Panama to jump on biofuel bandwagon with new refinery

After sustaining a strong economic recovery in 2021 due to the reactivation of its interoceanic Canal, for which revenue from transits totaled USD 3.9 billion in the last fiscal year, Panama has announced a new project that seeks not only to keep the economic momentum going but also to do so in tune with the world’s environmental needs. 

On May 18, Panama’s government confirmed a four-year plan to develop a state-of-the-art biorefinery that would help the country to invest in and develop a local industry for low-carbon aviation fuel. The announcement was made alongside major local energy companies and is focused on helping reduce aircrafts’ carbon emissions, part of the aviation sector’s 2050 net-zero emissions plan.  

Like the Canal, the refinery — due to be completed at the end of 2026 — will operate throughout the Central American isthmus, connecting the Balboa district in the Panamá province, on the Pacific Ocean side, to the Atlantic Ocean’s Colón province. The idea is to place the new venture at the center of national discussions, turning it into a blueprint for Panama’s future economy.

President Laurentino Cortizo said that the planned power plant “will help Latin America and the world with the energy transition and will contribute to innovation to face climate change,” pointing out that the project aims to produce between 180,000 and 200,000 barrels of biofuels per day once operational.

“Panama’s unique geographic...