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PRESS RELEASE
Washington,
D.C., December 20, 2007
The
Government of Belarus and Greenfield Project Management Ltd. Sign Agreement
on Launching Bio-Ethanol Manufacturing Project in Belarus
On December 18, 2007, the Government of Belarus and an Irish company
Greenfield Project Management Ltd. have signed an agreement on launching
bio-ethanol manufacturing project in Belarus.
The
agreement includes the key area of supplies of feedstock. Various types of
grain together with sugar beet are included. The Government of Belarus has
undertaken to prepare a comprehensive program of cooperation to develop
supplies of these, including an initial target of growing an extra 500,000
tons of grain annually up to a total of 1.5 million tons extra grain for
ethanol production. In addition, at least one million tons of sugar beet
will be available. Greenfield has undertaken to investigate optimal ways in
which this resource can be used to develop the ethanol project.
The
agreement also directs the parties to ensure the use of arable lands in the
regions affected by the disaster at the Chernobyl Nuclear Power Station” in
the supply chain for the plant.
After the
signing ceremony, Greenfield Chair Ann McClain said: “Both we and the
Government have from the outset seen the ethanol sector as an economically
sustainable way of remediating and redeveloping the contaminated Chernobyl
lands". She added that this agreement would give real impetus to this
long-term humanitarian and social project on a firm basis of financial
viability. Ms. McClain also said that the Agreement resolves a knotty
problem for investors in the project, the assurance of stable supplies of
feedstock in volatile market conditions.
On behalf
of the Belarusian side Mr. Ivan Bambiza, Deputy Prime Minister of Belarus,
told to reporters that the current demand for this kind of product is very
high worldwide. “Oil and gas prices have been continually growing and
therefore we’ve been looking for alternative fuels, through the production
of ethanol from vegetable feed as well,” he said.
”We have
agreed that together we will set up production of vegetable feed – grain and
sugar beets. Within six months we will make a comprehensive plan to secure
the targets on increasing the production of grain and other vegetable feed
in Belarus.” The company has undertaken to finance the project by attracting
investments. Direct investments and banking loans are also possible. The
Belarusian side is to provide the feedstock to the new facility.
According
to the Deputy Prime Minister of Belarus, the approximate cost of the project
is estimated at more than EUR 200 million at the initial stage. New
investments are possible in the future. |
