Ethanol Producer Looks Inward For Feedstock

by Avia Collinder (The Jamaica Gleaner) Discussions are under way between energy and sugar interests for local sugar estates to set aside about one million tonnes of cane annually for the production of wet ethanol.
But at least one company in the agro-processing business has poured cold water on the plan, saying it will likely create supply rivalry in the spirits production sector as both ethanol and rum are made from molasses.
Ricardo Neins, general manager of state-owned Petroleum Ethanol Limited (PEL), said this week that while the company sees little prospect of re-entering US markets at full blast, other opportunities for export lie in Canada and Europe.
PEL was in the business of producing anhydrous fuel-grade ethanol that was mainly traded duty-free with the United States. Neins said opportunities for US export "died in reality when higher tariff charges for Brazil expired in 2010".
The changing market dynamics have idled PEL's manufacturing operation and the company now imports dry ethanol to supply its customers, which includes sister company, Petrojam Refinery.
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However, Ian Parsard, the senior vice-president of finance and operations at Jamaica Broilers Group, which operates in the ethanol market through subsidiary JB Ethanol, is painting the plan as overly optimistic.
"As far as sugar cane is concerned, there is tremendous more value in rum. Production for ethanol feedstock is practically remote because of the value of Jamaican rum," Parsard said. READ MORE