The research was commissioned by the Mexico-Germany Alliance and financed by the German foreign development agency GiZ. It concluded that the potential capacity of “green” hydrogen infrastructure was 22 terawatts.
The government in Mexico, a major oil producer, does not place heavy emphasis on development of renewable energy sources, choosing instead to focus on boosting energy self-sufficiency. The government is playing a greater role on fuel markets and state-run industry tends to prefer coal and fuel oil – cheaper and more readily available.
The research identified public transport, trucking, heavy industry, oil refining and the petrochemical industry of the state-owned petroleum company Pemex as the most likely sectors to use hydrogen in Mexico, along with generation and storage of power.
Hydrogen use in Pemex’s refining business, including oil refining and ammonia production, could amount to about $1.3 billion annually.
Mexico is an important oil-producing country, with production levels of about 1.7 million barrels per day. But against a background of a growing role for the government in the oil industry, Pemex’s business prospects have diminished.
The corporation already holds the world’s largest debts among oil companies – more than $100 billion. And given the virtual absence of foreign partners and investors and declining oil exports, its ability to invest in exploration and production have declined significantly.