A stretch of Desert in Northwest Peru is seen as a keen place for Sugarcane to Ethanol production by Stratos. Being a leader of export commodities such as silver, copper, zinc, tin, gold, lead and fishmeal, the Peruvian government through legislation and promotion is trying to increase agricultural activity.
The Peruvian Desert is seen as a perfect place to grow sugarcane. As the CEO of the company states it allows for controllable conditions year round as rainfall in the desert is less than an inch a year. This allows for the best production as they can use as much or as little water as needed taken from nearby rivers. Peru offers the most tons per acreage in the world, as far as quantity of sugarcane produced, making it an excellent platform for Stratos to become the lowest cost producer of Sugarcane Ethanol in the world. It is planned for the Conversion Mills to be located directly adjacent to fields to cut out the large transportation costs associated with moving raw sugarcane. Finished Ethanol is expected to be moved to Tankers Via pipelines and Exported to customers in the US.
One of the biggest advantages to Peru is its relatively stable government and favorable trade conditions with the US. This is due to the recent Free-Trade agreement between the United States and Peru creating a Free-Trade zone between the two countries.
Peru’s government sees the Northwest area as becoming the Ethanol hub of the world and they intend to induce growth in the area. Governor Cesar Trelles hopes they will one day produce 400 million gallons a year out of the area. With its favorable growing conditions, Stable government, Growth, and excellent trade conditions with the US, Peru fits perfectly into Strato’s vision to become the World’s low-cost leader of Ethanol production.
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