To combat the changing climate, the 27 nations in the EU called for use of Bio-fuels in at least 10 percent of all fuel. This move is expected over the next 12 years into 2020. This presents an excellent opportunity as the EU bloc represents an extremely large Bio-fuel market. The plan would increase consumption of Bio-Fuels by as much as 21,500 liters.
Currently EU imports of ethanol are taxed by exuberant tariffs up to 60%. The ethanol created in South America and Peru is substantially less expensive than EU and US ethanol allowing it to sell within the EU bloc of countries for a profit. In fact, Stratos believes that it can produce ethanol at a lower cost than most in the world due to Peru’s extremely favorable conditions. With the US opening Free Trade with Peru, this could possibly encourage the EU to open freer trade allowing for increased profits.
A South American sugarcane ethanol executive said, “‘We see this as very positive because it will allow the development and consolidation of the European biofuel market, which was in doubt without the defining of these goals.”
Above all this shows that the world sentiment towards Ethanol continues to be positive. The future for ethanol is now and many countries are recognizing its benefits, especially as Oil becomes scarce and soars over $100 a barrel. Ethanol is not only renewable, but sugarcane ethanol specifically reduces emissions by as much as 80%. This is the main driver in the EU commission’s decision to increase ethanol use.
Stratos Renewables Corp. is a Peruvian based sugarcane ethanol producer. It is their belief that they can produce the highest yields at the lowest cost worldwide within the northern coast of Peru. They are currently completing an expansion on their existing facility and have initiated a multi-phase growth strategy to become the leader of ethanol production in Peru. Peruvian agrarian experts as well as Bio-Fuel executives founded the company which now trades publicly on the Over-The-Counter exchange.
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