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Analysis of the Current Status of Bioenergy in Ecuador.

1
Christian Parra M.
*
,
2
Gabriel Barriga B.

,
3
Ricardo Narvez

1
National Institute of EnergyEfficiency&RenewableEnergy (Instituto Nacional de Eficiencia Energtica y Energas Renovables, INER),
Quito, EC170102, Ecuador
2
Faculty of Chemical Engineering, Central University of Ecuador, Quito, EC170118, Ecuador.

=======================================================================================

Abstract

This paper describes the current state of bioenergy production in Ecuador, its present distribution among areas, present
projects, and the current legal framework focusing on the evolution of each sector. It is analyzed the future developmentin
function of energy subsides and current incentives for renewable energy in Ecuador. The studiedsources are; Biofuels:
historical production, legal implications, current projects; Cogeneration: main producers, raw materials used, current
energy production; Firewood: historical consumption, health implications. It was also reviewed the status of bioenergy
production from biodigestion, landfill gas recovery, and waste to energy.

Keywords:biofuel, bioenergy in Ecuador, landfill gas, biogas, ethanol, biodiesel, Jatrophacurcas, municipal solid waste,
biomass.
=======================================================================================

* Corresponding Author:
christian.parra@iner.gob.ec
Published online at http://journalsapub.org/xxx
Copyright year Scientific & Academic Publishing. All Rights Reserved

Corresponding Author:
wbag@hotmail.com
Published online at http://journalsapub.org/xxx
Copyright year Scientific & Academic Publishing. All Rights Reserved

