Once completed it will be the largest Israeli energy project undertaken in Latin America, company officials said.

The company said the deal, signed on Dec. 31, 2009, was an option exercise agreement with Merhav MNF Ltd., pursuant to which it exercised an existing option to convert Ampal's existing $22.249 million loan and accrued interest into a 25-percent equity interest in the project.

The sugarcane ethanol production plant is being developed by Merhav, a multinational corporation with interests in a range of sectors, including energy, infrastructure projects and agriculture. Yosef A. Maiman, chairman, president and CEO of Ampal, is the sole owner of Merhav.

The purchase of the 25-percent equity stake and the conversion of the loan are subject to the initial disbursement of a loan from Banco do Brasil, the lender providing financing for the project.

Ampal said the acquisition was a part of its program to expand the company's global energy resources portfolio.

"This investment is another step in Ampal's strategy to continue investing in the energy sector, particularly environmentally friendly projects," the company said.

Ampal's energy-related investments include EMG, a natural gas supplier from Egypt to Israel, and Global Wind Energy, a developer of wind farms outside of Israel.

The ethanol plant covers about 10,000 hectares of land and includes both agricultural and industrial sectors.

Commercial production is set to start in 2012 and reach its full production capacity of 112 million liters of ethanol annually in 2014.

As a clean-energy business, the project will benefit from Colombian environmental legislation that requires 10 percent ethanol blending in gasoline distributed in Colombia.

Maiman said the project combines Merhav's capabilities in developing complex international projects with Ampal's investment strategy. "It is also the largest Israeli project in Colombia and is backed by Israel's leading technology and deep knowledge of irrigation and agriculture," Maiman added.

Founded in 1942, Ampal has a more-than-60-year history of investing in Israel. The company has offices in Herzliya, Israel.

Ethanol is one of the largest clean-energy exports from Latin America, with Brazil retaining leadership. The Inter-American Development Bank recently predicted Latin America was poised to become a key player in the birth of a new global industry. Brazil's sugar-based ethanol production is estimated to account for at least half of all ethanol traded internationally.

The United States and Brazil combined account for 70 percent of ethanol produced in the world, industry analysts said. But it is Latin America that, in some energy circles, has been dubbed the Persian Gulf of clean, sustainable energy.

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News