Two recent independent studies by international firms regarding renewable energy in El Salvador, with financing from the U.S. State Department, have concluded and demonstrated that within Salvadoran territory there already exists the production capacity and the markets for ethanol produced from locally grown sugarcane.
One important facet of the study detailed the creation of ethanol producing plants in the country’s already existent sugar refineries. One refinery specifically mentioned was La Magdalena Green Fuels,(the name of the study), the project would call for adding additional ethanol distillery capacity and replace existing and outdated equipment. The estimated ethanol production at this one site would be 9 million gallons of bio fuel per year and 9.6 megavolts of electricity.
The initial start-up costs of the project would be $43.9 million dollars that includes the costs related to financing costs and operations.
The study was presented to the Salvadoran Minister of the Economy, Hector Dada, for study and review by the National Committee on Energy, who will discuss the project and its potential for application.
El Salvador consumes approximately 150 million gallons of gasoline annually and the government plans to create 10% of that consumption total in domestically produced bio fuels for use in automobiles. This would reduce the country’s imports of hydrocarbons by 15 million gallons annually during the next years.
Bio fuel production from nationally grown sugarcane has been the norm in Brazil for many years, and El Salvador could benefit greatly form that Brazilian expertise.
At the present, the judicial framework is being worked out that will give the necessary assurances and guarantees for the investment and the markets.
Julio Arrollo, General Manager of the Sugar Association of El Salvador, stated that there was a definite interest in the private sector to review and promote this project that would clearly favor El Salvador.
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