A team of energy industry companies led by SGP BioEnergy joined the Government of Panama to announce the development of the world''s largest biofuels production and distribution hub. Once complete in five years, Biorefineria Ciudad Dorada (Golden City Biorefinery), located in Colon and Balboa, Panama, will be the largest advanced biorefinery and sustainable aviation fuel (SAF) production platform in the world producing 180,000 barrels per day (2.6 billion gallons per year) of biofuel.
"Transportation makes up 27 percent of greenhouse gas emissions and the only way to decarbonize many sectors – like aviation – is to integrate fossil fuels with compatible biofuels," said Randy Delbert Letang, CEO of SGP BioEnergy. "This facility not only brings cleaner fuels online in the short term, but its construction at a central hub of global commerce, serving over 1,000 ports, catalyzes the industry in the long term by immediately delivering a lower cost of biofuels, reducing food waste and revolutionizing farm economics."
The project leads announced the facility at the first Bloomberg New Economy Gateway Latin America event held in May in Panama. Developed in partnership with private landowners, Panama Oil Terminals (POTSA) and the government of Panama, this project will repurpose existing facilities currently processing and storing 70% of the country''s bunker fuel oil to the refinement and storage of biofuels derived from purpose grown plant oils, and waste fats and greases. It will immediately reduce the carbon output of the facility by 80%, revolutionizing the economics in the region and supporting more than 1,000 high paying jobs.
"Our country welcomes this biofuels production and logistics facility that will help Latin America and the world in the energy transition and contribute to climate change innovation. Panama''s unique geographic position, existing logistics platform, and special economic zones make it the perfect place for this facility. We are very excited about the 1,000 jobs this investment will generate for the people of Colon and Panama. In addition, it has the potential to stimulate Panama''s agricultural sector by producing bioenergy stock feeds locally," said Laurentino Cortizo, president of the Republic of Panama.
A key innovation that makes the facility possible is the proprietary technology of Topsoe that is in use at more than a dozen facilities around the world that have more than 650,000 barrels per day of renewable capacity.
Henrik Rasmussen, managing director, The Americas, Topsoe, stated: "We are very happy to license our HydroFlex and H2 Bridge technologies for this exciting renewable fuels project in Panama and to support SGP BioEnergy in their ambition to deliver renewable diesel and jet fuels for the local and global markets."
The refinery will be developed in three phases, each over a period of 5 years with the goal of increasing production by 60,000 barrels per day over each phase. SGP BioEnergy has selected Fluor — the engineering, procurement and construction market leader in refining— together with its Mexico-based affiliate ICA Fluor, to perform the front-end engineering study.
Airlines have pledged to use biofuels to sustain 1 million flights and reduce carbon dioxide emissions by an average of 70 percent. This major shift comes from global momentum for decarbonization including regulatory initiatives and major corporate commitments. SGP BioEnergy''s management team has a proven track record of securing contracts with leading airlines who are committed to decarbonizing their operations and providing their customers with lower carbon travel options at a price competitive with conventional jet fuel.
"Panama''s Energy Transition Agenda is creating transformational opportunities which are positioning us as an innovative country who will deliver Clean Fuels to bypass the fossil fuel era," said Dr. Jorge Rivera Staff, National Energy Secretary of Panama. "Today, Panama is expanding its role as a Regional Energy Hub while also supporting local agriculture."
Colon, Panama – October 11, 2022 –SGP BioEnergy announced today the addition of green hydrogen production to the largest planned advanced bio refinery in the world allowing the facility to operate with near net-zero emissions. In May, SGP BioEnergy announced the plan for Biorefineria Ciudad Dorada (Golden City Biorefinery), located in Colon and Balboa, Panama.
Facility construction is on schedule for Phase 1 production to begin in 2025, with all land rights secured to allow for the groundbreaking of physical construction in 2023. Once fully operational the biorefinery will produce 180,000 barrels per day (2.6 billion gallons per year) of biofuel and 405,000 metric tons of green hydrogen annually.
"This facility is truly a model of the future of the energy transition," saidRandy Delbert Letang, CEO of SGP BioEnergy. "We will not only produce the fuel that will decarbonize transportation but do so in a way that is also decarbonizing the manufacturing process itself. It is the first time both advanced biofuels and green hydrogen will be produced together at this scale, and we are excited to be bringing this innovation to Panama."
Multiple partners are working together to make the refinery a reality and many of them joined SGP BioEnergy today to conduct the groundbreaking. Attendees included Gustavo Cienfuegos from engineering firm Topsoe, Yasser Williams from Corporacion CSN, S.A., Minister of Commerce and Industries of Panama Federico Alfaro, and Secretary of Energy of Panama Dr. Jorge Rivera Staff.
"It is exciting to see the progress on this facility that will bring more than 1,000 jobs to Panama," saidMinister Alfaro. "The addition of green hydrogen to this facility is further evidence of Panama''s role as a source of innovation and real solutions to address climate change," saidSecretary Staff.
