Mexico: Challenge of Achieving Energy Development, Domestic Economic Growth and Social Acceptance

This Capstone project aimed to fill a critical knowledge gap by analyzing the potential for a domestic aviation biofuel value chain (more commonly known as Sustainable Aviation Fuel or SAF) in Mexico. The client is a government-operated petroleum research institute, with ties to the Ministry of Energy and PEMEX, the Mexican state-owned petroleum company. In the short and medium term, sustainable aviation fuel (SAF) is the most significant proposed solution to decarbonize the aviation industry. Mexico is not currently a producer of SAF, despite demand from airlines who are eager to adopt SAF in order to hit sustainability targets.

This report provides updates and additional inputs for a Technical Road Map produced by SENER, the Ministry of Energy in Mexico, in 2017. After assessing where the team could have the most value in updating this strategic roadmap, the report focused on three key areas of analysis. They labeled these areas “the three F’s” that will serve as building blocks for a future SAF value chain in Mexico: 1) Feedstock – understanding the feasibility and scalability of the raw material needed for biofuel production as well as its environmental implications 2) Framework – outline the policy and regulatory framework needed to create a socially sustainable system of production 3) Financing – creating an enabling financing and investing landscape for the nascent industry. The project's findings and proposals touch upon critical themes that contribute to Mexico’s overall efforts to combat climate change, promote renewable energy sources, and foster sustainable development.