Stratos Renewables Corp. (SRNW) is a low cost sugarcane ethanol producer focused on becoming a leader in Latin America’s emerging sugarcane ethanol industry. The company engages in the production, processing and distribution of sugarcane ethanol in Peru. Stratos’ interest in sugarcane is fueled by the increasing demand for ethanol, tax incentives and blending mandates sweeping the world.
According to a recent article, Peru’s governor, Cesar Trelles, predicts that northwest Peru will someday produce 400 million gallons of ethanol each year. While this represents only 7 percent of the ethanol sold in America in 2006, the demand for ethanol as an alternative fuel source is rising, growing 30 percent in 2006 and still climbing.
Peru’s favorable weather conditions allow for more ethanol production, and evolving environmental laws are also boosting supply. Many U.S. states require a blend of ethanol and gasoline, and automakers are hinting that more vehicles in the near future will run on 85 percent ethanol, gasoline or a combination of the two. About four million of these “flex-fuel vehicles” are expected to be on the road by 2010.
Stratos’ strategy is to be fully vertically integrated within the industry at every value chain up to the Port Logistics. By fully controlling the entire sugarcane to ethanol process, the company has the ability to keep cost as low as possible at every stage, enabling them to have above average profit margins. Stratos has chosen the right crop, the right country, at the right time and have clearly set the stage to become the world leader in low cost Ethanol production.
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