Brazil is one of the largest sugarcane markets in the world and their demand continues to rise. They currently produce 22 billion liters of ethanol a year, 81% of this fuel is used domestically. This is due to the fact that Flex Fuel vehicle sales have increased 85% year over year, markedly increasing demand for Sugarcane. Growers can earn far more on Sugarcane for Ethanol production leading many to do so. Currently Sugarcane for Ethanol production equals 50% of total production and Morgan Stanley research expects it to reach 60% of sugarcane demand in the coming years.
This makes Stratos Renewables Corp. and Peru an extremely favorable choice for Sugarcane to Ethanol production for a number of reasons. First Peru is one of the best places to grow sugarcane as it lacks the many climate issues experienced by places like Brazil. Secondly, Peru is stable politically and monetarily stable compared to other countries producing Sugarcane for Ethanol. Domestic demand for Sugarcane is easily met allowing for export to the US, EU, and China. Lastly, Peru has favorable trade terms with the US, one of the largest Ethanol markets in the world.
With Global demand rising and a Global sugarcane deficit becoming a reality, Stratos has positioned itself perfectly to fill this Global need. As countries around the globe continue to reduce the demand for Fossil fuels, as Brazil and the US have, they will see Ethanol demands continue to rise.
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