Peruvian ethanol costs jump by 10 percent per gallon on rising commodities

In Peru, Maple Energy stated in an update that they have recently updated projections for its estimated ethanol production costs, now expected to be approximately US$1.42 per gallon as compared to US$1.28 per gallon previously reported on 29 March.

Maple reports that this is a result of increased commodity pricing that has impacted costs for fertiliser, diesel used in tractors, cane hauling vehicles and harvesting equipment, and the improved employment market in Peru, which is leading to higher labor costs.  Maple also reported that higher costs will be offset by higher sales prices for ethanol sold due to increases in the spot prices for fuel-grade ethanol. In particular, the spot price for fuel-grade ethanol at the port of Rotterdam in the European Union, which is currently the anticipated primary target market for Maple’s initial shipments of ethanol production, has risen in recent months.