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High Level Seminar:

Expanding Bio-Energy Opportunities in the Caribbean Region

Seminar Report
October 2007

Expanding Bioenergy Opportunities in the Caribbean Region

High Level Seminar: Expanding Bioenergy Opportunities in the Caribbean


International Conference Centre 5 E Orchid Drive, Lilliendaal, ECD, Greater Georgetown Guyana

6-7 August 2007

Expanding Bioenergy Opportunities in the Caribbean Region

ACRONYMS
ACP CARICOM CBI CCS CDB CDM CEIS CFC CHOG CO2 CREBAP CREDP CTA ECLAC ECLAC EU GDP GoG GTZ Asian Caribbean Pacific Caribbean Community Caribbean Basin Initiative Caribbean Community Secretariat Caribbean Development Bank Clean Development Mechanism Caribbean Energy Information System Common Fund for Commodities Commonwealth Heads of Government Carbon Dioxide Caribbean Renewable Energy, Energy Efficiency and Bio-energy Action Program Caribbean Renewable Energy Development Programme Technical Centre for Agricultural and Rural Cooperation Economic Commission for Latin America and the Caribbean Economic Commission for Latin America and the Caribbean European Union Gross Domestic Product Government of Guyana Geselleschaft fr Technische Zusammenarbeit

Expanding Bioenergy Opportunities in the Caribbean

GUYSUCO IADB IASCCT IAST IDB IDB-SECCI IICA JSF KV MOU MOU MW NARI NARI NGOs OAS R&D TBTL TOR US USA USAID

Guyana Sugar Company Inter-American Development Bank Inter-Agency Standing Committee Country Team Institute for Applied Science and Technology Inter-American Development Bank Inter-American Development Bank Sustainable Energy Climate Change Fund Inter-American Institute for Cooperation on Agriculture Japan Special Fund Kilo Volts Memorandum of Understanding Memorandum of Understanding Mega Watts National Agricultural Research Institute National Agricultural Research Institute Non-Governmental Organization Organization of American States Research and Development Trinidad Bulk Traders Limited Terms of Reference United States United States of America US Agency for International Development

Expanding Bioenergy Opportunities in the Caribbean Region

TABLE OF CONTENTS
Page ACKNOWLEDGEMENTS 1. INTRODUCTION 1.1 Background 1.2 Highlights of the Seminar 1.3 Next steps 2. THE SEMINAR Session I: Opening Ceremony Session II: Signature Of a Memorandum of Understanding (MOU) and Launching of the Caribbean Renewal Energy, Energy Efficient and Bioenergy Action Program (CREBAP) Session III: Presentation of Bio-energy Studies in the Caribbean Session IV: Round Table with Sugar/Ethanol Project Developers and Opportunities for the Private Sector Session V: Achieving Competitiveness in Sugar/Bio-fuel Production through Value-Added Products Session VI: Highlights of Preceding Day Session VII: Building an Agro-energy Strategy for the Caribbean Session VIII: Carbon, Finance, Innovation, Science and Technology in Bio-energy Session IX: Financing Bio-energy Projects Session X: Next Steps and Conclusions Session XI: Final Remarks 3. APPENDICES Appendix I: Agenda Appendix II: Memorandum of Understanding Appendix III: Press Releases Appendix IV: Draft Strategy Presentation Appendix V: List of Participants 1 3 5 7 7 14 15 19 26 28 30 33 36 39 43 44

Expanding Bioenergy Opportunities in the Caribbean

Acknowledgement

To all those whose effort contributed to the successful hosting of this high level seminar, we say thank you. To the Technical Centre for Agriculture and Rural Cooperation (CTA), our senior partner, and in particular John Wooden who assisted to move the concept along to reality and which led to the significant commitment of funding for Governments and industry to participate in the discourse, we at IICA say thank you for the confidence placed in us. To all other partners, the Government of Guyana, the CARICOM Secretariat, the InterAmerican Development Bank and the Organization of American States, thanks for the collaboration and partnership on this all important initiative.

Una May Gordon IICA

Expanding Bioenergy Opportunities in the Caribbean Region

|1

1.
1.1

INTRODUCTION
Background

The European Union (EU) will reduce its preferential price of sugar to the Asian Caribbean Pacific (ACP) countries by 36% over a three-year period starting in 2008. This decision will produce a severe economic impact to the Caribbean countries that are currently highly dependant on sugar production, especially in Guyana, where the sugar industry represents over 9% of its Gross Domestic Product (GDP). To confront that situation, several Caribbean countries have prepared strategic action plans, under the auspices of the EU, on which the transformation and/or modernization of the sugar industry should provide more productive and alternative uses of the resources - labor, land and capital - that are currently employed on sugar industry. In addition to the latter, the Caribbean region is heavily dependent on fossil fuels for its energy needs. Almost ninety percent (90%) of the regions energy matrix originates from imports of fossil fuels, an alarming statistic in the face of high volatility in the price of petroleum, resulting in a drain of foreign exchange. Growing concerns about global warming, and the resulting need for reductions in green house gases and criteria air contaminants, are also increasing concerns on the environmental impacts of fossil fuel use. This scenario provides significant opportunities for the utilization of renewable bio-fuels in the region, which could potentially lead to opportunities for employment, poverty reduction, climate change abatement, and the birth of a new, sustainable bioenergy industry in the Caribbean. The Caribbean Development Bank (CDB) and the Caribbean Renewable Energy Development Program (CREDP) within the Caribbean Community Secretariat (CARICOM) developed during mid 2006 a technical cooperation called Expanding biofuel opportunities through carbon finance in three Caribbean Countries Jamaica, Barbados and Guyana. The objective of the technical cooperation was to analyze viable alternatives, such bio-fuels, cogeneration with bagasse and efficient sugar production that could mitigate the effect of the sugar preferential price cut and the high oil prices. The assessment included a thorough review of the state of the art of bio-fuels in these three countries and the carbon finance opportunities that could be obtained in relation to the possible bio-fuel projects. The findings of this assessment were supposed to be presented at a workshop that should be held in Guyana. In a similar effort the Inter-American Institute for Cooperation on Agriculture (IICA) was also preparing a similar assessment in bio-fuels for the Caribbean region and was aiming to present their results in a workshop in Guyana. Therefore, after a meeting in Washington DC in January of this year, IICA, CDB and CREDP decided to join forces and work together in the preparation and organization of a workshop. Soon after the Organization of American States (OAS) and the Government of Guyana (GoG), as the
Expanding Bioenergy Opportunities in the Caribbean

|2 host country also agreed to join part of this unprecedented effort of four (4) multilaterals and a country working together to organize this event. The expectation raised and the joint effort was surely too high to label the event a workshop, therefore the name was changed to High Level Seminar: Expanding Bioenergy Opportunities in the Caribbean Bioenergy, the first of its kind to be held in Caribbean and certainly one of the most strategic events that was organized in Guyana. The seminar was held on August 6 th and 7th, 2007 at the Guyana International Conference Centre, 5 E Orchid Drive, Lilliendaal, ECD, Greater Georgetown, Guyana. The key objectives of the Seminar were: a. To disseminate the results of recent studies on Bio-energy in the Caribbean, including the potential for regional carbon finance opportunities under the Clean Development Mechanism (CDM); b. To convey and formalize the regional efforts towards the development of the Caribbean Renewable Energy, Energy Efficiency and Bio-energy Action Program (CREBAP); c. To initiate a dialogue towards the organization and preparation of regional agroenergy strategy, including bio-ethanol, bio-diesel and bagasse cogeneration opportunities; d. To facilitate dialogue between the public sector, private investors, carbon financiers and project developers interested in the Caribbean bio-energy industry. This report presents the principal papers, conclusions, comments, questions and answers and recommendations derived from the High Level Seminar held in Guyana in August 2007. Of all the countries in the Caribbean, Guyana presents the most immediate possibility for the development of a sustainable bio-fuel industry. 1.1.2 Participants The organizers of the seminar managed to attract high-level representatives from the governments, private sector, research institutions, universities and financial entities, related to the bio-energy industry from the Caribbean countries of Guyana, Suriname, Jamaica, Barbados, Haiti, Belize, Dominican Republic, Saint Lucia and St Kitts and Nevis, also Brazil, USA, Colombia, Mauritius, Asia and Europe.

Expanding Bioenergy Opportunities in the Caribbean

|3 At the end of Day One, there were one hundred and fifteen (115) participants present. Day Two started with one hundred and twenty-three (123) and ended with one hundred and forty-two (142). 1.1.3 Agenda The agenda of the seminar and links to the presentations (click in the agenda) can be found at: http://www.iadb.org/events/caricomseminar/. 1.2 Highlights of the Seminar

There were more than forty-five (45) presentations of outstanding technical information about bio-energy opportunities for the Caribbean. A number of presentations also emphasized the possibilities of Guyana being a bio-fuel producer in the region. The following are selections of statements and ideas expressed during the seminar by the presenters and participants: a) The recent announcement of a target of 20% reduction of gasoline usage over the next 20 years in the US and the advantages through the Caribbean Basin Initiative (CBI) provides Guyana and the Caribbean region with an enormous opportunity. Up to 7% of total US ethanol consumption can be imported under the CBI without import duties: this quota represents a potential export level for Caribbean countries of 340 million gallons per year. That allocation is expected to reach 525 million gallons by 2012, a threefold increase over the current level of Caribbean ethanol exports to the US. However, the CBI agreement should not be seen as the only alternative to facilitate the production of bio-fuels. The Caribbean region has already learned the lessons with the ACP agreement in relation to preferential prices for sugar, and the effect of that agreement today is an inefficient and uncompetitive sugar industry.

b) As a condition for the development of a competitive, integrated Agro-energy industry that produces bio-fuels and sells the surplus energy to the grid, measures must be taken to lower the costs of sugar production. Recent increases in ethanol and sugar prices in non-subsidized markets create better possibilities for the sugar cane producing Caribbean countries; major improvements in productivity still need to be made for long-run sustainability. In cases like Mauritius Island and Barbados, in order to become competitive, a rationalization of factories was needed, that is to say, fewer factories using the state of the art technology, capable of producing ethanol, power, sugar and molasses for the rum industry. c) In order to have a viable bio-fuel/cogeneration/sugar industry, the agriculture portion of the industry is essential. There has to be availability of raw material (i.e. sugarcane, cassava, sugar beet, African palm, jatropha) at a competitive cost of
Expanding Bioenergy Opportunities in the Caribbean

|4 production. The latter considers improvement of varieties, better irrigation techniques, improvement of soil drainage and remediation and strong incentives for research and development in the area of bio-fuels. In the case of sugar cane, the mechanization for the harvesting of the sugarcane is a must; otherwise high labor absenteeism in the cane field will increase production cost, hence reducing competitiveness. d) A viable agro-industry sector gives rise to the possibility of increased financial returns on investments related to the sugar cane industry through the sale of carbon credits derived from the reductions on CO2 emissions, as response to mitigation of climate change in compliance with the Kyoto Protocol. These reductions can be obtained, directly or indirectly, through the use of bioethanol and biodiesel substituting gasoline and diesel respectively, cogeneration with bagasse and methane abatement from bio-fuel wastewater treatment processes. Bundling of projects that can reduce CO2 emission can be an effective way to reduce transaction cost, increase volume of reduced emissions and obtain a better price for the certified emission reduction. e) Guyana, together with Belize and Jamaica, are seen in the Caribbean as the countries with the best potential for agro-energy. In the case of Guyana, there is a huge potential for bio-fuel production because of natural advantages such as: its climate, level of precipitation, availability of land without the need for deforestation or the substitution of other food crops, a strong tradition for sugar production and a steady policy to lower the production cost of sugar. The agro-energy potential of Guyana could not only meet half of their energy requirements by cogeneration with bagasse, but also transform the country in a net bio-fuel exporter. However, this expansion should neither threaten food security nor promote deforestation. Additionally, access to ports and remoteness of locations could be also limiting factors for production. f) The launching of the Caribbean, Renewable Energy, Energy Efficiency and Bioenergy Action Program (CREBAP), is definitely a first step, however many more must follow in order not lose the momentum achieved by the seminar. The agroenergy policy of Guyana as well as the agro-energy strategy for the Caribbean, to be prepared under the CREBAP, is clear examples of the future actions required. Moreover the government needs to establish targets, such as blending mandates or percentage of electricity generation with renewable sources. These targets should have to be supported by national policies. In his final remarks, Dr Chelston W Braithwaite, IICA Director General, reminded all participants that the circumstances demand that we do things in a different way.

Expanding Bioenergy Opportunities in the Caribbean

|5 1.3 Next steps The CREBAP was signed by the IADB, IICA, OAS, CARICOM1 and the GoG, sending a message of collaborative work and cooperation to the world. However, this initiative will mean nothing if no action is taken to establish as soon as possible a task force and prepare a work plan in order to implement the CREBAP. The task force should address, at least the following issues: Prepare an agro-energy strategy for the Caribbean; Prepare and adopt an agro-energy policy for Guyana; Negotiate with the European Union the possibility of accessing their market with Caribbean bio-fuel; Promote cogeneration with bagasse; Promote and support renewable energy and energy efficiency in the Caribbean; Provide the region with funding for research and development in bioenergy; and Increase capacity building and transfer of technology in relation to bioenergy.

