Modelling Large-scale Hydrogen Uptake in the Mexican Refinery and Power Sectors

Due to the emissions reduction commitments that Mexico compromised in the Paris Agreement, several clean fuel and renewable energy technologies need to penetrate the market to accomplish the environmental goals. Therefore, there is a need to develop achievable and realistic policies for such technologies to ease the decision-making on national energy strategies. Several countries are starting to develop large-scale green hydrogen production projects to reduce the carbon footprint of the multiple sectors within the country. The conversion sectors, namely power and refinery, are fundamental sectors to decarbonise due to their energy supply role. Nowadays, the highest energy consumables of the country are hydrocarbons (more than 90%) causing a particular challenge for deep decarbonisation. The purpose of this study is to use a multi-regional energy system model of Mexico to analyse a decarbonisation scenario in line with the latest National Energy System Development Program. Results show that if the country wants to succeed in reducing 22% of its GHG emissions and 51% of its short-lived climate pollutants emissions, green hydrogen could play a role in power generation in regions with higher energy demand growth rates. These results show, regarding the power sector, that H2 could represent 13.8 GW or 5.1% of the total installed capacity by 2050, while for the refinery sector H2 could reach a capacity of 157 PJ/y, which is around 31.8% of the total share, and it is mainly driven by the increasing demands of the transport, industry, and power sectors. Nevertheless, as oil would still represent the largest energy commodity, CCS technologies would have to be deployed for new and retrofitted refinery facilities.