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11 Jul 2024

Mexico to welcome large green ammonia project

Amy Power
Mexico to welcome large green ammonia project

Aslan Energy Capital has agreed, through a deal, to buy 35,000 hectares of land in Mexico. This has been done with the plan that by 2030, this land will host 1.2 million tonnes of green ammonia production, on an annual basis.

Now that a Memorandum of Understanding has been created around this agreement, Aslan Energy has decided that this project will be located in the coastal area of Sonora. This choice was made, due to the advantages that both the company and Mexico will gain from the facility being there. These benefits include things such as, driving down fertiliser prices within Mexico.

It is planned that commercial operations will begin in 2028 and it has been suggested that phase one of the project may have the potential to produce 600,000 tonnes of green ammonia every year. This figure has been predicted to double throughout the second phase of the project, which will take place by 2030.

The subsidiary of Singapore’s LNG Alliance Pte, stated that, ‘the land in the state of Sonora would serve as the foundation of its Aslan Net-zero Energy Mexico (ANEM) project, to produce green hydrogen and ammonia from solar energy.’

Aslan Energy mentioned that ‘the project would be developed over a 10-year period with its primary purpose to serve Mexico’s domestic market with some railway exports to the US. However, the firm is evaluating potential exports to Japan and other markets through shipping terminals.’

The company said it has, ‘completed preliminary feasibility studies, which showed “positive economic viability.”’ The next plans are to undertake ‘early engineering design in Q3 2024.’

Vice-President Engineering at Aslan Energy, Dr. Gho Wie Min, commented, “This project holds immense potential to transform the energy landscape and drive positive change across multiple sectors. The MOU signing represents a significant milestone in our journey towards a greener, more sustainable future.”

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