Increased demand for ethanol production in Peru has drawn attention from Pablo Bustamante, president of the Peruvian Association of Sugar and Biofuel Producers. Bustamante recently announced that $2 billion could be invested in Peruvian ethanol production this year.
“The sugar industry will meet the country’s demand by next year and therefore, thanks to ethanol, it is expected to double, triple or increase five times the size of this powerful industry, especially in the northern provinces in terms of social impact,” Bustamante said in a statement.
While Peru is not yet in full swing production of ethanol, the Peruvian association has requested that ethanol be included in the Agrarian Promotion Law in order to put it in the same regulations bracket as sugar production. If this goes into effect, a 15 percent tax would be paid on ethanol, without higher risk to sugar companies that have other important investments, Bustamante stated.
“The sugar industry is still recovering from the past years’ disaster and there are many aspects to improve, there is a lot to do, I think this decision is quite simple and we can’t wait to see results,” he said.
Stratos Renewables Corp. (OTCBB: SRNW) is one such company rising to meet ethanol demand. Based out of California, Stratos has operations in Peru to produce sugarcane-based ethanol. Stratos is a developmental stage energy company engaged in the production, processing and distribution of sugarcane ethanol in Peru.
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