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Cablegate: Nicaragua: Biofuels Panel at Ccaa Conference

VZCZCXYZ0003
RR RUEHWEB

DE RUEHMU #2367 2951849
ZNR UUUUU ZZH
R 221849Z OCT 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 1544
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 002367

SIPDIS

SIPDIS

STATE FOR WHA/CEN, WHA/EPSC-FCORNEILLE, AND
EEB/IEC-BHAENDLER

E.O. 12958: N/A
TAGS: ENRG EAGR EINV ECON NU
SUBJECT: NICARAGUA: BIOFUELS PANEL AT CCAA CONFERENCE

REF: SECSTATE 144963

1. (U) Nicaragua joined the ethanol market in 2007, when
Nicaraguan Sugar Estates (NSE) started sending shipments of
sugar cane ethanol to Europe. NSE hopes to double that
volume in 2008 when expanded facilities come on line. Other
sugar producers have moved to take advantage of world demand
for ethanol. Honduran-owned Monte Rosa Sugar, Nicaragua's
second largest sugar producer, is building an ethanol plant
and which it hopes to bring it on line this fall.
Nicaragua's other two sugar producers are contemplating
whether to join this growing market. Given the lack of
infrastructure in Nicaragua to support ethanol use in
vehicles or industry, all ethanol currently produced is sold
abroad.

2. (U) Despite President Ortega's negative rhetoric regarding
corn-based ethanol, the GON has no specific policies that
block ethanol or biofuels production. Given the sky
rocketing price of oil, there is strong interest among GON
officials to explore biofuels, particularly the production of
diesel from African Palm. This has encouraged the
Inter-American Institute for Agricultural Cooperation (IICA)
to explore the use of African Palm as an alternative fuel
source for Nicaragua's Atlantic coast.

3. (U) Nominees listed below could benefit from participation
in the proposed CCAA biofuels event.

Government Nominees (they may send delegates):

Name: Orlando SOLORZANO Delgadillo
Title: Minister of Trade, Industry and Development
E-mail: osolorzano@mific.gob.ni

Name: Emilio B. RAPPACCIOLI
Title: Minister of Energy
E-mail:erb@mem.gob.ni


Private Sector Nominees:

Name: Xavier ARGUELLO Barillas
Title: Executive Director, Nicaragua Sugar Estates
E-mail: xarguello@nicaraguasugar.com.ni

Name: Francisco BALTODANO
Title: General Manager, Monte Rosa Sugar
E-mail: fbaltodano@pantaleon.com

Name: Mario AMADOR
Title: General Manager, Nicaraguan National Committee of
Sugar Producers
E-mail: marioamador@cablenet.com.ni
TRIVELLI

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