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ROADMAP
FROM GREEN HYDROGEN
IN ECUADOR
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REPUBLIC PRESIDENT
Guillermo Lasso Mendoza
MINISTER OF ENERGY AND MINES
Fernando Santos Alvite
VICE MINISTER OF ELECTRICITY AND ENERGY
RENEWABLE
Marcelo Jaramillo Career
ANALYSIS AND PROSPECTIVE DIRECTION
ELECTRICAL
Ángel Echeverría Zambrano
Cristian Ligna Cumbal
IDB TEAM
Jose Ramon Gomez
Kenol Thys
Maria Julia Molina
SPECIAL THANKS
Ministry of the Environment, Water and Transition
Ecological
Ministry of Production, Foreign Trade,
Investments and Fishing
Ministry of Transportation and Public Works
First Edition, July, 2023
© Ministry of Energy and Mines
National Electricity Operator, CENACE
Av. República de El Salvador N36-64 and
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Electrical Corporation of Ecuador, CELEC EP
Strategic Public Electric Company
National Electricity Corporation, CNEL EP
EP PETROECUADOR
Yachay Tech University
Central University of Ecuador
Partial or total reproduction of this publication,
in any form and by any mechanical or
electronic means, is permitted as long as it is
authorized by the editors and the source is
correctly cited.
Ecuadorian Hydrogen H2 Association
Ecuador
Ecuadorian Association of Renewable Energy and
Energy efficiency
Tuna Association of Ecuador
Manta Chamber of Industries
Fichtner – Engineering und Conculting
DESIGN
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IMPRESSION
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Ministry of Energy and Mines
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Index
1
Executive Summary................................................ .........................8
2
Green hydrogen economy in the world
and in Ecuador................................................. ...................................12
3
4
5
6
6 Green Hydrogen Roadmap
Opportunities for Ecuador
with the implementation of an economy
of green hydrogen................................................. .......................17
3.1
Compliance with decarbonization commitments...................................17
3.2
Deployment of renewable energies................................................... ......18
3.3
Promotion of industrialization and technological development................................19
3.4
Generation of technical, technological and R&D&I capabilities......20
3.5
Social and environmental benefits................................................ ............twenty
3.6
Institutional strengthening................................................ ...................twenty-one
3.7
Opportunities in the regional market................................................. .....twenty-one
7
8
9
Competitive advantages of Ecuador
for the production of
green hydrogen................................................ ............................24
4.1
Renewable energy resources................................................... ............24
4.2
Availability of land and water resources...................................................28
4.3
Logistics................................................. ...................................................30
Levelized production costs of hydrogen and its derivatives....................31
5.2
Potential production centers................................................ ..........36
5.3
Total costs for export................................................ .................41
7.1
Phases of the Roadmap................................................ ...........................56
7.2
Goals and milestones of the phases of the Roadmap................................................... 60
7.3
Prioritized actions for the implementation of the Roadmap.........62
Risks of green hydrogen development in Ecuador......69
8.1
Technological risks................................................ ............................69
8.2
Social and environmental risks................................................ ................70
8.3
Infrastructure and logistics risks................................................... .......71
8.4
Political risks................................................ .......................................72
8.5
Classification and evaluation of main risks................................74
Closing gaps and state policy................................................75
9.1
Economic and market aspects................................................ .........75
9.2
Technical and technological aspects................................................ ............77
9.3
Aspects related to infrastructure................................................78
9.4
Socio-environmental aspects................................................ ....................79
9.5
Public policies for the deployment of hydrogen................................81
10 Support for pilot projects................................................. .................89
Green hydrogen competitiveness
and its derivatives produced in Ecuador..............................................31
5.1
Vision: Goals, milestones and prioritized actions..............................................56
10.1
Guidelines for the development of pilot projects...............................89
10.2
Identification of key projects................................................ ............91
11 Annex 1: Specifications of pilot and dion projects................96
12
References................................................. ...................................112
Domestic and export market potential...................................44
6.1
Domestic market................................................ ................................46
6.2
Export market................................................ ...........................51
6.3
Electrolysis capacity................................................... .......................54
6.4
Reduction of GHG emissions................................................... .................54
Government of Ecuador 7
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1. Executive Summary
Ecuador, aware of the global need to decarbonize the economy, the pressing
Likewise, and as a differentiating factor with some
changes that this implies and the responsibility towards its people, presents this
countries in the region, Ecuador has access to
residual biomass, which will be essential as a
Roadmap and national strategy for the production and use of green hydrogen as
one of the decisive starting points to promote a fair energy transition.
Green hydrogen production estimates are higher
than those presented for other regional markets,
these can be reduced with an appropriate incentive
and tax benefit scheme, allowing Ecuador to take
sustainable source of CO2 for the production of green
hydrogen derivatives such as methanol and synthetic
fuels.
advantage of the available non-conventional
Green hydrogen, produced by electrolysis processes from electricity generated
renewable energy resources, which would otherwise
remain partially unexploited. This will require, in a
with renewable sources of energy and water, has been establishing itself
worldwide as a key factor in achieving carbon neutrality by 2050. Ecuador has a
Considering the complete value chain for green
complementary manner, working together at a
hydrogen and its derivatives, therefore, a great
regional (Latin America) and global level to develop
relevant potential for a variety of renewable energy sources that include hydraulic,
opportunity is identified for green industrialization of
strategic alliances that allow technology and
solar, wind, geothermal and biomass energy and with adequate water resources,
Ecuador and the reduction of its current dependence
knowledge transfer and access to international
conditions that represent the basis for its participation in the global value chain
of green hydrogen and its derivatives.
on fossil fuels, which promotes economic and social
sources of financing.
development in harmony with the environment. This
It is essential that the regulatory framework that is
Sustainable development will also allow you to
access new international markets with
developed be clear, transparent and stable, so that it
(approx. 60% of the total installed capacity and approx. 78% of electricity
the export of products with high added value. All of
generation in 2021), the implementation of a green hydrogen economy will allow
this will be reflected, among other aspects, in the
investment security to all those interested in
participating. Green hydrogen must be recognized by
Ecuador to boost deployment of renewable energies, so that efforts to decarbonize
the country's energy matrix continue, making efficient use of the unexploited
creation of jobs throughout the production chain and
government entities as a key factor to achieve the
in the generation of new technical, technological and
renewable resources available in the country.
research and development capabilities in the country.
decarbonization and energy transition commitments
acquired by Ecuador and to place the country in a
With an electrical matrix with a high participation of renewable hydraulic energy
is resilient to short-term political changes and offers
relevant position in the new global energy landscape.
8 Green Hydrogen Roadmap
As a complement to these resources necessary for the production of green
The speed that this development can achieve will
hydrogen, Ecuador also has adequate infrastructure to begin the development of
depend, however, to a large extent, on the creation
this economic sector, including electrical transmission networks, land
of a regulatory, normative and promotion framework
Only coordinated work between the different public
transportation networks and port infrastructure, among others. Access to depleted
that promotes the implementation of projects along
and private actors, through an adequate governance
fields could also offer a future solution for the geological storage of large volumes
the hydrogen value chain and that attracts national
of green hydrogen.
investments. and international. Although the levelized
costs of
model, and a harmonized development of
infrastructure expansion plans will allow achieving
the goals of
Government of Ecuador 9
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Phase 1
2023-2025
Phase 2
2025-2030
Phase 3
Beyond 2030
Capacities
electrolysis capacity proposed in the Roadmap: 1 GW by 2030, 3 GW by
infrastructure will allow us to achieve the electrolysis capacity goals set
2040 and 6 GW by 2050.
out in the Roadmap: 1 GW by 2030, 3 GW by 2040 and 6 GW by 2050.
Investments
· Renewable energies: 0.2 MW
· Renewable energies: 2 GW
· Renewable energies: 6 GW
· Electrolysis: 0.1 MW
· Electrolysis: 1 GW
· Electrolysis: 3 GW
· Renewable energy:
· Renewable energy:
· Renewable energy:
170,000 - 440,000 USD
After recognizing the fundamental role that green hydrogen and its
derivatives must play in the energy transition process that allows us to
After recognizing the fundamental role that green hydrogen and its
achieve carbon neutrality by 2050, the next commitment is to implement
derivatives must play in the energy transition process that allows us to
the recommendations and prioritized actions identified in this Roadmap,
achieve carbon neutrality by 2050, the next commitment is to implement
as well as how to facilitate, in the short term, the implementation of pilot
the recommendations and prioritized actions identified in this Roadmap,
and demonstration projects.
as well as how to facilitate, in the short term, the implementation of pilot
Income from
exports
Reduction of
emissions
and demonstration projects. The goals and prioritized actions that have
1,714 - 4,400 M USD
2,605 - 24,000 M USD
· Electrolysis: 400,000 USD
· Electrolysis: 1,271 M USD
· Electrolysis: 2,102 M USD
· N/A
· 51 M USD per year by 2030
· 1,242 M USD per year by 2040
· N/A
· 15.7% by 2030
· 36% by 2040
Figure 1.
slaoG
been defined in this Roadmap are presented in summary in the following
3. Train industries.
Only coordinated work between the different public and private actors,
R&D+iy
training
through an appropriate governance model, and a harmonized
1. Train technical personnel.
2. Develop training programs at
the university level.
development of expansion plans of
4. Continue with
training in the
technical and
university education.
6. Consolidate training programs.
7. Strengthen research work.
5. Create R&D groups.
8. Develop the regulatory framework.
9. Establish definitions
FERNC.
10. Establish responsibilities.
Regulations and
regulation
15. Establish a guarantee of
origin scheme
for electricity, H2
18. Strengthen the carbon market
system.
green and its derivatives.
11. Establish policies for
deployment of the FERNC.
12. Establish conditions of
production of H2 to be
considered green.
13. Develop financing mechanisms.
19. Evaluate the withdrawal
16. Establish regulations
for infrastructure
development.
progressive subsidies for fossil
fuels.
20. Establish a framework
17. Establish regulations
for H2 uses in the
regulations for
derivatives of hydrogen.
transportation sector.
14. Establish rules for electricity use.
21. Assess capabilities
current and future requirements.
24. Establish plans
Infrastructure
expansion and production.
dezsintio
roiticrP
a
22. Evaluate the use of the network
25. Develop
natural gas.
port infrastructure.
23. Carry out planning
national infrastructure.
Cooperation
international
26. Continue with
implementation of the
infrastructure
expansion.
27. Continually evaluate the
expansion plans.
28. Establish alliances worldwide.
30. Strengthen and expand
29. Establish regional
international alliances.
31. Establish new cooperation and
financing agreements.
alliances.
Figure 1: Goals and prioritized actions of the Roadmap.
Source: Own elaboration MEM
10 Green Hydrogen Roadmap
Government of Ecuador
eleven
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energy that reduce the final use of energy in all consuming sectors are
2. Green hydrogen economy in the world and in Ecuador
Hydrogen is the most common molecule in the universe and has been
part of the first areas of action that must be considered in the
used for decades in industry (refineries, chemistry and petrochemistry),
implementation of an energy transition process. Once the final use of
but its potential as an energy vector has been reduced until a few years
energy has been reduced (through energy efficiency) and this has been
ago, mainly to aerospace applications. The renewed interest in hydrogen
supplied, as far as possible, through electricity generated from renewable
as an energy vector to decarbonize sectors that are difficult to electrify
energies, there is a remaining final use of energy that requires of other
solutions for its decarbonization. This is where a relevant role for green
hydrogen and its derivatives in the future has been identified.
(such as maritime and air transport and some industrial sectors) has led
to focusing on ways of producing it that have a low environmental impact
(low CO2 emissions) and has promoted a color classification system.
In the global search for sustainable solutions that allow us to limit the effects of climate change and achieve
carbon neutrality by 2050, general use has been made of the term energy transition, in which hydrogen plays a
determining role.
The energy transition is a process that occurs thanks to the convergence and combination of different factors,
as presented in Figure 2, and which aims to achieve carbon neutrality in a specific economy. An increase in the
use of renewable energies for the generation of electricity, promote electrification processes (all final energy
that can be supplied by electricity, must be supplied by electricity) and promote the implementation of efficiency
measures
Reformed
with steam
Natural gas
(methane)
Reformed
with steam
Natural gas
(methane)
Renewable
energy
Gray Hydrogen
Capture and
CO2 storage
Emissions
Blue Hydrogen
Electrification
Capture,
Efficiency
storage,
carbon use
energy
Water and energy
renewable
Bioenergetics
removal
carbon
Hydrogen
green and its
derivatives
Electrolysis
Green Hydrogen
Figure 3: Main forms of hydrogen production and their classification by color.
Source: Adapted from Schlegel [1].
Figure 2: Areas that should be considered in the energy transition.
Source: Own elaboration MEM.
12 Green Hydrogen Roadmap
Government of Ecuador 13
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The colors conventionally given to hydrogen are part of a classification that
It produces from fossil fuels but has a system for capturing and storing the
The renewed interest in hydrogen as an energy vector to decarbonize
Hydrogen concentrated in refineries and some industrial sectors and its
has been imposed in recent years and that indicates the raw materials used
CO2 generated in its production, which significantly reduces associated
sectors that are difficult to electrify, such as maritime and air transport or
production from fossil fuels such as coal and natural gas, has meant that
for its production and its impact on the environment. Currently, the majority
emissions. Finally, green hydrogen generally refers to that produced by
some industrial activities, has led to the definition of energy policies
until now these requirements are covered by direct production in the places
of the hydrogen required is produced from fossil fuels, for example, through
electrolysis processes fueled by
worldwide, which focus on the substitution of hydrogen in its uses. and the
where they are required; However, the future focus on green hydrogen and
natural gas reforming processes (resulting in so-called gray hydrogen) and
expansion of its use to new applications (e.g. in mobility), considering green
its high projected demand for traditional uses and for new uses make it
are processes with high associated CO2 emissions.
hydrogen (or low emissions) and its derivatives (such as ammonia and
necessary to implement a global value chain for hydrogen (see Figure 5),
methanol).
considering that there is a geographic gap between the high demands and
renewable electricity without associated emissions
production potentials and that large volumes of hydrogen and its derivatives
to its production. These three main colors are presented in Figure 3.
must therefore be produced and transported.
Blue hydrogen, for its part, is that which is
In this sense and based on the decarbonization commitments acquired in
the Paris Agreement at the Conference of Nations
Netherlands
Portugal
Norway
United Nations on Climate Change (COP-21), different countries around the
Germany
world have defined strategies to promote and encourage the development
European Union
France
Spain
South Africa
Russia
Chili
France
Canada
Croatia
Brazil**
2018
conditions of each country mean, therefore, that the motivations for the
development of a hydrogen strategy are diverse, but, in general, these cover
the reduction of emissions, the diversification of energy supply and inputs,
the acceleration of growth economic development, support for technological
New Zealand
Bolivia
2022
2020
use and cost development, among others.
Peru
Costa Rica
Italy**
global value chain (e.g. as producers or as consumers). The specific
Ecuador
China
Scotland*
own competitive advantages, according to the role they will play in this
consumption projections, production infrastructure, transportation and final
Panama
Austria
Finland
of the hydrogen economy, which include programs and goals according to
Algeria
Uruguay
USA*
By defining hydrogen strategies, countries seek to take advantage of their
development, the integration of renewable energies into energy matrices
Figure 4 shows the timeline of the issuance of hydrogen strategies or
and the export of value-added products. In general, it is possible to
roadmaps, including the countries that are working on their development
differentiate between countries that identify their strength in their hydrogen
and expect to publish their respective strategies in the short term.
export potential, such as, for example, Australia, Spain, Colombia, Chile and
Uruguay, and countries with high potential hydrogen consumption that will
2017
2019
2021
2023
Sweden***
Türkiye
not be able to supply themselves and that will require imports. such as
Japan, South Korea and Germany.
South Korea
Japan
Australia
India
Hungary
Slovakia
The strategies have been defined, in a general way, in a time horizon that
extends until the year 2050, the year in which the goal of net zero emissions
of CO2 equivalent (also called carbon neutrality) should be achieved. This
leads to a significant increase in the global demand for hydrogen1, which
Czech Republic
United Kingdom
Luxembourg
could almost double by 2030 and reach 7 times the current demand in 2050.
The current demand for
Morocco
Colombia
Belgium
Poland
*Not yet a national plan ** countries with guidelines for the national plan *** without legislative obligation.
Figure 4: Timeline of publication of hydrogen strategies Source: Own
elaboration MEM.
1
14
Green Hydrogen Roadmap
Approximately 94 million tons of hydrogen in 2021, according to the International Energy Agency (IEA).
Government of Ecuador 15
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Ecuador, with its various sources of renewable energy (solar,
With this national green hydrogen strategy, Ecuador takes an
hydraulic, geothermal, wind, biomass), the availability of water
important step in its integration in the implementation of the global
resources, land and sources of sustainable CO2 from biomass waste2
hydrogen chain, reinforcing its commitment to reducing greenhouse
3. Opportunities for Ecuador with the implementation of
gas emissions at the national level and to the energy transition that
, It has the necessary
allows us to achieve carbon neutrality worldwide.
requirements to deploy a green hydrogen economy and its derivatives,
which allows it to decarbonize its economy, while opening up new
foreign trade opportunities, with all the social, environmental and
a green hydrogen economy
economic benefits that this entails.
Resources for
H2 production
Production and
storage
Application
H2 end use
of H2
Infrastructure
Reelectrification
Photovoltaic
It is essential to consider the series of opportunities and benefits at an environmental, economic and social
level, among others, that the development of the value chain of green hydrogen and its derivatives offers
electrical network
for Ecuador. Below are the main opportunities that could result from the implementation of a national
Storage
of H2
hydrogen economy.
Wind
Network of
natural gas
Hydraulics
Industry
In situ use
of H2
Biomass
Electrolyzer
Mobility
3.1 Compliance with decarbonization commitments
Geothermal
Water
Grid Electricity
O2
LH2 or CH2
H2 processing
Ecuador has demonstrated a firm commitment to reducing
Nationally Determined (NDC) that establish concrete actions
greenhouse gas (GHG) emissions as part of its global
and goals to reduce their GHG emissions. In its NDC, Ecuador
responsibility in the fight against climate change. Recognizing
has set the goal of
the
Ammonia
Methanol
Desalination
N2
TO ITS
Resources
E-fuels
Water
Natural
CO2 capture
“reduce their GHG emissions in the sectors
environmental and social challenges associated with increasing
energy, industrial processes, waste and agriculture by 9%
emissions, the country has implemented a series of measures
unconditionally or by 20.9% conditional on international
and made significant commitments to address this pressing
cooperation support by 2025.
issue.
CO2
Additionally, it establishes a commitment
renewable
unconditional 4% GHG reduction
Abbreviations: H2 - Hydrogen | LH2 - Liquefied Hydrogen | CH2 - Compressed hydrogen | ASU - Air Separation Unit |
Storage in tanks or
geological
First of all, Ecuador is a signatory of the Paris Agreement, an
in the land change and use sector or 20% subject to the support
international milestone that seeks to limit global warming to
of international cooperation. The reductions are established
below 2 °C and, preferably, to 1.5 °C. As part of this agreement,
Ecuador has committed to submit contributions
Figure 5: Value chain of green hydrogen and its derivatives.
Source: Own elaboration MEM.
2
based on a trend scenario
of emissions generation projected from 2010”. To fulfill your
commitments
These sustainable sources of CO2 offer a competitive advantage for the production of green hydrogen derivatives that require a carbon source, such
as methanol and synthetic fuels, so that the entire production process can be classified as sustainable. The alternative when these sources are not
available is to extract the required CO2 from the air, which results in higher production costs.
16 Green Hydrogen Roadmap
Government of Ecuador 17
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The country is focusing on several key areas,
such as the transition towards a cleaner and
These measures have allowed carbon dioxide
emissions caused by electricity generation in
and transport efficiently, which solves one of the
key challenges of
by facilitating its integration into key sectors of
the economy that are difficult to electrify, such
as maritime and air transport and some industrial
processes that require high temperatures.
more sustainable energy matrix, the promotion
of electric mobility, the promotion of energy
Ecuador to be reduced from 5,922 kilotons of
Renewable energies: intermittency and variability
CO2 in 2014 to 1,204 kilotons of CO2 in 2021,
of generation. Hydrogen can, therefore, be used
efficiency and the conservation of its ecosystems.
according to the 2021 report of the Technical
Commission
determination of emission factors
as a form of energy storage on a large scale and
availability of clean energy even when renewable
Regarding the energy matrix, in recent years
Ecuador has made significant investments in
GHG. This reduction is favored by the integration
energy sources are not available.
the use of renewable energy sources, such as
hydroelectric projects that began operating in
2016.
hydroelectric, wind and solar, reaching a share
of renewable energy sources of 60% in terms of
capacity. installed for the generation of electrical
energy. Another of the measures taken was the
for long periods of time, allowing the constant
of renewable energy sources such as large
In order to maintain the trend of
deployment of renewable energy by providing
efficient storage and a way to harness clean
Furthermore, the economy of hydrogen together
with its derivatives expands the possibility of
deployment of a green hydrogen economy at
expected to reduce the use of fossil fuels,
especially in the transportation sector.
the national level that contributes to the fulfillment
of its objectives through the massive deployment
of renewable energies, in line with the
decarbonization plan of the country.
making the most of renewable energies.
