Mexico's Green Hydrogen Collaboration with Pemex: A Step Towards Sustainability
Key Ideas
  • Mexico's CFE and Pemex are considering a joint venture to produce green hydrogen in a Pemex refinery, a move positively received by industry experts.
  • CFE and Pemex aim to produce green hydrogen using renewable energy sources by 2035, marking a shift towards eco-friendly practices in the energy sector.
  • Pemex also plans to explore green hydrogen production in its Deer Park refinery in Houston by 2025, indicating a broader commitment to sustainability beyond Mexico.
  • Challenges remain, such as the need for new laws governing hydrogen production in Mexico and the establishment of a legal and regulatory framework for the industry.
Mexico's state-run electricity company CFE and national oil company Pemex are contemplating a partnership to develop green hydrogen within a Pemex refinery. This potential joint venture was detailed in Pemex's sustainability plan, with CFE providing further insight in a recent interview with Bloomberg. The initiative has received praise from Israel Hurtado, head of the hydrogen industry association H2 México, who views it as a positive step for the green hydrogen sector. Iris Cureño of CFE highlighted the importance of producing hydrogen where it is consumed, hinting at plans to set up operations at Pemex's Salina Cruz refinery in Oaxaca state. However, Cureño emphasized the current absence of a comprehensive legal and regulatory framework in Mexico for green hydrogen production, sales, and exports. Typically, oil companies produce hydrogen from natural gas, leading to greenhouse gas emissions. In contrast, green hydrogen is manufactured using renewable sources like solar or wind power, making it an environmentally friendly alternative. Pemex's sustainability plan outlines intentions to collaborate with CFE to generate hydrogen from wind energy, aiming to commence domestic green hydrogen production in Mexican refineries by 2035. Beyond Mexico, Pemex plans to conduct a pilot project for hydrogen at its Deer Park refinery in Houston by 2025, potentially exploring both green and blue hydrogen production methods. By 2030, the company envisions importing green hydrogen from Texas through pipelines for utilization in its Cadereyta refinery in Nuevo León. Despite these ambitious plans, the lack of clear regulations and laws poses a challenge to the growth of the hydrogen industry in Mexico. The establishment of a robust legal framework and the enactment of new laws are crucial for advancing sustainable hydrogen production and fostering a greener energy landscape.
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