Panama's President Martín Torrijos Espino will submit a bill to the national assembly that would allow a 10% ethanol admixture in gasoline, the presidential website reported.
The country's vehicular park currently uses 160M gallons (606Ml) a year of gasoline, Torrijos said.
Panama has roughly 200,000ha available to plant sugarcane to produce ethanol, he said.
Assuming a 10% ethanol mix in Panama's gasoline volume (based on 2004 data), the government estimates annual production of ethanol of 15M gallons will be needed, which would require some 11,000ha of sugarcane, BNamericas reported previously.
Torrijos made the announcement during a visit to Brazil, where he met with President Luiz Inácio Lula da Silva, who pledged technological support to help advance Panama's ethanol plans.