3.3 Promotion of industrialization and technological development
The deployment of a green hydrogen economy
represents an opportunity for the country's
industrialization and technological development.
Considering that the implementation of the
different stages of the green hydrogen value
chain will require joint work between public and
private entities, the emergence of new productive
3.2 Deployment of renewable energies
Ecuador has a variety of sources
It would be using energy already committed to
of renewable energies that allow it to diversify
and, at the same time, decarbonize its energy
hydrogen production, which could prevent the
effective decarbonization of the energy matrix.
matrix in an efficient way. It should be considered,
however, that the establishment of a green
hydrogen economy drives the massive
A special case that should be considered for
deployment of renewable energies, as long as
Ecuador is the possibility of using surplus
additionality restrictions are taken into account.
This means that the policies issued must ensure
in hand with an increase in the installed capacity
of renewable energies; otherwise
areas will be promoted that promote the
technological and industrial advancement of
Ecuador while meeting with the established
decarbonization goals.
the production, internal use and export of inputs
with high added value.
The industrial development associated with a
The hydrogen economy brings with it, in addition
to new productive areas, necessary advances
in sustainable energy systems and the
infrastructure associated with them, which
includes electricity transmission networks, land
transportation networks, port infrastructure and
large-scale storage systems, among others.
electricity generated from hydraulic energy for
Ecuador, similar to other Latin American
countries, has historically had production
In this way, the green hydrogen economy will
allow Ecuador to have new productive areas, a
the production of green hydrogen, which would
allow, for example, efficient use of large hydraulic
focused on the primary sector and exports focus
mainly on products such as bananas and shrimp.
modern infrastructure in accordance with the
resources that can present wide temporal
variations. and would be wasted otherwise.
Establishing the value chain
Hydrogen can be stored
18 Green Hydrogen Roadmap
energy in various sectors of the economy.
reducing greenhouse gas emissions on a
continuous basis, Ecuador considers the
publication of the National Energy Efficiency
Plan 2016-2035 (PLANEE) through which it is
that the production of green hydrogen goes hand
In summary, the hydrogen economy provides a
versatile and sustainable solution to boost the
requirements of the energy transition and will
allow it to expand its current export markets, not
only with respect to destinations but also to
products that are exported.
Hydrogen and its derivatives on a commercial
scale will involve a transition from this approach to
Government of Ecuador 19
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3.4 Generation of technical, technological and R&D&I capabilities
The implementation of green hydrogen projects
Additionally, the constant evolution of
and its derivatives involves the establishment
and operation of production, storage,
transportation, distribution and end-use
technologies related to hydrogen and renewable
infrastructure that requires the development of
technical skills.
energies requires research and development to
improve the efficiency of generation processes,
safe storage and the application of hydrogen in
different sectors. Investment in research,
specialized. This will promote, on the one hand,
development and innovation (R&D&I) related to
the generation of professional capabilities in
hydrogen will allow the creation of research
different areas of engineering, such as chemical
centers and specialized laboratories, where
engineering, mechanical engineering and
Ecuadorian scientists and experts will be able to
develop innovative technologies, components
electrical engineering, among others, and project
management. On the other hand, at all stages
of the value chain there must be trained
and solutions in this area. This will encourage
personnel, which will encourage the development
of basic technical capabilities at the level of
collaboration between universities, companies
production, maintenance and construction,
and the National Government, and will promote
among others. In a complementary manner, the
generation of capacities in the development of
the transfer of knowledge and advanced
technologies, thus strengthening the
green hydrogen policies and regulations must
environmentally friendly innovation system in
Ecuador.
be considered.
3.6 Institutional strengthening
The development of hydrogen projects requires
strengthening the capacities of the public and
enable new strategic projects; These are
capabilities that can be adopted to promote
private sectors. The implementation of a
other sectors, strengthening the institutions and
governance model to define a regulatory,
the interrelationship between the parties.
normative and promotion framework allows the
responsible institutions to expand and adapt
their competencies and capabilities to encompass
The joint definition, by government entities, of
global developments with local implications and
the regulatory and normative framework required
keep pace with global energy transition processes. for the deployment of the hydrogen economy
will allow them to act in a synchronized manner,
with a clear delineation of functions
The purpose of developing a hydrogen economy
in Ecuador is framed in the objectives of the
that each one must comply with, making efficient
energy transition and decarbonization and must
be supported by institutional experience in terms
of defining competencies by the different entities,
overregulation of the sector that slows down the
required developments. This will allow Ecuador
in the development of regulation models.
innovators to promote emerging technologies
and in the adaptation of technical regulations to
use of available resources and avoiding
to have the flexibility essential for the
development of sectors
innovative as the value chain
of hydrogen.
3.5 Social and environmental benefits
The deployment of the hydrogen economy seeks
sustainable development that includes innovative
environmental by reducing GHG emissions
economic growth and productivity. This economy
allowing the population access to clean energy
will promote job creation in the different sectors
related to the value chain, which in turn will
and promote clean production processes, by
in exchange for, for example, conventional fuels
that have serious effects on human health.
create conditions that ensure widespread access
of communities to basic services and will build
the basis, with integration with other government
policies, for the reduction of inequality and
improvement of the population's quality of life.
These benefits can even be maximized, if the
required regulations implement a circular
economy approach that focuses on sustainability
through efficient use.
of resources through their utilization, reuse and
recycling, resulting in an extension of their useful
life and minor negative impacts on the
Complementing these social benefits, the
sustainable production of green hydrogen and
its derivatives brings benefits
20 Green Hydrogen Roadmap
environment and
the communities.
3.7 Opportunities in the regional market
In general, Latin America is perceived as a
region with potential for the production of green
hydrogen and its derivatives due to the diversity
of its renewable sources.
of national hydrogen economies.
The establishment of cooperation alliances with
other countries should be considered a priority
that would allow generation at competitive costs.
step with the purpose of generating knowledge
leveraged from the experiences acquired in
Some countries in the region such as Colombia,
these initial phases of development of the
Chile, Costa Rica and Uruguay currently have
established national roadmaps or strategies,
hydrogen economy. The creation of regional
regulatory frameworks for the application of tax
alliances must be accompanied by a campaign
of international diplomacy, which in the initial
incentives, pilot projects for the generation of
phase of deployment will be essential to have
green hydrogen and, in the case of Chile, with
derivatives production projects.
buyers willing to pay higher costs. The growing
need
This will benefit the entire region if joint work is
of renewable energy and inputs by industrialized
countries, which will depend on imports to cover
promoted for the deployment
their demands,
Government of Ecuador 21
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It offers an opportunity for all countries that are
capable of generating hydrogen and its derivatives
in the short term; opportunity that is not necessarily
linked to their production costs.
• Access to residual biomass
Although the levelized costs of production of
Considering the regional developments that are
hydrogen and its derivatives are currently high -
taking place with respect to the hydrogen
Agricultural activities, as a potential source
compared to those of other countries in the
economy and the barriers that are being
of biogenic carbon dioxide for the
region - these costs can be reduced through the
encountered in its implementation, it is clear that
production of derivatives such as methanol
implementation of incentives for project
Ecuador must bet on the formulation of a stable
and synthetic fuels, offer capture costs up
developers. In this way, regional competitiveness
energy policy that is coordinated by the different
In this way, Ecuador must focus on the creation
to 4 times lower than those associated with
in terms of costs can be achieved in shorter
relevant government actors (ministries , university
of strategic alliances with potential importing
direct air capture. The supply of agricultural
periods of time.
countries and the rapid implementation of
products in Ecuador results in an availability
institutions, governments, among others), by the
private sector, which
educational,
will be in charge of making
commercial-scale production projects that allow it
of residual biomass that would allow the
the majority of the large investments required,
to position itself as one of the pioneers in the
country to position itself within the biogenic
Finally, the unification of regional efforts is
and by the community. This participatory energy
supply of renewable energy and inputs to the
CO2 market that will be in line with the
necessary in order to establish and harmonize
policy will allow all actors to have confidence and
markets it they require them.
increase in demand.
regulations around the value chain of green
interest in the process and thus promote its
hydrogen and its derivatives, so as to favor the
implementation.
adoption of measures that facilitate its deployment
Ecuador has a series of advantages that include:
and penetration. Through bilateral agreements
• The infrastructure
existing of
electricity transmission, transportation and
• The diversity of renewable energy sources
(solar, wind, hydraulic, biomass,
established with other countries in the region,
the development of joint infrastructure, the
port, as well as the potential for storage in
establishment and harmonization of regulations,
geological formations.
as well as the exchange of knowledge and
geothermal) that results in a high specific
acquired experiences can be encouraged.
energy potential and that also allows you
to take advantage of the complementarity
• The relatively short distances between
of these energy sources for hydrogen
production and consumption or export
production processes. The identified
centers, which allows for lower transportation
potential for geothermal energy would
costs and optimal integration of regions
allow Ecuador to become a regional leader
with renewable electricity generation
in the development of these projects
potential, others with availability of water
throughout Latin America.
resources and these with potential local
demands.
• The availability of sufficient water resources
and potential access to seawater
desalination processes in the coastal
region.
22 Green Hydrogen Roadmap
Government of Ecuador 23
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required to generate renewable electricity that can
be used in electrolysis processes for the generation
of green hydrogen. By also having significant
volumes of residual biomass from its agricultural
activities, it has a sustainable source of carbon for
the transformation of this hydrogen into derivatives
such as methanol and synthetic fuels.
4. Competitive advantages of
Ecuador for the production of green hydrogen
Solar energy
Ecuador has three fundamental components for the establishment of green
The greatest potential for solar energy is found in
the provinces of Galapagos, Loja, Guayas and
Manabí. In these provinces there are average
radiation levels close to 5 kWh/m2/day and plant
factors of up to 24% for photovoltaic solar. The
levelized cost of electric energy production (LCOE)
from this source is estimated to be in a range
between 55 USD/MWh and 67 USD/MWh.
hydrogen production processes and its derivatives: Renewable energy sources,
availability of water resources for the electrolysis process and availability of land.
Additionally, in the case of the production of derivatives such as methanol and
synthetic fuels that require a sustainable carbon source, Ecuador has residual
biomass from its agroindustrial activity.
The country also has an adequate electrical interconnection system, roads and
Below are the most relevant characteristics of each
of the sources of
energy that enables the production of hydrogen in
the country. Figure 6 shows the potential maps of
wind, solar, biomass, hydraulic and geothermal
energy in Ecuador.
The levelized cost of electricity from wind power is in
a range between USD 37/MWh (in the best potential
locations) and USD 56/MWh in 2023 and is expected
to reduce to USD 27/MWh in 2040. In the First NonConventional Renewable Energy Block (ERNC
Block) of Ecuador, a wind energy project was
awarded with an LCOE of 60.6 USD/MWh3.
Energy from biomass
MWh in 2023. These values agree with the
port infrastructure, which allows promoting deployment in its initial phases,
facilitating the transportation of inputs and products from production centers to
awarded in the tender for the First Non-Conventional
the place of use. This existing infrastructure will require adaptations and
expansions that allow it to keep pace with developments in the commercial-scale
Renewable Energy Block (NCRE Block) in Ecuador
in 2023 that are between 49.9 and 67.0 USD/MWh.
The projected technological penetration and the
decrease in capex associated with it make it possible
to reduce this cost to 15 USD/MWh in 2040.
hydrogen value chain in later stages.
Its geographical location facilitates commercial exchange towards Asia and
Australia through the Pacific Ocean and towards Europe, due to its proximity to
the Atlantic Ocean through the Panama Canal.
According to the Bioenergetic Atlas of Ecuador [2],
the energy potential of the residual biomass of the
main agricultural products in Ecuador amounts to
224,500 TJ in 2014. The waste
rice, cocoa, sugar cane and African palm present the
best characteristics for the production of sustainable
electrical energy through combustion in power
generation cycles (including cogeneration). Its
Wind power
production is concentrated in the provinces of
Esmeraldas, Guayas, los Ríos, Sucumbíos and
Although this renewable resource is more limited
Pichincha.
In Ecuador, in general, there are regions in the
4.1 Renewable energy resources
Ecuador has wind, solar, hydraulic, biomass and
geothermal energy resources, which are
distributed throughout the national territory. The
availability of these renewable energy sources,
the high
plant factors that can be achieved for sources
such as hydraulic, geothermal and biomass, and
the complementarity that occurs with solar and
wind energy sources, are what allow Ecuador to
have the base
3
24 Green Hydrogen Roadmap
country with exploitable potential.
It must be taken into account that, due to its low bulk
The best wind energy potential in Ecuador is found
density and high moisture content, the transport of
in the Sierra region, mainly in the provinces of Loja
and Pichincha, where there are areas with average
wind speeds greater than 9 m/s. In these areas, high
biomass over long distances is unfavorable from an
economic point of view, which is why electricity
plant factors are established, such as, for example,
generally located near the agricultural centers where
the current 59% for the Villonaco wind power plant
this waste is generated. This is what allows us to
located in the province of Loja.
achieve high factors of
generation plants from biomass are They are
This LCOE is 8% higher than the estimate for Pichincha, considering it a normal range of variation for the estimates.
Government of Ecuador 25
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plant of approximately 70%, reflecting the continuous
plant 60% and 68%, respectively. Due to the high
allows having plant factors close to 85%. For this
USD/MWh by 2023 and is reduced to 43 USD/
availability of biomass at all times of the year.
degree of maturity of the technologies for generating
technology, considerable reductions are expected
MWh in 2040. This energy source did not participate
The levelized cost of electrical energy from this
source is around 45 USD/MWh at
electrical energy from this source and the fact that
due to the increase in the degree of penetration and
in the tender for the First Non-Conventional Renewable
the best available locations for these sites are
the consequent decrease in capex. The levelized cost
Energy Block (NCRE Block) of Ecuador.
decreasing, relatively constant levelized costs of
electrical energy are established between 2023 and
of electrical energy produced by geothermal energy
2023. Although a reduction in the levelized cost of
2040. 56 USD/MWh for 10 MW plants, approximately
electrical energy is expected in the future, for this
45 USD/MWh for 50 MW plants and 36 USD/MWh
technology, low learning rates are expected so far,
for 100 MW plants. In the tender for the First Non-
resulting in a minimal reduction in future generation
Conventional Renewable Energy Block (ERNC
costs. Although for this energy source there was no
Block) in Ecuador, projects were awarded with LCOE
project awarded in the tender for the First Non-
between 45.5 USD/
amounts to 71
Conventional Renewable Energy Block (NCRE
Block) of Ecuador, the maximum value established
by the National Government was 45.59 USD/MWh,
MWh and 52.22 USD/MWh for capacities of 49.5
MW and 49.9 MW, respectively, showing that the
being in line with the estimates made.
estimates made are in line with these awarded
projects.
Biomass is, additionally, a sustainable carbon source
for the transformation of green hydrogen into green
derivatives such as methanol or
develops for green hydrogen, one can think about
synthetic fuels. Its availability favors the viability of
taking advantage of the surplus hydraulic electricity
projects to generate these hydrogen derivatives
generation that occurs in rainy seasons, for example,
compared to options in which carbon must be
in the hydroelectric plants located in the Amazon
captured from the air. This is a differential factor
Depending on the regulation that the country
River basin, for the generation of hydrogen that can
be used later in dry seasons, thus allowing efficient
of Ecuador compared to other countries in the south
use of available renewable resources.
of the continent that do not have these potentials.
Hydraulic energy
Geothermal energy
This is the most used renewable energy source in
Ecuador with an installed capacity of 5.1 GW and a
participation of approximately 78% of electrical
Having a large mountainous region with numerous
volcanoes, Ecuador is in a geographical location
energy generation in 2021 [3]. The installable
that offers a high potential for geothermal energy.
potential for generating electrical energy from
The Electricity Corporation of Ecuador CELEC EP
hydraulic energy for the country amounts to 35.5
has a portfolio of projects among which it is studying
GW. Of these, 65.6% (23.3 GW) corresponds to the
4 high temperature projects (>150 °C) with a
installation potential of hydroelectric plants with a
hypothetical geothermal potential of 952 MW in the
capacity of less than 25 MW, concentrated mainly in
provinces of Carchi, Imbabura, Napo-Cotopaxi and
the provinces of Napo, Pichincha and Imbabura [4].
Pichincha - Napo [5].
In hydroelectric plants with capacities of
Geothermal energy, unlike others, is not affected by
10 MW and 100 MW it is possible to obtain factors of
climatic variables, which makes it
26 Green Hydrogen Roadmap
Figure 6: Renewable energy potential distribution maps in Ecuador.
Source: Own elaboration MEM.
Government of Ecuador 27
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4.2 Availability of land and water resources
of green hydrogen production and its derivatives
productive in the public, private and popular and
to solve these restrictions.
solidarity economy sectors requires authorization
The areas required for the implementation of
For Ecuador, it is identified that, although there
The map in Figure 7 (right) presents the location
from the State. It will, therefore, be necessary to
green hydrogen projects are mainly related to
are specific geographical restrictions regarding
of the main rivers in Ecuador and drought-prone
expand the organic law on water resources, uses
the production of electrical energy, that is, areas
the availability of land for the implementation of
areas.
and exploitation of water so that the criteria to be
for the installation of photovoltaic panels, wind
projects, the country has sufficient suitable
applied are defined so that green hydrogen
turbines, etc. The selection of potential sites for
areas, distributed throughout the country, so that
the implementation of electricity generation and
this is not considered a limitation to development.
It should also be considered that, in accordance
with the constitution of Ecuador, the use of water
green hydrogen production projects must be
of projects whose purpose is the production of
for
carried out taking into account the restrictions at
green hydrogen or its derivatives.
production projects can apply and obtain their
priority opinion.
the level of ecosystem protection due to the
presence of protected areas and living territories
of indigenous peoples and local communities. In
the
On the other hand, regarding water resources,
Ecuador has more than 600 rivers and 75 lakes
Figure 7 (left) shows the location map of these
areas in Ecuador.
with a surface area greater than 0.4 square km
distributed throughout its territory. The rivers with
the greatest flow are the Esmeraldas, Guayas,
The National System of Protected Areas of
Napo, Pastaza and Santiago rivers and the three
Ecuador (SNAP) covers approximately
largest lakes are Laguna el Canclón in Guayas,
26,100,800 hectares (ha) that correspond to
19.41% of the national land and maritime territory
Cubillín in Pastaza [7]. There is also a wide
Laguna de San Pablo in Mira and Laguna
of Ecuador [6]. In the SNAP areas, priority is
continental coastline, which offers the possibility
given to the construction of projects related to
of accessing the necessary water resources.
community tourism activities, agroecological
production, applied research, sustainable use of
through seawater desalination.
biodiversity and sustainable fishing [7], any type
of construction with a different functionality must
Despite having water resources, their use may
be
be limited in areas of the territory that are affected
Figure 7: Maps of distribution of protected areas and availability of water resources and susceptibility to droughts in Ecuador.
Source: Own elaboration MEM.
by droughts. These areas are located in the
approved by the respective environmental
coastal plain
authorities of the region.
In general, for the development of green hydrogen
western and the mountainous plateau of the
The “Territories of Life” of Ecuador have a
Andes, with an area corresponding to 24% of
extension of 1,790,600 hectares, corresponding
the national territory. The regions that could be
to 1.33% of the national territory. Any measure,
most affected by excessive drought are mainly
project, work or activity to be implemented in
in the provinces of Guayas, Santa Elena, Manabí
these areas is subject to a prior consultation
and Loja. For coastal areas with water scarcity
process that seeks to protect the integrity and
or limitations in its use, water desalination should
right to participation of these groups.
be considered as a viable technical option and
as a primary solution for projects.
production projects and its derivatives, it is
therefore necessary:
• consider potential availability restrictions at
the regional level and special access and
use requirements in SNAP areas and Life
• comply with strict access prioritization
of water resources in accordance with
what is established in the Constitution, in
which human consumption has priority,
Territories and
• comply with strict sustainability criteria when
followed by agricultural use that guarantees
exploiting resources (use, reuse, effluent
water
available
minimization,
food sovereignty and ecological flow and,
etc.).
finally, industrial use.
28 Green Hydrogen Roadmap
Government of Ecuador 29
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4.3 Logistics
5. Competitiveness of the
In terms of land logistics, Ecuador has a modern
road network that allows it to transport material
and supplies for the implementation of projects
and transport the final products to the place of
consumption or international dispatch quickly
and
safe.
