Cuba’s Sugarcane Ethanol Potential: the Return of King Sugar

Sugarcane Energy Use: The Cuban Case, Alonso-Pippo Walfrido, University of Havana, 2008

As the result of a precipitous contraction in the Cuban economy, Cubans have recently experienced crippling energy cutbacks and other shortfalls that are reminiscent of the devastating hardships of the “Special Period,” and industries have continued to falter due to the evaporation of credit and investment flows which largely dried up after the break-up of the Soviet empire. In the first half of 2009, the Obama Administration launched a series of modest initiatives aimed at normalizing U.S.-Cuba relations, most recently exemplified by the loosening of restrictions on travel by Cuba-Americans, lifting controls on remittances, and giving the nod to U.S. telecommunication investments on the island. Though President Obama recently renewed the Trading With the Enemy Act, policy mitigations have prompted speculation that a greater volume of trade and investment is likely to be permitted in the future. These factors, coupled with the current 28-year high in sugar prices and the delicate health of Fidel Castro, lead to the question: would Cuba benefit from, and does it possess the technological and infrastructural means and political will to expand and modernize its sugar and sugarcane ethanol industries to take advantage of the unique developments now taking place around the globe? Based on the following assessment, despite the precipitous collapse of Cuba’s sugar industry beginning in the early 1990s, the country’s economy would benefit from opening its markets to foreign investment and revitalizing its tattered sugar industry for the production of raw sugar, ethanol and electricity.

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