Mexico City - 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.
With these resources, the installation of more than 80 gigawatts of renewable energy capacity would be achieved, 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 theMexican 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 Joaquin Mendoza, PwC consultant.
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 to 5.3 dollars per kilogram by 2030 and to 2.4 dollars per kilogram by 2050, 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.
Energy consumption 20% of expenditure
In 2021, public sector spending amounted to 6 trillion 748 billion pesos and 20.1% of the amount spent was allocated to energy and fuels, which are highly polluting.
In this way, this sector was prioritized over social protection and health services, warns the Center for Economic and Budgetary Research (CIEP).
Thus, the Ministry of Energy, Pemex and CFE, as well as other agencies of the sector, used more resources than those registered in social protection, education, health and other items to which 18.9%, 11.9% and 10.9% of the expenditure were allocated, respectively, according to an analysis of the organization on the Public Account 2021.
The Ministry of Energy, for example, had an expenditure 578.4% higher than that approved, due to the federal government's contributions to Pemex to invest in the Dos Bocas refinery and strengthen its financial position, it points out.
On the other hand, the increases to the education and health agencies were 9.2% and 20.3%, respectively.