Tuesday, October 21, 2008

Stratos Renewables Corp. (SRNW.OB) is Producing Ethanol Responsibly - Without Corn

For quite some time, in the not-too-distant past, it was widely believed that ethanol derived from corn was going to be the new wave in renewable energy. What would be better than turning crops that could be provided by the American farmer into decreased dependency on foreign oil? The problem with corn, when all is said and done, is that it happens to be a terrible candidate for producing ethanol.

Studies have shown that it takes more energy to produce the corn required to make a gallon of ethanol, than that same gallon provides. Dave Pimentel, a professor at Cornell University, has been studying the levels of energy used in corn production since 1970. According to Pimentel, farmers use about 1.3 gallons of gasoline to grow and harvest the corn needed to produce enough ethanol to replace one gallon of gas on the consumer level. So corn is out.

Stratos Renewables Corporation is in the ethanol business, but they don’t use corn. Instead, the company uses the optimal climate of Peru to grow another crop year-round that has proven to be a far more efficient ethanol source: Sugarcane.

Sugar-based ethanol is eighty percent cleaner than gasoline, and boasts a ratio of 8:1 regarding energy produced versus energy requirements for production. Sugarcane has the highest starch levels of any known plant stock, and Peru is a great place to farm it. When it comes to average yield per hectare (approximately 2.5 acres), the country ranks as one of the leading Sugarcane-producing nations. Additionally, its coastal access to major shipping lanes, and tariff-free trade to the U.S. makes Peru the prime location for Stratos to conduct its business.

Stratos’ aim is to become one of the lowest cost sugar-derived ethanol producers in the world. Its vertically integrated growth strategies and responsible cultivation practices put the company on the proper track to reach that goal.

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