Mexico Flue Gas Desulfurization Market Overview, 2031

Key Insights

• According to the research report, "Mexico Flue Gas Desulfurization Market Outlook, 2031," published by Bonafide Research, the Mexico Flue Gas Desulfurization Market is anticipated to grow at more than 4.68% CAGR from 2026 to 2031.
• Mexico's Flue Gas Desulfurization (FGD) market is primarily driven by sulfur dioxide (SO₂) emission control requirements across the country's petroleum refining, cement manufacturing, steel production, mining and smelting, and thermal power generation sectors. Unlike the U.S. and Canadian markets, which are heavily influenced by coal-fired power plant retrofits, Mexico's FGD demand is concentrated in industrial emission sources, with PEMEX refineries, CEMEX cement plants, and Ternium and ArcelorMittal steel facilities representing the primary end-users.
• Mexico's environmental regulatory framework is undergoing a significant modernization process. In December 2025, SEMARNAT initiated the update of three Official Mexican Standards (NOMs) that had remained unchanged for up to 32 years, despite legal requirements mandating five-year reviews. The proposed updates to NOM-040-SEMARNAT-2002 for hydraulic cement manufacturing aim to achieve reductions of 50% in sulfur dioxide (SO₂), 30% in total particulate matter, 30% in carbon monoxide, and 20% in nitrogen oxides.
• Mexico's National Pollutant Release Inventory (RETC), administered by SEMARNAT, serves as the country's primary public database for tracking industrial pollutant releases and transfers. The RETC requires industrial establishments across multiple sectors including mining, oil and gas, refining, power generation, cement, and metal processing to report emissions of 200 priority substances, including sulfur dioxide, to air, water, and soil annually.
• Major industrial players are making significant environmental investments that drive FGD demand. CEMEX, one of the world's largest cement producers, has established 2030 air quality emission targets including a 67% reduction in SOₓ emissions. Ternium invested $120 million in environmental projects in 2024 and is developing a $4 billion low-carbon steel plant in Pesquería, Nuevo León.

Market Outlook

• Mexico's petroleum refining sector, comprising seven refineries in the National Refining System (SNR) Cadereyta, Madero, Minatitlán, Tula, Salamanca, Salina Cruz, and the new Olmeca refinery (Dos Bocas) represents a major source of SO₂ emissions. The National Refining System processed an average of 1.014 million barrels per day of crude oil in 2025, up 12% from 2024, marking the first time since 2015 that annual average refinery throughput exceeded 1 million b/d. The Olmeca refinery reached a maximum crude oil processing rate of 233,000 barrels per day in Q2 2025. Major coking projects at Tula (87% complete) and Salina Cruz (74% complete) are designed to convert heavy residues into lighter products, reducing fuel oil production and associated SO₂ emissions.
• Mexico's cement industry comprises 35 cement plants with combined production capacity of approximately 55 million tons per year. Six major companies CEMEX, Grupo Cementos Chihuahua (GCC), Cemento Moctezuma, Holcim-Apasco, Cruz Azul, and Cementos Fortaleza operate the country's cement plants. CEMEX operates 15 cement plants in Mexico with annual production capacity of 30 million tons of cement. Mexico's cement production is forecast to rise from 47.3 million tons in 2024 to 62.8 million tons in 2033.
• Mexico's steel industry has installed crude steelmaking capacity of approximately 25.6 million metric tons (as of 2023), with 45 active electric arc furnace (EAF) mini-mills. Ternium Mexico has a steelmaking capacity of 7.5 million tons per year, Deacero's total capacity is 5.2 million tpy, and Gerdau Corsa has 3.0 million tpy EAF capacity. Ternium is developing a $4 billion industrial center in Pesquería, Nuevo León, featuring a new electric arc furnace-based steel shop with annual capacity of 2.6 million tons and a direct reduced iron module with annual capacity of 2.1 million tons, expected to begin operations by Q4 2026.
• Mexico's power generation sector continues its transition toward cleaner fuels. CFE's 2025-2030 Power Generation Expansion Plan includes multiple new generation projects across thermal and renewable energy sources. The conversion of the Tula thermoelectric plant from fuel oil to natural gas will eliminate sulfur dioxide emissions entirely, with the plant having a maximum electricity generation capacity of more than 1,500 MW.
• The Mexican FGD market remains predominantly aftermarket-driven, with investments focused on absorber refurbishment, reagent handling systems, digital monitoring, and wastewater treatment upgrades. Greenfield opportunities are concentrated in industrial expansion projects such as Ternium's Pesquería steel plant and new CFE combined-cycle plants rather than new fossil-fuel power generation.

