Arthur Deakin
Director of Energy Practice
AMI
On January 25, AMI’s Energy Practice gave a presentation on sustainable fuels in Mexico. During the presentation, Arthur Deakin, Director of the Energy Practice at AMI, pointed out three main factors that will impact Mexico as a key producer and feedstock provider of clean fuels, such as:
- Presidential front-runner Claudia Sheinbaum is likely to pass a biofuel mandate/law that would significantly increase demand for sustainable fuels in Mexico
- Mexico’s abundance of feedstock (UCO, animal fats, etc.) and proximity to the U.S., will turn the country into a main supplier of raw materials for sustainable fuels
- Renewable natural gas and renewable diesel have seen limited adoption in Mexico because of their high costs (i.e. the green premium), mostly because of a lack of regulation/subsidies
After covering those initial topics, the webinar’s analysis deepened as it examined:
- Latin America could produce 3.8mn tons of SAF by 2030, representing over 15% of global supply.
- The lack of regulation is forcing Mexican biogas producers to sell renewable credits in the US to justify RNG production costs.
- The demand for alternative fuels in Mexico will be concentrated in the Northern states (Baja California), the Bajío region, and Mexico City.
Click on the image below to download the webinar presentation
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