A May 24, 2011, article published by Grupo Reforma reported that Mexico's only fully operational ethanol plant, a U.S. $60 million project built by
Destilmex in the state of Sinaloa, is about to be dismantled or sold. Eduardo de la Vega, President of Destilmex, commented that the limitations
prohibiting the use of corn as a biofuel input as defined in the Mexican Biofuels Law were the first obstacle that the plant managed to avoid by using
sorghum as an alternative. Although Mexico has several sugar mills that could produce ethanol, the Destilmex project was the only facility primarily
devoted to producing fuel ethanol.
Mexican Secretary of Agriculture Francisco Mayorga declared last year that sugar-based ethanol production was on hold because of Pemex. When Pemex
launched its bid for ethanol supplies in 2009, several sugar milling companies (the only ones technologically capable of producing ethanol) rushed to
participate. However, they were all disappointed by Pemex's price of 8.20 pesos per liter (U.S. $0.72) as the cost of producing ethanol in the sugar
mills was over 12 pesos per liter (U.S. $1.04). Although a company was granted the bid, it was later cancelled by Pemex, claiming contractual issues.
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