Central America Eyes Sweet Alternative to Oil
In other biofuel news, Costa Rica, El Salvador, Honduras, and Guatemala are making moves toward increased ethanol and biodiesel, taking lessons from Brazil and Colombia.
Sugar-producing countries are looking to ethanol to breathe new life into the decades-old sugar industry. The fuel, also known as ethyl alcohol, is made from a sugar by-product and then mixed with gasoline to reduce pollution and lower prices.
All the small Central American economies are net oil importers, and record high oil prices are causing economic hardship for local businesses and consumers in a region where a quarter of the population lives on less than $1 a day.
In Honduras, sugar producers are planting 27,200 acres of new sugar cane to provide raw materials for two ethanol refineries.
The Honduran government is also promoting a four-year project to grow 494,000 acres of African palm, a tree with oil that can be converted into biodiesel.
Costa Rica?s state-run national gasoline refinery RECOPE began a pilot project last month to add 7.5 percent ethanol to gasoline at 63 gas stations in the country.
The program, funded in part by Brazilian oil company Petrobras, cost $15 million and will eventually be expanded across the country in an attempt to bring down Costa Rica?s oil costs, which jumped by 45 percent between 2004 and 2005.
Oil prices and environmental concerns are expanding worldwide markets for ethanol, since burning alcohol instead of gasoline reduces carbon emissions by more than 80 percent.
Green power and nuclear energy are competing to be the solution for reducing pollution from the electricity sector, the main greenhouse gas producer.
In Brazil, three-quarters of all new cars burn either ethanol or gasoline depending on which is cheaper at the pump, and ethanol is now available at nearly all of the country?s 34,000 gas stations.
El Salvador last month opened Central America?s first biodiesel plant with money from Finland, to produce 400 liters (quarts) of the uel a day.
The plant will process seeds from the Higuerillo tree, commonly used to provide shade for coffee plants in the region and the fruits of the Jatropha bush, a plant native to Mesoamerica and ideal for biodiesel production.
Guatemalan entrepreneur Ricardo Asturias is also launching a biodiesel project using Jatropha plants and already has some 300,000 growing around the country in order to start fuel production next year.
?This boosts agricultural production and helps the environment,? said Asturias. ?Step by step, we are learning how to make it profitable.?
http://greenr.com/2006/04/central-america-eyes-sweet-alternative-to-oil/
Same as oil, we will import fuel from other countries. South America can make it cheaply and ship it here. I assume it will be make cheaply enough that they can build there own gas stations, thus making there own infrastructure to sell there fuel.
They are just not jumping into it, but when Oil begind to hit the 100$/Barrel mark, I can see these countries cashing in, and North America Cars making a slow but steady switch to this.