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Belize Energy Sector Diagnostic PUC 48 RE in the Transport Sub-sector The research was not as conclusive on the issue of biofuels and in particular ethanol blends. Ethanol, a form of alcohol, is a biofuel that can be used by itself or blended with gasoline to create gasohol. Ethanol is produced when yeast ferments the glucose, contained in food crops such as cane sugar, corn and other starch-rich grains. When burned, ethanol produces far less air pollution151 and greenhouse gases than gasoline. It is non-toxic and quickly biodegradable in surface water, ground water and soil. According to the Renewable Fuels Association, in 2001, ethanol use in the U.S. reduced carbon emissions by approximately 3.6 million tons, the equivalent of removing more than 520,000 cars from the road.152 Refer to Annex 4 for a more complete discussion on the subject. Given Belize’s long history with sugar, ethanol production is a logical consideration for energy policymakers. Under the right circumstances, ethanol production and consumption as a gasoline blending agent, could reduce gasoline imports, favourably impact emissions and export balances and help to mitigate against the adjustment costs associated with the move to markets for the sugar industry. The local sugar industry while readily admitting that Belize has “no ethanol experience”153 indicates a willingness to consider its production as a by product of sugar production, if it can be assured of a market. However, the representatives of the local petroleum industry suggest that within the local and export market contexts there may be considerable obstacles to overcome before Belize can realize real gains from ethanol production and consumption. If for example, GOB like the United States Government were to embrace a policy that mandates or encourages renewable fuel as part of its national energy policy, the petroleum importers opine that such an action will likely result in higher end-user costs while providing less miles per gallon. Higher costs associated with importation of a special type of boutique fuel, with transportation and with blending154 would unfavourably impact base costs. If current taxation schedules are added to this increased base cost, pump prices could become prohibitive. Additionally, whether such a policy would reduce reliance on imports and improve self-sufficiency is uncertain and depends on a number of factors including the type of crop used to make the biofuels, the process for producing the biofuel, the sustainability of the supply and the use of by-products. In the final analysis, informed decision making on this issue is precluded by the lack of information on the subject. The scope and mandate of this effort while broad did not accommodate a feasibility study on the production and application of ethanol in Belize. However given Belize’s commitment to sustainability, its extreme reliance on imports, particularly in the transportation sub-sector and its indigenous productive capacity, the recommended course of action is to inform the decision making process with a feasibility study on the subject. 151 Results in greater fuel combustion, reducing tailpipe emissions 152 Renewable Fuels Association, Ethanol Industry Outlook, Growing Energy Security www.ethanolrfa.org/outlook.2002.html 153 Notes on Ethanol Discussion, PUC April 15, 2003, pg.1 154 importers would require in some cases new blending equipment and storage facilitiesPDF Image | Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic
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