The GoG has requested the assistance of the Inter-American Development Bank (IADB), through the Japan Special Fund (JSF), to improve the capacity of the Government to better respond to project proposals related to non-traditional energy sources. The Bank will be working in collaboration with the GoG during the coming months in the preparation and execution of this technical cooperation, which will assist the GoG to improve the capacity of the Government to screen (technically, economically, socially and environmentally) the project proposals received. Immediately following the Seminar and Day Three, an interim working group was convened at the IADB office in Guyana to chart a roadmap for continuance/follow-up of the outcome of the seminar. This working group consisted of the following persons/organizations: CARICOM/GoG IICA Dr Suresh Narine Dr Al Binger Dr H Arlington D Chesney Ms Una May Gordon

CARICOM will sign the CREBAP, once that this institution consults and obtains the approval of all CARICOM member states.

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|6 IADB Mr Christian Gischler

It was also agreed that the CDB, the Caribbean Energy Information System (CEIS) and the CARICOM Community Climate Change Centre (5Cs) would be added to form a task force once the working group defines a Terms of Reference (TOR) and chart a path to advance the strategy to be presented to the Commonwealth Heads of Government (CHOG).

Expanding Bioenergy Opportunities in the Caribbean

|7 2.

Session 1

THE SEMINAR

Opening Ceremony

The opening remarks were delivered by Mr. Robert Persaud, Honourable Minister of Agriculture in Guyana. His presentation highlighted the following points: The Seminar was the first of its kind to be organized. He pointed out the timeliness of the Seminar and its importance for the Region to harness the significant potential of bio-fuels, given that Guyana had begun a programme to support the development of agro-energy. He thanked the collaborators for sponsorship of the Seminar, noting that it was especially significant for agriculturebased economies such as Guyana. The goal of the Seminar was to disseminate results of studies done on Bio-Energy in the Caribbean, to convey and formalize regional efforts towards the development of the CREBAP, to facilitate discussion among public and private investors with a view to the development of the Caribbean. Further stated that agro-energy and the production of bio-fuels constitute an alternative that would enable countries like Guyana to promote the expansion and modernization of agriculture. Pointed out too, re climatic concerns both regionally and globally, that participation of the Region in the agro-energy sector could significantly reduce greenhouse gases through the use of cleaner biofuels and wastes. Posited that he was confident that Guyana would emerge as the bio-capital of the region and reiterated that the rationale for advocating greater attention on bio-fuels was that this activity promised to build economic resilience of countries of the Region without too much dependence on fossil fuel utilization.

Expanding Bioenergy Opportunities in the Caribbean

|8 Remarks were then made by Dr. Edwin Carrington, Secretary General of the Caribbean Community, who also extended a warm welcome and thanked the team of collaborators for sponsoring the Seminar. His presentation placed the event within the context of regional energy and bio-fuel concerns. Stated that the convening of this seminar was timely as there were two external developments impacting on the Region at the moment, namely the escalation of the oil crisis and the adjustment of the preferential policy on sugar, namely a 37% decrease in sugar prices. Mentioned that the political tensions in the Middle East, international political instability and increase in the global demand for oil have together resulted in the high volatility in the price of petroleum. Further stated that the Region was economically vulnerable because of its high dependence on fossil fuels for its energy needs, resulting in a drain of foreign exchange and its ensuing problems. Stated that there was opportunity for the Region to use forms of renewable biofuels, emphasizing that this had to be a priority for the Caribbean. Stated that some member states had already started using forms of renewable energy. Cautioned that the policies must be carefully considered, that there should be a systematic integration of the agri sector with the energy sector and that there should be a pooling of bio-energy resources to maximize the benefits to the region. He hinted that the goal of the seminar was to discover ways in which the barriers to the increased use of bio-energy could be removed, where the Caribbean could be released from the stranglehold of increasing oil prices, where a regional policy for the Region could be implemented, thereby enhancing the bio-energy prospects of the Caribbean and in the long run safeguarding the local and global environment. Mr. Luis Alberto Moreno, President of the Inter-American Development Bank (IADB), provided an overview of opportunities to consolidate a Caribbean Regional Approach for Bio-fuels and Sustainable Energy. Outlined the instruments that the Bank has put in place to support the different initiatives of the Region. Stated that the Bank is likely to initiate private bio-fuel investments and cogeneration in Guyana through a US$850,000 funding provided by Japan.

Expanding Bioenergy Opportunities in the Caribbean

|9 Referred to the Regions total dependence on fossil fuels and the critical situation in the sugar policy. Pointed out that each member state had its own unique circumstances, hence bio-fuel production provided an attractive investment opportunity. Stressed that the debate on bio-fuels and ethanol expansion was timely and pointed out the need for ethanol expansion to meet domestic needs, stating that bio-fuel policies were most attractive for the Caribbean, creating bigger investments and more job opportunities. Intimated that two approaches could be tried, namely a conservative approach whereby the country could replace 10% of its current gasoline by investing just US$6.5 million dollars in a single ethanol plant. Such an investment would save Guyana millions on imported gasoline. A more ambitious approach would be where promotion of bio-fuels could help to modernize the industrial sector of Guyana by simultaneously producing sugar ethanol and electricity for both domestic and export markets. Emphasized that with visionary leadership, there was the possibility that Guyana could become the first country in the world to meet half of its electricity demands through cogeneration production of ethanol and at the same time produce sugar for export. Stated that in terms of transportation fuel needs, the country could become the first in the world to use ethanol and biodiesel from home grown produce. Stated that given the growing demand for ethanol and bio-fuel in the EU and USA, there was every reason to believe that Guyana could become a fuel exporter. Stated that Guyana had the potential to develop a new sugar cane industry which produces sugar, ethanol and electricity for both domestic and foreign markets. Pointed out, that in Guyana the resources were there land, water, climate, no need for new plantations and that the creation of this industry - could attract foreign investment, resulting in new jobs, generate foreign exchange which could be spent on enhancing social services and other priorities. Stated that Guyana is benefiting from IADB-administered technical cooperation programme that will provide funds to evaluate bio-energy project proposals which will help to boost private investment in areas such as bio-fuel production and cogeneration with biomass. Mentioned that there would be risks and uncertainties but that a bold and ambitious approach had to be considered. Stated that the IADB was flexible because the unique circumstances of each country called for unique solutions.

Expanding Bioenergy Opportunities in the Caribbean

| 10 Stressed the need for a bio-energy action programme but suggested that the first step was financing studies that would give an insight on the economic, technical and environmental feasibility of bio-fuels and other renewable sources, such as wind and solar power. Stated that the IADB would soon commence disbursements of grants and loans to finance project preparation activities. Intimated that the Bank was making provision of US$300 million in lending and technical assistance for renewable energy and energy efficient projects throughout the region with emphasis on small scale investment. Reiterated that the IADB was ready and willing to assist in each stage of the process from preliminary studies all the way to the necessary financing for largescale production facilities. Concluded that renewable energy and bio-fuel production were rapidly expanding and that the signing of the Memorandum of Understanding (MoU) provided the framework for collaboration to make renewable energy the engine of development for the Caribbean and the Hemisphere as a whole.

Dr Chelston W.D. Brathwaite, Director General of the Inter-American Institute for Cooperation on Agriculture (IICA) underscored his presentation, showing the opportunities for agriculture through an agro-energy strategy for the Caribbean. Began by stressing the importance of the Jagdeo Initiative and IICAs support of the Initiative vis--vis growing food concerns. Stated that with regard to the food/fuel debate, there was a dilemma emerging since there was the increased production of corn for feedstock in the US. Added that this debate could be less controversial once the private sector and governments become engaged in developing bio-fuel policies at the national level. Stressed the need for development of the agro-energy possibilities in the Region and mentioned that IICA believed that agro-energy would help in the reduction of poverty, since it was contributing to crime which could undermine development efforts. Stated that all member states with the exception of Trinidad and Tobago were dependable on the importation of fossil fuels and were facing adverse economic expansion because of the almost 300% increase in oil prices and the decline in sugar prices.

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| 11 Posited that some countries have taken initiatives using indigenous renewable energy resources. Pointed out the need for a legal framework for ethanol production for its use and also for the sale of bio-fuels. Stressed the need for financing, dissemination of information, discussion and strategy for facilitating horizontal collaboration in the promotion of bio-fuels. Emphasized the potential of renewable energy resources of the Region and the need for an Agro-energy Development Fund. Pointed out that policies must not only be urban-oriented but rural concerns must also be addressed. Concluded that the Region should engage in agro-energy policies based on good sense and that the expansion of such policies should be undertaken, but not at the detriment of food security. Food security must be prioritized and its sustainability considered even as renewable energy resources are developed. Ambassador Albert R. Ramdin, Assistant Secretary General of the Organisation of American States (OAS) reiterated the Regions situation as a result of escalating oil prices and decline in sugar prices. Pointed out that Guyana had land resources and potential for Bio-energy development. Stressed that while multilateral efforts were important and needed, there was the need for member states of the OAS and CARICOM to strengthen efforts at the bilateral level among themselves through sincere and dedicated commitments at the highest political levels so as to facilitate better use of opportunities in the development of bio-energy resources. Stressed the need to pool resources, develop synergies between the sugar cane industry and the energy sector and to work together to support the needs of the Caribbean in the emerging bio-energy sector. Posited that one cannot ignore the potential for goods and services and the social and economic benefits that can accrue from the expansion of such a policy. Cautioned that expansion must not threaten food security and must be situated within the context of global warming. Need to examine concerns and considerations such expansion would engender.

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| 12 Stressed OASs commitment to efforts aimed at enabling the Caribbean to develop a sustainable energy initiative. President Jagdeo in his presentation stressed his optimism at the prospect Guyana holds and intimated that the Government was committed to pursuing bio-energy opportunities. Expressed his appreciation for the role of the IADB in the energy security issue in the Region. President Jagdeo highlighted that there were issues that needed consideration, taking into account bio-fuel and renewable energy vis--vis rising fossil fuel prices. Stated that rising oil prices had moved the issue of energy security from a sectoral level to a macroeconomic level. Mentioned that the focus should be strategic rather than tactical. It should not be based on a short-term solution to the high fuel cost. He intimated the situation in Brazil is indicative of the approach that he had mentioned earlier. Brazil used the strategic approach and at the beginning it was not competitive, but the Government provided support in terms of subsidies and other incentives. Today it is a viable industry. Expressed the hope that as the Caribbean crafted its bio-energy fuel policy, developed countries and multilateral financial institutions that were averse to subsidies would recognize the need for some form of subsidy in order for the sector to start off. Urged participants to consider bio-fuels within the context of climate change, pointing out that the Region needed to re-examine the Kyoto Protocol, which provided assistance for those countries that cut down trees and replanted them, but gave none to those who keep their forests. Further stated that it was critical for the Region to highlight climate change as the Caribbean was extremely vulnerable. Stated that while the debate on the move to bio-fuels is underscoring adverse effects, in Guyanas case there would be no need to fell trees and displace land currently used for food production. Pointed out that the Region was a net importer of food and as the bio-fuel sector developed, land and water resources would be critical issues competing with food production and food security. Urged that the discussion be moved to the next stage. Guyana had a draft document in which was highlighted the kind of infrastructural support needed to be in place such as transportation for export of bio-fuel, taxation policies and legislative framework.

Expanding Bioenergy Opportunities in the Caribbean

| 13 Expressed the hope that the Seminar, while exploring all opportunities, would focus on the practical considerations for moving the sector forward in those countries that have already considered this as the way forward.

Expanding Bioenergy Opportunities in the Caribbean

| 14 See Appendix II: Memorandum of Understanding

Session II

Signatories: The Caribbean Community Secretariat (CCS) The Inter-American Development Bank (IDB) The Inter-American Institute for Cooperation on Agriculture (IICA) The Organization of American States (OAS) The Government of the Co-operative Republic of Guyana (GoG)

Signature of a Memorandum of Understanding (MOU) and Launching of the Caribbean Renewable Energy, Energy Efficient and Bioenergy Action Programme (CREBAP)

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| 15 Professor Albert Binger, who was referred to as the Pioneer of Renewable Energy considered the Regional Bioenergy Market in the context of the Presidents feature address. He pinpointed that the developmental issues facing the Caribbean, as well as globally, were: o o o o Population Water Energy Environment

Session III

Presentation of BioEnergy Studies in the Caribbean

Moderator: Dr. H. Arlington D. Chesney Inter-American Institute for Cooperation in Agriculture

Stated that there were also issues of the high level of Petroleum consumption, issue of integrating energy with Agriculture (food deficits), climate change, all of which were linked to the Energy sector. Pinpointed that quality of life for peoples of the Caribbean was proportional to the availability of energy, which could be translated into goods and services. Stated that the Caribbean was faced with a multiplicity of energy-related problems - high dependence on fossil fuels for transportation/electricity and a food deficit in excess of ten (10) billion dollars. Suggested that bio-fuel, if adequate, can be substituted in almost any area of purpose, that biofuel had the potential to substitute and subsidize just about any fuel there was on the market. With regard to electricity, the Caribbean has tremendous potential given that electricity can be generated from biomass of several kinds, such as wood, garbage and bagasse. Stated that in Guyana, garbage was identified as a problem but it was not so since it constituted an efficient source of electricity, even surplus electricity. Binger noted that fossil was not a renewable source,

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| 16 thus any renewable source of fuel was marketable. Reiterated the need for the Region to reduce dependence on fossil fuels and embrace wind, solar, ocean and geothermal resources. Posited that the market depended on choices made elsewhere; must have a synergy more than one application. Stressed the need to push energy efficiency. Pinpointed that the market was untapped, as well as its capabilities for the use and expansion of bio-fuel. There was need to look at techniques and take sugar cane to a higher level, since cane was resilient. Different varieties of sugar cane would yield greater biomass, thus the market for bio-fuel had great potential. Dr. Orlando Jimenez, IADB Consultant in his presentation on Expanding Bio-fuel Operations in Barbados, Jamaica and Guyana pointed out that this was the way forward for the Region. The studies carried out a financial and technical assessment of the potential for sugar cane based on ethanol production. Considered the production of ethanol from bagasse. He posited that consideration must be given to be issues, such as: Is there market potential? Who will supply such a demand? Investment made must be viable, there must be a connection between supply and demand, must consider the gap based on supply and demand expectations in each of the countries. The general picture was that the investment seemed attractive, but there was need to study all the inherent factors so that the best plan of action could be implemented. Mr. Manlio Covielo, ECLAC considered the bio-fuel potential of Guyana and Jamaica. In an overview, the assessment of potential revealed these factors:1. Transition to a new energy era was linked to the skyrocketing of energy consumption.

