Biofuels – the missing ingredient in Mexico's climate change policy - BNamericas English
Biofuels - the missing ingredient in Mexico's climate change policy - BNamericas
Biofuels – the missing ingredient in Mexico's climate change policy
Bnamericas Published: Saturday, May 06, 2023
Fuel Sales Wind Offshore Wind Onshore Wind Mini Hydro Hydro Dam Natural Gas Generation Biofuels Run of the river Photovoltaic Combined cycle Biomass Fuel oils Bunker oil/Diesel oil
Mexico's latest climate change policy reform does well to focus on electromobility, but it lacks a key element that would help the country achieve a smooth transition to cleaner energy and meet its international commitments – biofuels.
That is the opinion of Juan Acra, president of Mexico's private sector energy chamber Comener, who says that his organization will continue to work with and lobby political players to ensure that fuels derived from organic sources have a place on the country's political agenda.
Following his participation in the EarthX event held around Earth Day in Dallas, Texas, the expert talks to BNamericas about his views on biofuels and other relevant issues regarding clean energy in the country.
BNamericas: Late into the night of April 28, the ruling Morena party and its allies in the senate approved 20 fast-track reforms without the presence of the opposition. One of them was the reform to the general law on climate change, to establish the design and implementation of programs to replace internal combustion vehicles with hybrid and electric ones. Does this reform cover or help promote biofuels in Mexico?
Acra: Everything helps in the end. The reform that was actually approved is focused on electromobility and we propose giving the consumer different alternatives to select their fuel – fuels that are less polluting, such as biofuels.
The use of electric transport is progressing. In 2021 alone, 16.5mn electric vehicles were circulating globally and it’s estimated that electric vehicles will reach 15% of total sales in 2035-40. Imagine everything that needs to be done now – and that's for the medium and long term, while the issue of biofuels is something that we can do immediately and how we can reduce the carbon footprint and emissions.
BNamericas: In 2020, Comener presented an ethanol study to reduce the cost of gasoline in Mexico over 10 years. The study concluded that there are substantial benefits for the country if a 10% ethanol biofuel blend is used as an oxygenate in gasoline. Since then, the council has proposed that the government include biofuels in its legislation. What's the scope of that initiative?
Acra: With this proposal, by 2050 we would stop emitting around 40Mt of CO2 into the environment and this is a way in which we could immediately take action and comply with the international commitments that we have, such as the Paris and COP28 agreements, where Mexico announced it was going to make an even greater reduction than had been proposed.
The blend with the oxygenating agent, which is ethanol, is already used in 70 countries. It's used in the US, the United Kingdom, in different Central American countries. El Salvador, for example, has proposed it and India decided to introduce a public policy to include the blending of ethanol. What we're looking for in our country is for gasoline to include at least 10% ethanol that comes from surpluses of sugarcane. This initiative will also support agribusiness and rural development, so it wouldn't just have an economic effect, but also social and environmental ones.
The oxygenate we use in the country is MTBE [methyl tert-butyl ether], 25% of which is produced by Petróleos Mexicanos and the other 75% is imported. This oxygenating agent is produced in the US but [its use] is prohibited in that country – which is ironic, banned in the entire US because it has been proven that there's pollution in the groundwater and it's proven to cause different respiratory tract diseases.
BNamericas: But this initiative that you proposed on biofuels isn't included in the one approved by the senate at the end of April, right?
Acra: This proposal [approved by the senate] has to do with the climate change law, because I think biofuels should be added to it. There's a new proposal on biofuels that some senators even discussed last year, including the president of the energy committee. We’re talking about reviewing that law.
BNamericas: So, if the most recent reform doesn't include biofuels, what will you do to promote your proposal?
Acra: The next step would be to conclude the review of [official Mexican standard] NOM 016 on fuel quality. We already held a meeting in the senate, as I mentioned. We've talked with different stakeholders, agribusiness leaders who gave us their point of view because if we use surplus sugarcane to generate ethanol that would benefit everyone. If we manage to standardize the 10% blend throughout Mexico, that would be a great step.
BNamericas: Speaking of alternative energy, what should be the priorities to supply the country with new sources?
Acra: 50% of generation of our energy matrix is combined-cycle. Natural gas is used and those plants have a smaller carbon footprint. We have to gasify the country without a doubt. I have the firm conviction that the only way we can achieve social development in the south-southeast is by gasifying the entire republic. We have surplus gas; gas that is burned off, and that gas should be piped, used to generate electricity with industrial processes, or even to use as a backup to support renewable energy generation.
Today storing renewable energy in batteries is a technology that's in the process of development. The cost is high so the backup comes from generation that uses fossil fuels. On the other hand, we have bioenergy and efficient cogeneration in the country is 3% [of total generation] and hydroelectric is around 10%.
Having a diversified energy matrix is advisable for us, but we have to work on an energy transition that's responsible, fair and equitable.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Electric Power(Mexico)
Green hydrogen: ‘The demand-side is the major hurdle’
Multiple projects have been publicly announced in Latin America. Work, however, is also needed to ensure there are markets for output - a global ch...
Mexico seeking sites for 3 new solar plants in Sonora
The Mexican government has only confirmed construction of one of the six plants outlined for the state so far.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Electric Power(Mexico)
Get critical information about thousands of Electric Power projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: CFE: Electrical Substation 1821 Distribution Divisions (7th Phase)
- Current stage:
- Updated: 2 years ago
- Project: CENACE: 1st Long Term Electric Auction (SLP-01/2015) Kabil I Wind Farm
- Current stage:
- Updated: 5 months ago
- Project: Mexicali Volta Electric Energy Storage System
- Current stage:
- Updated: 1 week ago
- Project: Desarrollo Pich wind farm
- Current stage:
- Updated: 1 week ago
- Project: Monte Alto photovoltaic plant
- Current stage:
- Updated: 1 week ago
- Project: Chicoasén II hydro
- Current stage:
- Updated: 2 weeks ago
- Project: Palmillas photovoltaic park
- Current stage:
- Updated: 2 weeks ago
- Project: Baja California Sur combined cycle plant (C.C. Baja California Sur)
- Current stage:
- Updated: 4 days ago
- Project: Akuwa Solar photovoltaic plant
- Current stage:
- Updated: 2 weeks ago
- Project: Alten Hidalgo Photovoltaic Plant
- Current stage:
- Updated: 2 weeks ago
Other companies in: Electric Power(Mexico)
Get critical information about thousands of Electric Power companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Equipos Eléctricos de Baja California, S.A. de C.V.  (EEBC)
- The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Industria Eléctrica de Monterrey S.A. de C.V.  (IEMSA)
- The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Industry 4.0 Solutions S.A. de C.V.  (i4.0 Solutions)
- The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Comisión Federal de Electricidad  (CFE)
- Mexico's state-owned power utility Comisión Federal de Electricidad (CFE) engages in the generation, transmission and distribution of electric power. It can also engage in the t...
- Company: CFE Transmisión
- Company: CFE Distribución
- The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Next Energy de México S.A. de C.V.  (Next Energy)
- Next Energy de México S.A. de C.V. is a Mexican company engaged in development, installation, operation, and maintenance of renewable energy projects. The company provides on-si...
- Company: Coconsa Construcciones S.A. de C.V.
- Company: Compañía Minera Sabinas, S.A. de C.V.  (Compañía Minera Sabinas)
- The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...