Challenges standing in the way of Mexico’s $60bn hydrogen industry

With its benign location and natural resources, Mexico has high hopes for hydrogen. It could attract investments of around $60bn and generate around 3 million jobs – but for that to happen, a number of key obstacles need to be overcome.

The country isn’t alone in having to address fundamental regulation and certification issues. But there is a sense that time is of the essence.

As Danae Diaz, Manager of Environmental Services and Energy of TÜV Rheinland Mexico, explains, “The production of green hydrogen is becoming increasingly relevant as a fuel alternative and specifically in Mexico, it is essential to strengthen the market for this fuel, since we are up to 15 years behind countries like Germany and the United States; even Chile already has important projects and a developed industry, regulations and certifications that drive trade and national strategies to support this sector in the coming years.”

Mexico’s population is expected to grow to nearly 150 million by 2050, from 127 million today. Together with improvements in productivity, this will drive economic growth – but also spur energy demand significantly, according to the IEA. The energy mix is dominated by oil and gas, with oil accounting for almost half of the total.

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