Colombian Sugar Industry to Invest in Diversification

---

Español

Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Colombia's sugar manufacturing companies are investing in environmentally sustainable projects related to cogeneration, electric power production and ethanol output. Sugar production decreased in 2010 because of heavy rains, prompting the industry to pursue diversified products to improve its viability.

Four out of five sugar facilities that currently produce ethanol (Cauca, Providencia, Risaralda, Mayagüez y Manuelita) have capital projects worth a combined $40 million dollars to expand their capacities, raising Colombia's ethanol output to more than 80 million gallons per year.

In addition, 11 projects worth a combined $300 million dollars are being executed to expand the plants' power generation capacity and to improve their cogeneration processes. The producers use sugarcane biomass to produce heat and power.

In 2010, the sugar producers increased their electrical power generation output to reach about 190 megawatts (MW). New investments are expected to raise this to about 290 MW in the next three years. Industrial power generation from biomass is becoming an increasingly important resource because of its availability and environmental characteristics.

According to a forecast by Asociación de Cultivadores de Caña de Azúcar de Colombia (ASOCAÑA), 20 million tons of sugarcane will be crushed in 2011. Investments in ethanol production are helping keep up with Colombia's initiative to have blend ethanol with gasoline. The legislation currently calls for an 8% blend, but this is expected to be raised to 10% in the future.

View Project Report - 300031932 200001108 200000915 300020258 68000142 300032115 68000144 300021946 300021949 200000927 300015506 300027059 68000143 300027157 300027137

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.