Panama moves towards green hydrogen regulation with support from the European Union

The document Green Hydrogen Regulatory Proposals will contribute to create the regulatory framework to develop the production and market of this type of renewable energy in the country. This proposal has been prepared by the National Energy Secretariat (SNE) of Panama thanks to the support of the European Union through the Euroclima Program.

The proposal includes, on the one hand, regulatory measures that will allow the rapid implementation of Law 54 – Law for the promotion and implementation of green hydrogen as a fuel and energy vector in the Republic of Panama – once it is approved by the National Assembly, where it is currently being debated.

In a complementary manner, studies, tools and databases developed thanks to European R&D&I programs will be made available to the SNE, which will allow regulatory measures to be implemented almost immediately after their approval.

A fundamental part of the process of drafting the proposal has been the advice of the Spanish National Center for Hydrogen and Fuel Cell Technology Experimentation (CNH2). This advice has been made possible by FIIAPP, one of Euroclima’s implementing agencies.

“These regulatory proposals establish the basis for Panama to position itself as a strategic distribution center for green hydrogen, taking advantage of its geographical location and logistical capabilities,” said Juan Manuel Urriola, National Secretary of Energy.

Izabela Matusz, Ambassador of the European Union in Panama, said that “developing the green hydrogen market in Panama will contribute decisively to the change of energy matrix that a country so exposed to the effects of climate change needs. We have been collaborating with the Panamanian authorities for a long time in the design and implementation of the country’s energy transition. This proposal is one more step in that journey and we assure them that they can continue to count on the European Union”.

Both the development of the regulatory framework of the green hydrogen market, as well as the study of the necessary measures to train a critical mass of the Panamanian workforce to join it are the fundamental objectives of the Human Capital Development action around the green hydrogen economy (H2v) and its derivatives in Panama, jointly promoted by the European Union -through the Euroclima Program and within the framework of its Global Gateway strategy- and the Government of Panama -through the SNE-.

The objective of this action is to support the Secretariat in the implementation of the National Green Hydrogen and Derivatives Strategy (ENHIVE), which seeks to position Panama within the global route of green hydrogen and its derivatives, taking advantage of the country’s privileged geographical location and infrastructure.

The so-called green hydrogen is a source of energy based on the use of the energy generated by the separation of hydrogen atoms by applying electrical energy from renewable energy sources (wind, solar or hydroelectric).

The collaboration between Panama and the European Union to take advantage of this innovative energy source is part of the new Euroclima Action Plan in Panama, which was presented last May.