mexico, support for the development and uptake of - Unido

Fuel-switching
Is a priority area in the MOU with Austria.
• Gas replacing other fossils
Open area for large CDM activities, in some cases could be difficult to prove additionality, as
a consequence of the perverse disincentive of the existence of the corresponding national
policy, that can be consider as common practice.
The National policy for fuel substitution implies the replacement of carbon and fuel oil to natural
gas in up to 70% of energy intensive industrial production and electric generation. This policy has
caused the reduction of emissions by 3.8 million tons of carbon, an equivalent to 4% of the CO 2
emission levels of the sector at 2000. The activities resulting from this policy have been the highest
Mexican contribution to CO 2 emissions reduction. According to SENER 34 , the fuel consumption
for electricity generation will increase from 4,406 Terajoules per day at 2003 to 6,955 at 2013; the
natural gas will increase from 37% to at least 56% of the daily fuel consumption.
Fuel-switching
stakeholders
SENER, CFE and PEMEX
Independent Producers
Sociedad Mexicana de Hidrógeno
(SMH)
SEMPRA (USA)
Activities
Are the main organizations responsible for these activities
Independent power producers (IPP), private companies generally using gas instead
of coal or fuel oil to produce and sell electricity to CFE. At present responsible for
17% of the national electric generation capacity for public service. It is calculated
that IPP combined cycle generation could increase noticeable. Due to the
increment in combined cycle plants to 45.1% of the total generation for 2013,
conventional oil fueled generation will drop to 18% of the total. See Annex I-F.
Promotion of hydrogen as fuel. Member of RMTE.
Is exploring CDM alternative energy opportunities in Mexico
Fugitive emissions
Important CDM opportunity at the petroleum industry and emerging area for associated gas
at the coal mines industry.
The fugitive emissions in the petroleum industry growth systematically from 1991 to 1999, but then
began to decrease. INE 35 has calculated that coal industry has methane fugitive emissions
equivalent to 1.8 Tg of CO 2 . According to the Steel National Chamber (CANACERO), the
combination coal with associated gas could make economical the production of 50 million hectares
with a considerable GHG abatement in relation to only coal generation. There are still
parliamentary discussions to determine if this associated gas forms part of the governmental
monopoly in the hands of PEMEX.
Fugitive emissions
stakeholders
PEMEX
MIMOSA, Grupo Acerero del
Norte (GAN),
Activities
Noticeable recent reductions of gas flaring and venting at installations, halving the
amount from 1998 to 2001. The equivalent CO2 emissions for vented gas went
from 1,085.1 million m 3 to 806.2, during the period. Up to 2003, venting was
reduced 63% 36
Calculates from 6.5 to 14 m 3 of associated gas by coal metric ton production. At
2003 generated and used 5,204,855 m 3 of associated gas. The WB PCF is
involved.
34 Prospective 2004-2013 of the Electric Sector, SENER, 2004.
35 Fugitive emissions, INE, 2003
36 Energy and Environment Program, SENER-SEMARNAT, July 2003.
Chapter I, UNIDO-AUSTRIA 33