NICARAGUA: BIOFUELS PANEL AT CCAA CONFERENCE

UNCLAS MANAGUA 002367 SIPDIS SIPDIS STATE FOR WHA/CEN, WHA/EPSC-FCORNEILLE, AND EEB/IEC-BHAENDLER E.O. 12958: N/A TAGS: ENRG EAGR EINV ECON NU SUBJECT: NICARAGUA: BIOFUELS PANEL AT CCAA CONFERENCE REF: SECSTATE 144963 ¶1. (U) Nicaragua joined the ethanol market in 2007, when Nicaraguan Sugar Estates (NSE) started sending shipments of sugar cane ethanol to Europe. NSE hopes to double that volume in 2008 when expanded facilities come on line. Other sugar producers have moved to take advantage of world demand for ethanol. Honduran-owned Monte Rosa Sugar, Nicaragua's second largest sugar producer, is building an ethanol plant and which it hopes to bring it on line this fall. Nicaragua's other two sugar producers are contemplating whether to join this growing market. Given the lack of infrastructure in Nicaragua to support ethanol use in vehicles or industry, all ethanol currently produced is sold abroad. ¶2. (U) Despite President Ortega's negative rhetoric regarding corn-based ethanol, the GON has no specific policies that block ethanol or biofuels production. Given the sky rocketing price of oil, there is strong interest among GON officials to explore biofuels, particularly the production of diesel from African Palm. This has encouraged the Inter-American Institute for Agricultural Cooperation (IICA) to explore the use of African Palm as an alternative fuel source for Nicaragua's Atlantic coast. ¶3. (U) Nominees listed below could benefit from participation in the proposed CCAA biofuels event. Government Nominees (they may send delegates): Name: Orlando SOLORZANO Delgadillo Title: Minister of Trade, Industry and Development E-mail: osolorzano@mific.gob.ni Name: Emilio B. RAPPACCIOLI Title: Minister of Energy E-mail:erb@mem.gob.ni Private Sector Nominees: Name: Xavier ARGUELLO Barillas Title: Executive Director, Nicaragua Sugar Estates E-mail: xarguello@nicaraguasugar.com.ni Name: Francisco BALTODANO Title: General Manager, Monte Rosa Sugar E-mail: fbaltodano@pantaleon.com Name: Mario AMADOR Title: General Manager, Nicaraguan National Committee of Sugar Producers E-mail: marioamador@cablenet.com.ni TRIVELLI