Proposals being reviewed for bio-fuel investments

Georgetown, GINA, April 25, 2007.

The Inter-Ministry Working Group on Bio-fuels/Agro-Energy that was set up by Government as part of its thrust to develop a thriving agro-energy sector is currently reviewing five proposals from investors interested in setting up bio-fuel establishments in Guyana.
This was announced today by Minister of Agriculture Robert Persaud during a meeting with two experts from the European Union (EU), Messers Duhamel and Jean Raux. The experts are conducting a study for presenting options to the EU for support to African Caribbean and Pacific (ACP) countries in bio-fuels and bio-fuel feedstock development.
The experts were presented with reports based on previous studies done by the European Commission for Latin America and Caribbean (ECLAC), which highlights Guyana’s potential for bio-fuel development.
            During their meeting with Minister Persaud, they enquired about Government’s preference of feedstock to produce bio-fuel.
            Minister Persaud explained that the proposals currently being reviewed are focused on ethanol production from sugar cane.  Additionally, Government is exploring the cultivation of sugar cane in the intermediate savannahs which can help to develop the agro-energy sector.      
            He noted that proposals being examined include those of investors from the United States of America (USA) and Brazil who are all interested in producing ethanol from sugar cane.
            Raux noted that previous reports show that there is a viability of ethanol production for export and questioned whether Guyana has done any further studies or analysis in this regard.
Minister Persaud said Guyana has benefited from the ECLAC study and another from the Inter-American Development Bank (IDB) while local experts have done their own reviews and cost settings. However, he explained that development of agro-energy requires merely private sector investments.
            He stated that Government recognizes the importance of developing agro-energy, as several initiatives have been already pursued to produce bio-fuel.
            “At the Ministry of Agriculture, we are particularly interested in it because we see it as a new area in terms of diversification. Already we are doing bio-diesel using palm oil as the feed stock and also exploring possibilities of coconut oil,” he said. 
The Minister explained that Government recognizes the concerns that will arise from the production of ethanol such as the availability of land and measures have been considered to ensure that areas identified for this activity will not affect agricultural or food production.
Already, 50 000 hectares have been identified in Canje, Region Six, that will be made available to investors for ethanol production. These are underdeveloped lands and will be put forward for investors to include in their business plans. This amount of land is above the 45 000 hectares which are required in most of the proposals.