Corresponding Author:
ricardo.narvaez@iner.gob.ec
Published online at http://journalsapub.org/xxx
Copyright year Scientific & Academic Publishing. All Rights Reserved
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1. Introduction
The 80% of the total use of energy in the planet is based on
fossil fuels such as oil, coal and natural gas representing
400 EJ per year [1]. This dependency has not always been
a tendency.In preindustrial time, biomass (wood, charcoal,
grass, and plant residues) was the main fuel used. [2]. Since
those times, half the worlds society moved from the
use of biomass derived fuels to the use of fossil fuels
[3] Indeed, more than three billion people today use
biomass as the only energy source. [4] In the world's
poorest countries up to 90% of all energy is supplied by
biomass. Bioenergy refers to products of biomass that have
been converted into liquid, solid or gas form, depending on
the raw material base and the technology employed, for
energy generation. Biomass encompasses a wide spectrum
of plant materials ranging from agricultural, forestry and
municipal wastes to crops grown specifically to make
biofuels, such as bioethanol and biodiesel.[5] Bioenergy is
considered the main and most important renewable energy
option at present contributing with 50 EJ to global primary
energy demand.[6] Ecuador has an extensive diversity of
raw materials for widening Bioenergy. Agricultural wastes
(banana, tuna, flowers, livestock, slaughterhouses, palmito)
could be used for producing energy. In addition, bioenergy
growth in Ecuador grants several advantages such as
reaching energy sovereignty, promoting the agro industrial
sector and in consequence promoting job opportunities.[7]
Nowadays biomass plays a significant role in energy
production worldwide. Moreover, Ecuador has a huge
potential of developing bioenergy. This paper seeks to
determine the current state of bioenergy in Ecuador, in
order to obtain a starting point for future endeavors in this
area.
2. Socioeconomic situation of Ecuador
According to the National Institute of Statistics and
Censuses (for its acronyms in Spanish INEC), Ecuador has
14,483,499 million habitants. An estimated 9 million
Ecuadorians have economic occupation and about 1.01
million inhabitants are in unemployment condition. [8]
The countrys Gross domestic product GDP in 2011 was
61,121.47 million USD. The average change rate of GDP of
Ecuador from 2000 to 2011 was 4.4%. This was higher than
the 80's and 90's where it reached 1.8%. Moreover, in the
decade of the 70's it had an average growth rate of 6.7%. In
addition, per capita GDP in 2011 was $ 4,244.00. The
extreme poverty rate has declined significantly between
1999 and 2010. In 2001 it was estimated at 40% of the
population, while by 2011 the figure dropped to 17.4% of
the total population. This is explained largely by emigration
and economic stability achieved after adopting the U.S
dollar as official means of transaction.
The total account regarding primary exports of the
country is 14.071,23 million USD. The main export
products are: petroleum 70%, Banana 11%, Shrimp 6,8%,
Flowers 3,9%, Cocoa 1,6%. These data shows a clear oil
based economy. Nevertheless, the country does not have
enough refining capacity to satisfy domestic demand,
although there is planned to built a refinery for oil derivate
production in Manta City, in order to reduce the import of
gasoline, diesel, and liquefied petroleum gas (LPG). Due to
its geographical location, Ecuador has vast diversity in
agricultural production and a potential for several
renewable energies. [9]
3. Ecuadorian Energy sector
3.1.Legal Framework
The Constitution of the Ecuador in its Article 15 states that:
The State shall promote in the public and private sector the
use of environmentally friendly and low impact
technologies, clean and non-polluting alternative energies.
The energy sovereignty will not be achieved at the expense
of food sovereignty or affect the right to water. [10]
Furthermore, the Article 413 declares: The State shall
promote energy efficiency development, and the use of
environmentally clean technologies, practices and policies
as well asrenewable, low-impact, and diversifiedenergy.
This will be executed not jeopardizing food sovereignty,
ecological balance of ecosystems and the water rights.[11]
In Article 414 the Constitution states that the State shall
take appropriate measures for climate change mitigation by
limiting emissions of greenhouse gases, deforestation and
air pollution. The public administration will also take
measures for the conservation of forests and vegetation, and
protect the population at risk[12].In addition, the National
Plan for Good Living in its Objective 4 guarantees the
rights of nature, and promotes a healthy and sustainable
environment. In its Policy 4.3 seeks to diversify the national
energy efficiency and promoting greater participation of
renewable energies.[13]
In April, 2011, the National Council of Electricity, for its
acronym in Spanish CONELEC, issued the normative
CONELEC- 004-11 in order to incentive the production of
renewable energy in Ecuador. This normative considers a
preferential price for energy produced from biomass
sources. The prices to be paid by the government are 11.05
cUSD by KWh generated in the continent and 12.16
cUSD/kWh in Galapagos.[14]
Ecuador looks for changing its Energy Matrix, and these
laws promote the generation of energy from renewable
sources.
Specific legal frameworks for each biomass product are
detailed further.
3.2. Ecuadorian Energy Sector
The primary energy production matrix in Ecuador has the
following composition: Petroleum 90.5%, Natural gas
4.2%, Hydro energy 2.6%, firewood 1.7%, cogeneration
derived from sugar cane 1.1%. Regarding the evolution of
the matrix, it must be said that in 1970, 44% of matrix was
based on the traditional use of biomass (charcoal and
firewood, mainly), but, in 2010 only 2,8%.
These numbers show a clear expansion and dependency of
the country on fossil fuels. [15]
Concerning energy consumption by sector in the country,
transportation represents the most of the demand (49,9%).
Then, industrial sector (17,5%), and residential sector
(15,6%). [16] During the past four decades, the share of
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these sectors has changed. Thus, transport is the fastest
growing sector rising from an average of 33% of the matrix
during the 1970s, to 52% in the 2000s. The residential
sector was the largest in the 70s (43% on average)
decreased to 20% in the 2000s. The industry has remained
almost constant participation of 16% in the 70s and 19% in
2000. [17] In Latin America, it should be noted that the use
of biomass as energy source is low in countries with
subsidies for fossil fuels such as Ecuador (2,8%) and
virtually nonexistent in highly fuel subsided economies like
Venezuelan, while in countries without fossil fuel subsidies,
like Peru (16%), and Colombia (10%) bioenergy plays an
important role. [18]

