Ethanol Plant Framework Agreement

In December 2007, the government of Belarus and Greenfield Project Management signed a framework agreement to establish a 550 million litres per year ethanol plant.

As part of the agreement, the government has undertaken to prepare a cooperation programme to develop supplies of these, including an initial target of growing an extra 500 000 tons of grain annually up to a total of 1.5 million tons of extra grain for ethanol production. In addition, at least one million tons of sugar beet is being made available.

The agreement also specifies that arable lands in the region affected by the Chernobyl nuclear disaster are to be used in the supply chain for the plant. This is to ensure a stable supply for the plant, while providing farmers a market for grain that cannot be used in the food chain.

The plant is to begin construction in the course of 2008.

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