Panama Canal
Panama is working to become a global hub for green hydrogen production and export, targeting 500,000 tonnes per year by 2030. To support this, the country has collaborated with the European Union (EU) to draft a regulatory framework that provides clear rules for investors, simplifies permitting, and supports hydrogen-based maritime fuels.
The National Energy Secretariat (SNE) developed the regulation as an amendment to Cabinet Decree No. 36 (2003), refining the National Hydrocarbon Policy to include the hydrogen market. The framework clarifies legal conditions and speeds up project approvals to attract investment in hydrogen production and related industries.
Strategic Positioning for Export and Maritime Fuels
Panama’s location, with access to both the Atlantic and Pacific Oceans through the Panama Canal, makes it well-suited for hydrogen exports. The country can efficiently transport hydrogen derivatives such as ammonia and methanol, strengthening its role as a key supplier of clean maritime fuels.
Panama also aims for a 5% supply of green hydrogen-based shipping fuels, such as methanol or ammonia, by 2030. Its position as a global shipping transit hub supports the shift to cleaner fuels in the maritime sector.
“This regulatory framework reinforces Panama’s role as a facilitator and distribution center for green hydrogen, leveraging our connectivity, infrastructure, and strategic location,” said Juan Manuel Urriola, Panama’s National Secretary of Energy. Clear regulations will strengthen Panama’s standing in international trade and open new opportunities in logistics and energy.
EU Support and Investment Incentives
The regulatory framework is backed by Euroclima, the EU’s climate policy initiative for Latin America and the Caribbean, with technical support from Spain’s National Centre for Experimentation in Hydrogen and Fuel Cell Technologies (CNH2). By following the EU’s standards for Renewable Fuels of Non-Biological Origin (RFNBOs), Panama is ensuring its hydrogen exports meet European market requirements.
Euroclima has committed €1.68 million for technical cooperation and pilot projects in Panama, supporting the country’s energy transition and climate goals. The involvement of European advisors suggests Panama’s regulations will align closely with EU standards, making it more attractive to international investors.
“This regulatory effort decisively contributes to transforming Panama’s energy mix, crucial for a nation highly vulnerable to climate change,” said Izabela Matusz, EU Ambassador to Panama. The EU remains committed to supporting Panama’s sustainability policies.
Industry Impact and Stakeholder Engagement
Panama has started consultations on the draft regulations with government officials, private sector representatives, and other stakeholders. The goal is to refine the framework so it meets industry needs and attracts investment.
The new regulations are expected to give investors legal certainty and clear compliance guidelines. This should speed up investments in production facilities and infrastructure, helping Panama establish itself in the hydrogen industry.
To support the transition, Panama will hold consultation events to inform stakeholders about the regulations, European financing mechanisms, and partnership opportunities. These efforts will strengthen Panama’s role in the renewable energy sector and global trade decarbonization.
