Green hydrogen, ammonia facility planned for Mexico

Singapore’s Aslan Energy Capital has agreed to acquire 35,000 hectares of land in Sonora, Mexico for a solar-based green hydrogen and green ammonia production facility.

The land will serve as the foundation for the pioneering ANEM (Aslan Net-zero Energy Mexico) Project, which is a first of its kind, marks the beginning of a collaborative effort to harness renewable resources for the production of clean energy and ensuring vital agricultural sovereignty, the company said. The project is poised to play a pivotal role in driving down fertilizer prices in Mexico.

The ANEM Project is situated in a coastal area of Sonora and capitalizes on abundant sunlight to power green hydrogen production. No financial information was disclosed by the company.

“The MOU signing represents a significant milestone in our journey towards a greener, more sustainable future,” said Dr. Gho Wie Min, VP Engineering of Aslan Energy. “By leveraging Sonora’s abundant solar resources, we aim to not only produce clean energy but also contribute to the reduction of carbon emissions in Mexico. This project holds immense potential to transform the energy landscape and drive positive change across multiple sectors, specifically green hydrogen for data centers and transportation. Green ammonia derived from the project delivers strengthened food security, while upholding energy self-sufficiency.”

Aslan Energy said it has an extensive track record of executing large-scale energy projects, including the ongoing 600 MW electrolyser-based green hydrogen plant in Indonesia — the largest in Asia.

Commercial operations are scheduled to commence in 2028, with Phase 1 producing nearly 600,000 tonnes of green ammonia per year. Production capacity will be doubled as part of Phase 2 by 2030.

The project will be developed in four phases over a 10-year period. The primary purpose is to serve the domestic market in Mexico and excess capacity will be allocated for export to the US through the well-established railways between the US and Mexico. Potential for export to Japan and other markets through a dedicated ammonia shipping terminal is also under evaluation. Preliminary feasibility studies have been completed and the results demonstrate positive economic viability. Front End Engineering Design is expected to commence in Q3 2024 with the first green ammonia shipment planned for 2028. With a focus on innovation, efficiency, and environmental responsibility, the ANEM Project sets a precedent for sustainable development in the region.