Southridge Enterprises to build sugarcane ethanol plant in El Salvador
U.S.-based renewable energy company Southridge Enterprises Inc. announces it plans to build an ethanol plant with an annual capacity of 5 million gallons (18.9 million liters) in El Salvador.
The new plant will be constructed on a parcel of land covering around 4,500 acres (1,821 hectares). Southridge was recently granted approval by the local government to lease the land with a purchase option. The land area offers abundant sugar cane production capacity, providing access to sufficient feedstock to supply the proposed 5 million gallon plant at an average yield of between 30 and 40 tons per acre (74 - 98 tonnes/ha).
The site for the plant is located close to a river, making it easily accessible to transport product to an ocean port for transport to the United States.
The initial plan is to build a facility that will have the capacity to dry up to 15 million gallons a year of hydrous ethanol from Brazil to be imported into the United States. In El Salvador the company can benefit from the Caribbean Basins Initiative (CBI), a trade agreement signed in 2000, allowing exports of ethanol without facing the $0.54/gallon tariff.
The second phase would be to build the plant capable of producing 5 million gallons a year of ethanol using sugar cane as feedstock. Having the capability to use feedstock grown and cut straight out its own plantation gives the company a strong advantage.
Bagasse, the fibrous material that remains from sugar cane, will be burned as fuel and cut down energy costs by 75 per cent compared to a plant that would buy energy from elsewhere:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugarcane :: tariff :: El Salvador ::
Southridge's CEO, Ken Milken, said "Lower energy and feedstock costs will bring profits to record highs in the industry".
He added that this 'strategic' new facility in El Salvador will allow the company to become one of the lowest cost producers in the industry through the benefits of export incentives and supply of its own raw materials.
The comparative advantage of vertical integration and production diversification will act as a hedge against rising costs and will ensure the stability of future production levels.
Southridge is currently developing another ethanol facility in Quitman County Mississippi for a total annual production of 60 million gallons.
References:
Trading Markets: Southridge Enterprises Inc to construct ethanol facility in El Salvador - December 20, 2007.
Energy Current: Southridge building ethanol plant in El Savador - December 21, 2007.
The new plant will be constructed on a parcel of land covering around 4,500 acres (1,821 hectares). Southridge was recently granted approval by the local government to lease the land with a purchase option. The land area offers abundant sugar cane production capacity, providing access to sufficient feedstock to supply the proposed 5 million gallon plant at an average yield of between 30 and 40 tons per acre (74 - 98 tonnes/ha).
The site for the plant is located close to a river, making it easily accessible to transport product to an ocean port for transport to the United States.
The initial plan is to build a facility that will have the capacity to dry up to 15 million gallons a year of hydrous ethanol from Brazil to be imported into the United States. In El Salvador the company can benefit from the Caribbean Basins Initiative (CBI), a trade agreement signed in 2000, allowing exports of ethanol without facing the $0.54/gallon tariff.
The second phase would be to build the plant capable of producing 5 million gallons a year of ethanol using sugar cane as feedstock. Having the capability to use feedstock grown and cut straight out its own plantation gives the company a strong advantage.
Bagasse, the fibrous material that remains from sugar cane, will be burned as fuel and cut down energy costs by 75 per cent compared to a plant that would buy energy from elsewhere:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugarcane :: tariff :: El Salvador ::
Southridge's CEO, Ken Milken, said "Lower energy and feedstock costs will bring profits to record highs in the industry".
He added that this 'strategic' new facility in El Salvador will allow the company to become one of the lowest cost producers in the industry through the benefits of export incentives and supply of its own raw materials.
The comparative advantage of vertical integration and production diversification will act as a hedge against rising costs and will ensure the stability of future production levels.
Southridge is currently developing another ethanol facility in Quitman County Mississippi for a total annual production of 60 million gallons.
References:
Trading Markets: Southridge Enterprises Inc to construct ethanol facility in El Salvador - December 20, 2007.
Energy Current: Southridge building ethanol plant in El Savador - December 21, 2007.
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