Regarding maritime logistics, Ecuador is in a
geographical position with access to the Pacific
Ocean which allows it to have direct connection
with Asia, Oceania, the West Coast of the
United States, Central America and part of
South America (Argentina, Chile, Peru and
Colombia ). Additionally, it is located near the
Panama Canal, which allows it to connect with
Europe, the East Coast of the United States
and the Caribbean.
Ecuador additionally has a system
developed electrical energy transmission that
has the capacity to take renewable electrical
energy from where it is produced to the points
where the production centers of green hydrogen
and its derivatives are established, allowing
efficient use of all the potential of
renewable energies available in the country.
For this reason, it can be concluded that
Ecuador has adequate basic infrastructure to
begin deploying the hydrogen value chain at the
national level. In the future, however, it will be
necessary to expand this infrastructure, mainly
in the electrical transmission networks that allow
efficient use of renewable resources.
green hydrogen and its derivatives produced
in Ecuador
concentrated in some regions of the country (for
example, wind energy in Loja) and in port
infrastructure to adapt to greater export volumes,
With reference to the costs that green hydrogen and its derivatives produced in
Ecuador will achieve, a synthesis of the levelized production costs of hydrogen
(LCOH) and its derivatives (LCO-X, where X is a specific derivative); which vary
according to the renewable energy source considered for the generation of
electricity that will supply the electrolysis process and its availability in the
different regions of the country. Based on the costs obtained and an analysis
of potential demand and infrastructure, a selection is made of the provinces
that can be prioritized as potential centers of green hydrogen or derivatives in
Ecuador, so that their current competitive advantages are taken advantage of.
including storage systems directly in the ports.
If the use of excess hydraulic energy for the
production of green hydrogen is considered, the
development of
seasonal storage infrastructure
of hydrogen (large volumes) in geological
formations.
5.1 Levelized production costs of hydrogen and its derivatives
The LCOH depends largely on the electricity
costs and the plant factor (or load factor) of the
electrical generation and the electrolyzer. The
plant or use factor of an electrical generation
plant is the relationship between the electrical
energy produced during a considered period of
time and the electrical energy that could have
been produced in continuous operation at full
power during the same period. Plant factors for
renewable energies are dependent on the
identified potentials
30 Green Hydrogen Roadmap
for these sources and may present geographical
and climatological variations. In the case of
wind energy and solar energy, the plant factor
is highly dependent on the climatic conditions
in a location.
specific. For other renewables such as hydro,
biomass and geothermal, plant factors can be
considered location independent. Considering
specific current costs for each of the electricity
generation technologies and the plant factors
corresponding to
Government of Ecuador 31
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the different locations are obtained
Available renewable energy sources are presented
The Evolution of Levelized Costs
Current LCOE (as presented in section 4.1).
in Figure 8, considering locations with best
of hydrogen by 2050, presented in Figure 9,
around 1.71 USD/kg and 1.66 USD/kg for
These LCOE estimates are considered for the
potentials (or highest plant factors) for wind and
predicts a decrease mainly for solar photovoltaic
wind and solar energy, respectively.
subsequent calculation of the corresponding
solar energy. The lowest LCOH is that resulting
and wind energy generation technologies. Although
Competitive LCOH from solar energy is
LCOH.
from hydroelectric generation with a capacity of
the costs of production from solar energy are
expected as a product of cost evolution for
100 MW; Although this hydroelectric generation
photovoltaic panel technology.
The calculation of the estimated LCOH is carried out
capacity does not qualify as non-conventional
currently the highest, these are also the ones that
will show the most pronounced reduction in the
considering that electricity generation plants are
renewable energy, this estimate was included as
future. For 2030, 2040 and 2050 the following can
completely dedicated to the production of green
a representative reference point of the country's
be concluded:
hydrogen4. The LCOH for 2023 is calculated with
extensive hydroelectric potential. The next lowest
• By 2050, lower costs will allow Ecuador to
the specific costs of the 2023 renewable energy
LCOH is that obtained from wind energy in Loja,
produce hydrogen from wind and solar
and electrolysis technologies, these being the
base costs. The costs of electricity generation
reflecting the high potential available in the region.
• In 2030, an average LCOH is expected
energy with LCOH of 1.27 USD/kg and
between $2.36/kg and $3.26/kg (based on
0.89 USD/kg, respectively. Geothermal
and hydrogen production for subsequent years
the average cost projection shown in Figure
energy and that obtained from residual
are obtained by using the base costs and
9 from wind and solar energy, respectively).
biomass involve higher costs, but they allow
projecting them using technical-economic
the use of Ecuador's potential.
The resulting LCOH from biomass, small
assumptions based on observations from
international organizations such as IEA, IRENA
hydropower up to 10 MW and geothermal are in
and specialized literature.
the intermediate range. The LCOH from solar
• By 2040 the average costs of hydrogen
production will be
energy is currently the highest, reaching values
higher than 6 USD/kg, for which two options are
The lowest current LCOH values obtained for
shown, one in the Galapagos Islands and another
Solar
Geothermal
on the mainland in the province of Guayas.
Wind
Hydroelectric 100 MW
Ecuador from the different
Hydroelectric 10 MW
7
7
6.2
6
6.3
Biomass
7
6
6
5
5
4
4
5.3
LCOH
LCOH
5
3
3
2
2
1
1
4.3
3.7
4
3.1
3.2
LCOH
3
2
2023
1
2030
2040
Year
to)
2050
2023
2030
2040
2050
Year
b)
0
Hydraulics
100MW
Ecuador
Wind
Loja
Biomass
Ecuador
Hydraulics
10MW
Ecuador
Geothermal
Ecuador
Solar
Galapagos
Solar
Guayas
Figure 8: Summary of LCOH obtained for selected locations and for the different technologies in 2023.
Source: Own elaboration MEM.
4
The bands represent the variation in projected costs for each technology over time. The results of H2 generated from
solar energy are obtained for Guayas, while for wind energy they are those obtained in Loja.
Figure 9: Evolution of levelized costs of green hydrogen production in Ecuador.
Source: Own elaboration MEM.
It is necessary to clarify that, although there is a correlation between the LCOE and the LCOH, due to other additional factors such as plant factors and the oversizing
required for electrical generation plants (which varies according to the selected source), the Lower LCOE does not always result in lower LCOH.
32 Green Hydrogen Roadmap
Government of Ecuador 33
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From the LCOH obtained for solar, wind and hydroelectric
power plants (taking a PCH of 10 MW as a representative
Solar
Solar
Wind
• By 2050, the cost of
Wind
Hydroelectric 10 MW
value), the levelized production costs of derivatives are
ammonia between 267 USD/t and 668 USD/t, the
projected: ammonia, methanol, synthetic gasoline and
cost of methanol between 325 USD/t and 771 USD/
1600
1600
diesel. With the exception of ammonia, a source of CO2 is
t, the cost of synthetic diesel between 802 USD/t
1400
1400
necessary for the other derivatives.
and 2,256 USD/t, finally, the cost of synthetic
1200
1200
1000
1000
800
800
600
600
gasoline between 1,329 USD/t and 2,966 USD/t.
Hydroelectric 10 MW
1800
1800
The levelized production costs presented above consider,
by between 3% and 6%, if obtained from biomass
as their name indicates, only the production stage; Total
aino/D
m
OSm
CUA
)L(t
with CO2 capture increases the levelized cost of production
lona/D
hOS
teCU
M
)L(t
renewable. For costs calculated in 2023, the cost associated
combustion processes, while, if obtained from direct air
costs are obtained from these production costs and the
capture, the levelized cost would increase by 15% to 18%.
costs associated with storage and transportation, where
The percentage evolution of the increase in the cost
necessary. For example, in the specific case in which
associated with this capture will depend on both the
surplus renewable electricity is wanted to be used for the
Year
to)
evolution in capture technologies and the production
production of green hydrogen and its derivatives, storage
technologies for hydrogen and its derivatives. Figure 10
facilities for large volumes will be required. In this case, the
shows the LCO-X without considering carbon capture costs.
use of geological formations is presented as an alternative.
400
400
2023
2030
2040
2050
2023
2030
b)
Solar
Solar
Wind
6000
Wind
6000
Hydroelectric 10 MW
5000
5000
4000
4000
3000
3000
2000
2000
Although the number of projects in operation for the storage
Hydroelectric 10 MW
of hydrogen in geological formations is small, most sources
between 528 USD/t and 1,050 USD/t, the cost of
agree that depleted gas fields have the lowest specific
methanol between 667 USD/t and 1,246 USD/t, the
costs, estimated at around 1 USD/kg of hydrogen.
cost of synthetic diesel between 1,912 USD/t and
/DSU(eniloO
sa
CG
)Lt
l/eDO
sSeCU
iD
)L(t
3,520 USD/t, finally, the cost of synthetic gasoline
between 2,215 USD/t /t and 4,316 USD/t.
Due to the limited information on the use of
• For 2040, the cost of
2050
Year
For 2030, 2040 and 2050 the following is observed:
• For 2030 the cost of ammonia is estimated
2040
Year
exhausted reservoirs as hydrogen storage, it is advisable to
ammonia between 356 USD/t and 782 USD/t, the
carry out pilot projects in Ecuador, which allow determining
cost of methanol between 430 USD/t and 942 USD/
the viability of this option in accordance with the country's
t, the cost of synthetic diesel between 1,181 USD/t
requirements.
1000
1000
2023
2030
2040
2050
2023
2030
2040
Year
Year
c)
d)
2050
and 2,567 USD/t, finally, the cost of synthetic
gasoline between 1,609 USD/t and 3,530 USD/t.
In this way, a more appropriate basis for estimating the
associated costs under local conditions will be determined.
Levelized production costs do not include costs associated with CO2 capture. The bands represent
the variation in projected costs for each technology over time.
Figure 10: Levelized costs of production of derivatives (LCO-X) from green hydrogen in Ecuador.
Source: Own elaboration MEM.
34 Green Hydrogen Roadmap
Government of Ecuador 35
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5.2 Potential production centers
The proper distribution of different
the associated value of the LCOH and additional aspects
different places selected based on their high potential for
It additionally includes the LCOH obtained from wind, 10 MW
Renewable energy sources in the territory allow Ecuador to
such as the supply and demand potential and the existence
renewable resources for electricity generation. In the case of
hydroelectric and geothermal energy for the provinces of
have potential for the generation of green hydrogen and its
of adequate basic infrastructure for the implementation of
Pichincha (location 1), the LCOH from a 100 MW hydroelectric
Pichincha, Sucumbíos and Imbabura, respectively, due to
derivatives in different regions, which is why it is recommended
projects. In a complementary manner, the implementation of
plant is considered in accordance with the potential of the
the considerable potential found for these sources.
to prioritize these optimal places so that the competitive
production centers will depend on the development of a
province, in this way the most competitive LCOH currently for
advantages that some of them currently offer are taken
regulatory and promotion framework at the national level and
Ecuador of 3.1 USD/ kg. In the province of Loja (location 4),
advantage of. .
the support for the development of technical, technological
the wind potential results in an LCOH of 3.2 USD/kg while in
and research capabilities related to the entire value chain of
Esmeraldas (location 6) an LCOH of 3.7 USD/kg is obtained
It is generally observed in the selected provinces that by
green hydrogen and its derivatives.
using residual biomass.
2050 hydrogen produced from photovoltaic solar energy is
projected to be the most competitive and in provinces such
The selection of the optimal places to prioritize for the
as Loja, Guayas, Manabí and Galapagos an LCOH of 0. 9
implementation of green hydrogen production centers and its
USD/kg.
derivatives takes into account the potential for the production
of renewable electrical energy,
The map in Figure 11 presents the estimated LCOH values
for 2023 in
Table 1 presents the cost projection to 2050 along with the
plant factors used to calculate the LCOH for each of the
The combination of different sources of
energy sources considered.
Renewable energy will favor the competitiveness of green
hydrogen and its derivatives, so the deployment of all
Taking into account that a significant cost reduction is
available renewable energies must be encouraged, including
expected for photovoltaic solar energy in the medium term,
solar, wind, geothermal, hydroelectric and biomass energy.
the LCOH value for this technology is included in Table 1
for all selected provinces. HE
Table 1: Projected LCOH for selected locations.
Source: Own elaboration MEM.
Province No.
Hydroelectric
1
2
Source of
energy
100MW
Pichincha
Wind
Plant factor
(%)
LCOH
2023
(USD/kg)
LCOH
2030
(USD/kg)
LCOH
2040
(USD/kg)
LCOH
2050
(USD/kg)
68
3.1
2.5
2.2
2.0
40
4.8
3.8
2.5
1.9
4.0
2.0
1.1
3
Solar
19
7.6
4
Wind
59
3.2
2.6
1.7
1.3
Solar
22
6.7
3.6
1.8
0.9
Biomass
70
5
Loja
6
Emeralds
7
Solar
8
9
Guayas
10
twenty-one
3.1
2.8
2.6
3.7
1.9
1.0
2.8
2.6
Biomass
70
3.7
3.1
Solar
24
6.3
3.4
1.7
0.9
Biomass
70
3.7
3.1
2.8
2.6
Solar
24
6.4
3.4
1.7
0.9
Manabi
eleven
3.7
6.9
Figure 11: LCOH and corresponding LCOE for selected locations5.
Source: Own elaboration MEM.
5
To convert LCOH from USD/kgH2 to USD/MWhH2 you can use the following conversion based on the lower heating value of
hydrogen of 0.0333 MWh/kg:
LCOH (USDÿMWh H2 )=LCOH (USDÿkg H2 ) • 30 (kg H2 ÿMWh H2 )
36 Green Hydrogen Roadmap
Government of Ecuador 37
Machine Translated by Google
No.
Province
12
13
succumb
3.7
3.1
2.8
2.6
60
4.3
3.4
3.1
2.9
10MW
Solar
10MW
Geothermal
17
Solar
18
Geothermal
17
8.0
4.2
2.2
1.1
60
4.3
3.4
3.1
2.9
85
5.3
4.0
2.8
2.0
twenty
7.4
3.9
2.0
1.0
85
5.3
4.0
2.8
2.0
7.2
3.8
1.9
1.0
Chimborazo
19
Solar
twenty
Solar
25
6.2
3.2
1.7
0.9
Wind
15.8
12.1
9.0
6.4
4.7
Galapagos
twenty-one
twenty-one
Considering the additional parameters mentioned
Table 3: Main characteristics for a production center in the province of Guayas.
Source: Own elaboration MEM
LCOH
2050
(USD/kg)
70
Hydroelectric
16
LCOH
2040
(USD/kg)
Biomass
14
Imbabura
LCOH
2030
(USD/kg)
Plant factor
(%)
Hydroelectric
fifteen
LCOH
2023
(USD/kg)
Source of
energy
for the initial stages of development.
Guayas Province
There are significant potentials for solar energy and residual biomass.
Production of
hydrogen and derivatives:
This region has seawater water resources, so water desalination should be considered for hydrogen
production.
The province of Guayas in the Guayaquil area has a high energy demand for the industrial sectors
(mainly shrimp processing, chemical, metallurgy and beverage industries), transportation and residential
sectors, creating a substitution potential for green hydrogen and its derivatives.
Potential demand:
The province presents an opportunity for the implementation of projects for the production of derivatives
such as ammonia to replace current imports and to create a national nitrogen fertilizer industry and, in
the future, for the use of derivatives as fuel for the maritime sector.
There is adequate transportation infrastructure by roads, seaports and rivers; pipelines for the
transportation of hydrocarbons and nearby there are plugged and abandoned wells that could be used
for hydrogen storage in the future.
Infrastructure:
above, regions that have greater potential in
renewable energy for the production of hydrogen
The main characteristics of the different provinces
or its derivatives at lower costs and that also have
that allow the optimal initial development of a
potential demand and adequate infrastructure
hydrogen economy are summarized below:
It is a suitable location for production centers for export and to meet domestic demand.
can be prioritized.
Table 4: Main characteristics for a production center in the province of Manabí.
Source: Own elaboration MEM
Province of Manabi
Table 2: Main characteristics for a production center in the province of Pichincha.
Source: Own elaboration MEM
Production of
Pichincha Province
Production of
hydrogen and derivatives:
Potential demand:
Infrastructure:
38 Green Hydrogen Roadmap
It has good potential for solar and wind energy, sites for hydroelectric plants and availability of water
resources. Additionally, it has an area of high-temperature geothermal interest (with potential to be
developed).
hydrogen and derivatives:
Potential demand:
It is a coastal region with high solar energy potential and has residual biomass. It has access to the
sea which ensures the availability of water for the production of green hydrogen through desalination.
In the city of Manta and its surroundings there is a significant demand for energy for the transportation,
industrial (mainly processing and conservation of fish and shrimp and production of fats and oils that
require hydrogen for their hydrogenation processes), agricultural and residential sectors. which offers
a substitution potential for green hydrogen and its derivatives. In new uses, there is an opportunity to
substitute derived products such as methanol and ammonia as fuels for the maritime sector.
It demands a large amount of fuel and electrical energy for the transportation, residential and industrial
sectors (mainly manufacturing), offering a substitution potential for green hydrogen and its derivatives.
The region has a developed road infrastructure and multiple pipelines for the transportation of
hydrocarbons, which could be adapted in the future for the transportation of, for example, methanol or
synthetic fuels.
Infrastructure:
It has road and seaport transportation infrastructure, as well as oil wells that may represent potential
use in hydrogen storage in the future. It is a suitable location for production centers for export but also
to meet domestic demand.
Government of Ecuador 39
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Table 5: Main characteristics for a production center in the province of Imbabura.
Source: Own elaboration MEM
Imbabura Province
It is considered relevant to highlight the case
Other places of special interest correspond to the Esmeraldas
special that is presented in the province of Loja. This
and Shushufindi refineries, which are located in areas
province has adequate solar, wind and residual biomass
Production of
hydrogen and derivatives:
It is a region with moderate potential for small hydroelectric plant sites, areas of geothermal interest
(with the potential to be developed), solar energy and wind energy.
Its main demand for energy is in the transportation sector where, in addition to land transportation,
there is demand for river transportation with small and medium-sized vessels due to the high number
of lakes and lagoons that the province has.
Potential demand:
Educational and research infrastructure is identified in the region, which together with the diversity
of renewable energy potentials allows the study of the entire hydrogen value chain.
Infrastructure:
The infrastructure and human capacity available in the province offer ideal conditions to promote and expand research, development
and innovation activities and focus them on issues related to the energy transition.
energy potential for the production of renewable electricity.
with moderate solar energy and residual biomass potentials.
In this region, the Villonaco wind farm and Minas
In these two refineries
Huascachaca projects are already operational. However,
They can establish green hydrogen production projects for
this is an area with restrictions on the availability of water
internal use in their desulfurization and hydrocracking
for hydrogen production, which limits its potential to become
processes.
a production center. This case highlights the importance
The implementation of projects in these refineries could be
that the development and expansion of the current
an accelerating factor in the widespread use of green
infrastructure of the electrical transmission network will have
hydrogen in the industrial refining sector and would also
so that efficient use of the renewable resources it has is
allow them to reorient their economic activity.
achieved.
in the future, with the possibility of producing green synthetic
fuels.
Table 6: Main characteristics for a production center in the province of Chimborazo.
Source: Own elaboration MEM
the country.
Chimborazo Province
Production of
hydrogen and derivatives:
Solar energy potentials and areas of geothermal interest are identified; additionally, it has a moderate
wind energy potential and adequate availability of water resources.
Its main energy demand is in the residential and transportation sectors. A substitution potential is
identified for green hydrogen and its derivatives, mainly in the transportation sector.
Potential demand:
5.3 Total costs for export
To analyze the export of green hydrogen and its derivatives
produced in Ecuador, two main regions are selected as
potential importers: The Asian region, in which Japan and
There is a developed road transport infrastructure. It does not have direct access to the sea. It is
considered a suitable location primarily to cover domestic demand, but road transportation to the
port of Guayaquil can also be considered, which could supply export volumes.
Infrastructure:
Table 7: Main characteristics for a production center in the province of Galapagos.
Source: Own elaboration MEM
hydrogen and derivatives:
Potential demand:
Infrastructure:
Island region with solar and wind energy potential (for example, the San Cristóbal wind farm already
in operation). The water requirement for electrolysis can be met through seawater desalination.
ammonia and methanol results in higher total costs
South Korea are considered as destination ports at a
distance of approximately 8,000 nautical miles. (NM) and
competitive compared to synthetic fuels and
the European Union, in which the destination ports could be
liquefied hydrogen, which results from the greater
Germany, Belgium and the Netherlands at a distance of
technological maturity of the value chain associated
approximately 6,000 NM.
with ammonia and methanol.
