Since the pilot plan to test the efficiency of ethanol use in gasoline in Guatemala has yielded the first positive results, the authorities plan to present a bill to regulate its use in the first quarter of 2021.
The process of fixing prices, the tax structure and lack of investment in distribution are hindering the development of a market with great potential.
From a report by the Department of Agriculture of the United States:
Guatemala is the strongest potential biofuels producer in Central America given the high yields of sugarcane and palm oil and its efficient local industries.
In 2012 there were 65 million gallons of ethanol, 80% of which were exported for the development of biofuels, cosmetics and pharmaceuticals.
The remaining 20% (13 million gallons), remained in the country and was used for the production of alcoholic beverages. One of the industries specializing in the production of alcohol as fuel "is the Bio-Ethanol Distillery, which produces neutral anhydrous ethyl using molasses.
The Ministry of Energy and Mines in Guatemala is going to create an internal committee in order to study the possibilities of using plant-based fuels.
The law which enables the use of ethanol blended with gasoline has been paralyzed since 2008 in the Guatemalan Congress and the administration of Perez Molina has proposed reviving the project, by means of a ministerial commission that will analyze "the environmental and socioeconomic impact that such a fuel modification could have and what the potential use of biofuels in the local market is."
Every year 65 million gallons of ethanol is produced and exported in its entirety because the country lacks standards for blending it into the gasoline used by vehicles.
An article in Siglo21.com reports that "The Organization of American States (OAS), Universidad del Valle de Guatemala (UVG) and the Renewable Fuels Association (ACR) have proposed a national program to promote the development of biofuels" for Guatemala.
Despite the decrease in the last two years, a rebound is expected towards the end of 2011.
A reduction in the production of sugar cane and molasses was one of the main reasons for decreased production of ethanol, and consequently exports.
Guatemala is the largest exporter of ethanol in Central America, with 1.5 million liters being produced per day. It is followed by Nicaragua with 80 thousand liters per day, Costa Rica, 360 000, Panama, 160 000, and El Salvador with 120,000.
Whey, coffee and banana waste are some forms of agro-industrial waste which can be used to produce ethanol.
Ethyl alcohol (ethanol) can be obtained from any organic material containing sugar. The challenge lies in making a commercially viable operation, reaching a level of economic efficiency which has so far been only achieved at large scale sugar cane facilities.