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Mexico's green energy potential is unmatched; endless coastlines, over 300 days of sunshine, and wind power potential make it an ideal place to establish and expand renewable energy projects, including hydrogen, which is making headways in the country, with multiple companies investing in hydrogen projects. The industrial gas sector has been at the forefront of this progress. Industry executives were keen to show off progress on multiple initiatives across the country and emphasized their desire for more state support, regulatory or otherwise, to promote the nascent sector's development and establish Mexico as a leading hydrogen producer. Despite its potential, many obstacles lie in its path, including high energy costs and irregular government interventions that have shaken business confidence. 

A strong and dependable renewable energy network is key to these ambitions, especially if green hydrogen is to be pursued and made commercially viable. Though still in the early stages, companies are taking note, and Iberdrola's multi-billion-dollar investments in a network of solar and wind farms have set the stage for further development.

Private investments form an important part of the picture, though in Mexico, given the government’s historic role in energy policy and generation, public spending and initiatives deserve closer attention. The Sheinbaum government’s National Energy Plan 2024-2030, launched in late 2024, commits the state to developing renewable energy projects across the country, including green hydrogen, wind power and geothermal energy. According to the CFE, it will receive some $23.4 billion from the state over the 2024-2030 period strengthening Mexico’s power grid.

Securing state interest will be crucial moving forward, especially as the energy industry is led by PEMEX, a key consumer and producer of hydrogen. Topsoe, the world's leader in industrial-process catalyst production, has been working with PEMEX to support energy production in Mexico. Florencia Vitelleschi, Mexico country manager at Topsoe, commented: "In Mexico, we see substantial opportunities, especially with Pemex, the leading producer and consumer of hydrogen. Currently, Pemex produces 100% of its hydrogen conventionally from natural gas, presenting a significant opportunity to transition to low-carbon hydrogen, which we call blue hydrogen."

Vitelleschi has high hopes for this potential transition to low-carbon hydrogen production and commented: "Many clients have approached us expressing a willingness to invest in more advanced catalysts, as they recognize that while the initial cost may be higher, the long-term savings on energy consumption will justify the investment."

HDF Energy entered the Mexican market in 2019 and is developing the Los Cabos hydrogen-integrated solar park in Baja California Sur. Cristina Martín González laid out the company's plans for Mexico: "HDF has announced a US$2.5 billion development portfolio in the country and has noted an increased openness toward private investment in renewable energy, which is expected to accelerate project development in the region… The company specializes in developing hydrogen infrastructure; our Renewstable plants produce green hydrogen from renewable energy sources such as solar and wind, storing it in compression tanks, and convert it into electricity using fuel cells."

For Linde, drawing on examples from other successful hydrogen-developing nations is crucial. Hugo Villarreal Salas, VP of energy and engineering at Linde, commented: "Government support is essential for developing new technologies. In countries like the US we have seen substantial incentives and funding for decarbonization concepts, and similar support would benefit Mexico's transition."

Linde has invested in hydrogen vehicle technology, and Salas highlighted the potential for Mexico to become a green hydrogen exporter in the future, given the right mix of policy and financial incentives. Nevertheless, there is work to be done on the green hydrogen front, as Salas pointed out: "Green Hydrogen is currently expensive because the cost of electricity in Mexico is twice as high as in the US, which makes it uncompetitive, though it is an area of opportunity that will surely be solved in a short time."

The Mexican Association of Hydrogen has identified more than 21 hydrogen related infrastructure projects underway in the country. Among the industrial gas producers, Air Liquide has also been moving in this direction. Raphael de Montfort, managing director of Air Liquide Mexico said: "On an operational level, the greatest achievement this year was the commissioning of a new hydrogen plant in our industrial basin of Nuevo León."

Air Liquide has been investing in new production capacity to meet consumer demand in the region. Despite facing a challenging 2024, when the AMLO government expropriated one of its hydrogen plants in Tula, shaking international investor confidence, the company has forged ahead. De Montfort added: "In industrial gases, we continue to see a steady growth in demand while medical gases are more stable. Overall, the Mexican gas market is of paramount importance in Latin America for Air Liquide."

They are not the only company making investments in production capacity, a sign of the underlying strength of the Mexican industrial sector. Cryoinfra, part of Grupo Infra, has also been investing in new operating plants. Speaking to GBR, Dieter Femfert, commercial director of Cryoinfra, said: "We are constructing a new air separation plant in Monterrey with a capacity of over 2,000 tons per day, producing oxygen, nitrogen and argon."

The new plant will serve the booming northern state of Nuevo León, the heart of Mexico's industrial base. Femfert continued: "The industrial gas market in Mexico is experiencing growth in several sectors, including steel, automotive, electronics, mining, pharmaceuticals and food industries."