Galapagos Province
Production of
• It is observed that the transportation of hydrogen as
• In the case of liquefied hydrogen (LH2 ), the main
factors that contribute to high costs are transportation
Taking into consideration the costs
and low energy density when compared to derived
leveled production and transportation costs of liquid
products. It should also be noted that for this
This province requires energy in the maritime transport sector (between islands) and electricity
generation, mainly.
hydrogen and derivatives, Figure 12 presents the total costs
product, the transportation technologies required
for the year 2030 of two main derivative products: ammonia
on a commercial scale are not yet available and it
It has infrastructure for maritime cargo transportation, inter-island transportation and air transportation.
It has infrastructure associated with the tourism service sector.
and methanol in the potential destination ports, while Table
is not expected that these will be available until the
2 and the Table 3 includes other additional derivatives (LH2
end of the current decade.
and synthetic fuels) and projections for 2040 and 2050:
This province should be considered as an axis of strategic regional development. Due to its nature as a protected area, the
implementation of clean energy supply systems that replace current fuels of fossil origin is established as an important link in its
conservation and in achieving carbon neutrality in the short term, allowing it to establish itself as a 100% tourist destination.
sustainable.
40 Green Hydrogen Roadmap
Government of Ecuador 41
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Table 8: Total costs of derivatives placed in destination ports in the European Union.
Source: Own elaboration MEM.
Port of destination:
• In the case of synthetic fuels, high production costs reduce
production on a commercial scale, while for its
barrier to overcome. On the other hand, these synthetic
transportation there is already a well-developed chain for
fuels would have low transportation costs. The high costs
2030
of the currently incipient technological development for its
their competitiveness, which is presented as the main
fossil fuels that can be used for these products.
of this derivative are a reflection
European Union (Germany, Belgium, Netherlands)
2040
2050
LCO-X (USD/t)
Ammonia
617
551
338
Methanol
770
679
480
LH2
2,360
1,660
870
2,380
2,293
1,735
Synthetic fuels
Transportation costs (USD/t)
Ammonia
154
154
154
Methanol
56
56
56
LH2
3,142
3,142
3,142
56
56
56
Synthetic fuels
LCO-X
Transport
Total costs (USD/t)
Ammonia
1000
900
Methanol
832
799
825
771
LH2
Synthetic fuels
800
771
705
492
825
735
536
5,502
4,802
4,012
2,436
2,349
1,791
700
600
Table 9: Total costs of derivatives placed in destination ports in the Asian region.
Source: Own elaboration MEM.
/DSUt
500
400
Port of destination:
Asian region (South Korea, Japan)
300
2030
200
2040
2050
551
338
LCO-X (USD/t)
100
Ammonia
0
Asia
European Union
Asia
European Union
Methanol
770
679
480
LH2
2,360
1,660
870
2,380
2,293
1,735
182
182
Synthetic fuels
Ammonia
617
Methanol
Transportation costs (USD/t)
Figure 12: Total costs of green ammonia and methanol placed in the destination port for the year 2030.
Source: Own elaboration MEM.
Ammonia
182
Methanol
62
62
62
LH2
3,752
3,752
3,752
62
62
62
733
520
Synthetic fuels
Total costs (USD/t)
Ammonia
Methanol
832
741
542
LH2
6,112
5,412
4,622
2,355
1,797
Synthetic fuels
42 Green Hydrogen Roadmap
799
2,442
Government of Ecuador 43
Machine Translated by Google
6. Potential of the domestic market and
from exportation
refineries
The market potential of green hydrogen and its derivatives is determined based on the degree of
replacement of the current use of hydrogen of non-renewable origin and its insertion into potential
markets through new applications. Figure 13 presents the current and potential uses of hydrogen
Applications
traditional
Chemical industry
and petrochemical
for the different sectors of the economy.
Current uses of hydrogen are limited and have historically been concentrated in three main industrial
Industry
areas: refineries (43%), ammonia production (36%), methanol production (16%), and the steel
metallurgical
industry (5%). in the direct reduction (DRI) process. Of this production approximately 80% of the
Industry
ammonia is used in the production of fertilizers, while the remaining 20% is used in various industrial
Glass, ceramic
cement
applications.
Other sectors
industrial
Land
Potential uses for hydrogen and its derivatives include applications at the industrial level, in
transportation, in buildings and in electric power generation. At an industrial level, hydrogen can be
Transport
used in applications with high energy requirements at high temperatures. Some industries with
potential for future hydrogen use are the metallurgical industry and the glass, ceramics and cement
industries.
aerial
Maritime
Applications
potentials
Heating
Regarding transportation, one of the new applications that is beginning to be deployed more quickly
are fuel cells. In this sector, green hydrogen is expected to play a decisive role in the decarbonization
Buildings
Hot water
of difficult-to-electrify applications through the use of derivatives such as ammonia and methanol for
maritime transport, and synthetic fuels, specifically synthetic kerosene6, for transportation. aerial.
Cooking
Transformation
Generation of
electricity
Regarding the residential, commercial and public sectors, its use is considered feasible to cover the
energy requirements of buildings, such as cooking, hot water and heating.
6
Figure 13: Current and potential uses of hydrogen.
Source: Own elaboration MEM.
E-kerosene or sustainable aviation fuel (Sustainable Aviation Fuel - SAF).
44 Green Hydrogen Roadmap
Government of Ecuador 45
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6.1 Domestic market
The energy requirements of the different sectors
implementation of technologies for the use of
or high temperature, in addition the residential
of the domestic market and the way in which
green hydrogen and derivatives, while the
sector in urban centers can cover its energy
implementation of charging facilities, electrical
these are supplied (technologies and specific
residential and service sectors have a high
requirements (water heating, cooking and
networks and the development of pilot plans.
infrastructure) result in different hydrogen
potential for electrification and are less energy
heating) with electricity, which is why it is
penetration potentials in each of them, which will
intensive, so the use of hydrogen will occur in a
estimated that by the year 2050 electrification
Due to what was described above, it is estimated
also depend on the implementation of energy
lower proportion.
levels between 85% and 90% in these sectors.
that for the years 2030 and 2040 there will be
efficiency measures. and the degrees of
These high levels
electrification that are achieved in each one.
The transportation and industrial sectors are
the transportation sector, the adaptation or
slow growth with electrification percentages of
10% and 25%, respectively, and by 2050 the
The opportunity for hydrogen in the main sectors
of electrification make the penetration potential
percentage of electrification will increase more
of the domestic market is described below,
for hydrogen much lower compared to other
rapidly to 60%. These levels of electrification
including the opportunity for the replacement of
sectors.
therefore leave 40% potential for the use of
current uses as a material.
those with the greatest potential for
hydrogen and its derivatives in these sectors.
Fishing, mining, agriculture,
construction and other sectors
Current uses as an
In these sectors there is a low electrification
percentage of 3%, where additionally gasoline is
6.1.1 Characterization of the sectors of the economy
Transport
the most used fuel with approximately 60% of
In 2021, Ecuador imported around 621,000 tons
the total energy requirement. It is estimated that
of nitrogen fertilizers, mainly urea, sulfate and
Hydrogen in the transportation sector such as
the replacement of current equipment or
ammonium nitrate, 450 tons of ammonia and
fuel cells, vehicle tanks and service stations will
machinery with equipment that uses electricity is
14,700 tons of methanol [9]. These products can
highly viable and possible in most cases.
be manufactured in the country from green
allow for much more competitive costs in the
According to the National Energy Balance for
coming years that will facilitate the technological
2021 [3], the transportation sector was the one
transition towards hydrogen.
with the highest energy consumption with a
share of 51% of total consumption in Ecuador7. In
In this sector, energy consumption is based on
fuels of fossil origin (gasoline, diesel, aviation
Industry
fuel and fuel oil). By 2050, it is estimated that the
transportation sector can reach an electrification
percentage of 50%, with the remaining 50%
input in Ecuador
The industrial sector had a 15% share in energy
consumption in 2021, of which 55% was based
hydrogen. Additionally, hydrogen currently used
in refineries, as well as minor uses in other
This area includes the mining and construction
sectors, which use equipment and machinery
industries, could be replaced in the short term by
green hydrogen.
that, although they will require adaptations to
work with electricity, have already developed
technologies that would allow greater electrification
of the two sectors. For this it is required, as in
becoming a substitution opportunity for green
hydrogen and its derivatives. Applications in the
transportation sector can range from fuel cells
and synthetic fuels in land and air transportation
to methanol and ammonia in maritime
transportation.
The increase in production capacity worldwide,
together with the maturity of technologies related
to the use of
7
in fossil fuels and the remaining 45% in electricity.
The estimated degree of electrification for this
sector is 60% by 2050; The remaining 40% offers
a substitution opportunity for hydrogen and its
derivatives.
Residential, commercial and public
Residential, commercial and public sectors do
not have high energy requirements
The percentage is calculated including the energy consumption of the transportation, industrial, residential, commercial and services sectors and others. The values assigned to
own consumption are not taken into account.
46 Green Hydrogen Roadmap
Government of Ecuador 47
Machine Translated by Google
6.1.2 Demand scenarios
derivatives even taking into account the possible
In the definition of the scenarios
assumptions result in a hydrogen
by approximately 40% by 2035.
consumption of 12 PJ, 43 PJ and 117 PJ
(equivalent to approx. 100,000, 357,000
Demand for hydrogen is considered criteria
related to the implementation of energy efficiency
measures and, additionally, the projected
electrification values for the different sectors are
Two scenarios are established
established. These factors, together with the
degree of penetration of green hydrogen,
define its potential demand: H2 Ideal and H2
Practical.
determine the potential demand for each sector.
With respect to energy efficiency, the National
Energy Efficiency Plan (PLANEE) [10] issued
by Ecuador in 2016 has been considered for
and 970,000 tons)8 for the years 2030,
2040 and 2050, respectively.
penetration of green hydrogen that subsequently
• H2 Practical: It is assumed that the required
infrastructure and equipment replacement
will be developed much more slowly
taking into account technical aspects,
• H2 Ideal: It is assumed that in all sectors
of the economy,
associated risks and the high investment
costs that this process requires. These
assumptions
the infrastructure and technology
adaptations that allow hydrogen to be
supplied as a source of energy without
any type of restrictions (infrastructure or
regulation). Are
this analysis and in which a set of actions are
established that will allow reducing final energy
consumption.
result in lower consumption of
hydrogen of 12 PJ, 28 PJ and 59 PJ
(equivalent to approx. 100,000, 230,000
and 488,000 tons) for the years 2030,
technological and market restrictions projected
to 2050 that limit achieving the
carbon neutrality in that year.
The actual production achieved will depend on
the development of the framework conditions
that encourage the development and
implementation of projects in this area. This will
be affected by global trends (such as the annual
production capacity of key technology suppliers)
and by national development, which includes
regulatory aspects in national legislation,
including the definition of tax benefits and
regulatory aspects required for the entire
company. value chain of green hydrogen and its
derivatives, along with the implementation of
pilot projects.
2040 and 2050, respectively.
H2 Ideal
H2 Practical
Figure 14 shows the theoretical hydrogen
demand projection for the two
scenarios mentioned above.
140
117
120
It is important to highlight that the values
presented constitute the maximum theoretical
potential established for these scenarios.
100
The great potential for internal use that green
80
Depending on these global and national
developments, the possibility of a slower
deployment for the internal use of hydrogen than
presented in these projections in the initial
phases should be considered, which would imply
a greater acceleration in the implementation of
projects in the subsequent stages that allow
achieving the objectives
end to 2050.
hydrogen and its components would have can be identified.
59
Hydrogen
60
43
40
28
12
twenty
0
0
2020
2030
2040
2050
Year
Figure 14: Hydrogen demand projection.
Source: Own elaboration MEM.
8
48 Green Hydrogen Roadmap
1 PJ is equivalent to 8.3 kilotons (kt) of hydrogen considering a lower heating value of hydrogen of 120 MJ/kg.
Government of Ecuador 49
Machine Translated by Google
6.1.3 Distribution of demand in the domestic market
This section presents a synthesis of the internal
requirements of the refineries, 410 MW for the
Residential
Industrial
demand analyzes and what this would imply in
national production of ammonia for import
Transport
Commercial and public
substitution and 30 MW for the production of
Fishing, construction, mining, agriculture and others
Refinery
terms of a national strategy for the production of
MeOH Raw material
NH3 Fertilizers
green hydrogen and its derivatives. Figure 15
presents the projection of the distribution of
methanol also for import substitution.
600
488
500
domestic demand according to the Practical H2
scenario for the production of green hydrogen
and its derivatives for domestic consumption.
Four. Five
twenty-one
In 2040 and 2050, the theoretical potential for
400
domestic demand for the Practical H2 scenario
amounts to 230,000 tons and 488,000 tons,
141
300
respectively. The electrolysis capacities required
for these production volumes are 2.1 GW by
2040 and 4.4 GW in 2050. The demand for
230
Hydrogen
The internal demand for hydrogen is established as
follows:
41
Four. Five
200
twenty-one
hydrogen for use as energy increases from
• Internal consumption as energy: in the
residential, industrial, transportation,
27,000 to 160,000 tons, between 2030 and
2040, and It reaches 418,000 tons in 2050. The
97
30
Four. Five
percentage share of total consumption for this
energy use is 70% in 2040 and 86% in 2050.
fishing, construction, mining, agriculture and others.
• Domestic consumption as raw material:
The remaining 30% and 14% correspond to use
Replacement of consumption in refineries,
225
100
61
twenty-one
commercial and public sectors and
60
12
7
6
0
2030
2040
2050
Year
as an input.
replacement of imports of nitrogen
Figure 15: Distribution of domestic hydrogen demand in scenario H2 Practical.
Source: Own elaboration MEM.
fertilizers through ammonia production
and replacement of methanol imports.
The majority participation for the use of hydrogen
as energy is found in the industrial sector,
followed by the fishing, construction, mining,
For 2030, the estimated theoretical maximum
demand potential for the domestic market
agricultural and other sectors.
In the mining sector, specifically, a high potential
including the total replacement of the hydrogen
is identified in the adaptation of yellow machinery.
requirement as a raw material is 97,000 tons,
equivalent to an installed electrolysis capacity of
The transportation sector has a lower participation
due to the strong energy efficiency measures
900 MW. The majority participation is related to
projected in the PLANEE. Additionally, taking
the use as matter
into account the high levels of
premium in the replacement of current uses and
electrification that can be achieved in the
imports, which represents 70% of the total
residential and commercial and public sectors,
demand by 2030. The above corresponds to
the demand for hydrogen in these sectors is
minimal when compared to total demand.
approximately 190 MW of electrolysis capacity
6.2 Export market
In a first stage, importing countries are mainly
The final cost of hydrogen is determined by two
main factors: its production costs and its
betting on two products: green ammonia and
transportation costs. Due to the low volumetric
methanol, which may be necessary as hydrogen
energy density of hydrogen, it is therefore
carriers or as a final product or input for other
necessary to condition it to transport it over long
industrial processes. This allows us to take
advantage of the existing infrastructure and the
distances. This conditioning can be physical,
such as liquefaction, or chemical to transform it
experience we have in its transportation and
into hydrogen-bearing products with higher
management, that is, we already have a chain
energy density (such as ammonia or methanol).
of established value.
required to supply the
50 Green Hydrogen Roadmap
Government of Ecuador 51
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In later stages of deployment (around 2035), synthetic fuels
geographical location and by the objectives set out in their
This value is distributed in approximately 70% hydrogen for ammonia
Considering the great increase that the demand for hydrogen will
(which can make use of existing fossil fuel infrastructure) and
respective road maps where for the three countries an
production and 30% for methanol production. The electrolysis capacity
have in the future for the countries selected as potential importers, a
liquid hydrogen are expected to evolve technologically, become
approximate import demand of 8.06 Mt (million tons) by 2030
required for this purpose amounts to around 100 MW. This capacity
coverage of close to 0.15% of the respective market is considered for
more competitive and account for hydrogen demand. Worldwide.
and 76.5 Mt by 2050 is estimated. they identify large import
should be understood as a minimum objective to achieve; In the event
2040 and 2050, which results in a production of 100,000 tons and
In these stages, in addition to the export of ammonia, the export
potentials for South Korea and Japan; According to their
that larger production capacities are implemented, a higher percentage
188,000 tons, respectively. These values assume a participation of
of green fertilizers can also begin to be considered, depending
respective roadmaps for these two countries, a combined
of the estimated export demand could be covered.
derivatives corresponding to 30% for ammonia, 30% for methanol,
on the development that occurs at the local and global market
demand is estimated at 3 Mt by 2030 and 41 Mt by 2050.
30% for synthetic fuels and 10% for liquefied hydrogen9. The
electrolysis capacity required to cover these export volumes amounts
level.
to 0.9 GW by 2040 and 1.7 GW by 2050.
It is also worth highlighting that, if it is not possible to give a boost to
In summary, Table 10 shows the estimates of green hydrogen
internal demand, so that it develops in accordance with the estimates
import volumes for the selected potential destinations: Germany,
Countries in the European Union and Asia were identified as
Belgium, the Netherlands, Japan and South Korea for the years
projected, the installed capacity of these projects can be used to
potential destinations for green hydrogen derivatives generated
2030 and 2050.
cover export volumes (existing demand) at least in the initial stages
Figure 16 presents the projection corresponding to the demand for
in Ecuador. In the European Union, the Netherlands, Belgium
of deployment; In this way, the capacities installed from the beginning
hydrogen for the export of derivatives for the years 2030, 2040 and
and Germany were selected for their
are efficiently used and the transition can be made from exporting to
2050.
covering the domestic market as domestic demand grows.
Table 10: Estimated import demand for selected countries.
Source: Own elaboration MEM.
Unit
2030
2040*
2050
Mt.
1.86 – 2.46
11.9 – 24.2
22 – 46
Belgium
Mt.
0.6
3.3 – 5.6
6 – 10.5
Netherlands
Mt.
3–5
11.5 – 12.5
twenty
Mt.
1
9.5
18
Mt.
2
12.5
23
Mt.
8.5 – 11.1
Country
Germany
Japan
NH3
MeOH
LH2
Synthetic fuels
200
188
180
160
South Korea
Total
48.7 – 64.3
70
140
120
89 – 117.5
100
16
100
* Because the countries' strategies present goals for 2030 and 2050, the values for 2040
were calculated by linear interpolation between 2030 and 2050.
80
51
sevitavir)e
tkd(
37
60
9
40
needgceoudrddeoyeroH
nt
p
Distribution of export market demand
Taking into account that Ecuador is just beginning to lay the
It is based on a conservative projection, which assumes that by 2030
foundations for the deployment of a hydrogen economy and the time
Ecuador will be able to supply 0.1% of the market of the selected
required for the development, implementation and launch of
potential importing countries, which would be equivalent to a
commercial-scale projects, it is
production of 11,000 tons per year.
twenty
0
27
3
8
eleven
27
2030
51
2040
2050
Year
Figure 16: Projection of hydrogen demand for the production of derivatives for export.
Source: Own elaboration MEM.
9
52 Green Hydrogen Roadmap
This proportion for liquefied hydrogen will depend on whether transportation technologies are implemented on a commercial scale.
Government of Ecuador 53
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6.3 Electrolysis capacity
Figure 17 summarizes the electrolysis capacity necessary
For the years 2030, 2040 and 2050, total electrolysis
You can see the CO2 eq emissions projection lines for the
to meet the estimated demands of the domestic and export
capacities of 1 GW, 3 GW and 6 GW are needed,
scenarios mentioned above.
markets.
respectively.
in the ideal H2 case, with respect to the base scenario in
2050.
The results once again confirm the great potential that the
Domestic consumption
The two hydrogen penetration scenarios allow establishing
deployment of a hydrogen economy offers in reducing
an additional emissions reduction potential of 11 Mt
greenhouse gas emissions for Ecuador.
Export
CO2 eq in the case of practical H2 or 15 Mt CO2 eq
7
6.1
6
Baseline (CE)
1.7
5
Ideal H2 (EC)
H2 Practical (CE)
70
60
4
fifty
3.0
3
36
40
30
4.4
0.9
2
31
29
30
25
twenty
1.0
2.1
0.1
23
snoiss2iO
m
)tM
qC
E
e(
sisyyltoicr)taW
cpeG
alE
c(
1
twenty
0.9
16
10
0
2030
2040
2050
Year
0
2020
2030
2040
2050
Year
Figure 17: Electrolysis capacity required to supply the demand for hydrogen for domestic consumption and export.
Source: Own elaboration MEM.
Figure 18: Greenhouse gas emissions for the baseline scenario and the ideal and practical hydrogen
penetration scenarios. Source: Own elaboration MEM.
