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THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE
BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S.
GOVERNMENT POLICY
Required Report - public distribution
Date: 6/23/2010
GAIN Report Number: ES1005
El Salvador
Biofuels Annual
2010
Approved By:
Robert Hoff
Prepared By:
Miguel Herrera
Report Highlights:
The new Salvadoran government (GOES) headed by President Mauricio Funes, which took office on June 1, 2009 has
not approved the Ethanol Law that was created by the previous administration. Under this law, gasoline would be
required to be mixed with sugarcane-derived ethanol on a 90%-10% ratio. This mixture does not affect normal gasoline
engines avoiding the need for flex car engines. Currently ,there are several bio-fuel initiatives being implemented to
produce bio-diesel from higuerillo (Ricinus communis) and tempate (Jatropha curcas) plants, and ethanol from imported
dehydrated Brazilian alcohol to take advantage of a CAFTA-DR quota. However, the reduction in oil prices has
decreased the interest in new sources of energy for the moment. The U.S. continues supporting El Salvador in
identifying alternative renewable energies and has recently provided $250,000.00 under the Alliance for the Americas for
Energy and Climate.
Post:
San Salvador
Executive Summary:
The previous Salvadoran government was not able to finish the approval process for the law to promote ethanol production
from sugarcane. The new administration (headed by President Mauricio Funes who is affiliated with the Farabundo Marti
Liberation Front - FMLN) which took office on June 1, 2009, will now have to complete this task. Under the proposed
law, there would be a 90 % - 10 % fossil fuel -ethanol mix - a mixture that does not require gasoline engine modification.
The
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