Aruba and the Netherlands Announce Historic Transformation of Former Lago Refinery Site
Aruba has officially announced the end of its oil refining era with the historic decision to dismantle and repurpose the former Lago Refinery in San Nicolas. The announcement was made jointly by Aruba’s Prime Minister Mike Eman and Dutch Prime Minister Dick Schoof, marking a pivotal moment in the island’s economic and industrial trajectory. Once one of the most strategic refineries in the world, the Lago site powered global operations for nearly a century and played a decisive role in the Allied Forces’ victory during World War II. Today, Aruba is taking a bold step forward transforming an industrial legacy into a platform for sustainable growth and innovation.
“Generations of Arubans have built their lives around this plant. But the future demands courage,” stated Prime Minister Eman. “Today, we close that chapter with conviction; to open a new chapter of innovation, sustainability, and the common good.”
A Vision for Sustainable, Inclusive Development
The former refinery site will undergo complete dismantling and environmental remediation, creating one of the largest redevelopment opportunities in the Caribbean. Preliminary plans envision a diverse future built around clean and renewable energy production, maritime innovation, and advanced circular industries that convert waste into economic value. There are also opportunities to develop sustainable housing solutions, cultural and creative spaces, and green public areas that foster community well-being and climate resilience. Together, these elements aim to transform San Nicolas into a future-proof district that balances economic opportunity with environmental and social benefits.
A Strong International Partnership
Upon Aruba’s formal request, the Dutch government will provide technical assistance for the safe decommissioning of the site, including the preparation of international tenders. Prime Minister Schoof commended Aruba’s leadership. To accelerate this transition, the Netherlands will contribute €50 million from a special energy transition fund to strengthen Aruba’s power grid and expand renewable energy infrastructure. This investment represents a significant vote of confidence in Aruba’s long-term economic transformation.
Strategic Opportunity for Investors
The transformation of the Refineria di Aruba (RDA) site offers one of the Caribbean’s most comprehensive investment opportunities. Renewable energy production and storage, hydrogen and clean maritime logistics, advanced recycling technologies, sustainable urban development, and cultural innovation are all expected to play a central role in the site’s redevelopment. Together, these sectors support Aruba’s national vision for sustainable prosperity while contributing to regional leadership in the global energy transition.
A New Era for San Nicolas
For decades, San Nicolas powered Aruba’s industrial growth. Today, it stands ready to become a dynamic ecosystem grounded in innovation, green industry, and culture, promoting equitable economic development across the island. Aruba invites investors, innovators, and strategic partners to join in shaping this landmark transformation. Interested in learning more about investment opportunities at the RDA site and related sectors? Contact us to explore partnership pathways, incentives under development, and upcoming tender opportunities. Together, we are building the next century of Aruba’s prosperity.
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