Global Green Solutions Targets Lucrative Mexican Market

Global Green Solutions Inc. (GGRN – $0.10) has entered into an alliance with Zero Energy International LLC (ZEI) to develop renewable energy projects in Mexico. These projects will focus on turning waste biomass from the blue agave, the plant used to make tequila, into industrial steam and electrical power for the cane sugar and tequila industries.

Why This Makes Sense

The project is designed to harness the capabilities of both the companies. Global Green Solutions’ Greensteam technology is ideally suited to generate steam and/or electrical power for industrial processes from waste and virgin biomass. The potential projects involve processing waste biomass from the tequila industry, making Greensteam a perfect fit.

Unfortunately, solving a waste problem alone usually doesn’t persuade people to act differently. There also has to be a financial benefit. So it’s good to know that the Greensteam process is capable of producing energy at up to 30 percent less cost than energy produced from fossil fuels.

We’ve been told that Zero Energy International, on the other hand, has access to financing in Mexico and that it has political backing to implement renewable energy projects. Remember that Mexico was one of the first industrialized countries to ratify the Kyoto protocol.

Biomass availability, the right technology, access to financing and having political backing is the ideal base to build a successful green project.

The Tequila Industry

Like champagne, tequila is an alcoholic beverage named after the region where it’s produced. According to Mexican law, tequila can only be produced in the state of Jalisco, where the city of Tequila is situated, and in limited regions of four other states.

Tequila is made from the blue agave, which is a large succulent plant closely related to lilies. After 8 to 12 years, the agave plant is ready for harvesting. This is traditionally done by skilled farmers called “jimadores”. The plant, weighing between 77-198 pounds (35-90 kg), is stripped of its leaves and the heart of the plant is crushed to extract its juices. This juice, called wort, is then fermented and distilled until it reaches 55-60% alcohol by volume. Cheers!

The leaves and pulp of the agave are usually landfilled. This is a major problem, but at the same time a major opportunity for companies like Global Green Solutions that turn waste biomass into steam and electrical power. Steam and electrical power that can be produced cheaper compared with fossil fuels and as a result can be used by the tequila factories.

Conclusion

Doing business in Mexico remains a challenge, but with ZEI’s help, Global Green Solutions may gain traction in the Mexican renewable energy market. A lot will depend on the fact if ZEI can actually deliver. Greensteam has the technology, the biomass is there, but can ZEI get the necessary permits and financing?

If they’re successful, the new project will diversify Global Green’s portfolio and it will help promote the Greensteam technology.

Photo credit krembol

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