COMMENT BY THE MINISTER OF AGRICULTURE,
HON. ROBERT M. PERSAUD, MBA, MP ON SUNDAY STABROEK EDITORIAL CAPTIONED - Ethanol
Agro-energy and its growing importance as a geopolitical power commodity was the topic of Sunday Stabroek, April 08, 2007 editorial. In what is otherwise a laudable attempt to engage and (one must surmise) alert the Guyanese public on the growing importance of Agro-energy/bio-fuels policies and exploitation on a world stage, and how Guyana's geography and climatic conditions requires us to be aware of the players and their vested interests, the Editorial also saw it fit to chastise the government for apparently "dilly-dallying" on the question of a proposed investment in ethanol technology.
The assertion that the Government is “dilly-dallying” on a Brazilian investor’s proposal for an ethanol project is most disturbing.
The Government is committed to developing an agro-energy (bio-fuels) sector, particularly bio-diesel and ethanol. It is the Ministry's considered position that we will have to ensure maximum return on the available arable land and water resources, and we are also very cognizant of some of the issues discussed in the Stabroek editorial - i.e. the competing uses of land and water resources for food vs. energy production.
Four agro-energy/bio-fuels proposals were received from interested firms based in Brazil and the United States. These are being carefully evaluated involving a number of technical agencies including the Office of the Prime Minister (which is responsible for the energy sector), Ministry of Agriculture, Institute of Applied Sciences and Technology and the Guyana Office for Investment. Further, it must be clarified that the direct involvement of the Guyana Sugar Corporation in ethanol production has not been determined at this point in time.
Regarding the ethanol project proposal by Bio-capital of Brazil, the Go-Invest has been in contact with the Brazilian Embassy updating its officers on progress. Already, a Memorandum of Understanding has been drafted for discussion.
I have even discussed with the Ambassador of the Republic of Brazil, HE Arthur VC Meyer about the status of this project and efforts to secure support for the development of a local agro-energy sector in the context of our on-going cooperation programmes. Very soon, a technical team will be in Guyana to work with our technicians in the area of ethanol development.
Behind the scenes, much technical work is being carried out to ensure that the decisions we make are technically sound and financially feasible. The best practices and experiences of other countries are being studied. Yes, we want rapid development of this new sector and to capitalise on the ethanol bubble. But sound technical and financial judgment must not be sacrificed on the alter of haste.
We have identified agro-energy as a major focus for the Ministry and the Government, but I am sure Stabroek News and its readers would not want us to shirk the due-diligence process required to make decisions which will be sustainable over the long term, and derive maximum benefit to the Guyanese people.
Long before we have received these proposals, the Government has been studying this new area which holds out tremendous possibilities for economic growth, reduction of our fuel import bills, more jobs for our people and mitigating the effects of climate change.”
Indeed, the Guyana Government, and the Ministry of Agriculture in particular, have been very active in the agro-energy sector. We have, together with the IAST drafted an agro-energy strategy, looking at a broad portfolio of agro-energy options: ethanol, biodiesel, biomas pelletization, and gassification of biomass, to name a few. We will be guided by this strategy, as it provides a balanced portfolio for investment and sustainable growth in this sector.
Indeed, just last week, our Ministry announced, together with Agri-Solutions Technologies Inc., the Ministry of Local Government, and the Institute of Applied Science and Technology, Guyana's first commercial biodiesel operation in Region 1. Indeed, this historical event would have been worthy of a Stabroek Editorial, particularly as this $4M investment arose out of efforts from Dr. Suresh Narine and his team at the Institute of Applied Science and Technology, and utilizes locally developed technology and labour.
I believe it is important that our media provide a balanced exposure to important issues such these - certainly, any mention of the strides the government have been making with Biodiesel have been omitted from the editorial, making it seem as if we have been completely inactive in the sector.
I applaud Stabroek News' attempts to popularize debate surrounding agro-energy, and want to encourage them to continue to engage their readers with such topical matters.
