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Economy

Colombia to build new ethanol plant

by Matt Snyder August 2, 2011

Colombia News - Ethanol

Colombia announced plans to construct a $22 million bio-ethanol plant Monday, UPI reported.

Indian energy company Praj, will build the facility in the Eastern Plains of Colombia and will use new technology to limit energy costs and water consumption during the production process.

The plant will produce nearly 17,000 cubic feet of ethanol a day and is Praj’s largest project in South America to date. Colombia will convert sugarcane into ethanol, which is more efficient than converting corn into ethanol, a technique traditionally used in the U.S.

Colombia has made great efforts to expand its ethanol production. In 2007 ex-President Alvaro Uribe pushed through a bill that required all gasoline in the country to contain at least 10% ethanol. This requirement was later eased back to 8%.

If the free trade agreement with Colombia is ratified, sugar-based ethanol could arrive in U.S. markets for the first time in significant amounts. Brazil currently produces most of the world’s sugarcane ethanol, but high tariffs currently keeps it out of the U.S.

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