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| 17 2. Expansion and use of bio- fuel and ethanol in the world was linked to rising oil prices. Stated that there were opportunities and challenges for Bio-fuel and ethanol in the world. There was the challenge of the energy sector vis--vis the agriculture sector. Need for bio-diversity, balance of food reserves vs. bio-energy. The world ethanol production was high in US, whereas in the EU, there was a slow take-off for bio-fuel consumption However, there was an opportunity for ethanol production. In Jamaica, there was possibility for Bagasse cogeneration which would generate more than 110 kWh. There was also place for ethanol and this would provide surplus electricity. Recommended for Jamaica a long-term energy policy, low interest credit or income tax rebates, strengthening of political capacities in international programmes and that Jamaica needed to take the opportunity to use CDM financing. In the case of Guyana, the major issue was the dependence on oil importation; hence the assessment of ethanol potential was good. Stated that potential for fuel from molasses was the more viable one. In terms of the bio-energy options, there was rice whose waste (rice husks) could produce fuels, also the waste from wood (sawdust and wood shavings). Guyana had good conditions for the development of the bio-fuel sector and hence the next steps were to seek financial support, expand studies on bio-energy, understand market development options and organise workshops to discuss measures to be implemented. The final speaker in this section was Dr. Oudho Homenauth, Director of the National Agricultural Research Institute (NARI), whose presentation was titled Production of Agro-Energy Feedstock in Guyana. In light of Guyanas high dependence on petroleum, diesel fuel and gasoline importation, there was need for the country to find alternative energy resources. Use was therefore made of indigenous material, such as sugar cane, oil seed, coconut, oil palm, japtropha, molasses, bagasse, wood waste and also considered was the possibility of manufacturing biogas from raw manure. From the forest, energy could also be derived from firewood, coal and briquettes.

Expanding Bioenergy Opportunities in the Caribbean

| 18 He further pointed out that ethanol could be derived from sugar cane as well as from molasses, thus seeing Guyana as a potential exporter of bio-fuel. Through substitution of diesel, there was a possibility of generating biodiesel in the following ways: o Using glycerol if amalgamated with sawdust, with the potential to replace logs as a fuel source. o Vegetable and animal fats, e.g. coconut could be used for biodiesel production, oil palm biodiesel, coconut fuel for compression ignition engines without conversion to biodiesel (still untested), jatropha - biodiesel. In terms of cogeneration, the following possibilities exist: Cogeneration with bagasse (e.g. provision of a constant supply of power in the case of a factory in the Berbice area). Use of rice waste, wood waste. Cow manure for biogas (IICA Project at St. Stanislaus Farm - used for household consumption, as well as for powering machines for milking cows). In view of Guyanas available land, enabling environment and interest in investment, potential exists for Guyana to become a major player in the next 3-5 years. This presentation elicited the following comment: Given the existence of only small-scale economies in Guyana and the Caribbean, there was not enough critical mass for effective entry into the bio-energy market, thus there was a need to look at new technology which would facilitate smaller plants. Clarification was sought on the willingness to pay in view of the tax attracted by petroleum and the response was that all the costs incurred and expected profit needed to be considered and the narrower the gap, the more viable the investment, failing which an assessment would need to be made as to the feasibility of investment.

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| 19 Mr. Ronald Alli, Chairman of the Guyana Sugar Corporation gave an overview of the sugar industry in the Region. He noted that it has been around for 300 years and was fairly stable and intact, until recently, due to escalation of fuel prices and cuts in preferential policy affecting sugar. These challenges have provided the opportunity for bio-fuel expansion in the Region. Cited the case of Brazil, whose readjustment came much earlier, resulting in their ability to export ethanol and their unenviable position as a top producer and exporter of ethanol. Existing trends are tending towards the production of bio-fuels with a view to reducing dependence on imported fuels. This trend can also be seen in terms of taking advantage of the existing ethanol markets. The CBI is the trade framework for facilitating exports of ethanol into the US market, e.g. duty-free treatment if 50% of raw material can be resourced into the Caribbean, or up to 7% regardless of source of raw material. There is a vast opportunity for the development of ethanol, increased production, thus the Region is urged to take advantage of the US duty-free concessions. Caution expressed with respect to the routes of origin of the raw material.

Session IV

Round Table with Sugar/Ethanol Project Developers and Opportunities for the Private Sector Regional and International Trends of Sugar and Bio-fuel Production

Moderator: Mr. Ronald Alli Chairman of Guyana Sugar Corporation

Mr. Aubyn St. Hill, Director of the Development Bank of Jamaica, spoke on Caribbean Bio-fuels Good Funding Opportunities. Began with anecdote, stating that during his youth, the colour green signified the colour of trees, whereas now, green represents money which could be had from investment in bio-fuel production, hence, the Green Investment.

Expanding Bioenergy Opportunities in the Caribbean

| 20 Referred to a major move in Jamaica, by the Billion Gallon Club three (3) companies which joined forces to produce one (1) billion gallons of ethanol. Why this move? The market was viable, hence the investment was sound. Market financing and tax incentives were also available. Consideration had to be given to the global corporations in defining a national policy. What was behind the sustainability of the Green Investment? It protected national security interests and lessened the need for dependence on fossil fuels. To date, this ethanol plant has surpassed all expectations, having grown in terms of the investment. Strongly urged Caribbean investors not to miss this opportunity, since there is money to be had from investing in bio-fuel production. Mr. Lindslay Holder, Chairman of the Barbados Agricultural Management Company on the topic The Sugar Cane Industry in Barbados as a Source of Renewable Energy: Began by describing the challenges faced by the industry in Barbados, namely decreasing acreages, declining yield of cane in terms of cane/sugar production ratio, old, inefficient sugar factories, increased labour costs, cut in prices for sugar. Further stated that the industry has been unprofitable since 1956 owing to its dependence on government subsidies, thus restructuring was intensified to prevent this dependence on subsidies for an industry which was not generating enough profits. After a feasibility study, a decision was made to shift from sugar to sugar cane, and to use sugar molasses to produce ethanol for electricity.

He examined the objectives for preservation of the agri sector: Ensure that agri sector was the most viable source of economic activity. Countryside must be maintained in consonance with the environment - best practices used to achieve the overall macroeconomic goals for the island. Maximize economic returns from bagasse generated from milling of cane to produce electricity for export to national grid and reduce dependence on fossil fuels. Two (2) components of project were the sugar cane process and agronomic and agricultural best practices (cultivation of high-fibre cane and fuel cane). Sugar industry in Barbados was indeed a viable enterprise.

Expanding Bioenergy Opportunities in the Caribbean

| 21 Mr. Nick Jackson, Chief Executive Officer, GUYSUCO: Gave a historical review of the sugar cane industry of Guyana and the challenges faced presently, noted the move to the Skeldon Modernisation Project, and the scope it offers for the bio-fuel industry. Modern factory is competitive on the world market, will generate power up to 40 kV, export up to 15 MW and has registered carbon credits through the World Bank. After feasibility study undertaken, new cultivation of 50,000 ha, increased ethanol production, possibility of use of fallow crop for biodiesel production (e.g. soya), use of different varieties of sugar cane. Viability of industry illustrated by interest shown by investment companies in Jamaica, Israel, USA and Brazil. Some of the challenges faced by the project are port facilities, remoteness of the location and skills and workforce availability. Strong hope for viability of project in view of land and water availability, years of experience with sugar and being strategically placed with respect to duty-free access through the Caribbean Basin Initiative. Mr. Oneil Tabar, Bio-fuel Director, National Energy Commission of the Dominican Republic on the topic Opportunities for Sugar, Ethanol Project Developers in the Dominican Republic: Having given a brief overview of the existing energy resources (wind, solar, hydro, biomass), he explained that the reason for his optimism was that the cost for renewable technology was decreasing while that for fossil fuels was ever-increasing. Government eliminated the mills (16 in number) and converted them to private agroenterprises in order to increase their efficiency, by developing programmes that would optimize opportunities for sugar ethanol production. Mr. Arlan Lecorps, Bioenergy Commission of Haiti: Provided an insight into the situation in Haiti, namely that bioenergy was a new concept for Haiti. Many proposals were received from companies for land and for preferential treatment. However, in view of the lack of information and illiteracy of the populace, the Bioenergy Commission was created within the Ministry of Agriculture to look into the viability of this undertaking (legal framework, policy, management capacity, strategy ethanol or biodiesel or both).

Expanding Bioenergy Opportunities in the Caribbean

| 22 This process is continuing and funding is being sought from the IADB. Mr. Lennox Neal, Belize Sugar Industry Ltd on Investment Opportunities in Bioenergy in Belize: Industry is completely privately owned (8,000 farmers supplying sugar cane over an area which is mostly unsuitable for cane). This is because 30% of the suitable agri lands are in reserves, which are used in the tourism sector. Up to two (2) years ago, oil was imported, but after discovery of oil in the country, it is now possible to export, thus balancing their energy needs. In spite of the presence of oil, there is still importation of different fuels and gas. Measures have been taken for energy import substitution and energy exportation. In concluding, he stated that investment opportunities should be export-oriented, should look at electricity from biomass, bagasse, glyricidea, eucalyptus, alcohol production from sugar cane molasses, biodiesel from oil seeds and palm oil, and palletized fuels. Mr. Arnaldo Vieira de Carvalho, IADB on the Mesoamerican Ethanol Group: In view of the oil escalation prices, ten (10) countries came together to promote and stimulate bio-fuel production and started initiatives to tap the hydroelectric potential of the Region. In 2005, resources were diversified and other alternatives were looked at. Countries exchanged experiences and facilitated decisionmaking at the level of energy, finance and agriculture. Next step is to examine the options Colombia is using, through consultancies and select the most suitable scenario. Mr. Fenton Sands, Director, USAID on the US Energy Policy and Caribbean Cooperation: In keeping with USAID policy, he stressed the importance of accessing energy, since it is a key enabler of growth. Policy is to use every tool to advance their energy security. Leadership roles taken with multinational agencies to promote their respective energy investments. In terms of the Caribbean, their approach was to exploit the bio-fuel market as much as possible, in collaboration with the US.

Expanding Bioenergy Opportunities in the Caribbean

| 23 Haiti and El Salvador were targeted countries where the possibility of reducing their dependency, stimulating economic growth and ensure sustainable development with regard to the bio-fuel industry. The US is moving forward in terms of agreement on specific quantities, prospects for stability in the environment and private sector capital. Mr. Jeffrey Izzo, Energy Officer, Bureau of Economics, Energy and Business Affairs on US International Energy Policy and Bio-fuels Diplomacy: Provided an insight into US energy policy and the driving force behind the energy market. In spite of the challenges facing the oil market, e.g. rising demand for oil and geopolitical concerns, lack of surplus production, the US demand for energy has not decreased. However, the Caribbean has had to look for alternative sources of energy, and the US is trying to help. They have developed energy policy pillars, facilitating engagement with allies, producers, consumers, NGOs bilaterally and multilaterally. The policy pillars are intended to diversify suppliers and expand production through open markets, and diversify energy types, with a view to promoting energy efficiency. Attempts have been made to broaden the base through feasibility studies, but the bottleneck is the difficulty in stimulating private sector investment.

The Hemispheric Bio-fuels Partnership has been established with the following advantages: Most oil-dependent countries can grow a portion of their own energy, resulting in improvement of emissions and creation of jobs. This partnership enabled great potential for biodiesel production. The US is continually engaged in encouraging greater investment with Saudi Arabia and dialogue with other key producers, e.g. Canada and the EU. Some concerns include the destabilizing effects of oil money, the Caspian Energy Agency, Chinas cooperative mechanisms, clean technologies and the International Energy Agency. Energy efficiency and conservation is growing as a public concern, since the oil market is unpredictable and the USs dependence, driven by transportation demands, continues to grow.

Expanding Bioenergy Opportunities in the Caribbean

| 24 The policy goals of diversity in fuel sources and types of energy conservation and efficiency, protection of infrastructure and expansion of strategic reserves must be established. Bio-fuels and increased auto-efficiency are the logical policy responses to the USs oil dependence.

