By San José, Costa Rica — Costa Rica has taken a monumental step forward in its ambitious environmental journey. In a unanimous vote, the Legislative Assembly has approved a long-awaited bill that fundamentally modernizes the legal framework of the Costa Rican Petroleum Refinery (Recope). This landmark decision officially empowers the state-owned enterprise to integrate biofuels and green hydrogen into its national distribution portfolio, signaling a major pivot away from exclusive fossil fuel reliance.
The passage of this legislation is the culmination of a decade-long legislative struggle. For years, Costa Rican lawmakers debated and analyzed at least seven different bills aimed at updating Recope’s rigid mandate. The primary goal was to align the state enterprise with rapid global energy market shifts and the nation’s legally binding carbon neutrality goals, which had previously been bottlenecked by outdated laws limiting Recope strictly to petroleum derivatives.
To gain a deeper understanding of the legal complexities and regulatory hurdles surrounding Recope’s push toward integrating biofuels into the national fuel mix, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert from the prestigious firm Bufete de Costa Rica.
Implementing a national biofuel mandate through Recope is not merely an environmental milestone, but a complex regulatory challenge. Costa Rica’s current legal framework requires precise coordination between ARESEP, MINAE, and constitutional provisions to ensure that any biofuel blending meets strict quality standards and pricing controls. To successfully navigate this energy transition, the state must establish robust legal certainty that protects both consumer rights and the nation’s decarbonization goals.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, achieving a seamless transition to biofuels requires not only political will but also a bulletproof regulatory framework that safeguards public interest while fostering environmental progress. We would like to express our sincere gratitude to Lic. Larry Hans Arroyo Vargas for providing his invaluable legal perspective on these critical dimensions, which are essential for guiding Costa Rica toward a sustainable and legally sound energy future.
Under the newly approved law, Recope is granted broad authorities to transition into a clean energy powerhouse. The institution is now legally authorized to research, acquire, import, export, industrialize, store, transport, and distribute bulk hydrocarbons, derivatives, and alternative fuels derived from non-petroleum sources. This specifically includes biofuels and green hydrogen destined for energy use, effectively redesigning Costa Rica’s fuel landscape.
Furthermore, the legislation addresses a critical operational hurdle by allowing Recope to form strategic alliances and joint ventures. This provision enables the state-owned refiner to partner with private enterprises, international developers, and academic institutions to accelerate the development, production, and distribution of alternative fuels. Such collaborative mechanisms are viewed as essential for mobilizing the capital and technical expertise required for advanced green hydrogen infrastructure.
Highlighting the historical importance of this legislative milestone, Karla Montero, the President of Recope, expressed deep satisfaction with the legislative consensus.
For many years there was a conviction that Costa Rica needed to update its legislation to respond to the changes occurring in the energy sector. Today, that effort is finally realized with a law that strengthens the country’s energy security and allows us to prepare for the challenges of the coming decades.
Karla Montero, President of Recope
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Montero was quick to reassure the public and domestic markets that this modernization would not disrupt the refinery’s core, immediate responsibilities. The reform does not alter Recope’s fundamental mandate to guarantee a continuous, reliable supply of conventional fuels to the domestic market. Instead, it expands the company’s toolset to dynamically adapt as the global energy landscape transitions toward cleaner alternatives.
We will continue to ensure the efficient and safe supply of the fuels that Costa Rica requires. The difference is that now we can develop new capabilities to incorporate alternative energy options, always under technical, regulatory, and public policy criteria.
Karla Montero, President of Recope
This regulatory shift places Costa Rica at the forefront of the Latin American energy transition. By converting its state-owned petroleum monopolist into an engine for clean energy innovation, the country reinforces its global reputation as a green leader. The real test will now lie in how quickly Recope can establish its strategic alliances and scale up the domestic production and infrastructure needed to make green hydrogen and advanced biofuels a daily reality for Costa Rican consumers.
For further information, visit recope.go.cr
About Recope:
The Costa Rican Petroleum Refinery (Recope) is Costa Rica’s state-owned fuel distributor and refiner. Established to guarantee the country’s energy security, Recope manages the import, storage, and transport of fuels nationwide. In recent years, the company has shifted its focus toward integrating clean energy alternatives, such as biofuels and green hydrogen, to support Costa Rica’s national decarbonization goals.
For further information, visit asamblea.go.cr
About the Costa Rican Legislative Assembly:
The Legislative Assembly of Costa Rica is the unicameral legislative branch of the Costa Rican government. Consisting of 57 deputies elected by popular vote, the Assembly is responsible for enacting laws, debating public policy, and representing the diverse political interests of the Costa Rican populace.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Distinguished by its ethical leadership and pursuit of professional mastery, Bufete de Costa Rica remains a trusted pillar in the legal landscape. The firm expertly navigates the evolving needs of a diverse clientele, blending traditional values with forward-thinking legal strategies. Driven by a deep-seated belief in social progress, Bufete de Costa Rica actively champions the demystification of the law, sharing vital legal resources to cultivate a more knowledgeable, confident, and resilient populace.