Policies & Regulatory Landscape

• In December 2025, SEMARNAT initiated the update of three Official Mexican Standards (NOMs) that had remained unchanged for up to 32 years, despite legal requirements mandating five-year reviews. The updates aim to establish stricter emission limits, improve conformity evaluation procedures, and enhance emissions measurement systems. Mexican standards significantly lag behind those in the United States and Canada.
• NOM-040-SEMARNAT-2002 (Cement Manufacturing Emissions): This standard establishes maximum permissible emission levels of particles, NOx, SO₂, and CO from hydraulic cement manufacturing stationary sources. The standard remained unchanged for 23 years. The proposed update aims for reductions of 30% in particulate matter, 50% in SO₂, 30% in CO, and 20% in NOx, with new conformity evaluation procedures.
• NOM-043-SEMARNAT-1993 (Particulate Matter Emissions): This standard establishes limits for suspended particulate matter from stationary sources. It had remained unchanged for 32 years. The update, included in the Programa Nacional de Infraestructura de la Calidad 2026, aims to reduce maximum permissible emission levels by up to 50%.
• NOM-085-SEMARNAT-2011 (Indirect Combustion Equipment Emissions): This standard establishes maximum permissible emission levels of smoke, particulate matter, CO, SO₂, and NOx from boilers, heaters, and other indirect combustion equipment. COMARNAT approved its inclusion in the Programa Nacional de Infraestructura de la Calidad 2026 for updating.
• The RETC, administered by SEMARNAT, serves as Mexico's primary public database for tracking industrial pollutant releases and transfers. It requires establishments to report emissions of 200 priority substances including SO₂ to air, water, and soil. The list is established under NOM-165-SEMARNAT-2013, and the RETC became mandatory through Article 109 Bis of LGEEPA in 2001.

FGD Procurement & Industry Impact

• Mexico's petroleum refining sector continues to generate significant procurement opportunities. The National Refining System processes 1.014 million barrels per day, with a goal of achieving overall refining capacity of 1.56 million barrels per day through public investment in maintenance, modernization, and greater use of residuals. Major coking projects at Tula (87% complete) and Salina Cruz (74% complete) will convert heavy residues into lighter products, reducing SO₂ emissions. A new gas sweetening plant with processing capacity of 150 MMcf/d is being developed at the Ixachi Field.
• Mexico's cement industry represents a major procurement opportunity for FGD technologies. CEMEX, with 15 cement plants and 30 million tons annual production capacity in Mexico, has established 2030 air quality targets including a 67% reduction in SOₓ emissions. Holcim México reduced net specific emissions by 18% in 2025 compared to 2019 through alternative fuels and materials. The proposed NOM-040 update targeting 50% SO₂ reduction will accelerate procurement.
• Mexico's steel industry continues generating steady demand for emission-control technologies. Ternium invested $120 million in environmental projects in 2024 and is constructing a $3 million emissions monitoring center at its San Nicolás complex (completion 2026). The company is developing a $4 billion low-carbon steel plant in Pesquería with annual capacity of 2.6 million tons EAF steel and 2.1 million tons DRI. ArcelorMittal has partially restarted operations at its direct reduction plant in Lázaro Cárdenas, with two of four HYL reactors now operating at full capacity, each with annual capacity of approximately 500,000 metric tons.
• The Mexican aftermarket remains a major revenue source, with growing demand for spare parts, consumables, inspection services, equipment refurbishment, and digital monitoring solutions. Adoption of predictive maintenance, process optimization, and continuous emissions monitoring systems (CEMS) is increasing procurement opportunities for automation suppliers.

Industry News

• December 2025: SEMARNAT initiated the process of updating three Official Mexican Standards (NOMs) after decades of regulatory stagnation. The updates aim to achieve reductions of 50% in sulfur dioxide (SO₂) emissions, 30% in total particulate matter, 30% in carbon monoxide, and 20% in nitrogen oxides. NOM-040-SEMARNAT-2002 had remained unchanged for 23 years, while NOM-043-SEMARNAT-1993 had remained unchanged for 32 years.
• December 2025: CFE confirmed that the conversion of the Francisco Pérez Ríos thermoelectric plant in Tula, Hidalgo, from fuel oil to 100% natural gas will reduce carbon dioxide emissions by 60% and eliminate sulfur dioxide emissions entirely. The plant has a maximum electricity generation capacity of more than 1,500 MW.
• December 2025: PEMEX's Salina Cruz refinery was recognized for "best energy performance" by CONUEE, achieving energy savings totaling 2,646,683 GJ in 2024. Progress continues on major coking projects at Tula (87% complete) and Salina Cruz (74% complete).
• 2025: PEMEX reported that its seven domestic refineries processed an average of 1.014 million b/d of crude oil in 2025, up 12% from 2024, marking the first time since 2015 that annual average refinery throughput exceeded 1 million b/d. The Olmeca refinery reached a maximum crude oil processing rate of 233,000 barrels per day in Q2 2025.
• 2025: Ternium announced its incorporation into Mexico's National Voluntary Energy Efficiency and Decarbonization Agreement. The company invested $120 million in environmental projects in 2024. Ternium is developing a $4 billion industrial center in Pesquería, Nuevo León, with the new steel slab mill expected to begin operations by Q4 2026.
• 2025: ArcelorMittal partially restarted operations at its direct reduction plant in Lázaro Cárdenas, with two of four HYL reactors now operating at full capacity, each with annual capacity of approximately 500,000 metric tons.
• 2025: CFE approved the 2025-2030 Power Generation Expansion Plan, including multiple new generation projects across thermal and renewable energy sources.

