A Valley for Green and Sustainable Business

Valle del Cauca offers a unique set of strengths derived from its geographic location, productive development, and infrastructure. According to the latest data, the region accounts for 18% of Colombia’s industrial output and 22% of its agribusiness. It is also home to the country’s leading port, which handles 46% of Colombia’s containerized foreign trade.

The department is rich in biomass, supported by a clean energy matrix and a strong capacity to develop nature-based solutions with minimal environmental impact. This combination of current capabilities and global trends positions Valle del Cauca as an ideal destination for operations aligned with international sustainability standards.

The availability of strategic partners and the advancement of value chains in renewable energy, green chemistry, and the circular economy enable companies operating in the region to move forward toward their carbon neutrality goals.

Renewable Energy

Electric power is one of the most critical inputs for a wide range of economic activities. The global objective is to increase the share of renewable energy sources, recognized for their lower environmental impact.

Compared to other regions, Valle del Cauca has a greater capacity for clean energy generation. In the department, electricity is primarily produced from:

Centrales hidroeléctricas (86,7%), Granjas solares (0,6%) y Biomasa (12%)

Valle del Cauca not only has a renewable energy matrix but also the most diversified in the country. It is furthermore the leading department in biomass-based energy generation, accounting for approximately 94% of the national total.

Energy Generation Matrix Distribution (2022)

Gráfico de barras que muestra la distribución de la matriz de generación de energía en 2022 por departamento. En Antioquia, 96,2 % es energía hidroeléctrica y 3,8 % de otras fuentes. En Cundinamarca, 97,8 % hidroeléctrica y 2,2 % otras. En Boyacá, 88,9 % hidroeléctrica y 11,1 % otras. En Atlántico, 100 % hidroeléctrica. En Valle del Cauca, 86,7 % hidroeléctrica, 12 % otras fuentes y 0,6 % adicional de una tercera categoría no especificada.

Source: XM – Prepared by the Cali Chamber of Commerce

Circular Economy

The production processes of the manufacturing and agribusiness industries generate by-products that can be transformed into new business lines, revenue streams, and innovative alternatives to reduce environmental impact.

Main Agroindustrial Residues in Valle del Cauca:

** Sugarcane bagasse:** Over 8 million tons annually, used for energy cogeneration and the production of paper and cardboard..

Poultry litter (chicken and hen manure): More than 500,000 tons per year, with potential for energy generation.

Swine waste: An estimated 250,000 tons annually, with significant energy-use potential.

Valle del Cauca is home to the country’s leading paper and cardboard recycler and has established capabilities for reusing recycled plastics. Currently, the largest PET packaging supplier has formed a strategic alliance for recycled material sourcing, enabling an increased share of recycled inputs in its processes. This initiative provides industries in food, beauty, personal care, and household products with solutions aligned to global sustainability standards.

Green Chemistry

Surfactants

One of the major global challenges is replacing petroleum-derived chemical inputs or production processes with sustainable alternatives.

Valle del Cauca is Colombia’s third-largest producer of chemical products and the origin of nearly 30% of the country’s exports of cosmetics and personal care. A key input for this industry is surfactants, used in soaps, shampoos, emulsions, and creams.

The surfactant market is highly attractive. According to ProColombia, in 2023 Colombia imported 45,000 tons, while national demand exceeded 150,000 tons. In Latin America, imports surpassed USD 880 million, with Colombia accounting for approximately 10% of this value.

Surfactant production requires two main inputs: ethylene oxide and fatty acids.

Ethylene oxide is traditionally produced as a petrochemical derivative. A sustainable alternative is to produce it from ethanol, a key product of Colombia’s sugar industry. Valle del Cauca hosts 6 of the country’s 7 distilleries, with annual production exceeding 320 million liters.

Developing an ethylene oxide plant in the region is strategic, as this compound cannot be transported over long distances due to its toxicity and flammability.

Fatty acids are derived from palm oil. While Valle del Cauca is not a major producer, it does have processing capabilities.

Green Hydrogen

Green hydrogen and its derivatives represent a significant opportunity. According to the Power to X (PTX) Potential in Colombia study, promoted by Germany’s Federal Ministry for Economic Affairs and Climate Action, Valle del Cauca is identified as the hub with the greatest potential to develop this industry in the country.

This type of hydrogen is produced through electrolysis, a process that separates hydrogen molecules from water using renewable energy. From it, several key compounds can be derived:

The development of this hub is supported by the availability of biomass and the established business and industrial network in the region, reinforcing Valle del Cauca’s competitiveness as a leading center for green chemistry in Colombia and Latin America.