4. Bioenergy in Ecuador

4.1. Ethanol
The first attempts of developing the Ethanol Industry started
in 2004 mainly related with international markets and
private industrial initiatives. In that year, it was issued the
Executive Decree No. 2332, creating the Biofuels Advisory
Council. [19] This council intended the implementation of a
fuel mixture composed of 10% ethanol anhydrous and 90%
gasoline for the entire Ecuadorian car fleet. This plan
sought to replace a percentage of imports of high octane
naphtha. In order to implement this national program, it was
projected an average production of 1 599 261 barrels of
anhydrous ethanol per year, meaning 650 000 liters/day.
[20] In order to satisfy these amounts it was projected to
implement 50000 new hectares of sugar cane crops
nationwide.[21] At first, it was decided the necessity of
starting a pilot project before the national program which
was supposed to be executed in Guayaquil city.
Nevertheless, because of infrastructural problems and
technological adjustments the plan did not started but in
2010. [22]
In 2007 by Executive Decree No 475, the Ministry of
Energy and Mines was divided into the Ministry of
Electricity and Renewable Energy (MEER) and
Nonrenewable Energy Ministry.[23] The competition of
biofuels went to the National Direction of Biofuel ruled by
MEER. In the same year, by Executive Decree No. 146 the
Biofuels Advisory Council was replaced by the National
Biofuels Board composed by many Ministries with MEER
leading it. [24]
In 2008, via Executive Decree No 1495 the price of
anhydrous alcohol was obligated to be fixed each month
bythe average of the first five days of the previous month
according to the international price of Platts Oil Gram
Markertscand Gulf Coast of UNL 87. [25] In 2009 the
National Hydrocarbon Direction (for its acronym in Spanish
DNH) asked the certification to all the gasoline stations of
Guayaquil to be ready for the project until May 2009,
although the 100% of the stations was not reached mainly
because of infrastructure and logistic problems. [26]
On the same year, by Decree No 1879, a Substitute
Regulation to control the prices of hydrocarbon derivatives
was released. The Decree states that freight costs of fuel
grade anhydrous alcohol from industrial plants to
PETROCOMERCIAL terminals will be borne by this
entity. It also set a fixed price of U.S. $ 0.76 per liter of fuel
grade anhydrous ethanol at the plant during the lapse of the
pilot plan in Guayaquil. This period was supposed to last no
longer than two years. Furthermore, this price did not
include value added tax, VAT. [27]
By Executive Decree No. 1831 of July 2009, all activities,
plans, projects and other efforts undertaken by the National
Biofuels Council were transferred to the Coordinator
Ministry of Production, Competitiveness and Trade (for its
acronym in Spanish MCPEC) [28].
MCPEC adopts the recommendation of the former Biofuels
Advisory Council for starting the pilot project conducted in
the city of Guayaquil with an amount of 5% of anhydrous
ethanol in the final mixture considering raising it in
medium-term until 10%.
In January 2010 it was launched Ecopas program
beginning the distribution of biofuel in Guayaquil city. In
spite of having three main private alcohol industries in
Ecuador, just one (SODERAL) provides the total amount of
ethanol for the program. Since the beginning of the pilot
project there have been produced: 2 500 000 liters in 2010,
3 500 000 liters in 2011, and 3 800 000 liters in 2012. In
total, until the elaboration of this document, it had been
produced 9 800 000 liters of anhydrous ethanol as biofuel in
Ecuador.[29]
It is expected by February 2013 that the 100% of the
