Cuba and Venezuela agree to build 11 ethanol plants, co-operate on biofuels
As part of a series of bilateral agreements on 'mutual development' towards the 'Bolivarian Alternative', Cuba and Venezuela have agreed [*Spanish] to co-operate on the construction of 11 ethanol plants that will use sugarcane as a feedstock and that, besides liquid transport fuel, will deliver renewable electricity to the grid, obtained from burning bagasse.
During the closing ceremony of the VIIth 'Reunión Mixta Cuba-Venezuela', Cuba's interim-president Raúl Castro, Venezolan Minister for Energy Rafael Ramírez and the Cuban Minister for Sugar, Ulises Rosales signed contracts that will provide funding for the Cuban ministry and that will initiate the construction of four ethanol plants.
A total of 11 plants will be build in both countries, even though their precise distribution and capacity was not disclosed. The basis for the agreement is a common will to preserve the environment, stimulate the rural economy, reduce the consumption of fossil fuels and develop a viable bioenergy industry:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: sugarcane :: Cuba :: Venezuela ::
Cuba's Minister for Foreign Investments, Marta Lomas, said that ethanol would replace leaded gasoline. She added that bilateral co-operation between the two countries has been increasing steadily since the year 2000: in that year, 31 projects worth US$28.5 million were agreed on, whereas in 2007 some 355 projects were established, valued at US$1.5 billion. Direct Venezuelan aid to Cuba will amount to US$1 billion this year.
Cuba used to have a large sugar sector, which has gone into steady decline after the collapse of the Soviet Union, even though sugar exports remain one of the island state's largest earnings of foreign currency. The past two years has seen a resurgence of the sector, mainly driven by the ethanol opportunity, and experts predict Cuba to reap massive benefits from it because of the competitive advantage of sugarcane (earlier post).
Venezuela on the other hand has a very large unused agricultural potential and land base, which Hugo Chavez has offered earlier to foreign investors interested in establishing energy plantations (earlier post). The 'Bolivarian' state has already begun construction on 17 domestic ethanol plants (earlier post).
More information:
Agencia Bolivariana de Noticias: Venezuela y Cuba constituirán 11 plantas de etanol en el país - March 1, 2007
Laverdad: Cuba y Venezuela construirán 11 plantas de etanol - March 2, 2007
El Universal (Caracas): Cuba construirá once plantas de producción de etanol en Venezuela - March 2, 2007
During the closing ceremony of the VIIth 'Reunión Mixta Cuba-Venezuela', Cuba's interim-president Raúl Castro, Venezolan Minister for Energy Rafael Ramírez and the Cuban Minister for Sugar, Ulises Rosales signed contracts that will provide funding for the Cuban ministry and that will initiate the construction of four ethanol plants.
A total of 11 plants will be build in both countries, even though their precise distribution and capacity was not disclosed. The basis for the agreement is a common will to preserve the environment, stimulate the rural economy, reduce the consumption of fossil fuels and develop a viable bioenergy industry:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: sugarcane :: Cuba :: Venezuela ::
Cuba's Minister for Foreign Investments, Marta Lomas, said that ethanol would replace leaded gasoline. She added that bilateral co-operation between the two countries has been increasing steadily since the year 2000: in that year, 31 projects worth US$28.5 million were agreed on, whereas in 2007 some 355 projects were established, valued at US$1.5 billion. Direct Venezuelan aid to Cuba will amount to US$1 billion this year.
Cuba used to have a large sugar sector, which has gone into steady decline after the collapse of the Soviet Union, even though sugar exports remain one of the island state's largest earnings of foreign currency. The past two years has seen a resurgence of the sector, mainly driven by the ethanol opportunity, and experts predict Cuba to reap massive benefits from it because of the competitive advantage of sugarcane (earlier post).
Venezuela on the other hand has a very large unused agricultural potential and land base, which Hugo Chavez has offered earlier to foreign investors interested in establishing energy plantations (earlier post). The 'Bolivarian' state has already begun construction on 17 domestic ethanol plants (earlier post).
More information:
Agencia Bolivariana de Noticias: Venezuela y Cuba constituirán 11 plantas de etanol en el país - March 1, 2007
Laverdad: Cuba y Venezuela construirán 11 plantas de etanol - March 2, 2007
El Universal (Caracas): Cuba construirá once plantas de producción de etanol en Venezuela - March 2, 2007
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