Harnessing offshore wind for decarbonization: A geospatial study of hydrogen production and heavy industry utilization in Mexico

Abstract

This study comprehensively examines the techno-economic potential of utilizing offshore wind resources for hydrogen production in Mexico. Through the integration of geospatial analysis techniques with energy generation and economic models, the research estimates hydrogen production, CO2eq emissions reduction potential, Levelized cost of electricity (LCOE), and Levelized cost of hydrogen (LCOH). The analysis highlights Mexico’s capacity to produce up to 217.33 million tons of hydrogen annually, predominantly from the Gulf of Mexico. Centralized offshore hydrogen production demonstrates significant cost advantages, being up to 0.92 USD/kg cheaper than onshore production. The study also underscores the economic benefits of repurposing existing oil and gas infrastructure, which can reduce LCOH by up to 11%. Environmental benefits are substantial, with hydrogen use in ammonia production potentially reducing CO2eq emissions by 82.5%. Additionally, the study identifies highly suitable offshore areas for hydrogen production, particularly near existing oil infrastructure, facilitating the integration of new renewable energy projects with minimal additional infrastructure development. These findings provide valuable insights for policymakers and stakeholders, emphasizing the economic viability and environmental benefits of offshore wind hydrogen production as a strategic pathway for Mexico’s energy transition and decarbonization efforts.