Regulations and certification: challenges for the green hydrogen market in Mexico

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May 10, 2023, 09:00 ET

Mexico is 15 years behind in the green hydrogen industry compared to countries such as Germany and the USA.
Green hydrogen certification helps producers and distributors to market the fuel and develop this sector.

MEXICO CITY, Mexico, May 10, 2023 /PRNewswire/ -- To talk about green hydrogen is to address the future that is getting closer and closer and of which Mexico must be part, not only as a producer but also as a generator of appropriate regulations to the market and an incentive for certifications so that the country can become a regional leader in clean energy.

"The production of green hydrogen is becoming increasingly relevant as a fuel alternative and specifically in Mexico it is essential to strengthen the market for this fuel, since we are up to 15 years behind countries like Germany and the United States; even Chile already has important projects and a developed industry, regulations and certifications that drive trade and national strategies to support this sector in the coming years," said Danae Diaz, Manager of Environmental Services and Energy of TÜV Rheinland Mexico.

Mexico has great potential in the green hydrogen industry, so it is essential to address the challenges in a comprehensive manner with a view to having a robust energy policy to promote the implementation of coordinated strategies between the public sector, the private sector and certification bodies to mitigate the risks of this market and have cleaner fuel alternatives to hydrocarbon power generation.

Although the cost of producing green hydrogen has been studied in depth, since according to the International Energy Agency, it is estimated that each kilo of green hydrogen costs between three and seven dollars, while blue hydrogen (from natural gas) costs between 1.5 and 2.9 dollars and brown hydrogen (extracted from oil) ranges between 1.2 and 2.2 dollars, it is green hydrogen that is most in demand in European markets. Likewise, having electrolysis equipment has become one of the biggest challenges, since the manufacturing companies report an average delivery time of at least eight months, in addition to the infrastructure required for the storage and transportation of this fuel.

"However, we are at the perfect time to move towards this transformation; since it is estimated that by 2030 in Mexico the production of green hydrogen could have lower costs by up to 64% compared to other countries that do not have the same energy potential, we also have a privileged location, which allows us to obtain solar and wind energy, from which green hydrogen is generated, so the industry could have investments of approximately 60 billion dollars and generate about three million jobs. This would facilitate the development of domestic trade to sell it to industries that have more polluting emissions such as long distance transport, mining, textiles, etc., as well as export it to neighboring countries such as the United States," said Diaz.

It is also essential to address the regulatory and certification challenges that are required to lay the foundations for this industry, with the aim of boosting competitiveness and positioning the country as a producer of fuels with low environmental impact, reducing its carbon footprint and offering innovative environmental solutions:

Establish adequate regulations for Mexico: although now a draft decree was presented to boost the green hydrogen market in the country, which seeks to create, implement and promote a national program for the use of this fuel, it should not be forgotten that in case of being approved, the national policy regarding the use will be raised six months later, so it would be necessary to take up success stories from other countries to take the best practices and implement them in Mexico, considering the social, economic and environmental aspects of the country.

"It is about taking as a reference the learning and actions that have been taken in other latitudes without copying their methodology, since otherwise the industry in Mexico would be limited and other long-term challenges would develop that would cause a bump in the growth of this fuel," emphasizes the expert.

Encourage certification for companies: The green hydrogen certification was born as a need of several countries and companies to market this fuel as an alternative that allows the use of renewable energy, reduction in carbon footprint and offset emissions.

"At TÜV Rheinland we generated a standard called 'TÜV Rheinland standard H2.21 Renewable and Low-Carbon Hydrogen Fuels', which was approved by both the European Community and the German accreditation body DAKKs. This standard, whose new version applies from this year, is a basis for companies to demonstrate, through verification, compliance with requirements to be able to market the hydrogen produced as 'Renewable' or 'Low-Carbon' and its designations 'Green' or 'Blue' depending on their characteristics, as well as using this standard for other gases such as Ammonia with the possibility of obtaining the same certification,'" said Diaz.

This certification, which is valid for three years, considers new emission limits and its scope of application increases to hydrogen derivatives (e.g., ammonia, methane and methanol); it also helps companies producing green hydrogen to market it, as they can provide certainty to their customers that the fuel was actually generated through renewable energy sources.

"The big obstacle about certification is that it is done on a voluntary basis, that is, the producing companies are not obliged to perform it, nor the purchasing companies are used to request it to their suppliers; so it is required to reinforce the environmental and economic commitment that the different industries have so that the will becomes a responsibility acquired more frequently. In this way, we will strengthen the green hydrogen sector, because from production we are maintaining high standards of compliance with international regulations," emphasizes Danae Diaz.

Purchasing companies benefit from this certification, as they can be confident that they are acquiring green hydrogen that will help them meet their emission reduction commitments or market requirements for the use of fuels with less environmental impact. Furthermore, by acquiring green hydrogen for their processes, they are making their production more efficient and contributing to the reduction of greenhouse gas emissions.

In this way, regulations and certification should be central axes on which the green hydrogen industry is configured in Mexico, since worldwide more and more economies are allocating resources, efforts and generate strategies thinking about the near future that will have this fuel. Thus, Mexico cannot be left behind in overcoming the challenges to become a leader in this industry and help protect the planet.

To learn more about TÜV Rheinland's Green Hydrogen certification, visit: Green Hydrogen certification | TÜV Rheinland (tuv.com)

About TÜV Rheinland
TÜV Rheinland stands for safety and quality in virtually all areas of business and life. The company has been operating for more than 150 years and ranks among the world's leading testing service providers. It has more than 20,000 employees in over 50 countries and generates annual revenues of around 2.1 billion euros. TÜV Rheinland's highly qualified experts test technical systems and products around the world, support innovations in technology and business, train people in numerous professions and certify management systems according to international standards. In doing so, the independent experts generate trust in products as well as processes across global value-adding chains and the flow of commodities. Since 2006, TÜV Rheinland has been a member of the United Nations Global Compact to promote sustainability and combat corruption. Website: www.tuv.com

Mariana Taborda do Amaral
Telephone: +55 11 3514 5867
Email: [email protected]

Michael García Carbajal
Phone: +52 55 3488 2108
Email: [email protected]

SOURCE TUV Rheinland