6.4 Reduction of GHG emissions
Starting from an emissions value of 36.5
can be seen in the Baseline (CE). For the proposed
Mt CO2 eq in 2020 there would initially be a reduction in
emissions due to the
in CO2 eq emissions would be achieved for the ideal H2
hydrogen demand and penetration scenarios, a reduction
implementation of energy efficiency measures, in
scenario of 56.8% in 2050 and for the practical H2
accordance with the National Energy Efficiency Plan
scenario, the reduction is expected to be 45% in the year.
(PLANEE) [10], of 15.7% by 2030 and 15.2% by 2050
2050, compared to 2020. Figure 18 shows
based on the year 2020. This decrease is
54 Green Hydrogen Roadmap
Government of Ecuador 55
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installed electrolysis capacity of 50 kW per
hydrogen and transformation to derived
products considering the conditions
local.
7. Vision: Goals, milestones and prioritized actions
project. These projects must be defined and
approved in this first phase of the Roadmap, so
that they can come into operation towards the
end of the phase.
• Projects to replace hydrogen of fossil origin
in the industrial sector in those sectors
that are currently large consumers of
The advantage of these projects is that they are
easily scalable, so installed capacity could be
increased quickly.
hydrogen.
In the Ecuadorian context, the Esmeraldas
Taking into account the analyzes carried out for Ecuador and the resources
identified, the production strategy for green hydrogen and derivatives that should
be followed to meet the estimated domestic and export demand is described
below. Three phases are established for this: a short-term initial phase, a mediumterm deployment phase and a long-term consolidation phase.
refinery is emerging as a type of industry
Considering the definition and approval of at
suitable for implementing a pilot project
least two pilot projects for this phase, an
electrolysis capacity of 100 kW could be had by
the end of 2025 or
of this type.
At the end of this phase, it is essential to have
the beginning of the next phase. This requires
an adequate regulatory and regulatory framework
an electricity generation capacity from renewable
for the development of green hydrogen projects
energy of around 200 kW. It is estimated,
according to current available costs, an
and derivatives and the first operational
experiences of pilot projects must be evaluated
7.1 Phases of the Roadmap
7.1.1 Initial phase (until 2025)
electrolysis; while for renewable energies,
conditions and their scalability and replicability.
investments will depend on the selected
in the national territory. Additionally, information
campaigns must be carried out that allow
technology and will be in the order of 171,000
communities to identify the advantages and
For this initial phase you must continue
of communities in general and the development
promoting the allocation of blocks of non-
of regulatory aspects in national legislation,
benefits that the implementation of these projects
bring in their territories.
conventional renewable energy (NCRE) and the
including the definition of tax benefits, and
development of geothermal energy must be
technical and regulatory aspects required for the
entire value chain of green hydrogen and its
Highlighting the importance of the implementation
differentiator for Ecuador. At this stage, an
electricity production capacity from renewable
derivatives.
of pilot projects in this phase, a minimum goal
should be set:
energy of at least 1 GW should be awarded in
Simultaneously, the formulation and
the short term to begin its implementation in the
post-2025 phase.
implementation of pilot projects should be
promoted, such as:
promoted, as a great potential regional
In relation to green hydrogen and its derivatives,
the
framework conditions that encourage the
development and implementation of projects.
This includes, as a priority, the training of
• Research and development projects with
close links between the sector
USD for exclusive production from photovoltaic
solar energy, 382,000 USD for wind energy,
438,000 USD for small hydroelectric plants
(SHP) of up to 10 MW, 295,000 USD for
hydropower (plants up to 100 MW) and 184,000
USD for biomass.
7.1.2 Medium-term deployment phase (until 2030)
For this phase, it is necessary to allocate 6 GW
In this phase, the implementation of the first
of electricity generation capacity from renewable
commercial-scale projects is planned, allowing
industrial and the academic sector for the
study of specific aspects related to
energies, which will allow for the start of
greater production of green hydrogen and its
implementing hydrogen projects on a larger
production, transportation and storage,
scale from 2030, when it is expected to have an
installed electrolysis capacity of 1 GW. which
derivatives, along with the development of
infrastructure related to transmission.
new uses of
of electricity, storage and transportation to supply
projected domestic demand and export demand.
personnel from public, private and
should increase to 3 GW by 2040.
56 Green Hydrogen Roadmap
approximate investment of 400,000 USD for
in specific aspects of the processes in local
At this stage
Government of Ecuador 57
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presented in detail in section 10.2 of this strategy,
solar photovoltaic energy, USD 2.41 billion for wind
will be placed mainly on replacing hydrogen
It is important to consider that export will be
with a total electrolysis capacity of 400 MW, and
energy, USD 4.4 billion for small hydropower plants
generated from fossil fuels in their current uses
done through derivatives - in the initial
for which approximately 800 MW of electrical
(SHP) up to 10 MW, USD 2.692 million for
with green hydrogen, since this can be done simply
stages mainly ammonia and methanol - so
generation capacity from renewable energies
hydropower (plants up to 100 MW) and USD 1.533
million for biomass.
It is expected that for domestic demand emphasis
and quickly without major technological challenges.
this phase would allow the implementation
would be required. According to estimates of
of new productive industrial sectors in
internal and external demand, the total electrolysis
Ecuador.
capacity required by 2030 would be 1 GW, which
implies the implementation of a greater number of
To achieve demand scenarios
projected it is necessary to create incentives that
projects or greater capacities for those identified.
It should be noted that these values presented for
each of the renewable energies serve as a guide
for investment requirements in renewable energies.
• Implementation of green hydrogen production
encourage the production and consumption of
projects and derivatives (mainly ammonia
The total value invested for 2 GW of power will
hydrogen as shown in the definition of public
and methanol) to satisfy domestic demand
surely be between the minimum (biomass) and
policies and regulatory framework.
and to replace imports of fertilizers, raw
Among the objectives to be developed in this
phase are:
materials for industrial use and fossil fuels.
The investment associated with 1 GW of electrolysis
account that in most cases a combination of energy
These projects can be developed in parallel
to cover the estimated domestic and export
demand in 2030 is 368 million
sources is used.
to export projects or expanding their
maximum (PCH) values identified, taking into
installed capacity, so that economies of
USD. For the 2 GW of electricity generation from
generation to make more efficient use of resources
deployment of a hydrogen economy could
scale allow a reduction in costs to supply
and reduce hydrogen production costs.
benefit from the first commercial-scale
the domestic market.
renewable energies required, the investments
would be around 1,714
• Hydrogen production for export: The
million USD, if considered only
projects focused on
meet export demand. The export of green
hydrogen in the initial stages where
7.1.3 Long-term consolidation phase (beyond 2030)
production costs are still high will be key in
the deployment of this economy, mainly
To promote the substitution of green hydrogen and
This phase assumes the consolidation of the
hydrogen through additional or larger-scale projects
because this international market will
its derivatives in their current uses, it is also
hydrogen economy in Ecuador to satisfy its internal
for the production of derivatives such as ammonia
develop
necessary that the consumption of fossil fuels
demand and meet export goals. It is also
and methanol and also the implementation of
reflects the real costs associated with their
characterized by generating other derivative
synthetic fuel production projects.
rapidly and there will be a growing demand
production and use.
products with high added value such as synthetic
for sustainable energy in countries that will
Additionally, the application of royalties to the
fuels. It is projected that for this phase a
be potential importers due to their limited
exported volumes of green hydrogen and its
massification of production processes on a
Another highly relevant activity that can benefit
local production capacities (for example,
derivatives can be analyzed, with which the
commercial scale will have been achieved.
from the experience in the first projects related to
Germany). These potential importers will be
additional cost of these products in the domestic
willing to assume the added value of
market can be subsidized, at least partially, so as
Starting from the experiences collected with the
high energy requirements and will require a
sustainable products that allow them to
to promote their local use. .
implementation of the first projects for the
technological transition for its decarbonization. It is
meet demand and advance in the
production of green hydrogen and its derivatives
important that the National Government and private
implementation of a global value chain.
on a commercial scale during the deployment
actors establish joint actions
For this phase, some priority pilot projects and
other commercial-scale demonstration projects are
green hydrogen is the fishing sector, which has
phase, the country can advance in the consolidation
of the economy of the
identified, which will be
58 Green Hydrogen Roadmap
Government of Ecuador 59
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cooperation for technological transformation in this sector.
Phase 2
Phase 1
of electricity production from renewable energies of approximately 6 GW
2023 - 2025
to supply a projected electrolysis capacity of 3 GW by 2040. This will
imply an estimated investment of 2,102 million USD
Beyond 2030
GOALS AND MILESTONES
Another aspect that must be considered when there is already a high
By 2040:
• 2 GW renewable
energies.
installed electrolysis capacity is the potential for using these electrolyzers
to make the electrical grid more flexible. For this it is necessary
Phase 3
2026- 2030
• 0.2 MW renewable energies.
for electrolysis and 2,605 million USD for renewable energies considering
Capacities
• 0.1 MW of electrolysis.
• 6 GW renewable energies.
•
only photovoltaic solar energy, 5,672 million USD with wind energy,
1 GW of electrolysis (global
for both phases).
• 3 GW of electrolysis.
13,130 million USD with hydraulic energy (PCH < 10 MW), 8,886 million
development of an adequate regulatory framework that includes, for
USD with hydraulic energy (100 MW plants ), 4,369 million USD with
example, a market for auxiliary services or balance sheet in Ecuador.
biomass and 24,000 million USD with geothermal.
USD millions
USD millions
• E. renewable:
Once the goal of 1 GW of
• E. renewable:
- Solar = 1,714
- Solar = 2,605
- Solar = 0.171
- Wind = 2,410
- Wind = 5,672
- Wind = 0.382
- Hydraulics (10 MW) =
- Hydraulics (10 MW) =
- Hydraulics (10 MW) = 0.438
4,400
- Hydraulics
- Hydraulics (100 MW) =
Investments(1)
installed and operational electrolysis capacity by 2030, it is required to
Millions of USD(2)
• E. renewable:
- Hydraulics (100 MW) = 0.295
install a capacity
13,130
(100
8,886
- Geothermal =
MW) = 2,692
- Biomass =
- Biomass = 0.184
24,000
1,533
- Biomass =
4,369
• Electrolysis = 0.400
• Electrolysis = 1.271
7.2 Goals and milestones of the Roadmap phases
• Electrolysis = 2.102
As a summary of the information
of renewable energies, implementation of green hydrogen production
presented in the phases are shown in the
projects and its derivatives, capacities, investments and the expected
Table 11 and Figure 19 the goals and milestones for each of the phases
reduction of CO2 emissions.
Reduction of
CO2 emissions compared
to 2020
-
15.7% by 2030
36.0% by 2040
of the Roadmap in relation to the implementation of projects
(1) The investments shown for renewable energies refer to the total value for the required capacity considering
a single generation source. (2) Considering specific investment costs to 2030.
Table 11: Goals and milestones of the Roadmap phases.
Source: Own elaboration MEM
Phase 2
Phase 1
2023 - 2025
2026- 2030
Phase 3
Phase 2
Phase 1
Beyond 2030
2023-2025
2025-2030
Phase 3
Beyond 2030
GOALS AND MILESTONES
Implementation of
energy projects
renewable
Award of 1 GW of non-
Award of 6 GW of non-
Continuation of
conventional renewable energies
conventional renewable energies
the allocation of non-
to begin implementation during
to complete its implementation
conventional renewable
phase 2.
until 2040 (phase 3).
energy capacities.
• Phase 2A: 2026 – 2028
Implementation of pilot
• Structuring of pilot projects.
Implementation of
hydrogen and/or
derivative production
projects:
• Implementation of
projects with a total electrolysis
commercial scale
projects (prioritization)
capacity of at least 0.5
MW.
to reach 3 GW of
electrolysis in total by
Capacity of
renewable energy
0.2MW
2 GW
6GW
Capacity of
electrolysis
0.1MW
1 GW
3GW
Investments (M USD)
ER 0.17-0.44
ER 1,714-4,400
HE. 0.4
HE. 1,271
Reduction of
emissions
15.7% by 2030
ER 2,605-24,400
HE. 2,102
36% by 2040
2040.
• Definition of so
least two strategic pilot projects
that will require approval
during this phase.
Solar = 0.17 M USD
• Phase 2B: 2028 - 2030
Analysis and continuation of pilot
projects.
• Production of
on a commercial scale.
Solar = 1,714 M USD
Hyd. (10 MW) = 4,400 M USD
Solar = 2.60 M USD
Geothermal = 24,000 M USD
derivatives such as
ammonia, methanol and
Definition of projects for replication
Hyd. (10 MW) = 0.44 M USD
ER=Renewable energy. EL: Electrolysis
synthetic fuels.
Figure 19: Goals and milestones of the Roadmap phases.
Source: Own elaboration MEM.
60 Green Hydrogen Roadmap
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7.3 Prioritized actions for the implementation of the Roadmap
7.3.1 Research, development and innovation and training
Ecuador has more than 50 universities
To achieve the production objectives of hydrogen and its derivatives, the
distributed in the implementation phases of the Roadmap and the four strategic
development of different actions for the established phases is required. The
axes as presented in Figure 20. From this figure it is clear that the fundamental
public and private in which there are still no programs 100% focused on
work focus in phase 1 will be the area of standards and regulation.
technologies in the hydrogen value chain; However, there are research groups
proposed actions are framed in four strategic axes: Research, development
related to green hydrogen and its derivatives.
and innovation (R+D+i); regulations and regulations; infrastructure and
that have been working on issues related to green hydrogen and public
In a complementary manner, there are different industrial sectors with
international cooperation. In total 31 prioritized actions were established
research institutes where research and prototypes of biofuel plants have
experience in gas management, such as, for example, the oil industry, who
already been carried out. There is also a
with adequate training will be able to introduce green hydrogen into their
production processes.
Phase 3
Phase 2
Phase 1
2025-2030
2023-2025
Beyond 2030
wide range of programs related to technical and industrial topics that can be
adapted or expanded to include topics
3. Train industries.
R&D+iy
training
1. Train technical personnel.
2. Develop programs
training at the university level.
4. Continue with training
The actions are mentioned below
prioritized for each of the phases.
6. Consolidate programs
training.
in technical education and
university.
7. Strengthen the work of
investigation
5. Create R&D groups
Phase 1:
In technical education, programs must be developed to train personnel in the management of equipment and technologies for renewable
8. Develop the regulatory framework.
1
electricity generation and the production, storage and transportation of green hydrogen and its derivatives.
9. Establish definitions
FERNC
10. Establish responsibilities.
Rules and
regulations
11. Establish policies for the
deployment of FERNC.
15. Establish an outline
of guarantees of origin for
green H2 electricity and its
derivatives.
16. Establish regulations for
12. Establish conditions of
production of H2 to be considered
green.
13. Develop financing mechanisms
infrastructure development.
17. Establish regulations for
uses of H2 in the sector
transport.
18. Strengthen the system of
carbon markets.
19. Evaluate progressive withdrawal
fuel subsidies
fossils.
20. Establish a framework
training for derivatives
of hydrogen.
Develop training programs in green hydrogen and derivatives. The above includes initially taking courses and then, in the short term, establishing
2
programs such as master's degrees and specializations, focused on the development of projects related to green hydrogen and its derivatives.
National and international universities and research centers can establish strategic alliances to promote collaborative research in green hydrogen.
14. Establish usage rules
Of electricity.
Infrastructure
21. Evaluate current capabilities
and future requirements.
22. Evaluate the use of the network
natural gas.
23. Carry out planning
national infrastructure.
24. Establish expansion plans
and production.
25. Develop infrastructure
port.
26. Continue with
implementation of the
infrastructure expansion.
27. Continually evaluate the
expansion plans.
In this phase, one must also consider
specific at an industrial level, considering that all current use of gray hydrogen
conducting market studies
can be replaced by green hydrogen in the short term, but also exploring
specific, which may be run by universities or other training centres, to identify
potential for new applications.
potential end users
International
cooperation
28. Establish alliances at the level
world.
29. Establish alliances
30. Strengthen and expand the
international alliances.
31. Establish new agreements
cooperation and financing.
regional.
Figure 20: Prioritized actions for each of the phases of the Roadmap.
Source: Own elaboration MEM.
Each of the prioritized actions presented in Figure 20 is described below.
62 Green Hydrogen Roadmap
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Phase 2:
3
Phase 1:
Train personnel from industries that are currently consumers of hydrogen in the
management of technologies related to green hydrogen and its derivatives and exchange
experiences and knowledge with the academic sector. Training of government entities on
8
Government entities must be trained in the management and application of this
regulatory framework.
technical and regulatory issues related to green hydrogen should be promoted.
4
Continue with the development of training programs at the technical and university
education level.
5
Creation of specific research and development groups.
Phase 3:
6
7
Define a regulatory framework to establish market operating guidelines and provide
legal security to investors and project developers.
9
10
eleven
Include green hydrogen in the definitions of non-conventional renewable energy sources.
Establish the powers and responsibilities of the different institutions involved.
Establish policies and programs focused on accelerating the deployment of nonconventional renewable energy.
Consolidate the training programs implemented.
12
Establish the conditions for hydrogen production so that it is considered green, in a
manner harmonized with international regulations.
13
Develop mechanisms to access financing for green hydrogen projects and their
derivatives.
14
Define the rules for the use of electricity for the production of hydrogen and the
remuneration structures for its commercialization.
Strengthen research efforts, identifying specific areas of focus and specialization for
Ecuador.
7.3.2 Rules and regulations
Currently, hydrogen is not recognized within
state legislation and regulations in its energy
role and its categorization of green hydrogen is
not defined within the regulatory framework of
to create or extend non-conventional renewable
energy incentives for projects to produce green
hydrogen and its derivatives, as well as to
promote their use in strategic economic sectors.
non-conventional renewable energies. Legally
establishing their rank and classification
represents a fundamental requirement to provide
legal stability to the large investments necessary,
the same
64 Green Hydrogen Roadmap
The actions are mentioned below
prioritized for each of the phases.
Government of Ecuador 65
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Phase 2
158
Phase 1
Develop a guarantee of origin scheme for electricity, green hydrogen and its derivatives or
Evaluate current capacities and future requirements in electrical transmission and
218
adopt schemes applied internationally.
16
Adopt regulations for the development of infrastructure for the transportation, distribution
22
and storage of hydrogen.
17
Establish regulations for the deployment of hydrogen stations (recharging stations) and for
23
uses of hydrogen in the transportation sector.
Phase 3
188
Evaluate the potential future use of the current natural gas transportation network or the
viability of its adaptation and future expansion for the transportation of hydrogen.
Coordinate national infrastructure planning with the developments required for hydrogen
and its derivatives.
Phase 2
Strengthen the carbon market system that accelerates the competitiveness of renewable
248
energies.
19
distribution, land transportation and ports for the development of expansion plans.
Evaluate the progressive withdrawal of existing fossil fuel subsidies, as currently
25
Develop and implement expansion and production plans for green hydrogen and its
derivatives.
Plan and develop port infrastructure for the export of ammonia and other derivatives.
implemented in other countries in the region.
twenty
Establish a regulatory framework for the production, storage, transportation and use of
Phase 3
hydrogen derivatives.
Continue with the implementation of the outlined infrastructure expansion plans, including
268
the development of port infrastructure.
7.3.3 Infrastructure
The transition from the current system to a
transformation of green hydrogen to derivatives
Sustainable development supported by green
and new industrial and energy uses.
27
hydrogen and its derivatives implies infrastructure
development that covers everything from the
The actions are mentioned below
production of electricity from renewable sources
prioritized for each of the phases.
Continuously evaluate expansion plans in such a way that they align with the global and
national development of the hydrogen economy.
to storage and transportation,
66 Green Hydrogen Roadmap
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7.3.4 International cooperation
It is important to establish international
cooperation agreements with countries in the
region, as well as with technology-supplying
countries and potential importers of green
hydrogen and its derivatives, to promote the
exchange of experiences, technological transfer
and the strengthening of local capacities, as well
as the access to potential sources of financing.
of hydrogen and collaborative initiatives with
multilateral entities that facilitate the development
of the studies proposed in the Roadmap and the
8. Development risks
of green hydrogen
achievement of financing resources for pilot
projects and research programs.
in Ecuador
The actions are mentioned below
prioritized for each of the phases.
In the development of the green hydrogen value chain in Ecuador, risks are
identified that must be mitigated to ensure safe deployment and successful
penetration in the different sectors where demand will be supplied. 4 areas are
considered that group the different types of risks as shown in the following
sections. Subdivisions a, b and c correspond to risks from the same family that
are presented individually. Finally, the classification and evaluation of risks is
presented in terms of probability of occurrence and impact generated.
It will also be relevant to participate in
international regulatory bodies.
Phase 1
288
Establish strategic alliances with relevant actors such as the European Union, the United
States, Japan and South Korea for the transfer of knowledge and technologies and for
access to financing sources.
8.1 Technological risks
29
Establish regional strategic alliances for the integration of the Ecuadorian market with
countries such as Chile, Colombia and Brazil.
