Panama govt approves green hydrogen strategy

Panama’s government on Tuesday approved the national green hydrogen and derivatives strategy as part of the effort to kick-start the emerging sector and create a regional sustainable energy hub.

At the same cabinet meeting, the government also approved the establishment of the inter-institutional committee for green hydrogen and its derivatives, CIHIVE, it said.

Do you know we have a daily hydrogen newsletter? Subscribe here for free!

The national strategy, or ENHIVE for its acronym in Spanish, is aimed at positioning Panama as the global route for green hydrogen and its derivatives, enhancing its geographical location and infrastructure to supply renewable energy to the logistics, domestic, maritime, aviation and land transport sectors, the government said.

According to the strategy, Panama has the theoretical potential to produce around 4 million tonnes of green hydrogen per year by 2040. In order to reach this potential, the country's would need 67 GWh of electricity by 2040, which means stepping up investments in renewable energy projects nationwide, the text of the strategy says.

The targets are set as follows:

By 2030, Panama produces 500,000 tonnes of green hydrogen and/or derivatives locally; 5% of the bunkering supply comes from green hydrogen and/or derivatives.

By 2040, local green hydrogen and/or derivatives production increases to 2 million tonnes; the green bunkering supply share rises to 30%; 20% of heavy-duty transport vehicles and machinery must use green hydrogen and/or derivatives as the source of energy for operation.

By 2050, the clean bunkering supply share grows to 40%; the supply of energy for the aviation sector comes from 30% green hydrogen, its derivatives and/or sustainable aviation fuel (SAF), the share of heavy-duty vehicles and machinery that must use green hydrogen and/or derivatives rises to 30%.