Singaporean renewable energy company Aslan Energy Capital plans to build a massive green hydrogen scheme in the northeast Mexican state of Sonora.

According to website Mexico Business, the company, which is a subsidiary of LNG Alliance, has signed an agreement in principle to acquire 35,000ha of coastal land for a solar farm and an ammonia/hydrogen plant.

The company describes its Aslan Net-Zero Energy Mexico as “the first of its kind”. As well as hydrogen for fuel, the ammonia will be used to provide Mexican farmers with cheaper fertiliser.

The company did not release any information on the investment value of the project.

Gho Wie Min, Aslan’s vice-president for energy, said: “By leveraging Sonora’s abundant solar resources, we aim to not only produce clean energy but also contribute to the reduction of carbon emissions in Mexico.

“This project holds immense potential to transform the energy landscape and drive positive change across multiple sectors, specifically green hydrogen for data centres and transportation. Green ammonia derived from the project delivers strengthened food security, while upholding energy self-sufficiency.”

The project will be developed in four phases over a 10-year period. The first is expected to be complete in 2028, after which it will produce about 600,000 tonnes of green ammonia a year. The second phase, due to finish in 2030, will double this.

The plant is intended to supply the domestic market, but excess production will be transported by rail to the US.

The company may also build an ammonia terminal to allow its products to be exported to the Asia-Pacific. Feasibility studies have been carried out for this element of the scheme and the front-end engineering design process is expected to begin in the next few months.

As well as its Mexican venture, Aslan is building a 600MW green hydrogen plant in Indonesia, the largest in Asia.