Design of a Hydrogen Supply Chain Framework for the Central American Region

Mario Montalvan, Kaveh Khalilpour and Reinhard Madlener
Additional contact information
Mario Montalvan: mario.montalvanalvarado@uts.edu.au
Kaveh Khalilpour: Kaveh.Khalilpour@uts.edu.au
Reinhard Madlener: RMadlener@eonerc.rwth-aachen.de

No No. 7/2025, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: This study presents a comprehensive framework for establishing a hydrogen supply chain network in Central America, encompassing Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama, in alignment with global decarbonization efforts. Utilizing Mixed Integer Linear Programming, the research assesses the techno-economic feasibility of hydrogen integration, focusing on its role in freight transportation and regional electricity supply. The findings highlight alkaline electrolysis as the preferred production method, with liquefied hydrogen and ammonia identified as optimal carriers. Costa Rica and Nicaragua emerge as key production hubs, supplying hydrogen to neighboring countries via sea transport. The estimated levelized cost of hydrogen is 10.84 USD/kg, largely driven by electricity prices, with projections indicating a reduction to 5.16 USD/kg by 2050. A comparative analysis suggests that under specific conditions, hydrogen could achieve cost parity with diesel by 2050. While acknowledging data limitations and socio-economic uncertainties, this study provides critical insights into hydrogen’s potential role in Central America's energy transition, serving as a foundation for future research and policy development.

Keywords: hydrogen economy; liquefied hydrogen; ammonia; supply chain; electrolyzer; Central America (search for similar items in EconPapers)
JEL-codes: C61 L91 Q41 (search for similar items in EconPapers)
Pages: 57
Date: 2025-04-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-min
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