Thursday, December 4, 2008

Stratos Renewables Corp. (SRNW.OB) is Advantageously Positioned to Become a Key Player in the Ethanol Market

Stratos Renewables Corp. is an emerging ethanol company with a mission to become one of the lowest cost sugarcane-based ethanol operations in the world. Sugarcane produces up to 700% per land mass more than what corn does and is currently the only biofuel that creates no net carbon dioxide emissions.

With planned first-to-market operations along the northern coast of Peru, Stratos plans to utilize the country’s underdeveloped coastal region to cultivate and harvest its sugarcane. Peru’s coastal region is ideal for modern farming techniques and high-yield, year-round harvest, with low export transportation costs. The land prices in Peru are only a fraction of the prices in developed countries that are producing other feedstock. The country also enjoys tax-free trade to the U.S. compared with Brazil’s $0.54 per gallon tariff.

The company is committed to creating long-term sustainable growth with a business model that could possibly create more than 2,000 jobs. Although there has been no mass production of ethanol in Peru because of the difficulty in securing the appropriate land, Stratos has leveraged its relationships and sound business model to secure extensive tracts of unutilized land.

The market opportunity for Stratos’ biofuel is large, growing and currently underserved. The U.S. Renewable Fuel Standard (RFS) mandates the use of 36 billion gallons of renewable fuels per year by 2022, and production is currently below this mandated level. The United States is Stratos’ target market with a desirable proximity to Peru and abundant market consumption to sustain favorable margins.

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