Design of a regional hydrogen supply chain framework: A case study for Central America

Abstract

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