By 2014 that percentage will increase to reach 5%. The progress in increasing the presence of ethanol in the fuel used by motorists will continue, reaching 7% in 2015, and 10% in 2016.
The biofuel will initially be produced by the company Campos de Pesé, from sugar cane grown in 5,000 hectares specifically for ethanol production, so that there will not be changes in the market for sugar and alcohol for human consumption.
Another option for the production of ethanol is a type of yucca unfit for human consumption, which European companies already have experience with and have shown interest in getting into the Panamanian market.
The country's ethanol producer has stopped supplying the additive to fuel distribution companies.
Extract from resolution 2188 issued by the National Secretariat of Energy and published in the official newspaper of Panama, La Gaceta:
....that the company Campos de Pesé SA, the only company producing anhydrous ethanol used for blending with gasoline, has suspended sales of this product to importing companies - distributors of fuels, which creates a situation of shortage of anhydrous ethanol for blending with gasoline.
The new Panamanian Biofuels Act provides that from April 2013 a 2% of anhydrous bioethanol be incorporated into motor fuels.
Under the law, that percentage will increase to 5% by 2014. The progression in the increased presence of ethanol in the fuel used by motorists will continue to reach 7% in 2015 and 10% in 2016. This percentage may be increased by the National Energy Secretariat based on the technological advances.
Daily production will surpass one million liters per day sometime between this year and the next, according to estimates from the Industrial Chamber of Nicaragua.
Nicaragua is joining the alternative energy boom driven by Brazil.
The President of the National Committee of Sugar Producers (CNPA) indicated that "this year we calculate that production will surpass 450,000 liters daily and between 2008 and 2009 we believe that we will be producing one million liters per day."
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Agro2 is committed to producing ethanol from cassava and food products for domestic consumption and export through the use of sustainable agriculture practices while serving as a model of agricultural production in the highly degraded Veraguas region of the Republic of Panama.
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