Table 12: Technological risks identified in the development of the green hydrogen value chain.
Source: Own elaboration MEM
Technological risks
Risk
Phase 2
30
Mitigation
1a) Low level of research and development in solar,
wind and electrolysis technology.
• Promote development and research in
academia and alliances with producing countries,
promoting research and implementation of projects at
the local level.
1b) Lower penetration of technologies causing low learning
rates of green hydrogen value chain technologies.
• Promote the use of hydrogen in industrial and
transportation applications through economic
incentives, pilot projects, exemptions from
mobility restrictions for vehicles that use green
hydrogen or any of its derivatives, among others.
1c) Costs are not reduced in the production of
synthetic fuels and liquefied hydrogen on a large scale
due to the lack of development and research in the
technologies.
• Develop alliances with countries and companies
that provide the technologies to promote the
development and installation of production projects
at the local level.
Strengthen and expand international and regional alliances.
Phase 3
Establish new bilateral cooperation and financing agreements or update existing ones
318
to reflect current market conditions.
68 Green Hydrogen Roadmap
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Social and environmental risks
Technological risks
Risk
Mitigation
2) Global crises and unstable geopolitical context that interfere
with supply chains, affecting the prices of materials
and raw materials.
Risk
Mitigation
• Develop political and economic alliances that allow having
more than one option regarding the supply of important
components.
7a) Modification in the use, suitability, access and
enjoyment of the land as a consequence of the
3a) Areas with geothermal potential that are located
in areas of volcanic impact, preventing the deployment
• Implement area search programs
with geothermal potential in areas not affected by volcanoes.
implementation and operation activities of renewable
energy and hydrogen generation projects.
• Establish regulations regarding the location of
hydrogen project facilities in urban areas. •
Dissemination of pertinent
information to communities in the area of influence of
hydrogen projects. • Include in the development of
the projects the supply of
electricity and drinking water for the communities
established in the area.
of the technology.
territory.
• Establish dialogues between government entities and project
developers to reach agreements on the viability of implementing
projects in protected areas.
3b) Areas with hydraulic potential that are located
in protected areas preventing the deployment of
technology.
• Establish mechanisms for assigning the use of public
lands for the implementation of hydrogen projects.
7b) Generation of community conflicts due to changes in
the use, distribution and conservation of natural
resources, altering the organization, interrelation and
expectations caused by the implementation of
projects in the hydrogen value chain.
8.2 Social and environmental risks
Table 13: Social and environmental risks identified in the development of the green hydrogen value chain. .
Source: Own elaboration MEM
7c) Little acceptance of green hydrogen projects and
derivatives.
Social and environmental risks
Risk
Mitigation
4a) Decrease in the supply and availability of surface water
resources.
• Strategic location of the projects
hydrogen generation avoiding impacting the availability
of water resources for human and agricultural consumption.
• Consider the desalination
of seawater in
coastal projects. •
Implement water reuse policies.
4b) Alteration in the quality of the water resource.
5) Change in fauna communities (composition, structure,
function, movement, trophic chains) as a consequence
of the implementation of the green hydrogen value chain.
6) Leaks or spills of hydrogen derivatives (ammonia,
methanol, synthetic fuels)
70 Green Hydrogen Roadmap
• Implement regulations on the quality and correct
disposal of wastewater from green hydrogen production
plants or derivatives, so that their impact on fresh or
marine water sources is reduced.
• Generate environmental management plans to
mitigate impacts on wildlife, as well as mitigation and
compensation measures to be implemented by project
developers.
• Develop clear regulations for your
safe handling and handling, for example by setting
minimum distances to drains, surface water and
groundwater.
8a) Inequity in employment generation due to lack of hiring
and qualified local labor in green hydrogen projects.
8b) Lack of inclusion with a gender perspective.
• Regulate and regulate the fair compensation to which the
communities affected by the implementation of green
hydrogen generation projects should be entitled.
• Carry out consultation and dissemination processes with
communities established in the territory
affected.
• Implement and ensure compliance with a
clear regulatory framework for security.
• Establish hiring quotas in the
implementation of projects and establish training
programs for the entire hydrogen value chain.
• Establish incentives and differential actions
in the training and hiring of women as technicians and in
STEM areas (science, technology, engineering and
mathematics).
8.3 Infrastructure and logistics risks
Table 14: Infrastructure and logistics risks identified in the development of the green hydrogen value chain.
Source: Own elaboration MEM
Infrastructure and logistics risks
Risk
9a) Existing infrastructure in airports, seaports and
land routes inadequate or insufficient for the import and
transportation of capital goods for renewable energy,
green hydrogen and derivatives projects.
Mitigation
• Adaptation and specialization of airports or
seaports for the import of capital goods associated with
renewable energy projects, green hydrogen or their
derivatives.
Government of Ecuador 71
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Political risks
Infrastructure and logistics risks
Risk
Mitigation
• Establish a national plan for building the infrastructure
required to make optimal use of available resources
throughout the hydrogen value chain.
9b) Non-existence or poor condition of land roads.
Risk
13b) Financial risks associated with stability of the financial
system and exchange rate: Blockage of
cross-border cash flows as a result of extreme variations in
the exchange rate or government instructions.
• Identify optimal mechanisms of
hydrogen storage for Ecuador (tanks, salt caverns,
exhausted oil wells).
10) Uneven development of transportation and storage
projects compared to those for the generation of
hydrogen and derivatives.
• Establish transportation pilot projects
and hydrogen storage with government support to
demonstrate its technical feasibility on a large scale.
• Support for research and development of applied sciences
for the storage and transportation of hydrogen and its
derivatives.
11) Late development of industrial infrastructure for the
production of derivatives that delays the penetration
of hydrogen in the different sectors where its deployment
is planned.
• Establish pilot production projects
of derivatives with government support to demonstrate
their technical viability and gain initial experiences in their
implementation and operation processes.
13c) Changes in foreign trade policies: Export or import
restrictions that cause losses in commercial transactions.
14a) There is no energy policy in which government entities
set long-term development goals.
14b) There is no clear regulatory framework that
regulates the implementation of projects, which generates
insecurity for their development and approval.
8.4 Political risks
Table 15: Political risks identified in the development of the green hydrogen value chain.
Source: Own elaboration MEM
14d) Users cannot certify the origin of hydrogen
and producers cannot certify the reduction of emissions.
Political risks
Risk
12) Change in political priorities: New
policies can generate changes in regulatory and tax
conditions, or make administrative procedures for
requesting licenses and permits more difficult.
13a) Country Risk:
The high level of fiscal debt impacts the country risk rating
and the cost of debt and capital of the project.
72 Green Hydrogen Roadmap
14c) It is not possible to attract investors due to the total or
partial lack of tax incentives.
Mitigation
• Development of financial instruments
hedging exchange rates (e.g. against the euro) and
establishing public-private alliances.
• Definition of the country's economic priorities around green
hydrogen and establishment of long-term commitments, for
example, installed electrolysis capacity, number of
FCEVs, tons of hydrogen exported, among others.
• Promote the implementation of energy policies
and establish long-term government
commitments that allow project developers to have
planning security.
• Work jointly with government entities and the private
sector to create a regulatory and regulatory
framework that provides clarity on the steps, standards
and laws to follow for the implementation of projects.
• Work together with investors and the private sector to reach
agreements and take actions regarding tax incentives that
make the implementation of large-scale projects viable.
• Promote alliances and exchange of
knowledge and experiences with hydrogenproducing countries that allow companies and
institutions to be trained on the subject.
Mitigation
• Define long-term policies.
• Articulate society in general and the
international community to meet the 2050 goals.
• Development of financial instruments
interest rate coverage and access to non-reimbursable
funds through public-private partnerships.
15) Government entities are limited with respect to their
technical and regulatory capabilities.
16) Public insecurity or an armed conflict, as well as disputes
over the use of land, constitute a risk for the
development of new projects and for the stability of
those already built.
• Establish training programs for government entities
regarding regulatory and technical issues related to the
green hydrogen value chain.
• Development of participatory mechanisms with
communities in the development of the project and
government support during implementation and
operation.
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8.5 Classification and evaluation of main risks
The assessment of the risks identified above is
On the other hand, another of the most important
presented in Figure 21 taking into account the
risks among those identified is related to political
probability of occurrence and the impact for the
aspects, specifically with instability in fiscal,
deployment of the green hydrogen economy.
financial and foreign trade policies.
According to the results of the
Ecuador and would have a great impact on the
9. Closing gaps
and state policy
This risk has impacts on investor confidence in
evaluation, it is necessary to pay attention to the
deployment of a hydrogen economy. To counteract
management of hydrogen and its derivatives in
this risk, financial instruments must be implemented
order to avoid accidents (spills) that affect the
environment, considering that this type of accident
value chain must be defined, such as policies.
and the country's goals regarding the hydrogen
in the early stages of deployment of the
The growing interest in the development of public policies to promote green
technologies can result in generalized reactions
hydrogen internationally has resulted in an exercise by countries to develop their
of State.
national strategies for the deployment of hydrogen.
of rejection by part of the communities to this
sector. This is achieved through training programs
In these strategies, the objectives are defined in the medium and long term and the
for operators and the implementation of regulations
Other risks presented in the figure, political, mainly
social
environmental,
current situation is analyzed, with the purpose of identifying the main gaps to be
around the handling and transportation of hydrogen
although they have a lower probability of
addressed to achieve the objectives. Based on this analysis, action plans are
products, where the safety requirements to be
occurrence, must be managed appropriately due
established.
met are clearly defined.
to the high impact they can generate.
and
The gaps identified in the case of Ecuador in the deployment of green hydrogen
have been classified into five main axes:
6
High
7
16
1.
Economic and market aspects, Technical
2.
and technological aspects, Aspects
3.
related to infrastructure, Socio-environmental
4.
aspects and Public policies.
5.
fifteen
4
13
Risk
technological
12
9
14
5
Half
Impact
eleven
Social risks
2
and environmental
8
3
1
10
Low
9.1 Economic and market aspects
Risks of
infrastructure
and logistics
Achieving competitive and market costs for green
regulatory measures aimed at granting financing
hydrogen will largely depend on the deployment
of low-cost renewable energy and the
facilities to projects, incentives for the
decarbonization of the economy, regulatory
Risks
politicians
corresponding reduction in capex for these
harmonization that facilitates international trade in
technologies and for the electrolysis process.
green hydrogen and the deployment of technical
Regarding these two factors, regulation plays a
standards.
determining role.
The production of green hydrogen requires very
Low
Half
high
Probability
Figure 21: Risks associated with the deployment of green hydrogen in Ecuador
Source: Own elaboration MEM.
74 Green Hydrogen Roadmap
high initial investments. Although renewable
Some of the elements that must be implemented
generation and electrolysis technologies can be
to achieve the penetration of green hydrogen and
considered developed, sufficient scale has not yet
been reached to reduce their costs.
its derivatives in Ecuador's economy include:
Measures
Government of Ecuador 75
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At this point, regulation plays a fundamental role by
establishing signals towards the
and its derivatives in sectors that already have an
done in a coordinated manner between the
financial sector to deploy public-private financing
energy system for which there is infrastructure,
public and private sector. At an international level, the
The deployment and penetration of green hydrogen
mechanisms such as the adjustment to the carbon tax.
The impetus for the creation of this market must be
instruments such as low-interest loans, green bond
regulation, standards, and developed supply and
In order to preliminarily quantify the volume of
public sector has generally committed to contributing
issuance and public financing rounds; as well as the
demand can be achieved through incentives that allow
investments for Ecuador, the electrolysis capacity goal
between 25% and 30% of the total investments required
development of a diplomatic strategy that facilitates the
a competitive advantage, in such a way that opens a
of 1 GW by 2030 is taken as an example.
channeling of international cooperation resources. This
market that can grow gradually.
strategy would allow enabling studies for the sector to
for the deployment of this technology. In line with the
above, the National Government of Ecuador
In a first approximation, it is assumed that this
electrolysis capacity will be powered by electricity
should allocate around 1,000 million
hydrogen derivatives such as nitrogen fertilizers from
generated from wind and solar photovoltaic energy with
of USD to encourage the development of green
green ammonia or methanol, products that are currently
investments of around USD 3,327 million. He
hydrogen projects and its derivatives in the country by
be carried out and the implementation of the first pilot
An example of this is the national production of
projects.
imported. In this way, a demand for green hydrogen is
2030.
generated and, in the case of national fertilizer
Other regulatory measures that influence access to
production, the country's food sovereignty is
financing are the regulation of carbon markets, which,
strengthened.
although Ecuador has begun to develop, is not yet
9.2 Technical and technological aspects
mature enough to improve the competitiveness of
renewable energies and green hydrogen.
At this point, it is important to evaluate the establishment
9.2.1 Current technical capabilities with respect to technologies
of incentives by the State and international cooperation.
At different levels of higher education such as university
The entry of companies with experience in the
In an initial phase of hydrogen deployment, incentives
and technical education, programs related to green
development of non-conventional renewable energy
can be directed to support research and development
hydrogen and its value chain must begin to be
projects, as well as green hydrogen and its derivatives,
Although there is a market for hydrogen in Ecuador, it
activities, technical assistance, support in capital costs
implemented. In university higher education there are
must be facilitated.
is small and is supplied by gray hydrogen. It is
for demonstration projects, and support in the
engineering programs that can impart technical and
necessary to recognize that the deployment of hydrogen
development of business cases.
theoretical knowledge about hydrogen production;
will have a slow start while the required associated
Likewise, institutions should develop
knowledge and investment security are generated and
International companies can also carry out training
tasks so that local companies gradually begin to
develop green hydrogen projects; This is valid for the
the same supply and demand for green hydrogen or its
implementation and subsequent operation of the
derivatives is established. In this sense, it is necessary
Subsequently, in a deployment phase, it is important to
postgraduate programs such as master's degrees and
to encourage
develop incentives such as income tax discounts and
specializations focused on the development of projects
with countries that supply technologies that allow
support for demand creation, for example through
related to green hydrogen. For its part, technical
access to them and support during their assembly and
transition towards hydrogen in sectors such as land,
mandatory usage fees in sectors such as industry and
education can train personnel in the management of
operation.
maritime and industrial transport in the short term and
transport. All of this must also be accompanied by a
equipment and technologies for renewable electricity
activate the approach to the deployment of infrastructure
clear energy policy that favors the use of sustainable
generation and the production, storage and
for the transport, storage and distribution of green
energy sources over fossil fuels, which also implies
transportation of green hydrogen and its derivatives.
hydrogen and its derivatives. On the other hand, it is
evaluating the gradual withdrawal of existing subsidies
necessary to promote the generation of knowledge in
for the use of fuels.
projects. It is also required to develop strategic alliances
the value chain of the
green hydrogen through initiatives such as pilot projects,
fossils.
offering courses in the area, support for research
9.2.2 Required technical instruments
In terms of regulations, green hydrogen is not
role of green hydrogen as an input. International
projects and information campaigns for communities,
In the long term, in a mature phase of the market, and
recognized within state legislation and standards, which
regulations must be identified that allow widely
among others.
in an internationally harmonized manner,
is why the energy role as a vector of non-conventional
recognized quality standards to be applied to the
renewable energies must be established in Ecuadorian
national context at the different stages of the hydrogen
legislation, as well as defining the
value chain.
76 Green Hydrogen Roadmap
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9.3 Aspects related to infrastructure
The infrastructure gap corresponds to the
transition from the current use of hydrogen as a
chemical input and energy vector.
This involves infrastructure development that
potentially explosive hazards that can be
generated during the use of green hydrogen
and its derivatives.
respond to the growing generation of
to materials, safety, performance,
green hydrogen and the requirement in
emissions, leaks.
the national and export markets for such
products.
• Establishment of objectives for the number
of vessels with
covers everything from the production of
In this way, planning the development of
electricity from renewable sources to storage
transportation infrastructure must start from what
the design and testing of different
hydrogen propulsion or derivatives, along
with thresholds for mixing synthetic fuels
and transportation, the transformation of green
already exists and identify the adaptations and
industrial applications with the use of
for ships in operation.
hydrogen into derivatives and new industrial and
extensions required, so that there are modes of
mixtures of hydrogen with natural gas or
energy uses.
transportation adapted to the national context. In
parallel, a port infrastructure plan must be carried
pure hydrogen as regards
Regarding the production of green hydrogen,
policies should be promoted that accelerate the
out that includes a diagnosis for the identification
and specialization of ports, which allows the
growth of installed electrolysis capacity to
import of the equipment and machinery necessary
achieve cost reduction through economies of
for the development of the hydrogen economy
scale, innovation and efficiency, with the
and serves as conditioning for the export of
establishment of electrolysis capacity objectives.
green hydrogen and
Additionally, it is necessary to adopt a series of
Their derivatives.
derivatives requires water; For hydrogen, the
requirement occurs in the electrolysis process,
standards to guarantee that facilities and
Finally, and related to the use of hydrogen, the
while for derivatives, cooling water is required.
equipment meet quality and safety requirements.
following actions are considered to close gaps:
On the other hand, the production of synthetic
fuels generates considerable volumes of process
• Update and development of standards for
9.4 Socio-environmental aspects
9.4.1 Water use
The production of green hydrogen and its
legal, regulatory procedures and technical
It is crucial to standardize the connection of
electrolyzers to electrical networks, the required
• Adoption of regulations, development of
From the desalination of seawater, these plants
are commonly located near the coastline, less
than 10 km.
Although the cost of the desalination system
and water treatment does not significantly impact
water. In this sense, in the green hydrogen value
chain, aspects such as the availability of water
the levelized costs of hydrogen production, the
water footprint of the projects must be considered
technologies and the compatibility of hydrogen
codes and technical standards to
and derivatives with the different materials of
guarantee the safe and rapid deployment
suitable for electrolysis and subsequent
conversion processes into derivatives, the
in relation to
with the needs of the communities
pipes, components and equipment to guarantee
of service station components and
technologies that will be required to cover
treatment of process water and the potential
competition that can arise must be taken into
and ecosystems, according to the priority of
the potential national demand of the
account. access to available water resources.
Constitution with the following order: for human
consumption, for food sovereignty and ecological
their safe application throughout the value chain.
transportation sector.
In transportation, a
national regulations on pressure equipment that
water demand established in the National
flows and, subsequently, productive activities.
• Demand creation that may be driven by
include all related devices such as vessels,
research and development projects in
Some of the sites with wind and solar energy
This water footprint can be minimized with a
pressurized containers, heat exchangers, steam
end-use applications (for example,
potential are located in coastal areas that have
circular economy approach, by considering the
storage
generators,
boilers, industrial pipes, safety
passenger or heavy-duty vehicles).
limited sources of fresh water or are areas with
use of treated industrial or urban wastewater, if
possible.
instruments and other accessories. Likewise,
government regulation is required on equipment
and safety measures in atmospheres.
a high probability of droughts. Reverse osmosis
is a technology commonly used to obtain fresh
• Development of an industrial policy that
promotes national industrialization with
relation to the production of ammonia,
methanol and synthetic fuels, which
78 Green Hydrogen Roadmap
be realized.
water from the desalination of seawater, which
could be used for the electrolysis process. For
In this sense, clear regulations must be issued
supplying cities with drinking water
for the use of water resources in green hydrogen
production processes and its derivatives, which
Government of Ecuador 79
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Consider a comprehensive approach from the
technical requirements and authorizations required
conception of the projects and take into account
for the collection and treatment of sources of
competition for water in areas where there is a
marine, surface or residual water, along with the
The development of a national green hydrogen
Public policies for the consolidation of a green
vulnerable population. Likewise, this regulation
adequate disposal of the brines resulting from said
treatments.
strategy requires the creation of coordination
mechanisms between sectors
hydrogen economy, the strengthening of capacities
involved and the construction of a shared long-
action plan for the following years must be deployed.
must clarify the criteria
9.5 Public policies for the deployment of hydrogen
and citizen participation are the axes on which the
term vision of the objectives pursued by Ecuador.
The definition of
9.4.2 Prior consultation
For prior consultation processes, it is necessary to
involved. These agreements may include
close the gap caused by ignorance of a technology
sustainable development objectives and studies
that is being deployed as part of the energy
that allow the identification of environmental, social
transition and that has an environmental, social
and economic impacts, along with the respective
The deployment of hydrogen in Ecuador requires
and regulation of green hydrogen that allow the
and economic impact. In this sense, the support of
management plans.
guiding actions for the development of capabilities
transfer of knowledge between national entities
government actors is necessary so that, together
9.5.1 Strengthening local capacities
both at a specific level, that is, specialized training
and the implementation, in a coordinated manner,
programs in areas related to renewable energies
of the actions proposed in the Roadmap.
processes are carried out in an objective,
Additionally, it is considered essential
inform and involve communities from
transparent and reliable manner, and communication
the initial planning stages, so that they can identify
citizens to be informed of the relevant aspects of
and agreements between the entities are facilitated.
the benefits that the implementation of this type of
this energy vector and the opportunities it represents
Likewise, to develop new local capabilities, science,
communities and different actors
project will bring them.
for
technology and innovation must be promoted;
with project developers, the prior consultation
and hydrogen, and at a general level that allow
implement national research programs, in which
the country.
the public sector, industry, academia and research
centers come together, which allow detailing the
The development of the value chain
9.4.3 Change in land use
Hydrogen in Ecuador will generate new jobs related
value chain. It should be taken into account that
to the deployment of renewable energies, the
international cooperation can also play a relevant
role in the development of new local capabilities.
