Brazil dominates global sugar cane production, followed by India, which market experts anticipate will produce a record 30 million tons in 2008. Sugar-based ethanol burns cleaner than most alternative fuels, emitting 80% less net greenhouse gases than gasoline; in addition, it produces more energy per equivalent unit. The production efficiency of sugar-based ethanol has nearly tripled since the 1970s – no more fear of shortage.
Still, the price of sugar continues to decline as production outweighs demand. One option to increase the value of sugar would be to eliminate import tariffs, reducing our dependency on overseas oil. If the U.S.’s restrictions on foreign sugar and ethanol were removed, it would upset the Brazilian and Indian scale, and create outrage by American sugar farmers who receive subsidies and guaranteed high prices for their sugar.
The American sugar industry approached the U.S. government last year to increase the cost of sugar. Under a House Agriculture Committee proposal, U.S. growers will be able to sell cane and beet sugar to be used as a bioenergy feedstock. This is good news for alternative energy companies focused on the production of sugar cane solely used for green options.
Stratos Renewables Corp. (OTCBB: SRNW) engages in the production, processing and distribution of sugarcane ethanol. Based out of California, the company operates a production facility in northern Peru with the capability to produce 700 tons of sugar cane per year, with the conversion ability to produce up to four million gallons of ethanol.
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