Sugar Cane Foliage for Steam and Green Power Generation

To get rid of the foliage (trash), farmers in the majority of the cane producing countries burn the sugar cane fields prior to harvest, thereby spoiling a valuable biomass resource,. While the uncontrolled combustion of foliage in Peru generates emissions contributing to global warming, acidification and smog, the quantity of lost bio-energy corresponds to about 20% of the crude oil used for energy production in the country. Towards reverting this situation and to demonstrate a global opportunity, the project aims to incorporate foliage-fuel into the Peruvian National Energy Balance. Based on Swedish technology, whole cane harvesting and subsequent separation and use of cane foliage will facilitate a fossil fuel free production of sugar, paper (from bagasse), ethanol (from molasses) and other products. The technology is completely modular and equipped to continuously monitor the generated GHG-emission reductions, which facilitate project replication and low administration costs. The project, contributing with about 10-15% of the potential creation of CERs within the Peruvian sugar cane sector, will be localized in two of the twelve established mills of the country.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
According to IETA classification the project is mainly fuel-switching type A2.2 but A3.2, B2, C2.1, E1.1 and D2 is also included.
The Project will drastically reduce the emissions of cane field burning and displace mainly the CO2e emissions produced by the use of bunker oil, diesel and/or natural gas in the sugar and bagasse paper industry. Fossil fuels will be replaced by sugar cane foliage and pith for heat & power generation in diverse industrial and services activities.
What would the future look like without the proposed CDM project?
Business as usual practices will continue. Part of the Peruvian produced bagasse is used as raw material for pulp & paper. This means sugar mills would continue to use fossil fuels. Also many other agro industrial and manufacturing activities will remain using fossil fuels. So no significant mitigation of GHG could be expected and fossil fuel dependency would keep on hindering the agro industrial sustainable economic and social development.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
For a maximum 21 years period total GHG reduction are estimated in 7,640,000 tCO2e.

Current Status

Earliest project start date
June 2005
Estimate of time required before becoming operational
18 month
What is the project lifetime?
25 years, consider periodically replacement of mobile equipment (harvest & field-mill transport units)
Current status or phase of the project, which of the following phases have been completed:
• The pre-feasibility study is finished
• Internationally authorized environmental auditors have already emitted positive opinion on a Statement of Technology Supplier, including baseline calculation.
• Work with the CDM Project Design Document is ongoing.
• In March 2002 GEF (Climate change program) approved almost US$ 1,000,000 mainly for the removal of non-technical barriers. Since April 2004, the project is in the pipeline of IFC as GEF executing agency.
• Financing negotiations are not closed.

Estimated Emission Reductions

• Up to and including 2012: 2,240, 000
• Up to a period of 10 years: 2,960, 000 (first 10 years)
• Up to a period of 7 years: 1,880, 000 (first 7 years)
• Up to a period of 14 years: 4,400, 000 (first 14 years)

Annual: an average of tCO2e.

• 1st year: zero
• 2nd year: 8,000
• 3rd year: 72,000
• 4th year: 360,000

Project Benefits

• Grid Diversification. Diversification of the power system away from fossil fuels
• Reduced Local Pollution. This project will contribute to ameliorate the population health by reducing CO, N2O, SO2 and CH4, N2O, NOX, CO, VOC particulate matter emissions associated with the combustion of both bunker oil and/or burning of sugar cane foliage in open fields. Reduction of silicosis disease and a increased length of life perspective is also expected.
• Reduced Global Emissions. Avoidance of GHG emissions from fossil fuelled steam and power plants, probably oil fired boilers, natural gas turbines, and/or natural gas combined-cycle power plants.
• Reduced price of electricity. The use of sugar cane foliage and pith are expected to be able to reduce kW/h generation cost by approximately 25% - 30% compared to natural gas.
• Increased foreign and local investment. By showing the local and international community that independently operated renewable energy projects can be developed and managed profitably, this project should promote the further development of renewable energy technologies, further promoting foreign direct investment in environmentally sustainable projects in Peru.
• The new technology brought by the project will train technical workers in sound technologies and in the same time create conscience of responsible environmental management.
• The project would become the company autonomous on energy and would left enough bagasse to satisfy the demand of the paper factory close to the sugar refinery.

Project Participant and Financing

Total project cost estimate:
• Total project costs: In the level of US$ 20,000,000

Sources of finance to be sought or already identified:
• IFC and various international entities pronounced interest in co-financing.
• Carbon finance contribution sought: 10% or minimum USD 1,000,000 in advance.

Contact Information: