Tuesday, February 21, 2006

A New Energy Company is Born

This news item may be a little bit dated, but I decided to comment on it anyway, since it shows a very positive development for a long standing (formerly State-owned) company: the Ingenio Azucarero Guabirá S.A.[1] Founded in 1956, and located in the Santa Cruz department, Guabirá is one of Bolivia's oldest sugar complex companies, processing sugar cane derivates such as refined sugar, alcohol, ethanol and fertilizers, some of which it currently exports to the regional market.

The company was privatized in 1993, and currently owned partly by a number of raw material providers (who control 60 percent of voting rights) and company employees, the company is privately held and doesn't currently trade on the BVV. The company has shown very good growth with a bit of a slowdown in 2004-2005. However, Guabirá has recently launched an ambitious plan to provide electricity (starting out this year with a 16MW production capacity) using bi-products of sugar cane as a clean raw material.

The subsidiary unit it has created is named Guabirá Energía S.A, and counts with a starting capital of $US 6.5 million, which it plans to increase to $US 11 million as it generates an increased capacity of 60MW, according to the daily Correo del Sur [2]

The use of sugar cane derivates as a clean source of energy will allow Guabirá Energía S.A to trade pollution credits in accordance to the Kyoto protocol and access international financing. The company also plans to finance the expansion of 7,500 hectares of sugar cane fields to satisfy its new needs.

1.- Company website: www.guabira.com
1.- "Guabirá invierte $6,5 millones para electricidad" Correo del Sur 15, Feb. 2006

, ,,,

No comments: