Preliminary discussions are ongoing between the government and a consortium of US and Brazilian investors to set up an ethanol plant here, according to Agriculture Minister Robert Persaud.

A high-powered team of representatives from the consortium was in the country meeting with government officials. Persaud told Stabroek News that the discussions were at a “preliminary stage” and indicated that it was too early to make any definitive pronouncements. Among the issues being discussed is the role that GuySuCo may have to play in utilising this facility, the Minister disclosed.

Persaud acknowledged that the establishment of such a facility would allow the Corporation to expand its cultivation and would increase value-added opportunities for the struggling industry. He noted that the increase of value-added opportunities was “key” to the survival of the industry. Persaud said too that the establishment of this ethanol plant would create new employment opportunities.

When Stabroek News contacted a senior member of the overseas consortium, he indicated that there was an interest in investing in an ethanol plant locally. The member, who requested anonymity, however, echoed the sentiments of the Minister and stated that talks are only in the negotiating phase. According to him, it was too early to pronounce as to what the final structure will be.

Plans to develop a local ethanol plant have long been on the government’s agenda. In the much-vaunted GuySuCo turnaround plan, the commissioning of an ethanol plant by 2012 was indentified as one of the necessary projects.

The plan recommended that the government assist the Corporation with securing an investor for the project.

GuySuCo’s June 2008 Business plan had projected that an Ethanol Plant/Distillery would be constructed during 2009 and made operational by 2010. This plant was expected to produce 13.2 million litres of ethanol or alcohol with full capacity achieved in 2014, requiring just about 50,000 tonnes of molasses feedstock.