Panama to develop largest advanced biorefinery to make lower-carbon aviation fuel

The government of Panama and energy companies, including SGP BioEnergy, plan to develop a major, advanced biorefinery to increase supply of lower-carbon aviation fuel, the companies said Wednesday. The move comes as the airline industry seeks to achieve a goal of zero net carbon emissions by 2050 and as governments worldwide are pressing companies to increase clean energy investment. The biorefinery in Panama will produce 180,000 barrels per day of biofuels, including sustainable aviation fuel (SAF) and renewable marine diesel, when it is complete at the end of 2026. The project joins a flurry of other announcements from companies that have pledged in the last few years to produce SAF. The airline industry is considered harder to decarbonize than other types of transportation, so a massive ramp-up in SAF output will be needed for aviation to reach net zero. Production will have to rise from an estimated 8b liters in 2025 to nearly 450b liters in 2050, according to an analysis from the IATA. SAF produces lower emissions than traditional petroleum-based jet fuel by utilizing feedstocks including soybean oil, used cooking oil and tallow, but it is more expensive to produce.<br/>