gasoline stations in Guayaquil will be included in the
program. This will mean a demand of18
thousandsbbls/month. Furthermore, it is projected to rise the
production up to 21 thousand BLS/month by adding
gasoline stations of El Oro and Los Rios provinces.[30]
4.1. Biodiesel
The total production of oil palm in Ecuador in 1993 was
152 537 MT. Since then the production has increased by
293% becoming 447 667.00 MT in 2009. The domestic
consumption is about 210 000 MT, leaving about 235 667
MT of surplus which are exported. Until 2010, there exist
248 199 hectares of African Palm planted in Ecuador[31].
The unique experience of biodiesel commercialization has
been made by LAFABRIL, which is an Ecuadorian
company that ventures in vegetable oil derivatives.
LAFABRIL counts from August 2005 with the international
license EPA (Environmental Protection Agency) to export
biodiesel to USA.[32] Since October 2011 this industry
produces 3 000 MT per month, which are sold to the U.S.
biodiesel market. At the time of elaboration of this
document, it meant 40 000 MT produced in total.
Nowadays, the company is analyzing the possibilities of
selling up to 5000 MT per month not only to USA but to
Europe. [33]
Although in 2007 there was not a program related to the
commercialization and distribution of biodiesel in the
country, the Ecuadorian Standards Institute (for its
acronyms in Spanish INEN) established the technical
standard of normalization for biodiesel with code: NTE
INEN 2482-09.[34] The purpose was to specify the
requirements for selling biodiesel in the country. This
standard was made in accordance with several ASTM
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standards like ASTM D 1298, D 93, D1796,D 95,D 445 ,D
874,D 1552,D 4530,D 130,D 613,D 1160,D 6584.
The average international price of the Metric Ton of palm
oil in 2012 is around 750 USD (FOB).[35] This fact can be
translated into a barrier for the production of biodiesel to be
used in the local market taking into account the subsidies
giving to the fossil fuels nationwide.
Nevertheless, on September 17, 2012 it was published the
Executive Decree No. 1303 whose article No 1 points that
the development of biofuels in the country is declared
national priority as a way to promote the agricultural sector.
Besides, the production, usage and consumption of biofuels
will be focused in an inclusive strategy of rural
development taking precautions regarding food sovereignty
and environmental sustainability.[36] Furthermore, Article
No 2 states that premium diesel fuel used in the country
must contain biodiesel from vegetal oil of national
production.[37] Finally, article No 3 establishes a deadline
of 8 months from the sign of this Decree (mid June 2013)
for applying the distribution and commercialization of a 5%
biodiesel mixture in premium diesel sold in the country.[38]
4.2. Other Biofuels
Some academic initiatives had been conducted from
universities, research centers and private industries to
investigate the potential of many plants such as sunflower,
jatropha and used vegetable fats for producing biofuels.
[39]
In 2007, MEER started the project named "Local
production of (Jatrophacurcas L. )oil from live fences for
electricity production in the Galapagos islands." as part of
the "Zero Fossil Fuel Initiative for Galapagos".[40] The
project is the result of the feasibility study for replacing
fossil fuels with biofuels for power generation on Floreana
Island, hired in 2007 by the United Nations Program for
Development, and carried out by the German Development
Service, DED. The study recommended the use of pure
vegetable oil derived from Jatropha as the best option for
diesel replacement in the island. [41]