Mr. Brian Dean, Executive Director, Inter-American Ethanol Commission on the Potential for the US-Brazil Bio-fuels Partnership: This collaborative relationship was cemented between the US and Brazil to explore the potential for the US marketplace. There is a need for standardization and collaboration in this partnership. In 2009 Brazil, because of its huge landmass, will look at the production of cellulosic ethanol (from corn). Cautioned that the partnership should be strategic and not tactical. The partners must collectively move forward to forge a framework for free trade, ensuring success and prosperity while the market is evolving. Energy diversity and energy security were factors that had to be kept in perspective, and the key to success was ethanol diversity. Sheldon McLean, Trade Policy Adviser for CARICOM on Bioenergy Opportunities within the Context of the Development Dimension of Trade Agreements: In view of the dismantling of preferential market access arrangements and product displacement, the Doha Development Agenda was established, the rationale being recognition of the potential role of international trade in fostering economic development and alleviating poverty. He pinpointed some of the global trends, e.g. the EUs goal of achieving 12% of primary energy production from renewable energy sources by 2012 and the USAs target of replacing at least 25% of its petroleum use by 2025.

Issues raised: Suggested use of cooking gas, which was cheaper to run for transport and domestic use. Criteria for foreign investment make them as attractive as possible, but with some reserve in view of political implications, that is sale of land vs. lease.

Expanding Bioenergy Opportunities in the Caribbean

| 25 In restructuring of domestic industry, how should labour costs and field costs be defined? The response to this question was that if a modern facility is put in place, that would involve more automation, thus there would be some control over labour costs. Need to address policy, domestic, regional and hemispheric issues. Matrix of issues consider viability of efforts of the bio-fuel initiative. The trade issue highlighted the fact that the US market was available for the exporting of ethanol. Is it that our Regional Programme was working solely for exports, with no consideration for imports? The response was that there was need to assess the implications inherent in accessing the US market, while making every effort to ensure that domestic consumption is enhanced. The approach must be a strategic one, taking into account all the varying sectors, with their peculiarities and concerns, and making a holistic assessment. Reliance on ethanol exportation to the detriment of sugar production. If no exports, where does the money come from to sustain the industry. Cost-effectiveness of ethanol production for export in terms of labour.

Responses: Look at ethanol production and all its capabilities and not cloud ones vision with negative attitudes, but do not miss the opportunity to join in the ethanol race, since there is money to be had.

Way Forward: Efforts must be directed towards alleviation of poverty and modernization of the agri sector through a nexus biomass product.

Conclusion: The need for appropriate compensatory and adjustment mechanisms, a broadpackage technical cooperation, access to investment capital on incentive terms and presence of a legal and regulatory framework.

Expanding Bioenergy Opportunities in the Caribbean

| 26 Dr. Kassiap Deepchand, Mauritius Sugar Authority on Cogenerated Electricity Export from an integrated sugar cane industry exporter in Mauritius. Provided an historical overview and listed four (4) points governing the country policy, namely the Sugar Sector Reform (the Sugar Cane Cluster). Cogenerated Energy from Bagasse simultaneous production of electricity and steam in a single power plant; represents a saving when compared to separate regeneration of electricity. Sugar Reform Initiatives and Bagasse Energy - eleven (11) sugar factories where 1.7m tons of bagasse produced annually, and three (3) categories of Bagasse Energy and Environment. Existence of four (4) clusters in four (4) geographic areas. Production of: raw special, white and industrial sugar, electricity from bagasse and coal, ethanol from molasses and eventually cane juice. Energy viability of investment in these clusters. The reform is on-going, with development of a bagasse energy programme. Conclusion of bagasse coalpower purchase: o Multi-annual adaptation strategy, with targets being set for production, generation of electricity from bagasse, and ethanol. o Bagasse-based electricity was a high priority in the sugar sector reform, and this plan could be easily replicated in the sugar cane industry worldwide. Dr. Jorge Bendeck, Executive President, Bio-fuel Federation of Colombia on Present and Future of Bio-fuels in Colombia: Plant operations to produce alcohol from sugar cane. Contemplating using yucca to produce alcohol. Need to produce new plants producing enough alcohol for domestic use and export. Stressed the need for investment in agriculture and

Session V

Achieving Competitiveness in Sugar/Bio-fuel Production through Value-Added Products

Moderator: Mr. Juan Pablo Bonilla IDB-SECCI Coordinator

Expanding Bioenergy Opportunities in the Caribbean

| 27 processing plants, including legal framework and permanency guarantees, resulting in a significant increase in employment opportunities, particularly in rural areas. In terms of biodiesel, potential exists for the African, both for domestic consumption and export. At the moment, there are nine (9) plants under construction, including four (4) for biodiesel production, which will enhance employment both directly and indirectly. Mr. Curtis Mohammed, Angostura Ltd, Trinidad & Tobago: Dehydrant Plant using the CBI Agreement for Ethanol Export: Potential for ethanol production seen and TBTL Grouping took advantage of market by setting up dehydration plant using the CBI. Encouragement to Regions to make use of the CBI initiative.

Dr. Suresh Narine, Director, Institute of Applied Science and Technology of Guyana, on Biodiesel Production in Guyana: Explained situation in Guyana small population, levels of poverty, limited capitalization, aging fleet of vehicles and projection of end of oil by 2025, increased demand for crude oil. Went ahead and looked at feasibility of producing biodiesel in Guyana. Have also tried out biodiesel in vehicles and have noted no major issues. Another possibility therefore exists re feasibility of biodiesel production in Guyana. Potential not only limited to bio-fuels but also to cosmetics and lubricants. Mr. Washington Silva, EMBRAPA, Bio-fuels Production of the North-East of Brazil: Brazils agro-energy platforms are biodiesel, ethanol, energetic forests and residues. Flexfuel vehicles (coexistence of ethanol and diesel). Programmes envisaged are production of hydrous ethanol and more flexfuel vehicles. Experimenting with feedstock, but this is not quite lucrative, corn, beet. Agro section is not compromised because land could be rotated. Cogeneration with sugar cane bagasse. Ninety (90) new factories proposed in an effort to boost Brazils bio-fuel production. Looking into the production of vinasses (food fertilizers).

Expanding Bioenergy Opportunities in the Caribbean

| 28 In the highlights, it was recognized that: A high benchmark was set for the rest of meeting by the deliveries in the opening session, especially the address given by His Excellency the President of the Republic of Guyana, Bharrat Jagdeo. A Memorandum of Understanding was signed launching the CREBAP. In the presentations and discussions that took place a number of issues and observations were highlighted. These include, among others: The need to address global policy issues. The need for a new Kyoto Protocol that does not penalize countries for efforts to conserve their forests. The development of bio-fuels provided an opportunity to promote development and change trade patterns. The need for a holistic approach to developing bio-fuels, considering that food production should not be sacrificed for the sake of energy. That environmental considerations are key, as well as sustainability and socio-economic issues. That the exchange of experiences is vital. That strategic vision was also important. One cannot expect results in the short term. That production facilities should be integrated. That quality planning was required. The work of the Institute for Applied Science and Technology (IAST) of Guyana showed how
Expanding Bioenergy Opportunities in the Caribbean

Session VI

Highlights of Preceding Day One Carlos Echevera, IICA

| 29 countries can start to work with limited resources, relying on their own capabilities, using moderate technology. The challenge was to keep up the work and reproduce the model. The question now is how to transfer this into best practices.

Expanding Bioenergy Opportunities in the Caribbean

| 30 Prospects for Ethanol in Guyana Mr. Harold Davis, Director Agriculture Research Centre, Guyana Sugar Corporation (GUYSUCO) Mr. Davis expressed the hope that the seminar marked the beginning of the maturing of the sugar industry. He outlined the available feedstock: rice, cassava and sweet potato but said that sugar cane offers the best prospects. His presentation covered the prevailing conditions in the Caribbean sugar industry that necessitate becoming more competitive including bringing down the costs of production, expanding the industry and increasing productivity and efficiency. He outlined strategies being pursued by GUYSUCO to address these issues. These included, among other things, increasing yields and reducing production costs and construction of a new 8,400 ton mill to produce refined sugar with co-generation of 10 MW. He outlined the market prospects of ethanol, taking the view of sugar cane as an energy crop. The ethanol market is growing. Projected world output of ethanol in 2015 is 115 billion tons, compared with 49 billion tons in 2006. Dr. Davis presented some considerations for ethanol production and outlined current research and development contributions such as development of multipurpose sugar cane and high sucrose and high fibre varieties. Renewable Energy in Caribbean Countries Joseph OLall, Chief Executive Officer, Guyana Energy Agency Mr. OLall was of the opinion that the CARICOM countries could not afford to the insular in their approach to energy. He spoke of the rising price for gasoline which was projected to reach US$100 per barrel by the end of 2007. This would make every CARICOM country poor. He indicated that his agency had been approached by a Trinidad and Tobago company regarding the
Expanding Bioenergy Opportunities in the Caribbean

Session VII

Building an Agroenergy Strategy for the Caribbean


Moderator: Mr. Ricardo Vargas Del Valle Agriculture Specialist, IADB

| 31 establishment of a hydroelectricity plant to supply energy to Trinidad and Tobago by an underwater cable. He could see this moving toward a natural gas cable to feed energy to other CARICOM countries. He urged participants to look at how to gear the industries of the region to accept ethanol as a source of power rather than concentrating on the ethanol export market. Agro-energy Policy of Guyana Dr. Suresh Narine, Director, Institute of Applied Science and Technology Dr. Narine stated that it was recognized that development of the agro-energy in Guyana would require significant and long term investment of capital. As such, it would be important to articulate a vision as well as a strategy and a policy to achieve that vision. . A draft agro-energy policy had been prepared and this twenty (20) page document was expected to go to Cabinet for discussion shortly. The draft policy sets out the vision and scope of where the country would like to go with regard to this sector. This included agro-energy making up 65% of the countrys energy matrix by 2020. The draft policy sets out three (3) main pillars for growth in the sector: value creation, competitive understanding and market technologies. The draft policy attempts to address a number of issues and questions including: How to build capacity? What technologies to invest in? What will be the product and pricing strategy? What markets to address?

Dr. Narine presented opportunities within the Guyana agro-energy portfolio including sugar cane, oil crops, agricultural and municipal wastes. He told participants that they need to pick the low hanging fruits. In the case of Guyana it was poised for ethanol products from sugar cane. Some guiding principles had been developed in the policy document. For example, the sector would not be developed at the expense of food production or protected forest areas and would not be subsidized by the government. Dr Narine indicated that the Government realizes policies and regulations on land use. Taxation, environmental standards will need to be modified or streamlined to support development of the agro-energy industry. Land use is central to this endeavour.

Expanding Bioenergy Opportunities in the Caribbean

| 32 Prospects for Ethanol in Guyana Mr. Harold Davis, Director Agriculture Research Centre, Guyana Sugar Corporation (GUYSUCO) Mr. Davis expressed the hope that the seminar marked the beginning of the maturing the sugar industry. He outlined the available feedstock: rice, cassava and sweet potato but said that sugar cane offers the best prospects. His presentation covered the prevailing conditions in the Caribbean sugar industry that necessitate becoming more competitive including bringing down the costs of production, expanding the industry and increasing productivity and efficiency. He outlined strategies being pursued by GUYSUCO to address these issues. These included, among other things, increasing yields and reducing production costs and construction of a new 8,400 ton mill to produce refined sugar with co-generation of 10 MW. He outlined the market prospects of ethanol, taking the view of sugar cane as an energy crop. The ethanol market is growing. Projected world output of ethanol in 2015 is 115 billion tons, compared with 49 billion tons in 2006. Dr. Davis presented some considerations for ethanol production and outlined current research and development contributions such as development of multipurpose sugar cane and high sucrose and high fibre varieties. Renewable Energy in Caribbean Countries Joseph OLall, Chief Executive Officer, Guyana Energy Agency Mr. OLall was of the opinion that the CARICOM countries could not afford to he insular in their approach to energy. He spoke of the rising price for gasoline which is projected to reach $100 per barrel by the end of 2007. This would make every CARICOM country poor. He indicated that his agency had been approached by a Trinidad and Tobago company regarding the establishment of a hydroelectricity plant to supply energy to a Trinidad and Tobago by an underwater cable. He could see this moving toward a natural gas cable to feed energy to other CARICOM countries. He urged participants to look at how to gear the industries of the region to accept ethanol as a source of power rather than concentrating on the ethanol export market.

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| 33 Clean Development Mechanism for Bio-Fuels in the Caribbean, Mr. Orlando Jiminez, IADB Consultant Mr. Jiminez explained what the Clean Development Mechanism was about. He indicated who the main emitters of greenhouse gases were and that the Kyoto Protocol was about reducing the emissions. The protocol provided flexibility for bringing down emissions, allowing the main emitters (developed countries) to buy emissions reduction somewhere else. Emissions reduction, such as substitution of fossil fuels can be sold on the international market. Mr. Jiminez also presented some key concepts including bundling of CDM projects which creates options for small scale projects in the region and brings down transaction costs. Another key concept presented was programmatic CDM where the focus was broadened to include policies and programmes. The CDM Board issued a directive on the scope of this approach in June 2007. This allows more than one country to be involved in project and only a project needed to start with. Sub-bundles can be submitted. However, one coordinating body is required to be the focal point and to pull the pieces together. Finally, Mr. Jiminez also gave some tips for development of ethanol projects. Colombian Research and Development on bio-fuels Dr. Carlos Arroyave, Deputy Director, Innovation for Corporate Development Programmes, Colombian Institute for Science and Technology Dr. Arroyave gave some statistics and a profile of Colombia. He indicated that the country has a history of development of research centre. Figures were available for Colombian capabilities in biodiesel by region, gender, age group, project and institution. He also outlined some recent and current research and development (R&D) projects.

