Mr. Keith Addison
Mr. Ryan Grace

Dear Mr. Addison and Mr. Grace:

At our Foundation,  Sugar Cane Research Org., we have identified
five areas of industrial conversion of sugar cane to renewable
energies for our research portfolio of 2004:

1- Fuel Ethanol.
A micro distilleriy with a capacity of 1,000 liters ethanol/day is
scheduled to begin operations within 60 days. This distillery will
be set up to demonstrate how to produce fuel ethanol with the
minimum capital costs and maximum industrial efficiency, by
the implementation of the HS/LE Fermentatio Process, the most
advanced and economical process ever developed to this date.

Honduras could look at fuel ethanol as the renewable fuel that might
completely replace gasoline in spark ignited vehicular engines.
Several automobile manufacturers already offer Variable Fuel vehicles
that can use blends containg as much as 85% ethanol; Neat Ethanol
cars have been manufactured in Brazil for quite a long time, where
you do not need a single drop of gasooline.

 2- E-Diesel.
A laboratory and pilot plant will be set up to develop a process to
produce a Diesel Oil renewable substitute.  Worldwide there is some
experience already with blends of 90% Diesel-10% Ethanol, however,
our goal is to substanatially increse the ethanol component.  I think
we've got the right idea already.

3- Bio-gas.
A Bio-gas plant for anaerobic generation from sugar cane and other
agricultural wastes is our number 3 Renewable Energy Project for 2004. We
count with the help of an specialist in this field with some
18 years of experience, who has put up a few dozen Bio-gas plantas in
Colombia and in other South American countries.  Our project will
feature the combined production cycle of: Bio-gas + Fertilizer + Milk,
in a closed-loop fashion.

4- Combustible gas by thermal decomposition of biomass.
A biomass gasification plant to use sugar cane trash, bagasse and other
crop residues will be set up to demonstrate the feasibility of conversion
of biomass to an internal combustion gaseous engine fuel.

5- Solid fuel briquettes from biomass.
There are several countries around the world that have already
succeeded in the production of Bagasse Coal for domestic use.  We
intend to join in with a small demonstration project.

The complementary part of the above projects rely on our GADA
Sugar Cane Production System (*) to supply maximum amounts of
sugar cane, bagasse and trash per Hectare, which translate into the
capacity to produce the equivalent of >20,000 liters of ethanol/Ha/
/12 months + 36 MT bagasse + 36 MT trash, while:

* Sustaining high productivity of cane plants to 10, 20 and even
30 ratoons - no more replanting fields following 4 or 5 ratoons.
We can show sugar cane fields 20 and 30 years old still producing
>150 MT cane/Ha/13 months with high factory sugar yields,
* Using minimal applications of chemical fertilizers por crop,
usually as low as only 2 kg. N-P-K formulas per MT of harvested
cane.
* Reduced irrigation Vs. convential furrow irrigation,
* Elimination of Glyphosphate-based ripening agents by just using
good fertilization management,
* Recovering low fertility soils,
* Building up organic matter content in soils,
* Recovering soils of high salts content due to continued deposition of
minerals from irrigation water.

We would welcome a scheduled visit to Colombia by Agronomists from Honduras
to visit some of the 2,500 Hectares cultivated by the GADA Sugar Cane
Production System, which consistently delivers yields in the range of 150
to190 MT cane/Ha/13 months, should you
be interested in seeking consultancy from our Foundation.  Also, the HS/LE
Fermentation Process is available from us.

We can certainly lend Honduras a big hand in reaching the country's
renewable energy goals.

We look forward to your comments, and beg to remain,

Sincrely,

Luis R. Calzadilla
VP Operations
Fundaci˜n Sugar Cane Research Org.
(A non-for-profit research entity)
Cali, Colombia
Tel (572)   893-6627   557-0627
[EMAIL PROTECTED]
[EMAIL PROTECTED]

(*) The GADA Sugar Cane Production System was developed during
more than 15 years of dedication and hard work, by Dr. G. Dom“nguez,
Founder and President of Fundaci˜n Sugar Cane Research Org.










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