The area required for the implementation of a
It combines the generation of electrical energy and
production, storage, transportation and final use of
green hydrogen project will largely depend on the
agricultural production on the same surface and
hydrogen and its derivatives, for which alliances
renewable energy source being considered. In the
allows diversification of income for rural agricultural
must be established between the sector
case of solar and wind energy, large areas of land
producers and promotes their energy independence
are necessary for the installation of solar panels or
without losing their agricultural vocation.
wind turbines and may require a
national labor capabilities required throughout the
private sector, academia and the public sector to
identify the specific competencies to be developed
To articulate these programs, it is considered highly
advisable to create a “Committee
for these new jobs. The implementation of training
Specialized Hydrogen” (see Figure 22 in section
change in land use with vocation
These are the criteria by which it is necessary to
programs will reduce the gaps between employment
9.5.3) with representatives from industry, academia,
productive in agricultural, forestry or tourism
establish a regulatory framework for land use in
supply and demand in the sector.
the National Government and society. This
activities. In these cases, innovative systems can
aspects of governance, transparency and control
committee will be focused on actions aimed at
strengthening
be integrated that integrate agricultural production
in the Ecuadorian territory that minimize the
together with renewable energy generation, such
negative environmental and social impacts of the
In an initial deployment phase, training programs
of hydrogen capacities in Ecuador in the areas of
as the concept of agrovoltaic system, which
deployment of green hydrogen.
must be developed and delivered to public entities
training, infrastructure,
science and innovation.
on state policies.
80 Green Hydrogen Roadmap
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From the National Government, and in coordination with the
aimed at citizens, with a regional approach that recognizes
Autonomous Governments
the different opportunities and challenges for each of
Decentralized, a
Specifications for classification as green hydrogen
Another of the most relevant actions that must be developed in the
“Citizen participation strategy”, for which the establishment
the regions.
of communication and training programs is required
short term is the specification of the hydrogen production conditions
(such as I-RECS) or through specific power purchase
so that it is considered green. This includes defining aspects such
agreements (PPAs),
as:
• the consideration of other aspects that are currently being
9.5.2 Definition of public policies and regulatory framework
The definition of a regulatory framework in
discussed at the level
• the obligation of additionality of renewable energies, that
point, it must be taken into account that hydrogen is a
is, evaluating whether new renewable energy projects
international in relation to additionality
should be developed for the production of hydrogen and
of renewable energies and that include the time
the initial phase of development of the sector
versatile element and there is a variety of production,
whether it will be allowed to take electrical energy from
correlation and the temporal correlation between
Hydrogen is important to establish the operating guidelines
transportation, storage and multiple end-use technologies,
projects already in operation10,
generation and consumption.
of the market
which will require involving different government entities such
and provide legal security to investors and project developers.
as the Ministry of Environment, Water and Transition.
This is why it is essential to define governance for the new
Ecological, the Ministry of Transportation and Public Works,
hydrogen production does not have to be located at the
production, efforts should be made to promote harmonization in
sector.
the Ministry of Energy and Mines, the Ministry of Production,
same point where electrical energy is generated.
regulation with respect to other countries in the region to facilitate
• the possibility of taking energy from the grid, that is,
Foreign Trade, Investments and Fisheries; as well as
future approvals and international trade in hydrogen and its
regulatory agencies.
In this case, the obligation to demonstrate that the energy
In the short term, the powers and responsibilities of the
taken is renewable must be defined, either from
different institutions involved must be established. In this
certifications
Regulatory signals for the deployment of green hydrogen
In the case of energy uses of hydrogen, the Regulatory Agency for
electricity costs should be located
the Control of Energy and Non-Renewable Natural Resources must
around 20 USD/MWh, which represents a reduction of more than
be responsible for defining the rules for the use of electricity for the
50% compared to the
production of hydrogen, as well as the remuneration structures for
current costs, to have competitive hydrogen production costs. At
the commercialization of hydrogen. this energetic. Including these
this point, it is essential that the Ministry of Energy and Mines
regulations in the institutional regulatory plan, in the short term, will
develop policies and programs focused on accelerating the
be an important signal to establish the bases for the implementation
deployment of non-conventional renewable energies, such as
of projects in the country.
auctions of these energies, long-term supply contracts and tenders
For the definition of the conditions of
derivatives.
Scheme of guarantees of origin
Another relevant responsibility is the management of the “guarantee
Non-Renewable Natural Resources, as well as other entities such
of origin scheme”, that is, a concept that allows the traceability of
as the Ministry of Energy and Mines and even a private verification
green hydrogen to be recorded. This means that systems are
entity.
required that guarantee that the hydrogen production process is
It is important to mention that the guarantee of origin scheme must
carried out from renewable energy sources and under the
be created in a way that facilitates the recognition of green
established conditions. This responsibility may be assigned to the
hydrogen and that in no case should it be a barrier or additional
regulator, in this case the Energy Control Regulatory Agency and
administrative procedure for the development of projects.
for the installation of new projects. .
As noted in previous sections, achieving competitive costs of green
Simultaneously with the strengthening of the
hydrogen production will depend largely on the availability of low-
public policies that accelerate the deployment of renewable
cost renewable electricity. It is estimated that, worldwide,
energies, specific regulations must be enacted for the hydrogen
sector, which are described below.
10
82 Green Hydrogen Roadmap
For this, the consequences that this could have on the international marketing of the products must be considered.
Government of Ecuador 83
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Regulations for pilot projects
• Direct public financing
With the aim of facilitating the entry into operation of
developed in Ecuador and whose results will be
pilot projects, it is important that “regulatory schemes
inputs to enact regulations adapted to the national
context.
with a flexible approach” are developed that allow
hydrogen projects to be developed in parallel with
regulation, in a controlled time and space.
Direct public financing consists of the investment by the National Government in the projects of the
green hydrogen value chain, taking into consideration the high volumes of investment required in the
initial stage of establishing this vector at a global level.
For the implementation of flexible regulation schemes,
it is important to have the participation of the regulator
Direct public financing would accelerate the entry into operation of the first demonstration projects in
and the institutions in charge of defining the
the country; They are generally non-reimbursable resources. Direct public financing can be granted
These types of schemes, internationally called
regulations.
by the National Government, establishing a financing fund for green hydrogen projects, a fund to
regulatory sandbox , will energize this emerging
In section 9 of the Roadmap, the basic guidelines for
promote the deployment of renewable energies or the strengthening of science and technology funds.
industry, with types of projects that have not previously
the development of pilot projects are proposed.
been
• Tax incentives
Rules and regulations for commercial scale projects
Tax incentives seek to reduce the tax rate through exemptions from tariffs, income taxes or other
Since the hydrogen economy and the corresponding
competent entity to issue permits and associated
value chain are so incipient worldwide, it is necessary
licenses. Likewise, regulations must be created for
development of green hydrogen projects to be promoted, without affecting government budgets.
to adopt a regulatory framework that is currently not
the development of infrastructure for the transportation
Additionally, these resources reduce final capital costs and operating costs, impacting the levelized
available in many regions, including Ecuador. This is
and distribution of hydrogen, regulations for the
costs of hydrogen production.
the reason why regulatory frameworks must be
deployment of hydrogen stations (recharging stations)
developed in specific sectors. Regulations will be
and for uses of hydrogen in the transportation sector,
required for the production of green hydrogen and
and regulations for production. storage, transportation
must be defined at the
and use of hydrogen derivatives.
types of tax deductions. It should be noted that tax incentives are mechanisms that allow the
• Subsidies
These financial aid are focused on projects of national interest and seek to compensate for the cost
Financing mechanisms
gap that does not allow financial closure of the projects. Subsidies can be given through contracts for
difference, which seek to reduce the economic impact on both the supply and demand sides.
In parallel, it is important to establish mechanisms for
renewable energies (including green hydrogen) and
Subsidies are usually complemented by strategies to stimulate demand such as the establishment of
access to financing of green hydrogen projects, such
mandatory use quotas, in this case for green hydrogen and its derivatives in certain sectors of the
as regulations aimed at the banking sector to
the progressive withdrawal of existing fossil fuel
subsidies. TO
implement special credit lines for financing green
Below, the mechanisms that Ecuador could implement
hydrogen projects and their derivatives, strengthening
to channel the required investments and promote the
the
value chain of green hydrogen and its derivatives are
Implementing subsidies in Ecuador would involve allocating a nation's budget which can be collected
presented.
from carbon taxes; In addition, an administrative and financial vehicle must be structured to grant the
carbon that accelerates the competitiveness of
economy such as transportation and industry.
funds, through calls or auctions,
among others.
84 Green Hydrogen Roadmap
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Specialized Hydrogen Committee
• Loans
The Specialized Hydrogen Committee will be made up of expert
The Specialized Hydrogen Committee will elect a spokesperson
The allocation of loans at favorable financial conditions for the development of strategic projects in the green hydrogen value
representatives from industry, academia, the National Government
to represent it before the National Green Hydrogen Council,
chain is one of the possible strategies to leverage infrastructure projects that are linked to hydrogen and renewable energy
and society and will be in charge of providing technical support
whose appointment will be made for a specific period of time.
projects. Loans can be granted by multilateral banks or commercial banks. In both cases, it is important to mention that this
to the National Green Hydrogen Council.
type of financing occurs in stages of advanced maturity of the project and that it must take into account the particularities of
hydrogen projects such as long construction periods.
The Specialized Hydrogen Committee will also be responsible for
In coordination between the two bodies, the National Green
the periodic evaluation of actions aimed at strengthening
Hydrogen Council and the Specialized Hydrogen Committee, the
actions of the Roadmap must be implemented, a system of
hydrogen capabilities in Ecuador in the areas of training,
compliance indicators and a monitoring and control mechanism
The financial conditions of the loans must encourage investments by private agents, with favorable interest rates; for which
infrastructure, science and
must be defined. Likewise, one of the main functions of the
the National Government can establish interest rate subsidies. Loans are an important mechanism because they have a
innovation. It will also evaluate requests for
structure will be to create a platform for citizen participation and
strategic projects and will issue recommendations to the National
an international cooperation strategy.
“multiplier” effect by requiring investments by project owners and the creation of alliances.
Green Hydrogen Council.
Citizen participation
9.5.3 Governance model recommendation
It is important to maintain communication channels between
To strengthen participation
The multiple aspects that must be considered in the
creation of the following instances. Figure 22 presents an
citizens and decision-making bodies in the sector, which address
citizen, a series of mechanisms can be defined such as periodic
definition of public policies must be framed in a governance
outline of the structure of the proposed governance model.
doubts, concerns and proposals from the general public. In line
workshops to advance the Roadmap, spaces for accountability
with the above, knowledge about
by the National Government and socialization of projects with the
model for the deployment of hydrogen that includes the
communities.
green hydrogen highlighting the benefits in environmental, social
and sustainable production aspects and informing the opportunities
National Green Hydrogen Council
that
offers Ecuador to make massive use of this vector.
The National Green Hydrogen Council must be chaired by the
The National Green Hydrogen Council will have the responsibility
Ministry of Energy and Mines and have the participation of the
of monitoring the implementation of the Roadmap, coordinating
Ministry of Environment, Water and Ecological Transition, the
the execution of the action plan and carrying out a periodic review
Ministry of Transport and Public Works, the Ministry of Production,
and, when necessary, an update of this Roadmap. Likewise, it is
Foreign Trade, Investments and Fisheries , the Regulatory
important that the National Green Hydrogen Council performs
Agency for the Control of Energy and Non-Renewable Natural
functions of socializing the work plans and their results, which will
Resources, a representative of the Undersecretary of Articulation
allow maintaining a shared vision about the role of hydrogen in
and Sectoral Management of the Presidency of the Republic and
Ecuador and the progress in its deployment. .
a spokesperson for the Specialized Hydrogen Committee.
86 Green Hydrogen Roadmap
International cooperation
An efficient integration mechanism would be to establish
It will also be relevant to participate in international bodies on
international cooperation agreements with countries in the region,
hydrogen regulation and collaborative initiatives with entities.
as well as with technology supplier countries and potential
importers of green hydrogen and its derivatives, to promote the
multilaterals that facilitate the development of the studies
exchange of experiences, technology transfer and capacity
proposed in the Roadmap, as well as the achievement of financing
building. local.
resources for pilot projects and research programs.
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10 Support for pilot projects
Ministry of Energy and Mines
National Green Hydrogen Council
Compliance
In the early stages of the implementation of the Roadmap, the development of
and review of the
Roadmap
Ministries
pilot projects for the production, storage, transportation and use of green
committee spokesperson
Presidency
hydrogen and its derivatives should be encouraged, as well as the promotion of
specialized
research and innovation in these areas.
As explained in the vision of this document, the first pilot projects for research
Strategy
stake
citizen
purposes and with the main objective of developing local capacities should come
into operation in the short term.
In this section, the guidelines for the development of pilot projects in Ecuador
Specialized committee spokesperson
are proposed and, subsequently, the specifications of projects that have been
Strategy
identified as priorities to be developed are presented.
cooperation
international
Specialized Hydrogen Committee
10.1 Guidelines for the development of pilot projects
Academy
Government
Industry
Society
The initial deployment of a hydrogen economy
which has resulted in the creation of so-called
is faced with policy and regulatory gaps due to
“regulatory sandboxes”.
its innovative nature; However, to promote this
Figure 22: Proposed governance model for the development of a green hydrogen economy in Ecuador.
Source: Own elaboration MEM.
deployment, the execution of pilot or
demonstration projects is required even under
Regulatory sandboxes allow experimentation in
a real environment (also known as “real
these circumstances. This dilemma, which
laboratories”) of technologies, products, services
countless countries have already faced to
or approaches that do not fully comply with the
current regulatory and legal framework [11] and
promote national innovation, has led to the
recognition that it is necessary to create spaces
are characterized by the following three
to test the processes underlying these innovations
elements: 1. These spaces are operated in
and the rules and regulations that can underpin
specific areas and for determined times under
real conditions, 2. sandboxes make use of the
them.
margin of
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regulatory maneuver, through instruments such
as experimentation clauses, 3. sandboxes
• Its strategic alignment with the Roadmap
emphasize that regulatory entities can learn from
and with the country's energy and
them for immediate and future developments [12].
decarbonization objectives.
National Hydrogen Council the selected projects
The projects to be implemented in phases 1 and
and the Council will assign the competent
2 of the Roadmap, on a pilot scale with capacities
authority for the regulation and control thereof.
of up to 0.5 MW, may request from the Specialized
Hydrogen Committee an exception regime for
• The possibilities of scaling.
The central idea behind sandboxes is not
deregulate or reduce safety standards, but on the
• The articulation of actors for the
development of local capacities.
contrary, create spaces where you can experiment
in completely new areas under specific conditions.
Taking into account these instruments
aspects such as environmental licensing and
Once the project is assigned to the competent
permission for use. of the land as long as the
entity or entities, together with the project
project is not carried out in protected areas.
developer, they will establish a “security plan” in
In this way, pilot projects interested in applying to
which a risk management strategy is proposed,
The Committee will evaluate this request, and if
flexible regulatory environments must demonstrate
and a supervision plan by the entity. competent.
it is considered pertinent, it will request the
its strategic importance and compliance with
The articulated development of this plan will allow
exception from the respective entities; Otherwise,
international technical standards that guarantee
strengthening the capacities of public entities
the request will be denied with clear justification
safety in its operation.
around the hydrogen value chain, and will also
and the project must apply for all required licenses
regulations and recognizing the priority objective
allow obtaining relevant information for the
from the competent entities.
that is the decarbonization of the energy sector
subsequent development of the regulation.
in the current situation, it is essential to develop
a mechanism
This information must be properly
that allows defining temporary regulatory
documented by the project developer through a
exemptions, based, for example, on international
“project description document”, which will be
regulations, to facilitate and promote the
delivered to the Committee under the conditions
development of projects and implement regulatory
and periodicity that it defines. The document will
improvements based on technical experiences
present a detailed description of the project and
through the creation of a “regulatory sandbox for
a summary of its different stages, also including
the energy transition”. This flexible regulation
a quantification of impacts such as the reduction
should focus mainly on guaranteeing safe
of emissions of
operating conditions in the hydrogen value chain
processes.
greenhouse gases, the generation of knowledge
and the creation of jobs, among others. Likewise,
an organizational chart of the project, a detailed
Within the governance proposal, reference is
made to the creation of the Committee
Hydrogen Specialist, which will have among its
functions the evaluation of
The development of green hydrogen pilot projects
It will also allow an evaluation of the adequate
is part of technological innovation processes
management of associated risks and boost
related to the entire value chain for the promotion
reliability in new technologies for both parts of
and development of economies of scale that
the economy, supply and demand. To achieve
allow the fulfillment of the objectives of this Sheet.
these objectives, pilot projects can target new
uses of hydrogen, for example in the transport
Route.
schedule, the technical sheets of the equipment
and a list of the international standards that will
be adopted must be presented.
requests for regulatory exemptions for strategic
hydrogen projects. The Specialized Hydrogen
Based on the information provided, the Committee
Committee must define prioritization criteria for
may make an evaluation of the projects.
these projects, considering, among other aspects:
Subsequently, and once these are elected, the
Committee will send to the
90 Green Hydrogen Roadmap
10.2 Identification of key projects
sector, and replacement of current uses of
hydrogen, for example in refineries.
The main objective of the pilot projects will be the
acquisition of experience, mainly operational, in
different stages of the value chain of green
Ecuador has the possibility of implementing a
hydrogen and its derivatives. Pilot projects should
variety of pilot projects that allow for subsequent
allow important operational aspects to be
deployment of the hydrogen economy at the
evaluated on a small scale to determine the
national level. The potential pilot and demonstration
feasibility of integration into current processes
projects for the production of hydrogen and
and scaling up projects in the future.
derivatives are presented in summary in the
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Figure 23; its specifications are presented
in Annex 1.
create a fundamental basis for the evaluation
Considering the availability of renewable energy
and efficient operation of processes under local
and water resources in the region, this pilot
• The identification of the regulatory,
conditions. This project should be considered
project would enable research and knowledge
logistical and market aspects required
Among the proposed projects, the research and
strategic and a reference for the deployment of
development in renewable energy, including
for the large-scale establishment of the
development project located in the province of
the hydrogen economy in Ecuador, so it is
green hydrogen.
green hydrogen economy in Ecuador.
Imbabura has been called “Center for Renewable
Among the aspects that could be evaluated with
Energy and Energy Transition.” This project will
recommended to begin the formulation activities
of the same
this project is the complementarity of different
make use of the infrastructure and research
immediately, so that a short-term start-up can be
renewable energy sources and their effect on
capabilities already available in the region, while
counted on (goal: max. 2026).
the electrolyzer load factor and, therefore, on the
taking advantage of the available renewable
levelized costs of green hydrogen generation,
resources, allowing
allowing optimal solutions to be found.
combination of these sources for Ecuador.
• Scientific-technical training and promotion
of knowledge transfer
for the scaling of green hydrogen projects.
This project also has the potential to be easily
scalable, for which the initial installation of an
electrolyzer, for example, alkaline with a capacity
Likewise, the project will make it possible to gain
of at least 50 kW, and the addition of a PEM
relevant experience regarding the management
electrolyzer with the
of green hydrogen, its storage, transportation
and final use, from which the corresponding
same capacity at a later stage; The sequence of
technical regulations can be established for each
technologies can be defined according to short-
of these stages and relevant regulatory aspects
term availability in the market. This, for example,
can be outlined for the national implementation
would allow us to investigate the real behavior
of commercial scale projects.
of these two types of electrolyzers under
fluctuating loads of renewable energy, experience
that is currently limited worldwide. Due to the
The key benefits that could be obtained from this
ease of
project are:
installation, the assembly of photovoltaic panels
• The initial study of technical and
is recommended as the first source of electrical
operational aspects related to the
generation, which can be complemented with
hydrogen value chain (production,
other technologies in later stages.
storage, transportation and use) in the
academic sector.
The following table summarizes the main
characteristics for the pilot project described.
Figure 23: Potential pilot and demonstration projects of green hydrogen and derivatives in Ecuador.
Source: Own elaboration MEM.
