Hy2gen announces new ammonia project in Mexico

By Julian Atchison on July 24, 2023

Project Marengo: 180,000 tonnes of off-grid ammonia per year

Hy2gen will develop a renewable ammonia production plant in Campeche state, located on Mexico’s Gulf coast (marked in red).
Click to learn more. Hy2gen will develop a renewable ammonia production plant in Campeche state, located on Mexico’s Gulf coast (marked in red).

Located on Mexico’s southern coast in the state of Campeche, Hy2gen’s latest ammonia project will feature 200 MW of electrolysers powered by offgrid wind and solar energy, producing 180,000 tonnes of renewable ammonia per year. Via an agreement with the local state government, local wind developer Mexion Corporation and German development agency GIZ, feasibility work will continue.

German media outlet Tagesschau reports a €1.1 billion investment will be required (German language). Thanks to “perfect conditions” for renewable energy generation in Campeche, the plant will be able to operate “around the clock”. Desalinated seawater will feed the electrolysers, ensuring the already water-stressed region is not put under further pressure. The plant will be built next to a port, enabling ammonia exports.

As indicated by German Ambassador to Mexico Wolfgang Dold in the Tagesschau article, the Marengo project is one of six worldwide being assessed for feasibility by the German federal government. Initially, all ammonia produced by Hy2gen in Mexico will be exported to the EU or used as a maritime fuel. Supply to the domestic Mexican market will be a longer term option, but a critical one – Mexico is a net ammonia importer with a significant agricultural sector. Mexico sourced as much as 25% of its ammonia imports from Russia before the ongoing Ukraine crisis.

Hy2gen

Last month, Hy2gen entered into a partnership with Plug Power to deploy a renewable ammonia production plant in Finland. Hy2gen is also planning renewable ammonia projects in:

  • Quebec, Canada (a pre-FEED study commenced this March)
  • Sauda, Norway, a project backed by Trafigura and Copenhagen Infrastructure Partners

As well as other e-fuels (methanol and kerosene) in France and Germany.