A law which encourages the production of biofuel means more land will be needed to keep up with the increased demand for cultivated sugar cane.
Despite the lack of designated growing areas and investigations to support the guidelines for production of this kind of biofuel, those entering the sector expect ample benefits.
In order to make sure that the incentive for production of sugar cane biofuel is effective, 30 thousands hectares would need to be found over the next two years.
Embrapa, the Brazilian Agricultural Research company plans to use Panama as a base to support projects in Central America and the Caribbean.
The organization is one of the world leaders in tropical agriculture and was responsible for the development of the South American giant's bio-fuel industry.
"Embrapa's Panamanian office will channel support from Brazil into projects developing the region's skills and food security," reports Prensa.com.
Embrapa, a Brazilian agricultural research company, will install its regional headquarters in Panama.
The president of International Cooperation at Panama's Agricultural Development Ministry said that the presence of this company will boost feasibility studies for ethanol production.
"For the time being, the company expects to install Panela commercializing plants with a double objective: unsold inventory will be adapted to ethanol production", reports Prensa.com.
A commission from EMBRAPA arrived on Sunday in Honduras to fine tune details for the installation of a regional office for Central America and the Caribbean.
Besides the setting up of the a regional office, they are looking to provide follow up to agreements signed by the presidents of Central America and Brazilian president, Lula Da Silva, last year in El Salvador.