Proposals from 11 companies interested in investing in developing a local bio-fuel/ agro-energy sector are likely to be evaluated early in 2008 with assistance from the Inter-American Development Bank (IDB) and the UN’s Econo-mic Commission for Latin America and the Caribbean (ECLAC).
Ten of the proposals are from eight different countries and one is from a local potential investor.
The process of evaluation and implementing a comprehensive strategic plan for local bio-energy investment and production, would cost an estimated US$1.2 million which would be raised with grant funding from the IDB and counterpart funding from the government.
In an interview on Thurs-day, Minister of Agriculture Robert Persaud told the Stabroek News that the Guyana Office for Investment (Go-Invest) has received the proposals, which are in varying stages of development since additional information were still being sought from the potential investors.
The number of investors has grown from early August, when President Bharrat Jagdeo had announced that six companies had expressed interest, with one of them proposing an investment of US$600 million.
The proposals submitted include those from a locally-registered company, Sawa-rima Agro and Bio Energy Enterprise; and the Canada-registered Agri Solutions Technologies which is already operating a bio-diesel facility using palm oil at Wauna in the Mabaruma District, Region One (Barima/Waini).
The foreign companies include Global Energy Ven-tures – a consortium involving capital from the US, Brazil and Jamaica. The consortium has an interest in sugarcane cultivation for ethanol production. Bio-Capital out of Brazil and US companies Twin Lakes and Grynberg are also interested in cane cultivation for ethanol production.
Zoom of India is interested in cane cultivation for ethanol and bio-diesel production, while Integrated Bio-Energy Resources of the USA and Iberdrola of Spain are interested in oil palm cultivation for bio-diesel. AMCAR/ Jatropha Inc of France is also interested in bio-diesel.
Anand Marketing Network of Canada proposes sweet potato cultivation for ethanol production.
Persaud said the government and the IDB have put together a project proposal, which covers the development of methodology for identification of viable investment opportunities, knowledge transfer and preliminary identification of potential bio-energy projects; and design of a financial instrument to develop viable investment opportunities and implement a strategy to promote Guyana’s potential for bio-energy production.
It also provides for capacity building, transfer of technology and institutional strengthening. This component, he said, would finance capacity building and transfer of technology to upgrade technical, operative and managerial skills in relation to bio-energy production; as well as institutional strengthening to support the ‘Agro Energy Policy of Guyana’, support for small-scale bio-energy demonstration projects, and dissemination of results
It is proposed that the Institute for Applied Science and Technology (IAST) would be responsible for managing the project. The IAST will work in collaboration with the Minister of Agriculture and the Presiden-tial Working Group on the implementation of the project proposals.
The government proposes to put the proposal to the IDB Board of Directors early next month, Persaud said noting that it is expected that a portion of the funds for the project would provide a matching fund to private firms for feasibility studies in bio-fuels.
He said the government was also engaged in discussions with ECLAC looking at technical support as well as assistance in establishing small bio-fuel plants in hinterland and riverain communities to power residential and agro-processing activities.
In relation to how soon the government would be able to evaluate the interests, Persaud said that “various local technical personnel have already been providing some degree of technical, environmental and financial evaluations of proposals in coordination with Go-Invest and the Ministry of Agriculture”.
He said, too, that, the Presidential Committee on Agro- Energy has scrutinized the proposals. The Presiden-tial Committee comprises representatives from Go-Invest, the Guyana Lands and Sur-veys Commission, Ministry of Agriculture, National Agri-cultural Research Institute, Ministry of Works, Guyana Sugar Corporation, Guyana Energy Agency, and the IAST. In response to what timeframe the government was looking at for investment in the new sector, Persaud noted that the Agri-Solutions Tech-nologies Inc has been successfully operating a bio-diesel production facility at Wauna.
The company supplies the Region One administration’s diesel needs in the Mabaruma area. The bio-diesel, made from palm oil, is used to power the generating sets, vehicles and pumps for water delivery. He said the company is slated to increase its production in 2008, with the planting of additional acreages of oil palms. Even-tually, the company is expected to cultivate some 10,000 hectares of oil palms for the production of bio-diesel. Currently, some 2,000 acres of palm plantation is harvested and all of the resulting oil converted into bio-diesel.
The government has committed some 40,000 hectares of land in the Canje Basin, East Berbice/Corentyne for investment in the bio-fuel/ agro-energy sector.
Persaud reiterated that no existing food production land would be converted to bio-fuels production nor would the government be handing over land for speculative purposes. However, the government would be as responsive as the investors were ready to proceed. Meanwhile, he said, government remained firmly committed to the development of the bio-fuels/agro-energy industry, and its potential impact on climate change abatement, macroeconomic benefits, energy security, and creation of employment.
