With the tremendous fervor building to see every country in Latin America and the Caribbean become centers of Bio-Fuels production, it was a welcome breath of fresh air to see panelists at last week's Center for Hemispheric Policy Conference in Miami look critically at this mad rush.
There was a fantastic piece about this conference in the Sun Sentinel http://www.sun-sentinel.com/business/local/sfl-zlatambiz20apr20,0,3531203.story?coll=sfla-business-front
The biggest question that needs to be asked of this rush, is where is the risk capital going to come from? Most International donors and commercial banks are already having their risk exposure in biofuels being maxed out in Brazil and the American Mid-West. Additionally, there is quite frankly a lack of available engineering know-how to facilitate these projects.
Some nations will clearly make the leap seamlessly like Colombia and Guatemala, but others who are high-cost cane producers will disappear in the face of the Sao Paolo price.
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