Reports & Papers

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

To accelerate the global transition to a low-carbon economy, all energy systems must be actively decarbonized. While hydrogen has been a staple in the energy and chemical industries for decades, clean hydrogen – defined as hydrogen produced from water electrolysis with zero-carbon electricity – has captured increasing political and business momentum as a versatile and sustainable energy carrier in the future carbon-free energy puzzle.

This paper analyzes clean hydrogen’s potential for driving emissions reductions in the mobility sector, focusing on road transportation, shipping, rail, and aviation. Overall, transportation is the second-largest producer of global CO2 emissions, after electricity and heat generation, and one of the hardest sectors to decarbonize due to its distributed nature and the advantages provided by fossil fuels in terms of high energy densities, ease of transportation and storage.