Colombian sugar firms urge govt to stimulate ethanol projects - report

(ADPnews) - Dec 17, 2010 - Colombia's sugar refiners do not invest in new ethanol projects due to the lack of incentives by the Government, the head of local sugar cane association Asocana, Luis Fernando Londono, told daily Portafolio.
Currently, Colombia is developing only two sugar cane-based ethanol projects -- a plant of state oil company Ecopetrol (CLB:ECOPETROL) and a plant of Israeli-based company Merhav, under construction in Meta and Magdalena departments, respectively.
The companies need clear and stable rules, Londono stressed. The incentives in other countries include subsidies to ethanol producers and consumers, mandatory fuel blends containing ethanol, tax reliefs and support to producers for the storage of ethanol, he added.
The need for large investments in ethanol projects and the unattractive profitability are the main reasons for the lack of new ethanol projects in Valle del Cauca department, the manager of local sugar and ethanol producer Mayaguez (CLB:MAYAGUEZ), Mauricio Iragorri, said.

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