Session VIII

Carbon Finance, Innovation, Science and Technology in Bio-energy

Moderator: Mr. Arnaldo Viera De Carvalho IDB

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| 34

Dr Arroyave informed participants that Colombia had a National Energy Plan for 20062025 which included clean use of coal and new uses of PLG among other things. Bio-energy the important role of information for decision-making Dr Harjorw Neun, Director, Technical Centre for Agricultural and Rural Cooperation (CTA) Dr Neun explained that the CTA was established in 1983 under the Lome Convention. It serves seventy-nine (79) ACP countries and was funded by the European Development Fund. He stated that the Caribbean has a huge potential and has choices. Information helps to make choices. The CTA is increasingly working with media networks because of their key role in the dissemination of information. Dr. Neun told participants that the main driver of global changes was population growth. In 2010 the population would be nine (9) billion people resulting in increased demand for food and fuel. This has implications for global warming. Having not heard much about women and fuel, Dr Neun invited a female colleague to continue the presentation. His colleague presented CTAs mandate and mission and invited participants to visit its website. She also presented information needed for success bio-energy development and production including successful factors and information on technological, social and economic aspects. CTAs activities in bio-energy were also presented. Participants were encouraged to use the CTA network and platform for sharing experiences. Challenges in breeding new sugar cane varieties for energy use in the Caribbean Dr. Anthony Kennedy, West Indies Central Breeding Station Dr. Kennedy presented the new mandate that his organization had been given to breed sugar cane for high fibre and high sugar content and biomass for the bio-fuel industry. He outlined what kind of germplasm to look for and indicated that the station had the germplasm to work with. Some candidate varieties now exist. However, the major challenge remains lack of funding for research and development.

Expanding Bioenergy Opportunities in the Caribbean

| 35 Dr Kennedy explained to participants that biotechnology may be able to help eventually but is still in its infancy in sugar cane because of the complexity of the genome and the lack of well equipped and active laboratories in the region.

DISCUSSION
Question: The question was asked whether landfill sites could attract carbon credits. Answer: It was explained that technically they could but the sites need to be well managed. An enquiry was made on the level of collaboration and meetings with other colleagues and institutions involved in R&D. The response was that traditionally, breeding material was freely exchanged for sole purpose of breeding. However, with the emergence of intellectual property issues and awareness that free and open climate has changed. Breeders benefit to some extent from a yearly meeting organized by the IASCCT. Concern was also expressed regarding the difficulty in obtaining financing for research on new varieties and the reasons for this. Dr. Kennedy explained that traditionally the breeding station was funded by a tax on sugar. The Sugar Association of the Caribbean would get money from the sugar industry and give a percentage of this to the research station. This was formulated when the focus was on selling sugar. Now there was the need to reexamine how to fund research.

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| 36 Green Energy Programme and Financial Products of the IADB Group Mr. Peter Stevenson, IADB Mr. Stevenson presented some recent strategic changes in IADB. These included expansion of eligible sectors; ability to finance in local currency, increase in the limits to financial contributions per project and shorter processing time. He presented financing products and a new Green Energy Programme that supports development and design and implementation of green energy projects. Accessing Financing from CDB Ms Alison Davis, CDB Ms Davis gave a brief overview of the CDB. She explained that there was no special window for energy projects but that the bank was in the process of revising its energy policy. She also presented some guiding principles for intervention in the private sector. These included additionality, catalytic role and partnerships. Ms Davis also presented some other screening considerations, including among other things, Governments no objections, size of project and project cash flows. Current Trends in Global Investment in Bio-fuel Projects Stephen Allum Poon, First Citizens Bank of Trinidad and Tobago Mr. Poon first presented a profile of the Bank. He then explained what was driving the bioenergy development energy was the lifeblood of the economy and there is a growing demand. He also outlined who were the major global players in bioenergy: corporate sponsors, investment banks and regional commercial banks. He briefly looked at the downside of the bioenergy issue, including, distortion of food prices and the environmental fall out.
Expanding Bioenergy Opportunities in the Caribbean

Session IX

Financing Bio-Energy Projects

Moderator: Mr. Gerard Johnson IDB Representative, Jamaica

| 37 Mr. Poon identified some experiences in the Caribbean and attempted to present what was the future. He felt that conditions were favourable for investment in bio-energy. A new sector call clean tech is about to take off. It has appeal in that it will facilitate movement from heavy reliance on fossil fuel. Common Fund for Commodities (CFC) and Bio-energy - Mr. Getachew Gebre Medhin, CFC Mr. Medhin explained that the Fund was established to reduce terms of trade, improve productivity and increase export earnings of developing countries. The Fund was financing pilot demonstration projects through grants. He pointed out that the forecast for the bioenergy industry are very optimistic. Many countries are receiving direct foreign investment on the basis of bio-fuels and so there was increasing pressure on CFC to support bio-fuel production. There are also expressions of concern regarding diversion of food production to other uses. Careful analysis of all the issues was required for rational decision making. CFC was organizing a seminar in Malaysia in November 2007 on options for policy makers.

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| 38

DISCUSSION
One participant stated that given the weak capital economies of the region emphasis should be placed on ability to repay loans rather than on collateral. The response was that commercial banks are usually very conservative in nature and this was why this kind of financing was through development banks. However, the requirement of collateral was not likely to be thrown out of the window. In response to complaints of difficulty in obtaining financing one participant stated that it was usually the best prepared and presented projects that capture the funding. It was emphasized that greater attention should be paid to application management process. One way of addressing this was involving financial brokers external consultants. The view was expressed that people need to know how to present projects and this could be an area of follow up on this seminar.

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| 39 In introducing this final session, Dr. Narine pointed out to participants that the seminar had reached the stage where it was time to decide on clear objectives and to make a firm commitment to move forward. This was the first time the Caribbean had been able to host such a comprehensive and high level meeting on the issue of energy. This opportunity should be used to ensure commitment to concrete pursuable goals at the end of the session. Members of the panel were invited to make closing remarks. Key points made by each of them are summarized below. Moderator: Dr. Suresh Narine Dr. H Arlington D Chesney, Director of Operations for the Caribbean, IICA A multitude of operations for feedstock, processes, products and markets exist pick the low hanging fruits. Start with sugar as first feedstock. Must fit into context of regional and national energy strategy. There should be greater collaboration no turfism. public-public be be

Session X

Next Steps and Conclusions

A common regional strategy should developed. National strategies can developed within this framework. Understand carbon credits within this context. Develop system for funding.

Capacity building university curricula should be changed to meet the needs. How to move forward? o Make the MOU active o Political endorsement

Expanding Bioenergy Opportunities in the Caribbean

| 40 Mr. Christian Gischler, IDB Technical cooperation with Japan special fund prepared to help to strengthen capacity to screen and evaluate bioenergy projects. Task force should begin work immediately. Pursue programmatic CDM as a powerful instrument to put together projects. Exchange/connectivity vital. Mr. Mark Lambrides, OAS Energy security a major driver for this event. Continue down the path started by this seminar. Set goals, time lines and establish policies. Mr. Roland Clarke Utility sector must have integrated planning and not particularly research oriented. He had been told at the beginning of his career that oil reserves would run out in forty (40) years. His boss, who was seventy-three (73) years old at that time, had also been told at the beginning of his career that oil reserves would run out in forty (40) years. CREDP provides a model that countries can build on. Mr. Garfield Barnwell Access to energy is essential to sustainable development and improvement of quality of life. Need to develop, prepare and upscale national actions plans for renewable energy framework. Develop legal and regulatory frameworks for renewable energy. Opportunity for greater cooperation among the universities in this area of work CARICOM Ministers of Energy, Environment and Agriculture should meet more frequently to be informed on the progress of the task force.

Expanding Bioenergy Opportunities in the Caribbean

| 41 The preparation of an IADB Funded Technical Cooperation project on Expanding Bioenergy Opportunities in Guyana was announced by the Honourable Minister of Agriculture, Mr. Robert Persaud and representative of the IADB-Japan Special Fund, Mr. Goro Mutsuura. Papers had been prepared for a US$250 grant towards implementation of an agro-energy policy in Guyana. This would fund the activities of the proposed agroenergy board, training and capacity building as well as investment generation. The project document is about to be signed.

Announcement of IADB Funded Technical Cooperation project on Expanding Bioenergy Opportunities in Guyana

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| 42

DISCUSSION
Reference was made to Dr. Clarkes remark about being told that oil would run out in forty (40) years. The view was expressed that the remark seemed to suggest that oil will not run out. However, the reality was that continued use of fossil fuels challenges our environment. The world population was increasing and demands for energy was increasing resulting in more and more pollution from the use of oil. The circumstances demand that we look at sustainability of our world. If we could find alternative technologies that would create jobs and sustains our world we should do it. A question was raised concerning the regional task force mentioned in the MOU signed on Day One of the seminar, enquiring who were the members, who do they report to and whether the CARICOM member states had given approval for the MOU to be signed. The response was that the MOU commits the institutions, regional bodies and the Government of Guyana that signed it. It was meant to be collaborative and inclusive. The MOU was sent to the CARICOM, Secretary General for circulation/ discussion and approval by members. There was a clause that allowed for its amendment. The representative of Germany/GTZ expressed his pleasure at hearing that bio-energy will play an important role in the energy sector or the Caribbean. This comes at a time when the EU is discussing the issue. He emphasized the continued support of the GTZ for development of renewable energy in the Caribbean. Another participant pointed out that besides working on alternative sources of fuel we need to look at how we can use less fuel. A little change in lifestyle can impact on the amount of fuel we use.

Expanding Bioenergy Opportunities in the Caribbean

| 43 In his final remarks, the Prime Minister stated that Guyana was proud to have played a pivotal role in planning of the seminar. It was no accident that the seminar had been held in Guyana. The Country was poised for significant future in the bio-energy sector and purposely moving forward in the sector with excitement, but has been cautioned that such feelings should be well founded. A regional approach would help development of bio-energy in the region. advance the

Session XI

Final Remarks Mr. Samuel Hinds, Prime Minister of the Republic of Guyana

The Prime Minister thanked all the presenters and the participants who stayed through the deliberations. He said that the challenge now was to harvest the significant volume of interest generated in the seminar. He said that he had been told that as a politician he had to ask the political questions. He asked whether we were looking forward to continuation of the old plantations with some additional new ones. He referred to a recent article on cane cutters toiling in Brazil, which called them ethanol slaves. The Prime Minister said that in the region we need to see agro energy as our business and that it is good for us. It must become our thing. He also said that it should be borne in mind that other people are working on an alternative to solve the energy problems, for example nuclear fusion. This could change some of the assumptions we are going forward on. Another question he raised was whether bio-energy should fall under the Ministry of Agriculture or the Ministry of Energy. Consideration should also be given to whether it is timely to make a 10% ethanol in gasoline mandatory. Finally, the Prime Minister told participants that the future was not known because it has not happened yet. It is what we make it. If agro-energy was to be what we think it should be, we have to make it so.

Expanding Bioenergy Opportunities in the Caribbean

| 44

3.

