Biofuels Slated for Production at Limón Oil Refinery

The National Oil Refinery of Costa Rica is currently on track to begin a new feasibility study regarding an oil refinery, funded by the Chinese, located in the Caribbean province of Limón. The announcement regarding the study comes as Chinese and Costa Rican officials recently met to reach an agreement regarding how the two countries may proceed with the $1.5 billion project. The Comptroller General's Office of Costa Rica cancelled a previous contract in 2013 due to a conflict of interest.

Project Temporarily On Hold in Costa Rica
The conflict of interest arose following an investigation conducted by the Comptroller General's Office, which found that Huanqiu Contracting & Engineering Corp, the firm responsible for conducting the feasibility study of the project, was actually a subsidiary of the China National Petroleum Corporation.

According to the National Oil Refinery of Costa Rica, they will now be responsible for overseeing the study and ensuring that an exhaustive review of a joint partnership between RECOPE and the Chinese National Petroleum Corporation is conducted. The Chinese-Costa Rican Reconstruction Corporation was initially formed for the purpose of constructing the new refinery.

The goal of the latest agreement with the Chinese is to ensure accountability and transparency in the project. When complete, the new refinery would be responsible for producing "green" fuels and biofuels along with refining gasoline and diesel. Currently, RECOPE does not refine any fuels in Costa Rica.
Costa Rican and Chinese Officials Continue Strong Partnership
During a recent visit to the People's Republic of China, President Solis requested that officials consider further investment opportunities in the Caribbean region. Toward that end, there have been discussions regarding the creation of a special trade zone exclusively for China. Solis has also requested assistance with completing highway infrastructure projects. In addition to Limón, President Solis has asked for Chinese investments in Puntarenas and Guanacaste. Together, these three provinces are the most economically disadvantaged in the country, despite the fact that the country's major shipping ports are situated in Puntarenas and Limón and Guanacaste is the most popular region in the country for tourism.

Costa Rica first established diplomatic relations with the People's Republic of China seven years ago, simultaneously ceasing relations with Taiwan. Since that time, the PRC has continued to pour investments into Costa Rica totaling more than $500 million. In 2013, President Xi Jinping of China provided Costa Rica with a $900 million loan for the purpose of financing the project. As part of the most recent discussions, President Solis has requested an investment of more than $1 billion to overhaul the Costa Rican Oil Refinery. RECOPE, which is state-owned, is responsible for controlling fossil fuels throughout Costa Rica.

In recent years, there has been tremendous discussion regarding the potential for biofuel production in Costa Rica. If the project in Limón comes to fruition, it appears as though Costa Rica would be well on the way toward leading the world in the production of biofuels.