Bioethanol producer Jaunpagasts plus has prepared a technical project and a business plan for construction of a new bioethanol production unit in the Freeport of Riga territory, the project is estimated to cost EUR 65 million, as the Latvian Exporters and Investors' Club board member Dans Titavs informed the business portal Nozare.lv.
The new plant would process at least 300,000 tons of grain per year, offering major support for Latvian farmers who would be able to sell grain on the local market albeit for prices matching those on global markets. Bioethanol produced at the new plant could be exported or used to provide the local market with bioethanol, which now has to be added to fossil fuels in accordance with the law, writes LETA.
"Bioethanol will be needed because oil prices will keep growing, whereas bioethanol production costs can always be reduced if need be. Besides, the production cycle of the new plant would also include other sectors, because the plant will work on woodchips – which means that there will be demand for wood products, plus farmers will be able to sell their grain on the local market," said Titavs. Furthermore, a unique technology has been developed for Jaunpagasts plus, which will enable the plant to also produce bran and cattle feed additives, which would be convenient for cattle breeders. The company has already built a smaller plant in Iecava as a pilot project to test the new technology, said Titavs.
The Riga Port was chosen as the site for the new production unit because of practical and economic reasons, as it is a convenient place for woodchip deliveries as well as bioethanol exports, therefore cutting back on the costs of logistics.
Several foreign banks are willing to provide funds for the project, Titavs said. Work is under way at the moment on documents for receiving state guarantee for a loan.
Attracting European Union funds is also being considered, Titavs added, emphasizing though that the state should support projects that are likely to contribute to the national economy, and that are developed by successful businessmen.
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