Segment Analysis

Mexico Flue Gas Desulfurization Market By Technology • Wet Flue Gas Desulfurization (FGD) systems represent the preferred SO₂ control technology for Mexico's large industrial facilities, including petroleum refineries, cement plants, and non-ferrous metal smelters, because of their ability to routinely achieve over 90% SO₂ removal efficiency while producing synthetic gypsum suitable for industrial applications. Wet FGD systems are particularly well-suited for Mexico's cement industry, where the proposed NOM-040 update aims to achieve a 50% reduction in SO₂ emissions. CEMEX's commitment to reducing SOₓ emissions by 67% by 2030 further supports demand for wet FGD systems.
• Spray Dry Absorber (SDA) systems are deployed across medium-capacity industrial boilers, cement manufacturing, and selected industrial facilities where lower water consumption and simpler operation are priorities. Semi-dry systems provide an effective balance between emission reduction, operating cost, and installation flexibility, making them suitable for retrofit projects across Mexico's industrial sector. These systems are particularly relevant for the steel industry, where ArcelorMittal and Ternium operate emission control systems.
• Dry and Semi-Dry FGD technologies continue to support emission control across mining, metal processing, cement, chemical manufacturing, and other industrial facilities. These systems generally achieve 50–80% SO₂ removal, depending on fuel characteristics and process configuration, while offering lower water requirements, compact installation, and cost-effective operation for medium-sized industrial applications.

Mexico Flue Gas Desulfurization Market By End-use Industry • Power Generation represents a smaller but relevant end-use sector. While Mexico does not operate a large coal-fired power fleet comparable to the U.S., CFE's thermoelectric plants have historically been significant SO₂ emitters due to fuel oil combustion. The conversion of the Tula thermoelectric plant to 100% natural gas, which will eliminate sulfur dioxide emissions entirely, represents a major transition. CFE's 2025-2030 Power Generation Expansion Plan includes 51 projects with 22,674 MW of new capacity.
• Petroleum Refining represents a major end-use sector for FGD systems in Mexico, driven by the country's seven refineries with combined processing capacity of 1.014 million barrels per day (2025 average). The National Refining System aims to achieve overall refining capacity of 1.56 million barrels per day through maintenance and modernization. Major coking projects at Tula (87% complete) and Salina Cruz (74% complete) are designed to reduce fuel oil production and associated SO₂ emissions.
• Cement Manufacturing represents another significant end-use sector for FGD technologies in Mexico. Mexico has 35 cement plants with combined production capacity of approximately 55 million tons per year. Six major companies operate the country's cement plants, with CEMEX operating 15 cement plants and 30 million tons annual production capacity in Mexico. CEMEX has established 2030 air quality emission targets of reducing SOₓ emissions by 67% and continues to invest in abatement techniques and equipment. The proposed update to NOM-040-SEMARNAT-2002, which aims to achieve a 50% reduction in SO₂ emissions, is expected to drive significant investment in FGD systems.
• Steel Production and Mining continue to generate steady demand for emission-control technologies. Mexico's steel industry has installed crude steelmaking capacity of approximately 25.6 million metric tons (as of 2023), with 45 active EAF mini-mills. Ternium Mexico has a steelmaking capacity of 7.5 million tons per year, Deacero's total capacity is 5.2 million tpy, and Gerdau Corsa has 3.0 million tpy EAF capacity. Ternium is developing a $4 billion industrial center in Pesquería featuring advanced emission-control technologies.
Mexico Flue Gas Desulfurization Market By Installation Type • Brownfield Installations dominate the Mexican FGD market as industrial operators prioritize modernization of existing emission-control systems over construction of new facilities. Investments focus on absorber refurbishment, slurry pumps, mist eliminators, corrosion-resistant materials, process controls, wastewater treatment, and digital monitoring systems to improve reliability, efficiency, and regulatory compliance across aging industrial assets. The proposed updates to NOM-040-SEMARNAT-2002, which had remained unchanged for 23 years, are expected to accelerate brownfield FGD retrofits across the cement sector.
• Greenfield Installations account for a smaller but growing share of the Mexican market, primarily associated with major industrial expansion projects. Ternium's $4 billion Pesquería steel plant, with annual capacity of 2.6 million tons EAF steel and 2.1 million tons DRI, represents a significant greenfield opportunity for advanced emission-control technologies. CFE's 51 new power projects under the 2025-2030 Power Generation Expansion Plan, while primarily CFE's new generation projects may create limited opportunities for associated emission monitoring and air pollution control equipment, although dedicated FGD demand will remain primarily concentrated in industrial facilities.. Greenfield FGD installations are expected to remain concentrated within industrial expansion projects in steel, cement, and refining sectors rather than new fossil-fuel power generation.




Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Flue Gas Desulfurization Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Wet FGD Systems
• Spray Dry FGD Systems
• Dry & Semi-Dry FGD Systems

By End-use Industry
• Power Generation
• Cement
• Iron & Steel
• Chemical & Petrochemical
• Metal Processing & Mining
• Oil & Gas Refineries
• Waste-to-Energy
• Others

By Installation
• Greenfield
• Brownfield (Retrofit)