In 2010, there were installed two dual generators of 69 kW
nominal power each on Floreana Island adapted to use
vegetable oil as fuel. In the same year, the production of
biofuel started with 2 560 gallons of Jatropha pure
vegetable oil. One year later, 9 444 gallons were obtained.
This meant an increase of 270% compared to the previous
year. In 2012, it is estimated to produce 15 700 gallons of
oil which will represent a 66% increase compared to 2011.
[42]
According to MEER, the average pure vegetable oil
requirement of Floreana Island for electricity production is
around gallons 10 197 gallons per year.

It must be said that this project is considered one of the few
sustainable biofuel production initiates around the world
because of its social and environmental
implications.[43]According to the National Institute of
Agricultural Research of Ecuador INIAP, the benefits of
using Jatropha as raw material for energy production are:
the possibility of its own cultivation on the Ecuadorian
coast (Manab and Santa Elena provinces), protects the soil
from erosion, increases fertility, and does not affect food
security. [44]

4.3. Biomass Cogeneration

In Ecuador the main producers of Energy derived from
biomass are the sugar mills which sell energy derived from
combustion of sugar cane bagasse to the Ecuadorian
interconnected system. The installed capacity of electricity
generation of these industries is showed in the following
table: [45]
Sugarmillcompany Installed Capacity
North Sugar Refinery C.M.S. 3MW
Agricultural and Industrial
Society San Carlos S.A.
35 MW
Valdez Sugar Company S.A.
(Ecoelectric S.A.)
36,5 MW
La Troncal mill S.A. (Ecudos
S.A.)
29,8 MW.

Table 1.Installed Capacity of Sugar mills companies in
Ecuador

According to CONELEC the annual production of
electricity nationwide from biomass (sugar cane bagasse)
using thermal processes is show on table 2. [46]

Year
(GWh)
2004
3,24
2005
102,86
2006
145,56
2007
218,75
2008
208,32
2009
216,52
2010
235,56
2011
278,20
2012*
267,68

Table2.Annual production of electricity
nationwide from biomass sources
(*)Datum until July 2012

The co-generation of electricity using sugarcane bagasse is
increasing. Until July 2012, there have been produced a
total of 1676,69GWh derived from the said form. [47]
Moreover, regarding investigation in the private sector the
company ECOELECTRIC S.A. has investigated the
potential of several biomasses: sugar cane stalks, palm
shell, rice husk, wood chips, coffee, bagasse, bamboo cane,
water hyacinth, sorghum, coconut. [48]
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In 2007, the Ministry of Electricity and Renewable Energy
MEER conducted a study showing the feasibility for
cogeneration using rice husk in the coastal region of
Ecuador. The results of this study are shown on table 3.[49]
Zone
Rice Husk
kg/ year
MWh /
year
Net
PowerkWh
Nominal
Power
kWh
Daule 27349600,00 15471,00 2387,00 2400,00
Babahoyo 17818100,00 10079,00 1555,00 1600,00
Samborondn 11942700,00 6756,00 1043,00 1000,00
Vinces 6513600,00 3685,00 569,00 600,00
TOTAL 63624000,00 35991,00 5554,00 5600,00

Table 3.Potential of energy generation from rice husk in
Ecuador
4.4. Landfill Gas
Few experiences of energy recovery using landfill gas have
been developed in Ecuador. The most significant is located
in Cuenca city in the landfill of Pichacay. In 2007, the
Eastern Research Group, Inc. and Carbon Trade Ltd,
conducted the feasibility study for the Municipal Public
Company of Waste Management of Cuenca -EMAC EP.
The results of this study showed that by the year 2025 it is
estimated that the volume of methane produced by the
landfill will be up to 1132 m3/hr (50% of CH4). The
estimated capacity of electricity generation is from 13961
MWh to 14996 MWh by 2015 and 2025 respectively.[50]
In 2011 the production of land fill gas started in Ambato
city on Chachoan landfill. Since then about 0.058
m3/second of methane gas are produced, generating 12kW.
[51] Furthermore, in Quito city the landfill El Inga burns
methane as a way to reduce greenhouse gases emissions.
The program started on January 8, 2011 and has a validity
lapse until January 7, 2018. In this program burning
methane does not generate electricity. However, this
translates into CDM credits, a total of 200000 certificates of
Clean Developments Mechanisms are planned to be sold
(One certificate per ton). [52]

Biogas
The estimated total national agricultural waste is 6'904 541
MT/year.[53] However, in the country there is no culture of
using waste to produce energy. Most agricultural and
livestock, wastes are thrown into the trash, streams, rivers
or burned.
Few experiences have been developed in order to promote
biogas production. One of these was the feasibility project
of the use of agricultural, agro industrial and
livestockwastes for energy production by biodigestion
conducted by MEER. This project sought to determine the
potential of biomass in the country, assuring a continuous
source of energy in an industrial scale, and also to
determine the viability of using biogas generated as fuel to
produce heat or electricity.[54]
Furthermore, in 2007, MEER made a study on a normative
to supply electricity produced from biogas to the National
Interconnected System and /or electricity distributors.
Another effort focused on to demonstrate the benefits of
biodigestion was the implementation of a pilot unit settled
in the Botanical Garden of Quito in 2010.

