DDL to spend $4.6B to fight energy costs

Jun 20, 2008 News

An innovative strategy to combat the spiralling fuel prices is being initiated by champion distiller, Demerara Distillers Limited (DDL), and is likely to see the company being able to save considerably on its current fuel expenditure.

This disclosure was made yesterday when top officials of the company met with the press at the entity’s Diamond Headquarters to unveil a $4.6B or US$23M expansion programme.
According to President and Chairman of the Board, Mr Yesu Persaud, “with the cost of fuel the way it is today, we want to remain in business so we have got to do things that would give us some savings.”
He said that the company had plans to introduce a Bio-methanisation Plant, which is a totally new concept to Guyana but is well known in Central America, North America and the Far East, as well as in the Dominican Republic.
And to ensure that the company is equipped with knowledgeable staffers to operate the plant effectively, Persaud said that the Project Engineer, Mr Lennox Caleb, will travel to the Dominican Republic on Monday to have a look at the plant there and to attend a special seminar in this regard.

According to Persaud, DDL consumes substantial volumes of fuel, thus the decision to engage the operation of the plant was inevitable. He explained that the plant will serve to ensure that the distillery waste can be converted to methane gas which will then be used in the boilers.
“This is likely to save 60 to 70 per cent in terms of fuel by using the waste back into the plant as methane gas…Later on we will improve on that as we go along but this is a major, major project,” Persaud asserted.
In addition to saving, Persaud said that the plant will help to clean-up the environment by making the air cleaner.
He divulged that most buyers today are curious as to what is being done about the environment, adding that “we don’t intend to be caught with our pants down so we are looking ahead.”
The construction of the plant is expected to be completed at a cost of $1.1M.
Also on the DDL expansion chart is a new bottling plant which will be constructed at a cost of G$1.8M. And according to Persaud, the foundation work has already been completed. He said that the actual plant will arrive in Guyana by August for erection and it is likely that it will be operational in December or the first month of 2009.
Persaud revealed that the current bottling plant being used by the company is somewhat outdated thus the new plan with its flexibility will significantly boost bottling capacity.

“It will not only give you the product you want in terms to be bottled but it will also give you quality of the bottling and that is of paramount importance in the international market…We will be able to produce all the products we want and still have the capacity to even do bottling for others. We have already been approached…”
According to Egbert Carter, a Director and Chairman for the Technical Committee, the new bottling plant will be constructed in the same location which once accommodated the old sugar factory aback of the eastern end of the DDL Diamond operation.
He speculated that when that project is completed in the next three months, it will be the third largest roofed area in Demerara and possibly in the whole of Guyana.

Carter said that the building will be 252 feet long and 184 feet wide. He said that to completely roof the area required 10 miles of sheeting materials. He also added that the facility will house a reservoir which will hold in excess of 40,000 gallons of water which will keep the building quite self-sufficient and even provide to other facilities.
And with a New Multi-Column Still, Persaud said that the company will be well equipped to produce a wider range of products. With an acquisition cost of G$1.1 M, the Still is expected to significantly improve overall distillation and fuel efficiencies thus allowing it to compete successfully on the international market.
Other projects valued at some $500,000 will also complete the expansion plan.
And according to Persaud, the projects are of great importance to DDL, even putting it ahead of the rest of the region in terms of having the most up-to-date plants for bottling, distilling and bio-mechanisation.
DDL which is regarded the premier spirits distillery also produces soft drinks including Pepsi, Seven-up, Slice, its own Soca range of beverages, Topco juice and recently included a range of Tropicana products.
DDL, over the years, also added the DSL distribution service to its operation and was responsible for introducing the first cash and carry service and subsequent outlets which are slated to be expanded this year, Persaud said.