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Panama approves multi-million dollar project to build a biorefinery

The project is notable not only for its financial size, but also for its strategic location in Colón, an area that will become a key center for green energy in the region.

Isbel Lázaro.

Published: July 17, 2024

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Panamanian government officials, including the Minister of Commerce and Industries, Julio Moltó, and the Minister of the Presidency, Juan Carlos Orillac, together with the National Secretary of Energy, Juan Urriola, met with representatives of SGP Bioenergy and Sumitomo Corporation. This meeting, chaired on behalf of President José Raúl Mulino, marked the initial launch of an ambitious biorefinery project for the production of biodiesel.

Biorefinery in Panama: a multi-million dollar project

Randy Delberg Letang, CEO of SGP BioEnergy, described in detail the biorefinery project, which is planned to be carried out in three phases with a total investment of $10 billion. This facility, which is intended to be the largest in the region, will be located in the province of Colón. The plan is to start exporting biodiesel and later explore its commercialization in the local market.

On the other hand, Takahiko Ito, on behalf of Sumitomo, presented its plans for investment and participation in the biofuels markets in Latin America and Panama. Minister Moltó expressed his gratitude to the investors for their interest in a key sector for the development of Panama’s energy transition model. energy transitionwhich seeks to promote a structural transformation in the production and consumption of energy.

Panama and the energy transition

The national government underlined the importance of promoting fair and inclusive processes for the transition towards renewable energiesThe national government stressed the importance of promoting fair and inclusive processes for the transition to renewable energies, benefiting mainly the country’s consumers. In addition, Energy Secretary Juan Urriola mentioned that the mandatory use of ethanol is being used as a reference in the national fuel policy, based on Law 42 of April 2011. law 42 of April 2011.

It is important to note that the meeting was attended by the mayor of the district of Colón, Diógenes Galván, as well as representatives of the Mayor’s Office of the district of Panamá, demonstrating local support for the project and its potential impact on the community.

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Source and photo: Government of Panama