Brazil to ship methanol.
Brazil's Coimex Trading Co. plans in Feb. 2005 to start
producing ethanol (alcohol) in Jamaica for duty free shipment to the
U.S., according to the business daily Valor Economico, reports Reuters
(Nov. 8, 2004). The US$10 million distillery, processing Brazilian
sugarcane based hydrous alcohol into anhydrous alcohol for re-export,
will have an initial production capacity of 150 million liters a year.
"We will double output in 1-1/2 years," Said Coimex President
Clayton Hygino de Miranda as saying. Under the Caribbean Basin
Initiative, ethanol shipments to the U.S. from the Caribbean are
exempted from a 54 cents a gallon import tariff up to a limit of 7% of
the U.S. production. U.S. ethanol is mainly corn-based. In May,
U.S.-based agricultural trader and processor Cargill said it planned to
install a 240 million liters a year ethanol dehydration plant in the
Caribbean in order to avoid paying the prohibitive tariff on ethanol
imported into North America.