Panama announces biorefinery and production of green hydrogen

The government of Panama and energy companies, including SGP BioEnergy, have announced that Panama will add green hydrogen production to a biorefinery currently in development.

An article published in Returns explains "that the facility plans to refine 180,000 barrels a day of biofuels, including sustainable aviation fuel (SAF), and generate 405,000 metric tons of green hydrogen annually."

SGP BioEnergy was the first to break the news about the plans for the facility, which will be located in Colon and Balboa, Panama, with construction to begin in 2023.

For the project, SGP BioEnergy will work with Topsoe Sustainable Aviation Fuel to produce green hydrogen from waste carbon and renewable fuels by-products produced during refining, the release said.

What is a Bio-Refinery? 

Basically a Bio-Refinery is made up of plants that mimic the traditional petroleum refinery but using biomass instead of petroleum-based products. Working with biobased equivalents (meaning it is made of material that comes from living organisms, such as plants and animals), aims to help meet energy needs while reducing greenhouse gas and emissions. 

Panama aims to build an advanced biorefinery that can transform biomass into different raw materials. One of which will be Green Hydrogen. 

Many critics say the hydrogen industry is steering focus away from energy sources like solar and wind, calling it greenwashing. However, despite the debate, companies, and governments like the U.S. continue to push forward with the development of the hydrogen industry.