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Table 16: Specifications for the pilot project “Center for Renewable Energy and Energy Transition”.
Taking into account that this pilot project is
Project 1: Center for renewable energies and energy transition
Location
Imbabura Province
Definition and approval
Until 2025
Entry into operation
Maximum in 2026
Aim
Carry out research and development in renewable
energies and green hydrogen.
Renewable energy potential
Solar: 5.57 kWh/m2/day.
Wind: 138 W/m2.
Geothermal: The Chachimbiro geothermal project with 50
MW capacity is identified in the region.
Biomass: sugar cane, 712 TJ/a.
strategic for the generation of technical capacity
the resolution of current challenges and allows
a direct application of the knowledge generated.
and knowledge in renewable energies and green
Likewise, work must be done to achieve alliances
hydrogen, its implementation must be promoted
and prioritized by government entities, also
with similar institutes at an international level
that encourage the transfer of knowledge.
facilitating its approval through a flexible
mechanism that allows it to operate in certain
areas for research purposes, even if there is no
Regarding financing, government entities must
specific regulation or regulation at the national
seek joint solutions with private actors interested
in being part of the project, as well as potential
level.
Renewable energy requirement
Electrolyzer capacity
Production
If a photovoltaic plant is considered exclusively as a source
of electrical energy, the electrical generation
capacity requirement will be around 100 - 125 kW
for 50 kW of electrolysis.
international financing sources, such as the
World Bank, the IDB, IFC and CAF, among
others.
The integration of the private industrial sector in
the project is considered important, so that the
center serves as a channel for
50kW
15 kg/d of green hydrogen.
Renewable energy plant (photovoltaic): 500 m2.
Required plant area
Potential use of hydrogen
Estimated investment
Electrolysis plant: 50 m2.
Demonstrative studies of green hydrogen in land mobility
(cars or buses), small tourist boats in nearby lakes,
reelectrification, among others.
According to the data available to 2030, the investment
required for the renewable electricity generation plant
would be around 130,000 USD (photovoltaic plant)
and for the electrolyzer approximately 200,000 USD.
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11 Annex 1:
Pilot and Demonstration Project
Specifications
Below are the technical sheets of potential pilot projects identified that would
promote the deployment of the hydrogen economy in the country, considering
uses in island systems, in mobility and in the industrial sector. It is highlighted
that, although the different projects were estimated considering the investment
only in photovoltaic renewable energy plants, the integration of other nonconventional renewable energy sources must be considered in later design
stages according to the potential of the region and the additionality in the
Ecuadorian electrical system.
The projects presented here are generic, so that in later stages their
implementation can be replicated in different places in the national territory,
allowing greater deployment to meet the consumption and export objectives
expressed in this Roadmap.
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Location
1. Galapagos Islands Project
This project aims to initiate the implementation of a hydrogen ecosystem in
Galapagos Islands
Startup phase
• Phase 2B: 2026 - 2030
Aim
• Convert the Galapagos Islands into a green hydrogen territory and
carbon neutral using locally generated renewable energy for applications in the
archipelago.
the Galapagos Islands. For this, the use of the solar and wind potential of
the archipelago is considered and the implementation of a seawater
• Hydrogen production in the Galapagos Islands archipelago
to guarantee energy independence and reduction of polluting emissions.
treatment process for the operation of a 1.5 MW PEM electrolyzer with a
production of 450 kg/d of hydrogen.
Key benefits
• Scaling up the carbon-enabled hydrogen economy
neutrality of the Galapagos Islands in the short term and allows them to establish
themselves as a 100% sustainable tourism area.
The potential uses proposed for the hydrogen produced are: implementation
of a fleet of ferries for inter-island transportation, uses in land transportation
on populated islands such as Santa Cruz Island, storage of surplus hydrogen
for backup electricity generation.
Renewable energy
potential
Renewable energy requirement(1)
The start phase is estimated in 2028, as it has the experience acquired with
the research and development project proposed for the province of Imbabura
• Demonstrative use of hydrogen in energy storage and use
locally generated renewable energy in local applications.
Electrolyzer
capacity
• Solar: 5.86 kWh/m2/day.
• Wind: 282 W/m2.
• 3 - 4 MW
• 1.5 MW PEM
on PEM electrolyzers, compressed hydrogen storage and its use in land
transportation and small boats.
Hydrogen production • 450 kg/d
Required plant area
• Renewable energy plant(1): 0.05 km2.
• Electrolysis plant: 500 m2.
• Operation of ferries with hydrogen cells on routes between populated islands.
Use
• Demonstrative use in public land transportation on Santa Cruz Island.
• Energy storage and backup electricity generation.
• 3.5 M USD for renewable energy plant(1).
Estimated investment(2)
• 100 k USD for water treatment plant.
• 2 M USD for PEM electrolyzer.
• 25 M USD for 4 high-speed vessels(3).
Observations
• In phase 3, the expansion of this project to an installed electrolysis capacity of
approximately 3 MW should be considered.
(1): Estimated magnitude for a solar photovoltaic renewable energy plant.
(2): Approximate values according to information as of 2023.
(3): High-speed passenger ferry, taken from Aarskog [13].
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2. Pilot project to replace gray
hydrogen at the Esmeraldas refinery
Location
Startup phase
Esmeraldas Refinery
• Definition and approval of the project: Phase 1 (until 2025).
• Entry into operation of the project: Phase 2A (2026 - 2028).
Aim
This project corresponds to a pilot project for the production
of green hydrogen for industrial use at the Esmeraldas
refinery. From the treatment of wastewater from the refinery
processes and the renewable energy plant installation, 15 kg/
d of hydrogen will be produced in a 50 kW PEM electrolyzer
for the replacement of gray hydrogen in the desulfurization
and hydrocracking.
• Pilot project for generating hydrogen from solar energy for use in the Esmeraldas refinery.
• Allow the initial study of technical and operational aspects related to the hydrogen value chain
(production, storage, transportation and use) in the academic sector.
Key benefits
• Demonstrative use and with the possibility of scaling up of green hydrogen
as industrial use in the Esmeraldas Refinery.
• Reduction of carbon footprint in the products of the refinery
Emeralds.
• Promotion of the energy transition in the industrial sector in Ecuador.
• Possibility of producing green synthetic fuels.
Renewable energy potential
• Solar: 4.09 kWh/m2/day.
• Residual cocoa biomass: 278-548 TJ/a.
This project will allow the study of the different technical and
logistical dimensions for the deployment of hydrogen for
industrial use, the reduction of the carbon footprint and
improvement of the quality of the refinery products.
Additionally, the projection of the expansion of electrolysis in
the refinery would make it possible to satisfy all the required
hydrogen demand and the production of synthetic fuels.
Renewable energy requirement(1)
Electrolyzer
capacity
• 100 - 150 kW
• 50 kW PEM
Hydrogen production • 15 kg/d of green hydrogen.
Required plant area
Use
Estimated investment(2)
• Renewable energy plant(1): 500 m2.
• Electrolysis plant: 50 m2.
• Desulfurization and hydrocracking processes.
• 130 k USD for renewable energy plant(1).
• 200 k USD for the PEM electrolyzer.
• It is recommended to scale up the project in phases 2B and 3 to replace all of the gray hydrogen
in the refinery and expand the desulfurization and hydrocracking processes with an increase in
Observations
electrolysis capacity of 120 MW and 36 t/d of green hydrogen.
(1): Estimated magnitude for a solar photovoltaic renewable energy plant.
(2): Approximate values according to information as of 2023.
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Location
3. Project for the use of green hydrogen at the Shushufindi refinery
Startup phase
Aim
The green hydrogen project at the Shushufindi Refinery is strategic to
implement desulfurization and hydrocracking processes for the modernization
Key benefits
of the refinery. This project would rely on the experience acquired at the
electrolyzer with a production of 15 t/d.
• Phase 3: Beyond 2030
• Pilot project for generating hydrogen from solar energy for
new uses at the Shushufindi refinery.
• Massification of green hydrogen in the industrial refining sector.
• Reduction of the carbon footprint of fuels produced at the Shushufindi Refinery
with the implementation of desulfurization and hydrocracking processes.
• Possibility of producing green synthetic fuels.
Esmeraldas Refinery and would require the installation of a photovoltaic solar
energy plant and the treatment of industrial wastewater to operate a 50 MW
Shushufindi Refinery
Renewable energy
potential
• Solar: 4.52 kWh/m2/day.
• Residual biomass of oil palm (3603-7924 TJ/a) and cocoa (84-162 TJ/a).
Renewable energy requirement(1)
• 100-125 MW
Electrolyzer
capacity
• 50 MW
Hydrogen production • 15 t/d of green hydrogen.
• Renewable energy plant(1): 1.3 km2.
Required plant area
Use
Estimated investment(2)
• Electrolysis plant: 500 m2.
• Implementation of new desulfurization and hydrocracking processes with
green hydrogen at the Shushufindi refinery.
• 55 M USD for renewable energy plant(1).
• 2 M USD for water treatment plant.
• 35 M USD for PEM electrolyzer.
• Investment costs associated with
desulfurization and hydrocracking processes.
(1): Estimated magnitude for a solar photovoltaic renewable energy plant.
(2): Approximate values according to information as of 2023.
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4. Green ammonia demonstration
project in Chimborazo
Location
Startup phase
Chimborazo Province
•Phase 2B: 2028 - 2030
• Allow the initial study of technical and operational aspects related to the
green ammonia (production, storage, transportation and use).
• Integration of the diversity of renewable energy potentials
With the green ammonia demonstration project in Chimborazo,
the objective is for Ecuador to begin the production of
derivatives in the country and to carry out the respective
study of technical, logistical and financial conditions for its
scaling up in future projects. Its location in the province of
Chimborazo is prioritized due to the diversity of renewable
energy sources available in the north of the province,
especially the wind, solar, geothermal and hydraulic potential.
Key benefits
• Generate productive chains in Ecuador with the opportunity
to produce green fertilizers, taking advantage of the agricultural vocation of the region.
• Solar: 5.6 kWh/m2/day.
Energy potential
renewable
11,000 t/a of hydrogen. By extending the hydrogen value
chain by installing an ammonia plant with the integration of
the Haber-Bosch process, a maximum capacity of 58,000 t/a
of ammonia will be produced. With this production, it will be
possible to begin the national generation of green fertilizers
that promote the agricultural vocation of the region and as a
center of industrial development of the country.
• Wind: 736 W/m2.
• Availability of sites for small hydroelectric plants.
• Location of areas of geothermal interest with temperatures greater than 100
°C.
Renewable energy requirement(1)
With the installation of an electrolysis capacity of 100 MW,
the use of the Province's renewable potential and water
resources, there will be a production capacity of around
non-conventional sources in the production of green hydrogen: wind, solar, geothermal and
hydraulic.
• 200-250 MW
Electrolyzer
capacity
• 100 MW
Production
• 11,000 t/a of green hydrogen.
• Maximum 58,000 t/a of ammonia.
Required plant area
• Renewable energy plant(1): 2.5 km2.
•Electrolysis plant: 1000 m2.
Potential use
• Production of green nitrogen fertilizers.
• 215 M USD for renewable energy plant(1).
Estimated investment(2)
• 3.5 M USD for water treatment plant.
• 130 M USD for PEM electrolyzer.
• 55 M USD for ammonia plant.
(1): Estimated magnitude for a solar photovoltaic renewable energy plant.
(2): Approximate values according to information as of 2023.
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Location
5. Sustainable mobility project in Quito
Startup phase
• Phase 2B: 2028 - 2030
Aim
•Implement a hydrogen-based mass public transportation fleet
green.
This project will enable the introduction of hydrogen in the mobility sector
• Operation of the first vehicle mobility park with cell
hydrogen-based fuel.
• Reduction of polluting emissions in public transportation in the city.
with a fleet of the mass transportation system in the city of Quito, which will
allow, with this experience, the deployment in other cities in Ecuador. The
initial project is proposed with a fleet of 50 hydrogen cell buses from the city's
Quito City
city.
Key benefits
mass transportation system, which require 1.5 t/d of green hydrogen
produced with a 5 MW electrolysis system with the use of solar and wind
• Implementation of renewable energy certifications for generation
of hydrogen.
• Technical evaluation of the performance of the bus fleet in the environmental conditions
of the City of Quito and development of logistics in the transportation sector.
potential of the region or through certifications of renewable electricity taken
from the grid.
Renewable energy
potential (suburbs)
• Solar: 5.77 kWh/m2
/day.
• Wind: 617 W/m2.
• Availability of sites for small hydroelectric plants (<25 MW) and specific areas for plants
larger than 25 MW.
• High temperature geothermal.
Renewable energy requirement(1)
• 10-13 MW
Electrolyzer
capacity
• 5 MW
.
Hydrogen production • 1.5 t/d
Required plant area
Levelized cost of
hydrogen
• Renewable energy plant(1): 0.2 km2.
• Electrolysis plant: 500 m2
• Solar: 6.03 USD/kg in 2023; 1.59 USD/kg in 2043.
• Wind: 11.78 USD/kg in 2023; 10.38 USD/kg in 2043.
Use
• Fleet of 50 public transport buses.
Estimated investment(2)
• 12 M USD for renewable energy plant(1).
• 0.2 M USD for water treatment plant.
• 6.5 M USD for the PEM electrolyzer.
• 35 M USD for fleet of buses with hydrogen cells.
Observations
• It is recommended to replicate this project in other cities with mass transportation
systems such as Guayaquil.
(1): Estimated magnitude for a solar photovoltaic renewable energy plant.
(2): Approximate values according to information as of 2023.
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6. Demonstration center project for the
production of green hydrogen, ammonia
and fertilizers in Guayas
Location
Startup phase
Coastal region of the Province of Guayas
• Phase 2B: 2028 - 2030
• Scaling up production and diversification of hydrogen uses
green and derivatives in the country.
• Opportunity to substitute fertilizer imports and promote
sustainable industrialization with added value, innovation and food security in Ecuador.
Key benefits
• Implementation of technical regulations for storage,
transformation and use of hydrogen, ammonia and green fertilizers.
This demonstration center located in the province of Guayas
• Development and consolidation of the green hydrogen economy in Ecuador
would aim to produce green hydrogen and ammonia to
demonstrate the viability of local production and the potential
• Employment generation.
for import substitution.
Among these new uses is the promotion of the different
economic sectors of Guayas: ammonia as fuel for industry
vessels
shrimp farming, the production of green fertilizers and as a
sustainable chemical input in the industrial sector, with the
aim of substituting imports and, in turn, increasing food
security and the industrial development of the country.
In a first stage, the installation of at least 200 MW of
by chaining production of ammonia and fertilizers.
Renewable energy potential
• Solar: 5.04 kWh/m2/day.
• Residual rice biomass: 600-3400 TJ/a.
Renewable energy requirement(1)
• 400-500 MW
Electrolyzer
capacity
• 200 MW
Production
• 22,000 t/a of green hydrogen.
• Maximum 115,000 t/a of ammonia.
Required plant area
• Renewable energy plant(1): 5 km2.
• Electrolysis plant: 1000 m2.
Levelized cost of
• Solar: 4.96 USD/kg in 2023; 1.34 USD/kg in 2043, taking into account desalination.
electrolysis capacity is proposed, which will be supplied with
electricity generated from photovoltaic solar energy, reaching
hydrogen
an annual production of 22 thousand tons of hydrogen, from
which Approximately 115 thousand tons could be generated
Levelized cost of
per year.
derivatives
• Ammonia: $1,012/t in 2023; 351 USD/t in 2043.
• Use of green hydrogen or derivatives in shrimp vessels.
Potential use
• Use of hydrogen in steel mills.
• Production of ammonia for the production of fertilizers.
• Production of ammonia/fertilizers for import substitution.
• 430 M USD for renewable energy plant(1).
Estimated investment(2)
• 7 M USD for desalination plant.
• 255 M USD for PEM electrolyzer.
• 84 M USD for ammonia plant.
(1): Estimated magnitude for a solar photovoltaic renewable energy plant.
(2): Approximate values according to information as of 2023.
108 Green Hydrogen Roadmap
Government of Ecuador 109
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7. Project Demonstration center for the
production of green hydrogen and
methanol for industrial use in the
province of Manabí
Location
Startup phase
El Aromo photovoltaic center site
• Phase 2B: 2028 - 2030
• Technological development center to promote industrialization of the
province of Manabí.
• Opportunity for methanol import substitution and promotion of
Sustainable industrialization with added value and innovation in Ecuador.
Key benefits
• Reduction of carbon footprint in the fats and oils industry
existing.
• Reduction of the carbon footprint of fishing vessels that are
This demonstration center project in the province of Manabí
is aimed at the production of green hydrogen and its
subsequent transformation into green methanol, which will
allow the promotion and decarbonization of existing industrial
sectors such as the
suitable for the use of methanol as fuel.
• Implementation of technical regulations for storage,
transformation and use of green hydrogen and methanol.
• Employment generation.
Renewable energy potential
• Solar: 4.31 kWh/m2/day.
• Residual cocoa biomass: 280-550 TJ/a.
fats and oils and maritime fishing vessels.
400-500 MW:
For the development of this project, a 200 MW electrolyzer is
proposed with a production of 22 thousand tons of hydrogen
per year, which allows the installation of a green methanol
production plant with a maximum capacity of 165 thousand
tons per year.
Renewable energy requirement(1)
• Small installed hydroelectric plants of 3 MW and 6 MW are identified.
MW.
• Available land and photovoltaic solar energy plant project.
200 MW aroma.
Electrolyzer
capacity
Production
• 200 MW
• 22,000 t/a of green hydrogen.
• Maximum 165,000 t/a of methanol.
Required plant area
Levelized cost of
hydrogen or derivatives
• Renewable energy plant(1): 5 km2.
• Electrolysis plant: 1000 m2.
• Solar: 5.02 USD/kg in 2023; 1.36 USD/kg in 2043, taking into account the
desalination.
Levelized cost of
derivatives
• Methanol: USD 1,206/t in 2023; 504 USD/t in 2043.
• Use of hydrogen in the fat and oil industry.
Potential use
• Use of methanol in fishing vessels.
• Storage and generation of electricity.
• Production of methanol for import substitution.
• 430 M USD for renewable energy plant(1).
Estimated investment(2)
• 255 M USD for PEM electrolyzer.
• 7 M USD for seawater treatment plant.
• 195 M USD for methanol plant with CO2 capture .
(1): Estimated magnitude for a solar photovoltaic renewable energy plant.
(2): Approximate values according to information as of 2023.
110 Green Hydrogen Roadmap
Government of Ecuador
111
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12 References
[1] M. Schlegel, Wassertoff: Das Handbuch für Investoren und
Projektentwickler, Stuttgart: Fichtner, 2021.
[2] ESIN Consultora, “Bioenergetic Atlas of Ecuador,”
2014.
[3] Ministry of Energy and Mines, «Energy Balance
National 2021," Quito, 2021.
[4] Celec EP, «Updating the electrical potential of Ecuador for
the generation of electric energy.», 2022.
[5] CONELEC, «Electrification Master Plan 2013 - 2022»,
CONELEC, 2013.
[6] Ministry of the Environment, General coordination of
environmental planning and strategic management.,
"National System of Protected Areas," Quito, Ecuador, 2019.
[7] Ministry of Environment, «National System of Protected
Areas (SNAP) of Ecuador - Subsystem of private protected
areas,» 2014.
[10] Ministry of Electricity and Renewable Energy, «National
Energy Efficiency Plan 2016-2035 (PLANEE),»
Quito, 2016.
[11] Federal Ministry for Economic Affairs and Climate Action,
“Regualtory Sandboxes - Testing environments for innovation
and regulation,” [Online]. Available: https://
www.bmwk.de/Redaktion/EN/Dossier/regulatory
sandboxes.html. [Last access: May 2023].
[12] Federal Ministry for Economic Affairs and Energy, «Making
space for innovation. The handbook for regulatory
sandboxes.,” July 2019. [Online]. Available: https://
www.bmwk.de/Redaktion/EN/Publikationen/
Digitale-Welt/handbook-regulatory-sandboxes.pdf?__
blob=publicationFile&v=2. [Last access: May 2023].
[13] FG Aarskog, J. Danebergs, T. Strømgren and Ø. Ulleberg,
“Energy and cost analysis of a hydrogen driven high speed
passenger ferry,” International Shipbuilding Progress, vol.
67, pp. 97-123, 2020.
[8] CISPDR Changjiang Institute of Survey Planning Design
and Research, "National plan for the integrated and
comprehensive management of water resources in the
hydrographic basins and micro-basins of Ecuador," 2016.
[9] Trade Map, “List of products imported by Ecuador,”
International Trade Center UNCTAD/
WTO (ICC), [Online]. Available: https://www.trademap.
org/Index.aspx. [Last access: May 2023].
112 Green Hydrogen Roadmap
Government of Ecuador 113
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