Biofuels could transform Cuba into a prosperous nation

(Biopact) - Cuba once was the world's largest sugar exporter, but since the collapse of the Soviet Union its output declined dramatically. Today, the island state is a shadow of its former self.
Even though the emerging ethanol market holds major potential for the revival of Cuba's economy, Fidel Castro has spoken out against the fuel, claiming it endangers food security. This was mainly a rhetorical exercise, aimed at slamming the United States, because despite the criticism, Cuba has been quietly investing in its own ethanol infrastructure, striking deals with Venezuela and Nigeria.

The new ethanol industry is the most obvious low hanging fruit for Cuba's leaders to revive the island's economy. Analyses show the country has the capacity to produce between 2 and 3.2. billion gallons of exportable ethanol from existing plantations. This figure puts Cuba into the big league, placing it right behind the U.S. and Brazil as the third largest producer.

In any case, if foreign investments are allowed, Cuba could become a major exporter, because its own fuel needs are very small. In 2006, Cuba consumed around 150,000 barrels of oil per day, of which 50,000 barrels were met by local production. Its small oil imports make analysts optimistic about Cuba's ethanol export potential: assessments show that if it were to export 3 billion gallons per year - a feasible option - it would generate around US$ 7 billion per year.

The ethanol would not likely enter the U.S. market, because America's State Department has said the country won't end its trade embargo anywhere soon. However, there are enough other markets interested in highly competitive sugarcane based ethanol. The EU, which is far more pragmatic towards Cuba, would be the most obvious choice as the Union has recognised it will have to rely on imports in order to meet its renewable fuel targets.

What is more, the biofuel would come from former and existing plantations, and thus have a very strong environmental profile. No new land would need to be cleared, making the fuels largely sustainable and green.
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