Over the last few months, SGP BioEnergy has convened political and industry leaders to ensure this massive project stays on schedule and can meet the growing demand for advanced biofuels to produce Sustainable Aviation Fuel, as well as Renewable Diesel for ground transportation and lower carbon marine fuel.
In addition to establishing these foundational elements, SGP BioEnergy has worked with Topsoe to incorporate its HydroFlex™ and H2 Bridge™ technologies to produce green hydrogen from the waste carbon and renewable fuels by-products produced during the refining process.
The HydroFlex™ technology is Topsoe''s proprietary technology for taking a wide range of biofuel feedstocks including soy, camelina, canola/rapeseed, and hazelnut and refining them into advanced biofuels. The H2 Bridge™ technology captures waste propane and carbon off gas from the refining process, converts them into green hydrogen and provides that back to the refining facility to power facility operations.
"We have seen great success with the HydroFlex™ and H2 Bridge™ technologies in renewable fuels applications for other plants," saidHenrik Rasmussen, Managing Director, The Americas, Topsoe. "We are excited to bring these proven technologies together for what will be the largest renewable fuels plant in South America to not only produce a product that decarbonizes transportation but to produce it in a way that decarbonizes the manufacturing process as well. It is a true model for a low carbon energy future."
The production of renewable energy at a large scale is necessary now more than ever. All over the globe decarbonization, corporate commitments, and regulatory initiatives are taking place and the existing Panama free zones offer a unique opportunity to develop a scalable, logistically superior, and flexible way of collecting, processing, and distributing sustainable biomass feedstocks into renewable products. It also provides a global platform to transport the fuels all over the world to customers committed to decarbonizing their operations.
SGP BioEnergy is a bioenergy business leader committed to the science of solving global energy challenges sustainably. Independent of legacy oil interests, our ecosystem of partners in agriculture, finance, production, and technology are working together to make industrial-scale advanced biofuels a reality for an established set of customers that share our passion for a more sustainable future.
To successfully produce biofuels at scale requires three main elements: 1) Reliable feedstock that is cost comparative to fossil fuels. 2) Refining production that is efficient and can readily deliver fuel to buyers and 3) Established customers committed to purchase biofuel to ensure a return on investment. SGP BioEnergy believes that business begins with people and collaboration. Through our collaborative approach we have built strong partnerships in all three areas to make biofuel production at scale a reality and create long-term solutions to realize a more sustainable world.
Founded in 1940, Topsoe is a global leader in developing solutions for a decarbonized world, supplying technology, catalysts, and services for worldwide energy transition.
Our mission is to combat climate change by helping our partners and customers achieve their decarbonization and emission-reduction targets, including those in challenging sectors: aviation, shipping, and production of crucial raw materials. From low-carbon or zero-carbon chemicals to renewable fuels and plastic upcycling, we are uniquely positioned to aid humanity in realizing a sustainable future. Topsoe is headquartered in Denmark, with 2,100 employees serving customers all around the globe. To learn more, visit
The preliminary version of the strategy outlines the country’s objectives and actions in the short, medium, and long term to establish itself as a major player in the green hydrogen market.
By 2030, Panama aims to significantly boost local production of 500,000 tons of H2V (hydrogen) and/or its derivatives. Additionally, the country plans to ensure that 5% of Panama’s bunkering supply comes from this clean energy source. In the subsequent years, Panama intends to quadruple these figures, showcasing its commitment to becoming a prominent player in the green hydrogen sector.
According to the ENHIVE strategy, the goal for 2024 is to produce 2,000,000.00 tons of H2V and/or its derivatives locally. Furthermore, the strategy aims to have 30% of Panama’s bunkering supply sourced from green hydrogen by 2024. By 2050, the target is even more ambitious, with a goal of reaching 40% of Panama’s bunkering supply, 30% for aviation, and 30% for heavy cargo transport vehicles and machinery.
The achievement of these goals heavily relies on non-conventional renewable energy sources. The preliminary version of ENHIVE highlights two flagship projects that involve the production of H2V and its conversion into ammonia or e-kerosene. These projects encompass photovoltaic and wind technologies.
One of the flagship projects, “Production of H2V in Panama and transformation to green ammonia” for Green Bunkering, will feature a 290 MW solar plant in the province of Colón. The second project, “Production of hydrogen in Panama and conversion to aviation e-kerosene for dispatch of clean aerial fuel,” involves a 160 MW solar plant and an 18 MW wind plant in the Arco Seco area.
While further details about the renewable energy plants have not been publicly disclosed, the ENHIVE strategy outlines the architecture and system sizing for each H2V project, showcasing the integration of wind and photovoltaic plants.
To ensure public involvement and input, consultations and suggestions regarding the National Strategy for Green Hydrogen and Derivatives of Panama (ENHIVE) are being accepted until May 28, 2023. This inclusive approach highlights the government’s commitment to developing a comprehensive and well-rounded strategy that addresses the nation’s energy needs while embracing sustainable practices.
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