The subsidiary of Singapore’s LNG Alliance Pte, said 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.

Having now signed a Memorandum of Understanding (MoU) for the land’s acquisition, Aslan Energy has the project, planned for a coastal area of Sonora, could play a role in driving down fertiliser prices in Mexico.

With commercial operations scheduled for 2028, phase one of the project could produce 600,000 tonnes of green ammonia per year, before capacity being doubled under a second phase by 2030.

Aslan Energy said 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.” It now plans to undertake early engineering design in Q3 2024.

“This project holds immense potential to transform the energy landscape and drive positive change across multiple sectors,” said Dr. Gho Wie Min, Vice-President Engineering at Aslan Energy.

“The MOU signing represents a significant milestone in our journey towards a greener, more sustainable future.”

Due to Mexico’s benign location and natural resources, the country could attract investments of around $60bn, according to TÜV Rheinland Mexico.

Read more: Challenges standing in the way of Mexico’s $60bn hydrogen industry