In Mexico, Bloomberg Linea reports Mexico’s Federal Electricity Commission, CFE, is exploring a partnership with Pemex to produce green hydrogen at the Salina Cruz refinery, aiming to decarbonize energy production by replacing traditional hydrogen made from natural gas with a renewable alternative. Pemex, Mexico’s largest consumer of hydrogen, currently uses 220,000 tons annually for refining, most of which is produced through fossil fuels. The green hydrogen would be created through electrolysis powered by renewable energy, reducing carbon emissions.
Located in the Isthmus of Tehuantepec, the Salina Cruz refinery is ideal for this project, which aligns with regional sustainability goals. However, significant challenges include Mexico’s underdeveloped regulatory framework for green hydrogen and the high costs associated with production. CFE is working with academic institutions to develop domestic technologies to lower costs and advance the initiative. Despite these obstacles, the partnership reflects Mexico’s broader ambition to transition to greener energy sources and reduce its carbon footprint.
