President Pablo Bustamante of the Peruvian Association of Sugar and Biofuel Producers stated that foreign investors could potentially invest $2 billion to produce ethanol from sugar. The country is currently able to easily satisfy the countries’ demand for sugar, and supply is expected to increase by nearly five times current production, enabling Peru to export large amounts of Ethanol.
International demand for Ethanol has never been higher as energy prices reach all time highs. US demand is a large percentage of world demand. Peru and the US have just finished a free trade agreement making trade between the two countries much easier.
Peru is a very attractive place to grow sugar for ethanol production and it will have a positive impact on the communities, especially those of the Northern provinces. In order to encourage growth of the prospective industry the government will only tax 15% of income for ethanol production. This will encourage sugar companies to make the necessary investments.
Mr. Bustamante concluded saying that there are several prospective companies looking to invest in the industry and Peru can expect $1 billion in ethanol exports a year. Finally he stated that they are excited about the future prospects and cannot wait to see the results.
Stratos Renewables is a Peruvian based sugarcane ethanol producer. It is their belief that they can produce the highest yields of ethanol 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. The company is publicly traded and was founded by Peruvian agrarian experts as well as Biofuel executives.
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