Aviation, maritime sectors expected to drive green hydrogen demand in Panama

Demand for green hydrogen will be supported in Panama by growing activity in the maritime and aviation sectors.

That is among the conclusions from a forum on legal and regulatory aspects of the energy transition hosted by the country’s energy department (SNE) and national bar association, and IDB.

Highlights of the event included Panama’s participation in the clean energy marine hubs initiative which was launched in September and aims to accelerate the use of low emission fuels.

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And although the discussion pointed to Panama as the Central American nation with the highest rainfall, the issue of water and its green hydrogen role was identified as a challenge, particularly the need for engagement with indigenous communities.

Other developments raised at the forum included news that Panama is working with Chile, Uruguay and Colombia on the designation of origin for the alternative fuel. 

The branding would apply not only to where raw materials come from to produce green hydrogen, but also its in-country production to reflect the fuel’s low carbon footprint.

And regarding price, the estimated cost to produce green hydrogen in Panama was put at around US$5.4/kg, "slightly above half the global average," the event was told.

In April, the SNE launched a public consultation for a national green hydrogen strategy, and in February proposed legislation was introduced to the national assembly to incorporate green hydrogen as a fuel in the energy matrix.

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