These factors make Colombia a leader in bioenergy worldwide and one of the most attractive markets for investors interested in starting projects related to the biofuel sector.

Domestic demand for ethanol and biodiesel is not met by the actual quantity produced. For 2020, the internal market will require 1400 million liters of ethanol and 1,200 million liters of biodiesel annually. Additionally, Colombia has a gasoline policy that ensures the use of biofuel in combination with other fossil fuels. The expectation is that fossil fuel mixtures will be E20; B20 by 2020.

The Biofuel industry in Colombia offers the following advantages:

• The industry offers more than 6,5 million suitable hectares for the biofuel production, from a total of 41 Million farmable hectares.
• Currently Colombia produces more than 12 tons of Sugar per hectare, a higher yield than both Brazil and Australia.
• E10 is available in cities with a population over 500,000 people (local consumption of 1.500 kilograms/ day).
• B5 National territory in June, 2009 (local consumption 9.406 mbd).

These are just some of the reasons to invest in the Colombian biofuel industry, we invite you to investigate in detail these and other reasons to chose Colombia for your energy projects.

Investment Opportunities

Production

Colombia has concentrated its production of biofuel around sugar cane and palm oil. This is due to Colombia's climatic and topographic conditions. The United States and Germany which are also biofuel producing nations must center their productions in Ethanol and Biodiesel based on the cultivation of less efficient sources such as wheat and rape.

The sugar industry in Colombia possesses the highest indices of productivity in the world, reaching a production rate of 9,000 liters of ethanol/ year/ hectare.

Currently Colombia is the fifth producer of palm oil worldwide and the number one in Latin-America.

Culture of sugar cane and palm oil.

At the moment there are 6,5 million suitable hectares for the development of biofuel and the goal of the government is to increase the cultivated area tenfold (300.000 ha) to more than 3.000.000 hectares over the next 10 years.

Currently it is possible to increase these extensions of land without affecting ecological areas like forests and forest reservations.

Know the principal regions for opportunities in investment in the biofuel industry in Colombia :

• Altillanura
• Caribe
• Tolima
• Cali - Valle del Cauca, Cauca y Risaralda
• Huila
• Bogotá - Cundinamarca
• Cúcuta - Cundinamarca
• Medellín - Antioquia

Success Stories

Merhav – Israel (2010)

With an investment of an estimated US$ 300 million the Israeli Merhav company expects to produce 376.000 Lt/day of ethanol. The plant is located in the department of Magdalena and exceeds 12.000 hectares which are cultivated with sugarcane and which generate 1.000 direct jobs. They will begin operations in 2012.

These are only some of the reasons to invest in the Biofuel industry, we invite you to investigate in detail these and more reasons why Colombia is the destination for your projects.

Investment Specialist: Carlos Sánchez