Panama clears $10bn biofuels project

Panama's government has approved the construction of a $10bn biofuels project owned by US firm SGP BioEnergy.

The project is now waiting a final investment decision that the firm expects will be reached by the end of this year.

Japan's industrial conglomerate Sumitomo Group will build the Ciudad Dorada biorefinery on 130 hectares (ha) in the Colon free zone, SGP BioEnergy said.

The project will produce 180,000 b/d of sustainable aviation fuel (SAF) to be exported mainly to the US market and 405,000 t/yr of low-carbon hydrogen.

"For the national government, it is important to promote fair and inclusive processes that lead us to migrate to systems dominated by renewable energy or energy from clean sources for the benefit of the country" Panama's commerce and industry minister Julio Molto said.

The plant will be developed in three phases of 60,000 b/d each. The first phase is expected to be completed in the first quarter of 2027 and the following phases within 15-18 months each.

By Canute James