy.
According to the Mexican Hydrogen and Sustainable Mobility Association, there are 24 clean hydrogen projects in the country, including a pilot project by the state-owned electricity company, CFE. The project, which started in 2022, aims to produce 20% of green hydrogen by mixing natural gas with existing power plants. But experts say that without a solid market and consistent demand, these projects are unlikely to succeed.
What’s holding Mexico back?
One major obstacle is the lack of a clear regulatory framework to support green energy projects. This makes it tough for private investors to get on board, and for demand to grow. It’s like trying to build a house without a solid foundation.
The CFE’s pilot project in Sonora, which has a capacity of 20 MW, is a step in the right direction. But with high technology costs, inadequate infrastructure, and insufficient demand, the road to success is long and winding.
A glimpse of hope
Despite the challenges, Mexico has vast potential for developing clean energy, thanks to its rich resources and strategic location. The key is to strike a balance between ambition and practical reality. With a solid plan and the right support, the country can unlock the potential of hydrogen energy and pave the way for a sustainable future.
For now, the journey towards green hydrogen in Mexico remains complicated. With $10 billion at stake, the government needs to create a favorable environment that encourages investment in clean energy, while addressing the technical, economic, and regulatory hurdles that stand in the way. Only then can the country hope to achieve its ambitious goals and create a cleaner, more sustainable future.