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Released September 24, 2024 | CORDOBA, ARGENTINA
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Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico's state oil company Petroleos Mexicanos SA de CV (Pemex) (Mexico City) is seeking to transform itself into a more diversified energy company and has begun an analysis to open a new business niche through a possible strategic alliance with the state-owned Comision Federal de Electricidad (CFE) (Mexico City).
Pemex's objective is to promote the production of green hydrogen as an energy source, given that the company consumes the largest percentage of hydrogen in the country and aims to adapt to the energy transition, as indicated in its latest sustainability plan.
At this stage, the alliance is still under consideration. While a specific location has not yet been defined, Pemex's 325,000-barrel-per-day Salina Cruz refinery is seen as a potential candidate for this investment. The company's plans are long-term, with expectations that by 2035, the refineries in Mexico's national refining system would be producing green hydrogen. Oil refineries use hydrogen to produce fuels with lower sulfur content, thereby reducing pollution. However, natural gas is currently used to generate hydrogen, contributing to greenhouse gas emissions. In contrast, green hydrogen, produced from renewable sources such as solar or wind, is free of carbon dioxide emissions.
A challenge for Pemex in this potential partnership with CFE is its limited financial and technological capacity. Given the financial crisis facing the company, focusing on developing technologies that are not yet implemented in the country could entail high costs and increase risks for Pemex.
On the other hand, with a new government administration taking office in Mexico on October 1, an energy policy plan is anticipated that will steer toward cleaner alternatives. This new approach aims to include the active participation of the state in strengthening energy efficiency through the creation of a mandatory regulatory framework and other norms. These policies could certainly contribute to the proposed objective.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Pemex's objective is to promote the production of green hydrogen as an energy source, given that the company consumes the largest percentage of hydrogen in the country and aims to adapt to the energy transition, as indicated in its latest sustainability plan.
At this stage, the alliance is still under consideration. While a specific location has not yet been defined, Pemex's 325,000-barrel-per-day Salina Cruz refinery is seen as a potential candidate for this investment. The company's plans are long-term, with expectations that by 2035, the refineries in Mexico's national refining system would be producing green hydrogen. Oil refineries use hydrogen to produce fuels with lower sulfur content, thereby reducing pollution. However, natural gas is currently used to generate hydrogen, contributing to greenhouse gas emissions. In contrast, green hydrogen, produced from renewable sources such as solar or wind, is free of carbon dioxide emissions.
A challenge for Pemex in this potential partnership with CFE is its limited financial and technological capacity. Given the financial crisis facing the company, focusing on developing technologies that are not yet implemented in the country could entail high costs and increase risks for Pemex.
On the other hand, with a new government administration taking office in Mexico on October 1, an energy policy plan is anticipated that will steer toward cleaner alternatives. This new approach aims to include the active participation of the state in strengthening energy efficiency through the creation of a mandatory regulatory framework and other norms. These policies could certainly contribute to the proposed objective.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