APPENDICES

Appendix (I)
Agenda AUGUST 6TH 7:45 8.30 AM 8:30 - 10:30 AM Guyana International Conference Centre REGISTRATION OPENING SESSION Opening Session Chairman: Mr. Robert Persaud, Honourable Minister of Agriculture of Guyana, will deliver welcoming remarks. REMARKS H. E. DR. Edwin Carrington, Secretary-General, Caribbean Community will provide additional welcoming remarks and place the event within the context of regional energy and biofuel concerns. Mr. Luis Alberto Moreno, President, Inter-American Development Bank, will provide an overview of opportunities to consolidate a Caribbean Regional Approach for Bio-fuels and Sustainable Energy, and will outline the instruments that the Bank has to support these initiatives. Dr. Chelston Brathwaite, Director General, Inter-American Institute for Cooperation in Agriculture, will show the opportunities for agriculture through an agro-energy strategy for the Caribbean Ambassador Albert R. Ramdin, Assistant Secretary-General, Organization of American States Rt. Honourable Patrick Manning, Prime Minister of Trinidad and Tobago

FEATURE ADDRESS - H. E. DR. Bharrat Jagdeo, President of the Republic of Guyana, will set the direction for the discussion, which is geared toward gaining a better understanding of the priorities
Expanding Bioenergy Opportunities in the Caribbean

| 45 within the agriculture and energy sectors of Guyana and the other Caribbean sugar producing countries. 10.30 11.00 AM BREAK - Announcement and signature of a Memorandum of Understanding (MOU) and launching of the Caribbean Renewable Energy, Energy Efficiency and Bioenergy Action Program (CREBAP) 11:00 12:30 PM Presentation of Bioenergy Studies in the Caribbean Moderator: Cletus Springer, Chief Caribbean Division, OAS Speakers: Regional Bioenergy Market, Mr. Albert Binger, IICA Expanding Bio-fuel Opportunities in Barbados, Jamaica and Guyana: Initial steps for a regional initiative, Dr. Orlando Jimenez, IADB consultant. Bio-fuel potential of Guyana and Jamaica, Mr. Manlio Covielo, ECLAC Production of Agro-Energy Feedstock in Guyana, Dr. Oudho Homenauth, Director, National Agricultural Research Institute of Guyana St. Kitts and Nevis Bioenergy Assessment Study, Mr. Mark Lambrides, Chief, Sustainable Energy and Climate Change Mitigation Division of the OAS 12:30 1:45 PM Round table with Sugar/Ethanol opportunities for the private sector Moderator: Corporation projects developers and

Mr. Ronald Alli, Chairman of Guyana Sugar

Speakers: Caribbean Bio-fuels-Good Funding Opportunities, presented by Mr. Aubyn Hill, Director of Development Bank of Jamaica The Sugar Cane Industry in Barbados as a Source of Renewable Energy, Mr. Lindsay Holder, Chairman of the Barbados Agricultural Management Company Title TBD, Mr. Nick Jackson CEO, Guyana Sugar Corporation Opportunities for sugar/ethanol project developers in Dominican Republic., Mr. Onil Abreu Tabar, Bio-fuel Director, National Energy Commission of Dominican Republic Title TBD, Mr. Arlan Lecorps, Bioenergy Commission of Haiti

Expanding Bioenergy Opportunities in the Caribbean

| 46 Investment Opportunities in Bioenergy in Belize, Mr. Lennox Neal, Belize Sugar Industry Ltd. 1:45 3:00PM 3:00 4.45 PM BREAK - LUNCH Regional and International Trends of Sugar and Bio-fuel Production Moderator: Mr. Vincent Atkins, Caribbean Regional Negotiation Machinery Speakers: Caribbean vision for bio-fuel production, Mr. Ronald Alli, Chairman of Guyana Sugar Corporation Brazil- Caribbean bio-fuel cooperation, TBC, Ambassador of Brazil in Guyana US-Caribbean bio-fuel cooperation, Dr. Fenton Sands, USAID Guayana Present and future of Bio-fuels in Colombia, Dr. Jorge Bendeck Executive President, Bio-fuel Federation of Colombia The Mesoamerican Ethanol Group, Mr. Arnaldo Vieria de Carvalho, IDB Title TBD, Brian Dean Executive Director, Inter-American Ethanol Commission Title TBD, TBC, CARICOM Secretariat 4:45 5.00 PM 5:00 6.30 PM BREAK Achieving competitiveness in Sugar/Bio-fuel production through added value products Moderator: Mr. Juan Pablo Bonilla, IDB-SECCI Coordinator Speakers: Bio-fuels experience of the northeast of Brazil, Mr. Washington Silva, EMBRAPA Cogenerated Electricity Export from an Integrated Sugarcane Industry in Mauritius, Dr. Kassiap Deepchand, Mauritius Sugar Authority A successful E10 and B5 mandate, Mrs. Maria Piedad Mier, Ministry of Mines and Energy of Colombia Dehydration plant- using the CBI agreement for ethanol export, Mr. Carlos I. Echeverria, Angostura Ltd. Trinidad and Tobago

Expanding Bioenergy Opportunities in the Caribbean

| 47 Biodiesel Production in Guyana, Dr. Suresh Narine, Director, Institute of Applied Science and Technology of Guyana. 6.45 PM Reception at Guyana International Conference Center followed by a cocktail Guyana International Conference Centre Highlights of proceedings of Day 1 and expected outputs from activities of Day 2 Dr. H Arlington D Chesney, IICA Building an Agro-energy strategy for the Caribbean Moderator: Mr. Ricardo Vargas del Valle, Agricultural Specialist, IDB Speakers: Title TBD, Hon. Dr. Lenny Saith, Minister of Energy and Energy Industries, Trinidad and Tobago Prospects for Ethanol in Guyana, Dr. Harold Davis, Ministry of Agriculture, Guyana Agro-energy Policy of Guyana, Dr. Suresh Narine, Director, Institute of Applied Science and Technology of Guyana Title TBD, Mr. Joseph OLall, Guyana Energy Agency Title TBD, Hon. Nigel A. Carty Ministry of Finance, Sustainable Development, and Technology, St Kitts and Nevis Title TBD, Mr. Conroy Watson, Senior Director of Energy, Ministry of Industry, Technology, Energy & Commerce of Jamaica. Title TBD, Mr. Barton Clarke, Ministry of Agriculture, Barbados Agro-energy strategy for the Caribbean, Mr. Albert Binger, IICA 11:00 11.30 AM 11.30 - 1.30 PM BREAK Carbon Finance, Innovation, Science and Technology in Bioenergy Moderator: Mr. Christian Gischler, Infrastructure Specialist IDB Speakers: Clean Development Mechanism for bio-fuels in the Caribbean, Mr. Orlando Jimenez IADB Consultant
Expanding Bioenergy Opportunities in the Caribbean

AUGUST 7TH 8:30 8:45 AM

8.45 11.00 AM

| 48 Title TBD, Mr. Jose Miguez, Executive Director of Brazil Board for the Clean Development Mechanism. Colombian R&I on bio-fuels, Dr. Carlos Arroyave Deputy Director, Colciencias Colombia Title TBD, Dr. Neun, Director, Technical Centre for Agricultural and Rural Cooperation (CTA), Challenges in breeding new sugar cane varieties for energy use in the Caribbean, Dr. Anthony Kennedy, West Indies Central Sugar Cane Breeding Station 1.30 3.00 PM 3:00 4:45 PM BREAK LUNCH Financing of Bioenergy Projects Moderator: Mr. Jerry Butler, Executive Director for the Caribbean, IDB Speakers: Green energy Program and financial products of the IDB group, Mr. Peter Stevenson, Inter-American Development Bank Current Trends in Global Investment in Bio-fuel Projects, Mr. Stephen Allum Poon, First Citizen Bank of Trinidad and Tobago Title TBD, Mr. David Lewis, Vice President Manchester Trade Ltd. Title TBD, International Fund for Agriculture Development (IFAD) Title TBD, Mr. Getachew Gebre Medhin, Common Fund of Communities 4.45 5.00 PM 5:00 6:30 PM BREAK Coffee Next steps and conclusions Moderator: Mr. Sergio Varas-Olea, IDB Representative in Guyana Discussants: Dr. H Arlington D Chesney, Director of Operations for the Caribbean, IICA Mr. Leighton Waterman, Caribbean Renewable Energy Development Prog. (CREDP) Mr. Mark Lambrides, Chief of Sustainable Energy and Climate Change Mitigation Division, OAS Mr. Juan Pablo Bonilla, IDB-SECCI coordinator
Expanding Bioenergy Opportunities in the Caribbean

| 49 Mr. Garfield Barnwell, Director of Sustainable Development and Energy, CARICOM Final Remarks Mr. Samuel Hinds, Prime Minister of the Republic of Guyana

Expanding Bioenergy Opportunities in the Caribbean

| 50

Appendix (II)
Draft MOU MEMORANDUM OF UNDERSTANDING on THE CARIBBEAN RENEWABLE ENERGY, ENERGY EFFICIENCY AND BIOENERGY ACTION PROGRAM Georgetown Guyana August 6th, 2007 WHEREAS, the Caribbean Community Secretariat (CARICOM), the Inter-American Development Bank (IDB), the Inter-American Institute for Cooperation on Agriculture (IICA), the General Secretariat of the Organization of America States (OAS), and the Government of the Co-operative Republic of Guyana, wish to formalize the basis on which the Parties may explore opportunities for cooperation and collaboration in promoting programs and projects on renewable energy, energy efficiency and bioenergy in the Caribbean; NOW, THEREFORE, the Parties have agreed to enter into this Memorandum of Understanding (hereinafter referred to as the MoU) as follows: ARTICLE 1 Objective The objective of this MoU is to formalize a non-exclusive framework of cooperation and to facilitate collaboration and coordination among the Parties in promoting and providing assistance for the development of programs and projects on renewable energy, energy efficiency and bioenergy in the Caribbean. The efforts of the Parties under this MoU shall be referred to as the Caribbean Renewable Energy, Energy Efficiency and Bioenergy Program (CREBAP). These and any other activities agreed to

Expanding Bioenergy Opportunities in the Caribbean

| 51 among the Parties shall be subject to the internal mandates, objectives, functions, policies and procedures of the respective Parties. ARTICLE 2 Areas of Cooperation The Parties agree to jointly explore the possibility of cooperating in the following respects: 2.1 2.2 2.3 Creation of a task force to explore the ways in which new sustainable energy and bioenergy projects can be promoted and financed in the Caribbean; Promotion of public-private partnerships and private investments on renewable energy, energy efficiency and bioenergy in the Caribbean; Provision of technical assistance to support the preparation, design, implementation and evaluation of projects particularly those that may contribute to reduce fossil fuel dependency and carbon emissions; 2.4 Exchange of information on programs, projects and activities on renewable energy, energy efficiency and bioenergy that are planned or are being implemented; 2.5 2.6 2.7 2.8 Consultation on the execution of joint activities and programs within the framework of this MoU; Development of a model agro-energy policy and strategy to be used as a template for CARICOM member states; Assistance to CARICOM members states to facilitate their access to global biofuel markets in a more competitive way; and Other related activities that may be agreed upon between the Parties from time to time.

Expanding Bioenergy Opportunities in the Caribbean

| 52 ARTICLE 3 Opportunities for Technical Cooperation In the course of its regular activities and consultations or as part of activities carried out under this MoU, the Parties shall inform each other and any other relevant parties in the Caribbean, of the appropriate mechanisms for accessing financing and technical cooperation opportunities, including under the IDBs Sustainable Energy and Climate Change Initiative (SECCI) and IICA national agendas.

ARTICLE 4 Effectiveness, Amendment and Termination 4.1 This MoU shall enter into force on the date of its signature by the Parties and will remain in effect unless any Party requests its withdrawal by a written notice to the other Parties. 4.2 No such termination shall affect contractual obligations already entered into by any Party under this MoU. This MoU may be amended only by written consent of the Parties hereto.

ARTICLE 5 Channel of Communication and Notice 5.1 For the purpose of facilitating the implementation of this MoU, the Parties shall inform the other Parties in writing of their respective channels of communication promptly following the signature of this MoU. 5.2 5.3 The representatives designated in accordance with paragraph 5.1 above shall be considered the members of the task force contemplated in paragraph 2.1. Any Party hereto may, by notice in writing to the other Parties, designate additional or substitute representatives to those designated in Section 5.1 of this Article.

Expanding Bioenergy Opportunities in the Caribbean

| 53 ARTICLE 6 Adhesion and Basic work methods. 6.1. This Memorandum of Understanding is open to the adhesion by other CARICOM member countries, and relevant multilateral and bilateral entities wishing to collaborate adding to the effort. 6.2. Within the foreseeable future, the task force will decide on its functioning mechanisms, and develop a work plan in relation to their shared activities and commitments. ARTICLE 7 Miscellaneous 7.1. Subject to their policies and procedures with respect to the disclosure of information, the Parties may make this MoU available to the public. 7.2. This MoU does not represent any commitment with regard to funding on the part of the Parties. Any such commitment shall be reflected in separate agreements that may be entered into by the Parties to this MoU, jointly or bilaterally. Furthermore, this MoU shall not represent any commitment on the part of any party to give preferred treatment to any other in any matter contemplated under this MoU or otherwise. IN WITNESS WHEREOF, the Parties hereto, each acting through its duly authorized representative, have signed this Memorandum of Understanding in seven (7) original copies in the English language in Georgetown, Guyana on August 6th, 2007.

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The Caribbean Community Secretariat The Inter-American Development Bank (CCS) (IDB)

___________________________________ (Name) (Title) Date: _____________________________

___________________________________ Luis Alberto Moreno President Date: _____________________________

The Inter-American Institute Cooperation on Agriculture (IICA)

for The Organisation of American States (OAS)

___________________________________ Chelston WD Brathwaite Director General

___________________________________ (Name) (Title)

Date: _____________________________

Date: _____________________________ The Government of the Co-operative Republic of Guyana ___________________________________ (Name) (Title) Date: _____________________________

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| 55 Appendix (III)

Press Releases

Expanding Bioenergy Opportunities in the Caribbean

| 56 Appendix (IV) Draft Strategy Presentation

SUMMARY REGIONAL STRATEGY ON BIOENERGY IN SUPPORT OF THE REGIONAL CONFERENCE ON EXPANDING SUSTAINABLE BIOENERGY OPPORTUNITIES IN THE CARIBBEAN REGION

Prepared by Al Binger, PhD August 2007

Strategy for the Development of a Bioenergy Program for the Caribbean Region
Strategy for the Development of a Bioenergy Program for the
Caribbean Region, is based on the technical, social and economic aspects of bioenergy in the hemisphere and beyond, and targets countries of the Caribbean region that are members of the Small Island Developing States (SIDS), and are considered by the United Nations Committee for Sustainable Development as being very vulnerable and includes: Antigua and Barbuda, Bahamas, Barbados, Cuba, Dominican Republic, Dominica, Grenada, Guyana, Haiti, Jamaica, St. Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago {with the exception of Cuba and the Dominican Republic}, which constitute the Caribbean Community (CARICOM).

