MOU Signed for 35,000 Hectares of Land in Sonora, Mexico, to Propel Green Hydrogen and Ammonia Production

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Jul 08, 2024, 14:01 ET

SONORA, Mexico, July 8, 2024 /PRNewswire/ -- A significant step towards sustainable energy production and environmental preservation was taken by Aslan Energy Capital (Aslan Energy) by signing an MOU for the acquisition of 35,000 hectares of land in Sonora, Mexico. The land will serve as the foundation for the pioneering ANEM (Aslan Net-zero Energy Mexico) Project, which is a first of its kind solar-based green hydrogen and green ammonia production facility, aiming to revolutionize Mexico's, and eventually North America's, energy landscape while simultaneously reducing carbon emissions.

The signing of the MOU, which is aligned with Mexico's Sonora Plan, marks the beginning of a collaborative effort to harness renewable resources for the production of clean energy and ensuring vital agricultural sovereignty. The project is poised to play a pivotal role in driving down fertilizer prices in Mexico, thereby fostering agricultural sustainability and economic growth.

The ANEM Project is situated in a coastal area of Sonora, a region renowned for its exceptional solar irradiance. The project capitalizes on abundant sunlight to power green hydrogen production. The utilization of solar energy for green hydrogen and ammonia production underscores the project's commitment to sustainability and alignment with Mexico's climate goals.

"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." With 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, Aslan Energy is equipped with the expertise and experience to pioneer this mega project in North America.

Commercial operations are scheduled to commence in 2028, with Phase 1 producing nearly 600,000 tonnes of green ammonia per year, marking a crucial step towards realizing the project's objectives. Production capacity will be doubled as part of Phase 2 by 2030.

With the implementation of the ANEM Project, green hydrogen will stand as a pivotal component of Mexico's Sonora Plan, offering a transformative pathway towards a sustainable and diversified energy future, fully aligned with Mexico's national vision on clean energy and climate change. Integrating green hydrogen into the plan and gas networks not only reduces reliance on fossil fuels but also enhances energy security and resilience. Moreover, the adoption of green hydrogen fosters innovation and economic growth, positioning Sonora as a leader in the global transition to clean energy. With its vast potential and strategic significance, green hydrogen is poised to play a central role in shaping Sonora's energy landscape and advancing Mexico's commitment to a low-carbon future and its recent COP27 and COP28 commitments. Aslan Energy is keen on developing a localized supply chain hub in Sonora and providing an open platform to welcome strategic solar equipment manufacturers and hydrogen technology companies to establish a near shore production facility in Sonora that can collaboratively support and benefit from this mega project.

Considering the sizableness of the land, 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.

The ANEM project's impact extends beyond energy production with the potential to catalyze advancements in agriculture, transportation, and beyond in Mexico. By pioneering the production of green hydrogen and ammonia, the project aligns with global efforts to transition towards a low-carbon economy and mitigate the impacts of climate change.

About AEC

Aslan Energy Capital, (a subsidiary of LNG Alliance Pte Ltd, Singapore) is a project development, operations and new energy assets portfolio company focused on the Green Hydrogen, Green Ammonia and Sustainable Aviation Fuels value chain. Aslan Energy leverages on partnerships with key energy sector players, technology developers and investment partners to structure and deliver solutions to address energy and social infrastructure solutions into their core operational markets in Asia and Americas.

SOURCE Aslan Energy Capital