60 billion dollars to develop hydrogen industry

To achieve the development of the green hydrogen industry in Mexico and satisfy the demand generated, accumulated investments of 60 billion dollars are required from 2025 to 2050.

These resources would be used to install more than 80 gigawatts of renewable energy capacity, mainly solar and wind, as well as 51 gigawatts of electrolysis, according to the study "Green Hydrogen. The energy vector to decarbonize Mexico's economy," conducted by PwC and the Mexican Hydrogen Association (AMH2).

"Almost half of the investment will go to the manufacture of power generation equipment and we can see that the investment is around 60 billion dollars by 2050 accumulated over a period of 25 years," explained Joaquín Mendoza, a consultant at PwC.

He said that they will evaluate the country's demand and then go into the issue of costs and capacity requirements, since it is more expensive than other fossil alternatives.

"However, by overcoming those barriers and establishing a cost to carbon, we expect cost parity to be reached by 2040," he explained.

With the deployment of the technology, the cost is expected to drop by 2030 to 5.3 dollars per kilogram and by 2050 to 2.4 dollars per kilogram, according to the study.

During the first Mexican Hydrogen Congress organized by the AMH2, a demand for green hydrogen for 2050 of 2,700 kilotonnes for domestic consumption and export was foreseen.

If the resources were invested, there would be an impact of 46 billion dollars to the GDP, 3.2 million jobs would be created and 53 million tons of carbon dioxide would be reduced in 2050.

Its use would focus on seven industries: petrochemicals, electricity generation, iron and steel, glass, chemicals, cement and mobility.

Capacity needed

In order to meet the estimated demand for green hydrogen of 2,700 kilotonnes by 2050, a gradual installation of renewables and electrolysis will be needed.

Solar Photovoltaic Capacity (GW) Electrolysis Capacity (GW)

2025 2 1

2030 7 4

2040 36 23

2050 79 51

Source: Study. "Green Hydrogen. The energy vector to decarbonize Mexico's economy".