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GOALS & OBJECTIVES OF THE STRATEGY


n

The goals of the strategy are to improve energy security of Caribbean Member States by making economies more resilient by reducing vulnerability to international energy shocks and high prices, and to support rural development by increasing the profitability and sustainability of the agricultural sector. The Strategy represents a potentially sustainable source of employment for workers with limited skills and adaptation against global climate change. The chief objective of the Strategy Document is to guide CARICOM Member States in their efforts to help the Caribbean establish a bioenergy program toward the development of biofuels to meet regional and national energy needs, whilst at the same time helping to modernize and diversify agriculture and rural sectors in the region to reduce energy and economic vulnerability of the region.

THE ENERGY FOR SUSTAINABLE DEVELOPMENT


Increasing oil prices are having a dramatic effect on Caribbean economies: n In September 2005, crude oil prices broke above $70 a barrel, approaching levels not seen in real terms since 1980, the year after the Iranian revolution. n At the end of January 2006, the price per barrel of oil was $67.92. n In April 2006, crude oil traded in the United Kingdom (UK), hit a record high of $74.22 a barrel which set a new price peak, and in the United States (US), oil prices leapt above $72 a barrel also settling a record high. n During the first week of July 2007, crude oil hit an 11-month high at $76.63 a barrel, near the record $78.65 hit last August. Clearly, a key goal of any strategy has to be reduction of the present high cost of energy services, relative to the value of Caribbean exports of goods and services, so that the countries can compete on relatively equal terms in the new global economy.
n

CHALLENGE

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THE ENERGY FOR SUSTAINABLE DEVELOPMENT CHALLENGE


n

Bioenergy is considered to be a sustainable option for addressing rural development and energy security and provides an exciting option for diversification of the sugar industry. Energy services are essential in helping to facilitate economic development by underpinning industrial growth, enhancing productivity, and providing access to global markets and trade. Energys crucial role in enabling development makes the provision of adequate, affordable, and reliable energy services absolutely necessary in order to achieve the Millennium Development Goals (MDGs).

Table 1:

CIF Value of Imported Petroleum Product US$ (000s) (All Product 18 countries)

COUNTRY ANTIGUA BAHAMAS BARBADOS BELIZE B.V.I CUBA DOMINICA DOMINICAN REP GRENADA GUYANA JAMAICA MONTSERRAT ST. KITTS ST. LUCIA ST. VINCENT & THE GREN SURINAME TRINIDAD & TOBAGO TURKS & CAICOS TOTAL

1985 27,716.7 N/A 111,233.0 N/A 5,744.6 N/A 4,824.0 d/na 6,677.9 105,699.1 240,754.6 1,868.0 4,887.9 9,714.6 5,701.4 N/A 7,905.7 d/na 532,727.5

1990 45,029.9 N/A 88,214.2 N/A 7,776.4 N/A 5,836.0 d/na 10,913.1 76,196.3 256,560.1 1,775.9 7,011.4 20,915.3 7,536.7 N/A 136,019.6 d/na 663,784.9

1995 30,441.6 125,821.7 56,480.0 30,919.5 8,536.1 853,516.7 5,185.3 d/na 11,558.6 85,161.1 361,027.1 1,615.7 7,878.9 23,293.2 8,557.5 78,202.5 161,542.3 d/na 1,849,737.8

2000 55,646.5 227,713.9 126,535.0 72,038.7 18,980.9 1,163,482.2 13,122.5 d/na 26,859.9 144,568.1 659,157.2 2,719.3 14,096.7 39,597.4 14,535.4 170,342.1 981,646.5 d/na 3,731,042.2

2001 47,514.9 207,258.1 118,411.9 64,419.1 18,411.7 1,092,846.7 11,298.3 d/na 22,910.7 126,310.6 559,517.7 4,014.1 16,255.7 38,595.6 15,226.8 171,055.3 744,379.0 d/na 3,258,426.2

2002 55,481.8 225,400.5 131,763.5 65,418.9 20,537.3 1,295,050.4 13,347.8 d/na 23,840.4 138,414.3 604,189.8 3,593.6 19,705.9 45,315.1 18,039.6 186,195.7 1,005,430.7 d/na 3,851,725.3

2003 57,781.3 280,142.0 177,390.4 61,941.5 25,515.3 1,015,154.6 12,991.7 1,475,952.6 17,167.7 153,194.0 790,294.9 3,401.8 18,393.9 53,179.4 18,456.5 199,637.0 1,058,015.0 13,774.1 5,432,383.6

2004 75,088.2 247,015.0 209,451.3 73,184.8 20,526.9 1,449,014.0 14,686.4 1,712,591.4 29,282.7 169,003.7 928,646.2 3,154.1 26,668.7 82,884.9 23,136.8 162,381.4 1,258,352.8 16,062.6 6,501,131.9

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MAJOR STRATEGIC COMPONENTS FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION
SOLID BIOFUELS INDUSTRIES
n

n n n

Solid Biofuels Industries most attractive market is for combined heat and power applications such as industrial zones, institutions like hospitals and hotels, as well as in the production of sugar and ethanol. Some countries, due to limited sugarcane production, may have to get supplemental biofuels to have viable heat and power generation industries. The three major goals of the Solid Biofuels Industries Program are: Development of 50% of the viable electricity potential from sugarcane by 2012. Development of small- and medium-size bio fuels enterprises by 2009. Development of 100% of the viable electricity potential from sugarcane by 2020.

MAJOR STRATEGIC COMPONENTS FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION
n

The potential bioenergy industries that can be developed within the region were identified based on the existing markets for petroleum products which can be effectively and viably substituted with biofuels. The identification of potential bioenergy industries also includes the assessment of the raw material potentially available; the cost and reliability of the technologies that convert the biomass feedstock into intermediate form or final use form, and how these technologies impact the viability of biofuels production and use; and the institutional capacity at the national level. The potential Biofuels industries for the Caribbean are in two areas: liquid fuels for transportation and, solid fuels for electricity generation. The availability of sugarcane and the potential to produce even greater amounts of biomass and electricity that could be generated is shown in Table 4 and provides the basis for the solid fuels.

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Table 3:

Potential of Electricity Generation from sugarcane and energy cane


Installed Power Capacity Quantity of Power Generation in 2004 GHz 149 831 323 15,909 67 13,489 126 52 512 2,974 14 107 178 6,321 41,343 Electricity generation from Biofuels Potential (sugarcane) * GHz 11 72 230 4,800 1 1,109 1 600 216 420 39 4 24 116 7,643 Electricity generation from Biofuels Potential (energy cane) ** GHz 22 144 460 9,600 2 2,219 3 1,200 432 840 77 7 48 232 15,286

Island State MW Bahamas Barbados Belize Cuba Dominica Dominican Republic Grenada Guyana Haiti Jamaica Saint Kitts & Nevis St. Vincent and the Grenadines Suriname Trinidad & Tobago TOTAL 325 210 75 3,957 22 3,290 39 129 dank 767 35 40 444 1,417 10,891

MAJOR STRATEGIC COMPONENTS FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION
SOLID BIOFUELS INDUSTRIES
n

n n n

Solid Biofuels Industries most attractive market is for combined heat and power applications such as industrial zones, institutions like hospitals and hotels, as well as in the production of sugar and ethanol. Some countries, due to limited sugarcane production, may have to get supplemental biofuels to have viable heat and power generation industries. The three major goals of the Solid Biofuels Industries Program are: Development of 50% of the viable electricity potential from sugarcane by 2012. Development of small- and medium-size bio fuels enterprises by 2009. Development of 100% of the viable electricity potential from sugarcane by 2020.

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MAJOR STRATEGIC COMPONENTS FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION
POTENTIAL BIOFUELS INDUSTRIES
1.

2. 3.

Ethanol production from sugarcane for gasoline substitution for use in two types of engines: Spark ignition (SI) engines that generally use gasoline/petrol as fuel - these engines are used in automobiles, small boats, aircraft and small electricity generating sets, and; Compression ignition (CI) engines that generally use diesel as fuel - these engines are used in medium- and heavy-duty trucks and buses, boats and ships, and diesel power plants; in the case of fuels for compression combustion engines, the use of ethanol in diesel engines used for public transportation. Production of plant oils/biodiesel for substitution of diesel oil in compression ignition engines. Electricity from different cogeneration technologies in sugar and sugarethanol plants for export to national grid or for private use -- based on the use of advanced cogeneration technology like the Condensing Extraction Steam Turbine (CEST) or the Biomass Integrated Gratifier-Gas Turbine Combined Cycle (BIG-GTCC). Plasma Gasification which would allow the use of waste derived fuel to supplement baggage and trash

MAJOR STRATEGIC COMPONENTS FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION
POTENTIAL BIOFUELS INDUSTRIES

4. Small- and Medium-Scale Liquid Biofuels Enterprises the liquid fuels produced would displace the use of petroleum liquid fuels for the production of heat, and/or the generation of electricity in small and medium businesses and institutions. This industry would provide alternate fuel and technology to help energy users replace diesel fuel in small package boilers to provide steam and as a drying medium in kiln drying, generating off-grid electricity for cooling and refrigeration, or metal fabrication. Institutions such as hospitals and schools and penal facilities use energy for a range of purposes including laundry, cooking, operation of equipment and appliances. They can obtain biodiesel from energy entrepreneurs producing it from various oil seeds (coconuts, castor, atrophy,), or from waste edible oils. The use of anaerobic fermentation for the production of low-calorie but easily upgradeable biogas is also feasible.

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MAJOR STRATEGIC COMPONENTS FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION
POTENTIAL BIOFUELS INDUSTRIES

5. Small- and Medium-Scale Solid Biofuels Enterprises a variation on the liquid fuels enterprises in which solid biomass in the form of wood, biogases, and other agricultural residues would be the feedstock. The small and medium scale industries would convert the feedstock into either producer gas or biogas, which in addition to being a substitute for diesel fuel or heavy fuel oil, would also substitute for liquid petroleum gas (LPG) and kerosene in food preparation, and for electricity in providing lighting and operating water pumping systems. Primary candidates would be small- and medium-size enterprises (SMEs), institutions, and businesses that generate waste biomass such as furniture producers, saw mills, and coconut processors.

Table 4: Potential of Selected Caribbean Countries as Biofuels Producers and Crop(s)

Excellent Potential

Lead Crop(s)

Biofuels Market

2004 Imported Petroleum Products (US$000s) {Potential Biofuels Market} 73,185

Belize

Sugarcane Oil Seeds and Fast Growing Trees Sugarcane Oil Seeds and Fast Growing Trees Sugarcane Oil Seeds and Fast Growing Trees Sugarcane Oil Seeds and Fast Growing Trees

Transportation Fuels Power Generation Transportation Fuels Power Generation Transportation Fuels Power Generation Transportation Fuels Power Generation

Guyana

169,004

Cuba

1,449,014

Dominican Republic

1,712,591

Good Potential

Barbados Jamaica

Sugarcane Sugarcane Oil Seeds and Fast Growing Trees Sugarcane Sugarcane Oil Seeds and Fast Growing Trees

Transportation Fuels Power Generation Transportation Fuels Power Generation Transportation Fuels Transportation Fuels Power Generation

209,451.3 928,646.2

Trinidad and Tobago Suriname

1,258,352.8 162,381.4

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FUNDING FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION


Funding for program implementation (not including funding for the implementation of projects) is estimated to cost approximately US$38 million, over the period 2008-2012, but including US$8 million for the provision of technical assistance, US$19 million for research and development, and US$3.3 million for feasibility studies - the initial focus is on the sugarcane producing countries. In all the sugar-producing countries, there are either projects being proposed or under implementation to derive electricity from bagasse. In addition, a number of countries are exploring the viability of producing ethanol for use as transportation fuel. A number of funding opportunities have been identified in the Strategy Document to provide support to the bioenergy program including from the EU, UNDP, IDB, and the CDB, bilateral donors including Canada, China, UK, USA, Japan, France, Germany and Norway, as well as the private sector.

FUNDING FOR DEVELOPMENT OF BIOENERGY INDUSTRIES IN THE CARIBBEAN REGION


n

Significant investments will be required over the next five years if the bioenergy program is to be successful. The potential for electricity exports from sugar mills would require investments estimated between US$1.3 billion and US$2.3 billion depending on the choice of technology. The level of investment required for the production of ethanol is in the range of about US$34 million for a plant with capacity of 57 million litres. The level of investment required for the population to get their energy for cooking needs from agro residues is over US$1 billion dollar.

