Stratos Renewables intends to become the low cost leader in Ethanol production and feels that it is in an advantageous position to do so. They plan on producing 150 million gallons of Ethanol from sugarcane yearly. The company plans on also marketing the by-products of ethanol production; fertilizer, electricity, and sugar. Currently targeting the largest energy markets in the world, China, US, and India, they seek to be a Global market leader in Sugarcane Ethanol production.
According to CEO Tony Salas they are experiencing the “Perfect Storm” in the energy market with the needs for Independence, Security and environmentally safe solutions. He feels that Stratos is leading the way to solutions of these problems.
In order to be the lowest-cost producer, they plan to be fully integrated, growing their own Sugarcane, establishing milling and distilling facilities, and then finally exporting the finished product (Ethanol) to foreign customers. They also intend to consolidate other small sugarcane growers in the area to increase their production possibilities.
Peru offers many advantages to the company over other Sugarcane to Ethanol producers. As Peru is a desert environment it rarely rains allowing for a Greenhouse like atmosphere, where the amount of water can be controlled and crops can be grown year round. This is unlike Brazil, the main competitor, where crops are grown seasonally. The advantage of growing sugarcane in Peru is a unique comparative advantage.
Currently the company is completing phase 1 which will give them all the land needed to grow the business, establish a nursery for the sugarcane crops, complete organic matter complex for soil, and finally complete expansion of their Mill to a capacity of 1,000 tons of Sugarcane per day. Phase plan 3 consists of constructing and operating four mills and the planting of 50k hecta acres of crop in Northern Peru. They also intend to construct Mills and Distilleries in Brazil and Columbia in the future.
Mr. Salas feels that because of these factors the company will become the low cost provider of Ethanol in the world. He said, “They have chosen the right crop, the right country and that they have to right management team in place to fulfill the companies goals.”
To view a presentation of the company, please visit the following link: http://www.qualitystocks.net/stratos
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