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You are here: Home / cat / Guatemala Pushes Local Biofuels Growth

Guatemala Pushes Local Biofuels Growth

Dated: March 23, 2026

The Inter-American Institute for Cooperation on Agriculture (IICA) and the Pan American Liquid Biofuels Coalition (CPBIO) took part in the Regional Seminar “Cultivating Energy 2026” in Guatemala City, where Guatemalan President Bernardo Arévalo publicly reaffirmed his government’s support for expanding local biofuels development. The event brought together government officials, international experts, and representatives from the energy and agroindustrial sectors across Latin America and the United States to discuss the future of biofuels in the region and to explore how cleaner fuels can support sustainable development, economic growth, and energy diversification.

Organized by the U.S. Grains and Bioproducts Council, the seminar served as a technical exchange platform focused on international experiences and the regulatory, technological, and operational requirements needed to develop and implement biofuels effectively. During the opening session, President Arévalo emphasized Guatemala’s commitment to cleaner fuels as part of a long-term sustainable development strategy. He noted that Guatemala already has a legal framework for biofuels that has existed for more than 40 years and said this foundation is now reinforced by scientific evidence and the practical experience of countries that have successfully adopted ethanol blending policies.

Arévalo stressed that Guatemala is in a strong position to draw on global expertise and technical knowledge to move forward with biofuel adoption in a strategic and evidence-based way. He described biofuels as a key part of the country’s efforts to diversify its energy matrix, create economic opportunities, and improve air quality. His remarks signaled clear political backing for the sector and positioned biofuels as both an environmental and economic priority within Guatemala’s broader development agenda.

Also attending the seminar was Luke Lindberg, Under Secretary for Trade and Foreign Agricultural Affairs at the United States Department of Agriculture, who underlined the central role of energy in supporting economic activity and business development. He noted that introducing ethanol blending can deliver benefits for consumers and the environment while also creating new opportunities for cooperation and investment between the United States and Guatemala. According to Lindberg, greater use of ethanol could also contribute to more stable fuel prices at the retail level, adding another practical incentive for the policy shift.

IICA has already been supporting the Government of Guatemala with technical assistance related to the development and implementation of regulations for ethanol use in the land transport sector. During the seminar, IICA-CPBIO International Biofuels Specialist Agustín Torroba presented on public policy frameworks, blending mandates, and regulatory pathways for biofuels across the Americas. He highlighted that 11 of IICA’s 34 member states already have effective ethanol blending with gasoline, and noted that the Americas account for 85 percent of global ethanol production. He also pointed out that the region is well positioned to expand further because of its strong agricultural value chains and abundant raw materials.

The seminar also featured a panel on the role of agriculture and biofuels, moderated by IICA Deputy Director General Lloyd Day. The discussion included representatives from major sugar and alcohol producer associations in Guatemala, Panama, El Salvador, and Costa Rica, who explored how agriculture-linked biofuels can contribute to energy security, transport decarbonization, and rural development across Central America. Their participation reinforced the message that biofuels are not only an energy issue but also a significant opportunity for the agricultural and rural economy.

Overall, the seminar aimed to deepen regional cooperation, strengthen the exchange of technical knowledge, and accelerate biofuels development in Latin America. A major outcome highlighted during the event was Guatemala’s plan to begin blending ethanol at 10 percent in all gasoline starting June 1 this year, marking an important step in the country’s transition toward cleaner transport fuels and signaling a concrete move from policy discussion to implementation.

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