Southridge Breaks Ground on El Salvador Ethanol Plant

Renewable energy firm Southridge Enterprises has broken ground on a new ethanol manufacturing plant in El Salvador. Announced in December 2007, the new plant will have an expected maximum annual capacity of 20 million gallons per year.

The beginning of site work puts Southridge on track to complete plant construction by early 2009. The company stated that the plant’s completion will take approximately 12 months.

The first phase will have the capacity to dry up to 15 million gallons per year (MMGY) of hydrous ethanol to be imported into the US. The second phase will be to build the plant capable of producing 5MMGY of ethanol using sugarcane as feedstock.

Having the capability to use feedstock grown and cut straight on land owned by the company will reportedly give the plant an advantage. Bagasse, the fibrous material that remains from sugarcane, will be burned as fuel and will help cut down energy costs by 60%.

Southridge plans to export ethanol from Brazil and import it into the US via its facility in El Salvador where the company can take advantage of the Caribbean Basins Initiative, a trade agreement signed in 2000 that allows Caribbean and Central American countries to export ethanol into the US duty-free.

Southridge said that it is encouraged by this strategic new facility in El Salvador as it will allow the company to become one of the lowest cost producers in the industry through the benefits of export incentives and supply of its own raw materials.