Sep 2005 Financial News

Angostura opens US$11m plant

Sep 13, 2005

A new state-of-the-art fuel ethanol dehydration plant, the first of its kind in the country, was formally opened in Point Fortin yesterday.

The US$11 million plant owned by the Angostura group through its subsidiary, Trinidad Bulk Traders Limited (TBTL), is expected to supply 100 per cent of its production to the North American fuel oxygenate market.

The ethanol unit, which was constructed and installed at Petrotrin’s Point Fortin facility, has a capacity to produce 50 million gallons per year, which its general manager Curtis Mohammed said yesterday could be doubled with modest investment and effort.

“We have installed a plant capable of producing fuel grade ethanol from a raw alcohol feedstock that meets or exceeds the US fuels industry specification, as a fuel enhancing component, Mohammed said.

“Our product is being produced and sold better than 99.5 per cent ethanol quality.”

Mohammed explained that TBTL’s decision to enter the ethanol market was mainly due to demands from governments worldwide.

He said while Angostura was in the business of alcohol, this sector was becoming more competitive, with much lower margins being earned.

“Because of high petroleum prices, the phasing out of gasoline additive, MTBE and environmental pressures, the timing was perfect for introduction of this business,” he added.

Mohammed said Petrotrin’s facility was also chosen because of its terminalling facility, proper industrial climate and adequate infrastructure.

Petrotrin’s chairman Malcolm Jones, who addressed members gathered at the site yesterday, said his company was making use of its storage assets by assisting TBTL in its new venture.

Jones also said Petrotrin was looking at creating a world class storage depot at its Point Fortin base in the near future.

Meanwhile, Energy Minister, Eric Williams congratulated the Angostura group for its bold initiative and called on other businesses to get involved.

He said it was government’s objective to have local content in the energy sector include trade unions, such as the Oil Field Workers Trade Union.

Under the Caribbean Basin Initiative, the company will enjoy duty-free entry status into the United States, supplying them with fuel ethanol up to seven per cent of their requirements.

The first feedstock shipment of about 3.6 million gallons of hydrous ethanol has arrived and the plant is currently processing this into the finished product, which will to be shipped to the US.

TBTL is presently using raw alcohol from Brazil as feedstock.

He said TBTL’s new plant also endorses Prime Minister Patrick Manning’s call for meaningful partnerships between the state and private sector entities.

The new plant will operate on a 24-hour basis, as 27 technical assistants have already been employed.

Leah Mathura-Dookhoo
The Trinidad Guardian
Tuesday, 13th September, 2005
http://www.guardian.co.tt/business1.html