COMISA SUGAR CANE-ETHANOL PROJECT

The project is located in the north of Peru, in Sullana Province, Department of Piura, the project would implement 12 hectares of sugar cane crops with the propose to generate etanol . Just to frame the project within the potential context of Sugar Cane for ethanol development in Peru, it is important to take into consideration that our country has a conservative potential of 1 million hectares to develop in the northern coast (it is not advisable to plant Sugar Cane in the Forest where only 6 to 7 months a year of cropping is possible versus 12 month of the coast). Being the first Ethanol distillery in Peru to come in operation mid 2008, COMISA will partially cover the projected internal demand for this product which balance would have to be covered from abroad. So besides the necessity to lower emissions, the bio-fuels as the ethanol will be applied to replace the fossils fuels. The Project has been finally defined for the exclusive production of ethanol with an initial level of 600,000 liters.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
Bio-fuels as the Ethanol will be applied to replace the fossils fuels and decrease of CO2 emissions. Other greenhouse gases emissions of this project are nitrous oxide (N2O) and Methane (CH4).
What would the future look like without the proposed CDM project?
Greenhouse gases emissions from fossil fuel consumption of diesel and petroleum that would have been used in the absence of the CDM. Also many other agro industrial and manufacturing activities will remain using fossil fuels.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
The ethanol production in 2 stages: 1,200,000 liter per day. It is calculated that the project will reduce 2,272,050 tCO2e annually that otherwise will be emitted to the atmosphere.
The project has the following components:
• Change of the fuel in the irrigation of 11,000 hectares
• Change from fuel to diesel to ethanol in the transport vehicles and field machinery
• Generation of energy with bagasse boiler for the industrial plant: The diesel use of the Bases Case is avoided for a total of 24 to 28 Mw.
• Increase in efficiency in the heat use in the Alcohol Refinery and effluent treatment.

Current Status

Earliest project start date
Ethanol distillery will come in operation in mid 2008
Estimate of time required before becoming operational
Two years.
What is the project lifetime?
20 years
Current status or phase of the project eg: which of the following phases have been completed:
• Under preparation: a Pre-feasibility report on the eligibility, pacing and potential of CER’s generation under the CDM and recommendations on the viability to develop the Project under the CDM norms.
• CERs are required to strength financial ratios for this pioneering project.
• Pilot Project under execution.

Estimated Emission Reductions

Annual: an average of 192,000 tCO2e

• Up to and including 2012: 960,000 tCO2e
• Up to a period of 10 years: 1,920,000 tCO2e
• Up to a period of 7 years: 1,344,000 tCO2e
• Up to a period of 14 years: 2,688,000 tCO2e

Project Benefits

• The project would reduce diesel in agro industrial activities of CORMIPESA. Diesel has a high content of sulphur and with combustion emit sulphur dioxide a high impact local pollutant.
• The project will contribute to sustainable development because it will displace a fossil fuel system with a biomass based renewable energy system, generating benefits not only by reducing greenhouses gases, but by also reducing other local air pollutants and environmental impacts associated with the burning of residual fuel oil which have deteriorated the local environment.
• Provide a source of fertilizers to the crops of the area and inputs for the industry.

Project Participant and Financing

Total project cost estimate:
COMISA:
Project Value (intangible)
Initial Assets Value: US$ 15,000,000
Additional Capital (of CDM - CER): US$ 10,000,000
INVESTOR:
Equity Investment: US$ 15,000,000
TOTAL OWN CAPITAL: US$ 40,000,000

Sources of finance to be sought or already identified:
• Equity: US$ 15,000,000
• Debt: US$ 400,000
• Carbon finance contribution sought: As much as we can have in advance.

Contact Information: