Paraguay launches plan to become major biofuel exporter
Paraguay is to launch a biofuel plan aimed at cutting dependence on oil, and to export renewable fuels to world markets. The country has no oil reserves of its own and has to rely on expensive imports to meet its fuel needs. High import bills are a heavy burden on the country's development. But Paraguay has a considerable biofuel production potential and is keen on exploiting it.
The country plans to export at least US$50 million worth of biofuels within four years as part of a wider bioenergy project that aims to attract foreign investment, the government said.
As part of the plan, the Paraguayan government also wants to replace imports of conventional fuels by US$ 150 million over the same time frame, Industry and Commerce Minister Jose Maria Ibanez told the Reuters Latin American Investment Summit in Asuncion.
"Agro-energy is the big issue worldwide at the moment and Paraguay is a country with great potential. We've got millions of hectares available for farming," Ibanez said.
Some key facts about the country's land and land-use:
Six firms from neighboring Brazil, the United States and Japan have already shown their interest in working with Paraguayan businesses to set up sugar cane-processing plants for ethanol production:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: biodiesel :: land :: Paraguay ::
Biofuels, which include ethanol, and diesel made from vegetable oils, are increasingly seen as a cleaner, renewable energy alternative to fossil fuels.
In 2006, Paraguay imported fuels and lubricants worth US$691 million - roughly the same as the country earns from annual exports of soy products. Paraguay is the world's No. 4 soy exporter and the oilseed is its top foreign currency earner.
Paraguay is one of South America's poorest countries and officials recognize that it still has a reputation for corruption, despite efforts to fight graft and attract outside capital.
"Corruption is still a problem, but it isn't one of the main difficulties for investment anymore because it's no longer a common practice," Ibanez said. "We've made a lot of progress."
The country plans to export at least US$50 million worth of biofuels within four years as part of a wider bioenergy project that aims to attract foreign investment, the government said.
As part of the plan, the Paraguayan government also wants to replace imports of conventional fuels by US$ 150 million over the same time frame, Industry and Commerce Minister Jose Maria Ibanez told the Reuters Latin American Investment Summit in Asuncion.
"Agro-energy is the big issue worldwide at the moment and Paraguay is a country with great potential. We've got millions of hectares available for farming," Ibanez said.
Some key facts about the country's land and land-use:
- Paraguay's total land area has an arable land base of around 21.5 million hectares, of which it currently uses 3.1 million hectares or 14.5%
- Some 21% of the country's total land area is made up of forests, of which 2.7 million hectares are dense, pristine rainforest (see the EarthTrends database on forests, grasslands and drylands)
- Paraguay's annual deforestation rate is around 0.5%
- 65% of the country's total land area consists of savannas and grasslands, suitable for energy crop production
- Around 12.7 million hectares of land are suitable for the production of sugarcane (map, click to enlarge), according to the AEZ methodology (International Institute for Applied Systems Analysis, GAEZ database)
Six firms from neighboring Brazil, the United States and Japan have already shown their interest in working with Paraguayan businesses to set up sugar cane-processing plants for ethanol production:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: biodiesel :: land :: Paraguay ::
Biofuels, which include ethanol, and diesel made from vegetable oils, are increasingly seen as a cleaner, renewable energy alternative to fossil fuels.
In 2006, Paraguay imported fuels and lubricants worth US$691 million - roughly the same as the country earns from annual exports of soy products. Paraguay is the world's No. 4 soy exporter and the oilseed is its top foreign currency earner.
Paraguay is one of South America's poorest countries and officials recognize that it still has a reputation for corruption, despite efforts to fight graft and attract outside capital.
"Corruption is still a problem, but it isn't one of the main difficulties for investment anymore because it's no longer a common practice," Ibanez said. "We've made a lot of progress."
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