Waste to Energy (Thermal)
Regarding the management of municipal solid waste, the
inherent entities solely focus on the implementation of
landfills. Moreover, in the country there is not a legal
framework which promotes the exploitation of solid wastes.
However, in 2009, MEER carried out a feasibility study of
municipal solid waste utilization for Imbabura province for
electric power generation. This study projects the potential
usage of plastic garbage and other wastes to obtain
electricity, diesel and other byproducts.
As one exclusive case it must be said that the construction
of a thermal waste recovery plant in Chone Canton started
in October, 2012. The project plans to use Chone solid
municipal waste to generate energy. It will be located in the
current municipal open waste dump and has a validity lapse
of 50 years. The project is planned to be implemented in the
first months of 2013.[55]

4.6. Firewood
The use of firewood in Ecuador is detailed in Figure
4.6.1.[56] The total use of wood nationwide is 8 448 802
m
3
/year. Firewood, coal, and wood wastes represent the
66.8%. Besides, industrial use which represents a 5.3%.
Crafts and small industry correspond to 14.2%.
Construction and other uses signify the 13.7%.[57] Based
on available data it was estimated that each year 2 GW are
consumed as energy derived from firewood in Ecuador.

Figure 1: Biomass for energy production by province in
Ecuador. (Number of households)
It must be said that firewood combustion is linked to air
pollution which is considered an important source of public
health hazard because of the emission of harmful pollutants
related to increased risk of respiratory tract infections and
lung cancer.[58] In the country, no projects have been
developed seeking to diminish the usage of firewood as
energy source. On the other hand, emissions from biomass
burning are a major global source of particulate matter and
gaseous pollutants to the atmosphere. Combustion of
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biomass could be responsible for approximately 45% of the
total emission of black carbon (BC) to the atmosphere,
which is highly effective in absorbing solar radiation [59].
Regarding wood used for domestic energy production in
Ecuador studies show that 2m
3
of wood are consumed per
person each year. [60], Currently, only 1.7% of primary
energy comes from firewood compared to 48% in 1970 and
20% in 1984. [61]

Image 1.Consumption by Householderof firewood per
canton in Ecuador.
5. Conclusions
Bioenergy in Ecuador represents the 2.8% of the primary
energy matrix and is obtained mainly from sugar cane
bagasse electric cogeneration. However, other forms of
bioenergy have not been developed properly mainly
because of energy subsides. Regarding biofuels, only
specific pilot projects have been conducted. It is expected
that the policy given by Executive Decree No. 1303, will
generate a growth in the sector mostly for biodiesel.
Respecting waste to energy, main constraints are related to
the lack of policies promoting the exploitation of wastes.
Only punctual projects have been carried out primarily
driven by the commercialization of carbon credits. The
electricity cogeneration in Ecuador based on biomass has
been developed by the private industry mainly sugar cane
mills. It is expected a growth of this sector because of the
feed in tariffs emitted by CONELEC. Finally, energy
derived from firewood accounts with 1.7% of the primary
energy matrix. 259216 families still use biomass as their
main energy source. This fact should be analyzed by the
government, and several attempts to reduce the risks
associated with the activity must be promoted.
6. Acknowlegments
Authors greatly acknowledge to Patricia Recalde, Director
of Biomass and Cogeneration of MEER, Enrique
Heinemann from GIZ German Cooperation agency,
CONELEC, ECOELECTRIC, and Municipality of Cuenca
city.
==============================
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