Danish financial economic fund is set to inject a staggering $10 billion into a green hydrogen plant in the Isthmus of Tehuantepec, according to an announcement by President López Obrador.

This transformative project is slated to be situated near Ixtepec, within an expansive industrial park, marking a pivotal step in Mexico’s commitment to renewable energy and environmental responsibility.

The Isthmus of Tehuantepec is a key focus area for the Mexican government’s ambitious trade corridor initiative, linking Salina Cruz on the Pacific side to Coatzacoalcos, Veracruz, on the Gulf of Mexico. This comprehensive plan includes the development of a modernized railroad for both freight and passenger trains and the establishment of ten industrial parks.

President López Obrador, addressing the media, highlighted that the Danish fund’s investment is geared towards the production of green hydrogen, positioning it as a sustainable alternative to fossil fuels. This green hydrogen is envisioned to power new ships, marking a shift towards cleaner and environmentally friendly transportation options.

“We’re talking about the era of no contamination, of everything being done to avoid climate change. This agreement is about to be signed. I won’t see the finished project [during my presidency], but I will leave all agreements and everything in place. This will help the isthmus a lot,” stated President López Obrador.

While the President did not explicitly name the Danish fund involved, he had previously mentioned in August that Copenhagen Infrastructure Partners (CIP), a Danish investment firm specializing in renewable energy, was planning to construct a green hydrogen plant in the region. CIP, contacted by Reuters, refrained from confirming the investment amount but did acknowledge its involvement in a large-scale green hydrogen project in the Oaxaca region.

The Isthmus of Tehuantepec’s strategic location between the Pacific and Gulf coasts positions it as a potential game-changer in global trade routes. The construction of a modernized railroad and the development of key ports are expected to attract shipping companies looking for efficient alternatives to the Panama Canal.

As the project progresses, it holds the promise of not only elevating Mexico’s status in the global shipping arena but also contributing significantly to the nation’s economic development. The Danish fund’s substantial investment underscores the increasing global focus on green hydrogen as a pivotal element in achieving sustainable and climate-friendly energy solutions.