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Table 6:

Estimated Programme Budget (2008-2012)

ITEM 1. PERSONNEL Program Director Technical Director Information Coordinator Administrative Assistant 2. PROGRAMS Strategy 1 Formulation & Implementatio n of Biofuels Policy (tools) Guide for Policy Makers (tools) Advocacy for Biofuels Industries (tools) Consultations Special Interest Groups

2008

2009

2010

2011

2012

Total

$100,000.0 0 $80,000.00 $60,000.00 $30,000.00

$100,000.0 0 $80,000.00 $60,000.00 $30,000.00

$100,000.00 $80,000.00 $60,000.00 $30,000.00

$100,000.00 $80,000.00 $60,000.00 $30,000.00

$100,000.00 $80,000.00 $60,000.00 $30,000.00

$500,000.00 $400,000.00 $300,000.00 $150,000.00

$50,000 $50,000

$20,000 $20,000

$20,000 $20,000

$20,000 $20,000

$20,000 $20,000

$130,000.00 $130,000.00

$50,000

$20,000

$20,000

$20,000

$20,000

$130,000.00

$200,000

$100,000

$100,000

$50,000

$50,000

$500,000.00

Table 6:

Estimated Programme Budget (2008-2012)

ITEM Strategy 3 Small & Medium Size Liquid Biofuels Enterprises Small & Medium Size Solid Biofuels Enterprises Strategy 4 Technical Assistance Biofuels Research & Development Feasibility Studies Public/Private Sector Partnerships Training ESTIMATED TOTAL

2008

2009

2010

2011

2012

Total

$100,000

$100,000

$100,000

$100,000

$100,000

$500,000.00

$100,000

$100,000

$100,000

$100,000

$100,000

$500,000.00

$2,000,000

$2,000,000

$2,000,000

$1,000,000

$1,000,000

$8,000,000.00 $19,000,000.0 0 $3,300,000.00

$5,000,000 $1,000,000

$5,000,000 $1,000,000

$5,000,000 $500,000

$2,000,000 $500,000

$2,000,000 $300,000.00

$50,000 $35,000 $9,835,000

$50,000 $35,000 $9,645,000

$50,000 $25,000 $9,035,000

$50,000 $25,000 $5,085,000

$50,000 $20,000 $4,780,000

$250,000.00 $140,000.00 $37,980,000.0 0

Expanding Bioenergy Opportunities in the Caribbean

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RECOMMENDED NEXT STEPS


1.

2.

Have the Regional Negotiating Machinery (RNM) discuss the proposal with the EC for the production of Biofuels ethanol for export to the EU and regional use as part of the evolving new policy on commodity exports from the ACP to the EC member countries, and greenhouse gas emission reduction targets by the EU. Undertake a landscaping exercise at the country level to gather baseline information on the following: *Ongoing national strategies to address the changes in the agricultural sector in response to the new European Union policy for agricultural imports from the ACP. The new policy affects in particular raw sugar and banana imports to the EU. *Land resources previously allocated to the production of export crops that could potentially be used as biofuels raw material production. *Land resources that are suffering environmental degradation as a result of current uses that have potential for biofuels raw material production. *Land resources that are currently un- or underutilized for agricultural purposes that potentially could be used for biofuels. *Water resources availability and future demand and supply options. *Approaches to waste management.

RECOMMENDED NEXT STEPS


2.

Undertake a landscaping exercise at the country level to gather baseline information on the following: *Strategies to address the increasing cost of petroleum imports and its impact on economic growth. *Electricity supply plans for meeting future demand as well as replacement of existing capacity. *Existing energy policies, pricing regime for fuels, and energy tariffs structures. *Existing agricultural and industrial and financial markets polices and incentives. *Priority environmental and social issues in the country and the sustainable development strategies.

3. Assessment of ongoing regional initiatives in agricultural diversification, renewable energy development and energy efficiency improvements, mitigation and adaptation to climate change, and energy resources development. This exercise will help Member States map the activities and identify where there is potential for collaboration in developing biofuels industries as part of ongoing or planned initiatives.

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RECOMMENDED NEXT STEPS


4.

Identify regional investment sources and mechanisms that are now supporting agriculture and energy projects. As discussed, investment is a major constraint of on the agricultural sector; it is therefore necessary to both document sources as well as the experience of these investors, as a perquisite to the planning of activities. Unlike agriculture, there has been encouraging signs for renewable energy investment. The two most recent cases are wind farms in Jamaica, and the sugar factory co-generation project in Belize. Dialogue with National and Regional Institutions working on aspects of sustainable development to determine potential synergy between those goals and biofuels production. There are now are number of regional projects being implemented with funding from the Global Environmental Facility (GEF) focused on helping the region to address barriers and or threats to sustainable development. These include an Integrated Coastal Water Quality improvement program being implemented on behalf of the GEF by Caribbean Environmental Health Institute (CEHI); the Caribbean Renewable Energy Development Program (CREDP) and the Mainstreaming Adaptation to Climate Change (MACC) both implemented by the CARICOM Secretariat.

5.

RECOMMENDED NEXT STEPS


6.

Dialogue with the sugarcane and electric utility representatives about the potential of Biofuels for the six major sugarcane CARICOM countries which are significant. Based on current sugarcane area, a flexible mixed sugarethanol production system that could be adapted to produce between 70% sugar/30% ethanol, and 30% sugar/70% ethanol, could produce between about 900 and 2,100 million litres per year. The residual bagasse could be used to produce up to about 7,600 GWh of electricity equivalent to 15.4 million barrels of diesel having an economic value of US$1.6 billion at a crude oil price of US$70/bbl. It would also thereby reduce the exposure of the region to the current unacceptable high levels of energy insecurity such as fuel supply and price shocks. Engaging in the wide private sector dialogue with the following potential stakeholders: Biomass raw material producers, transporters, equipment suppliers, technical service providers, financing sources ranging from commercial banks, cooperative credit union, retirement funds, building societies, to get the private sector interested. As discussed previously, this will be critical to the establishment and growth of National Biofuels Programs.

7.

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RECOMMENDED NEXT STEPS


8. Development of regional request for proposals from private financing entities to fund bioenergy projects. Private financing mechanisms such as Build Own Operate and Transport (BOOT), and Build Own Lease and Transfer (BOLT) have a number of advantages when compared to regular borrowing from development banks, bilateral sources, and brokers.

RECOMMENDED NEXT STEPS


6.

Dialogue with the sugarcane and electric utility representatives about the potential of Biofuels for the six major sugarcane CARICOM countries which are significant. Based on current sugarcane area, a flexible mixed sugarethanol production system that could be adapted to produce between 70% sugar/30% ethanol, and 30% sugar/70% ethanol, could produce between about 900 and 2,100 million litres per year. The residual bagasse could be used to produce up to about 7,600 GWh of electricity equivalent to 15.4 million barrels of diesel having an economic value of US$1.6 billion at a crude oil price of US$70/bbl. It would also thereby reduce the exposure of the region to the current unacceptable high levels of energy insecurity such as fuel supply and price shocks. Engaging in the wide private sector dialogue with the following potential stakeholders: Biomass raw material producers, transporters, equipment suppliers, technical service providers, financing sources ranging from commercial banks, cooperative credit union, retirement funds, building societies, to get the private sector interested. As discussed previously, this will be critical to the establishment and growth of National Biofuels Programs.

7.

Expanding Bioenergy Opportunities in the Caribbean

| 68 Appendix (V) a List of Participants

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.

Name Mr. Luis A. Moreno Mr.Jerry Butler Mr. Jamal Khokhar Mrs. Dora Currea Mr. Sergio Varas Olea Mr. Christiaan Gischler Mr. Ricardo Vargas del Valle Mr. Juan Pablo Bonilla Mr Christopher Persaud Mr. Javier Grau Ms Peter Stevenson Mr. Goro Mutsuura Ms. Margaret Walsh Ms. Gloria Lugo Mr. Ancile Brewster Ms. Nancy del Prado Mr. Arnaldo Vieria de Carvallo Mr. Orlando Jimenez Mr. Aubyn Hill Mr. Lindsay Holder Dr. Anthony Kennedy Government of Brazil, Bio-fuels, TBC Mr. Washington Silva Mr. Jose Miguez Mr. Jorge Bendeck Mrs. Maria Piedad Mier Mr. Carlos Arroyave Mr. Onil Tabar Mr. Ronald Alli Mr. Nick Jackson

Organisation Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Inter-American Development Bank Development Bank of Jamaica Barbados Agricultural Management Company West Indies Central Sugar Cane Breeding Station

EMBRAPA, Brasil. Executive Director for Brazil for CDM Bio-fuels Federation of Columbia Ministry of Mines and Energy, Columbia Colciencias Columbia National Energy Commission, Dominican Republic Guyana Sugar Corporation Guyana Sugar Corporation

Expanding Bioenergy Opportunities in the Caribbean

| 69 Name 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. Hon. K. Ragoebarsingh Hon. Gregory G. Rusland Mr. Armand Dongen Mr. Eddy Frankel Mr. Antoni Zuiverloon Mr. Willem Olsthoorn Mr. Brian Dean Ms. Alison Davis Mr. Stephen Allum Poon H.E. Edwin Carrington Mr. Garfield Barnwell Mr. Samuel Lawrence Ms. Margaret Kalloo Dr. Roland Clarke Mr. Leighton Waterman Mr. David Hales Ms. Anya Thomas Ms. Donna McRae-Smith Dr. Alfredo Curbelo Mr. Lawrence Benjamin Mr. Conroy Watson Mr. Aboubacry Tall Ms. Sylvia Baumgart Laasner Dr. Chelston Brathwaite Dr. Arlington Chesney Mr. Mario Seixas Mr. Trevor Murray Ms. Una May Gordon Mr. Ignatius Jean Mr. Aaron Parke Organisation Minister of Agriculture, Animal Husbandry and Fisheries, Suriname Minister of Natural Resources (and Energy), Suriname Staatsolie, Suriname Staatsolie, Suriname Phyto-Tech N.V., Suriname Phyto-Tech N.V., Suriname Inter-American Ethanol Commission Caribbean Development Bank First Citizen Bank, Trinidad & Tobago Secretary-General CARICOM CARICOM Secretariat CARICOM Secretariat CARICOM Secretariat CARICOM Secretariat CARICOM Secretariat CARICOM Secretariat CARICOM Secretariat CARICOM Secretariat CARILEC Ministry of Industry, Technology, Energy & Commerce, Jamaica UNDP Guyana Director General, Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture

Expanding Bioenergy Opportunities in the Caribbean

| 70 Name 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. Ms. Zaida Granados Mr. Carlos Echevarria Dr. Albert Binger Dr. Kassiap Deepchand Mr. Barton Clarke Mr. Vincent Atkins Mr. Arlan Lecorps Mr. Lennox Neal Repres. Ministry of Agriculture Belize Prof Luis Horta Mr. Manlio Covielo Mr. Radcliff Dookie Mr. Cetchew Gebre Medhin International Fund Agriculture Development (IFAD) Mr. Carlos Isidro Echeverria Mr. Curtis Mohammed Mr. John Georges Mr. Edgar del Valle Hon.Michael Jong Tjien F Dr. Hansjrg Neun Dr. Barbara Graham Mr. Maurice Wilson Ambassador Albert R. Ramdin H.E. Bharrat Jagdeo Hon. Samuel Hinds Hon. Robert Persaud Dr. Suresh Narine Dr. Oudho Homenauth Organisation Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture Inter-American Institute for Cooperation on Agriculture Sugar Authority of Mauritius Ministry of Agriculture and Rural Development, Barbados Caribbean Regional Negotiating Machinery Ministry of Agriculture, Haiti Belize Sugar Industry Ltd.

UNECLAC UNECLAC UNECLAC Common Fund for Commodities (CFC) International Fund for Agricultural Development CLF Latin Amercia CLF Latin Amercia Angostura Holdings CLF Latin Amercia Minister of Physical Planning, Land and Forestry Management, Suriname Technical Centre for Agricultural and Rural Cooperation (CTA) Food and Agricultural Organisation (FAO) Caribbean Agricultural Research and Development Institute Assistant Secretary General, Organisation of American States President of the Rep. of Guyana Prime Minister of the Rep. of Guyana Minister of Agriculture, Guyana Institute for Applied Science and Technology National Agriculture Research Institute

Expanding Bioenergy Opportunities in the Caribbean

| 71 Name Mr. Harold Davis Mr. Terrence Fletcher Amb. Geert Heikens Mr. Otto Nagy H.E. David Robinson Brazilian Ambassador, Guyana Mr. David Lewis Mr. Rendell Brewster Ms. Maria Brewster Mr. Leyland Hazelwood Mr. Carl Greenidge Mr. Joseph O'Lall Ms. Judy Siegel Mr. Darcy Carroll Mr. Walfredo Linhares Organisation Guyana Sugar Corporation TF Associates, Guyana European Delegation, Guyana European Delegation, Guyana Ambassador of the United States of America Ambassador of the Federative Republic of Brazil Manchester Trade ltd. Emerging Markets Alliance Corp. Marenco International Trading Corp. DIMPEX Inc. Consulannt Guyana Energy Agency Energy & Security Group BRENCO BRENCO

89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103.

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| 72 Appendix (V) b List of Participants Funded by the Technical Centre for Agriculture and Rural Cooperation (CTA)

Name Participants: Mr. Barton Clarke Mr. Vincent Atkins Mr. Mr. Maurice Wilson Mr. Lennox L. Neal Dr. Rafeal Prrez Duverger Mr. Arlan Lecorps Mr. Oneil Travard Junior Hope Kinesha Crawford Resource Persons Prof. Al Binger Dr. Kassiap Deepchand Supporting Staff Zaida Granados

Country Barbados Trinidad and Tobago Trinidad and Tobago Belize Dominican Republic Haiti Dominican Republic Guyana Guyana Jamaica Mauritius Costa Rica

Expanding Bioenergy Opportunities in the Caribbean

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