Transcript Feasibility Study Fuel Cane Power Generation Project for

Feasibility Study
Fuel Cane Power Generation Project
for
Barbados Agricultural Management
Company, Ltd.
Prepared by:
Schaffer and Associates International, LLC
1020 Florida Boulevard
Baton Rouge, Louisiana 70802 USA
DIVERSIFICATION
POWER GENERATION
DIVERSIFICATION
ETHANOL
DIVERSIFICATION
SPECIALTY AND
REFINED SUGAR
Introduction and Background
Barbados Agricultural Management Company,
Ltd. (BAMC) developed a model to provide
sustainable energy from cane residue
(bagasse). This plan:
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Provides vision
Diversifies energy sources
Substitutes green fuels for fossil fuels
Supports environmental stewardship
Creates added value for cane farmers
Promotes economic development
Introduction and Background
Summarization of Project Objectives:
 Investigate the viability of the fuel cane model
 Evaluate the current sugar estates/cane fields, sugar factories
and sugar production
 Assess the potential for power production
 Provide economic and financial assessment for BAMC in the
energy sector
 Determine the best way forward for BAMC in developing its
energy program
 Provide options and alternatives to the existing model that
will make it economically feasible
Introduction and Background
Summarization of Project Benefits:
 Fuel security
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Ethanol fuel blends
Green fuel for electricity product
 Food security
 Tourism
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Sustainable/renewable supply of electricity
Minimal impact on tourist areas and green spaces
 Economic Growth Driver
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Creates employment
Creates economic stability for cane farmers and investment
confidence
Provides renewable source of power (ethanol & electricity)
Agricultural Operations
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Cane Production
– Commercial Cane
– Fuel Cane
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Harvest and Transport Company
Agricultural Input Suppliers
Farmers and Outgrowers
Industrial Operations
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Sugar Production
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Syrup
Molasses
Sugar
Refined & Specialty Sugars
Ethanol Production
Power Production
– Bagasse
– Natural Gas
– Waste (Wood and Paper)
Options: Summaries
SAIL initially developed seven potential cogeneration
models and ultimately nine that were taken into
consideration:
Grinding Rates
Acres of Cane in Production
Total Tons of Cane
Analysis (% Brix, % Pol, % Fiber, Mixed Juice Purity)
Products (Specialty Sugar, Molasses, Refined Sugar, Ethanol,
Electricity)
 Power Generation
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Note:
The final two models using combinations of options were developed
subsequent to the last site visit in September 2005.
Option #9. Case 2A + 1B with
Combined Cycle Power
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Assumed Gas Turbine Combined Cycle, Sugar Cane
& HFC, Refined Sugar, Specialty Sugar & Fuel
Ethanol (Case 2A + 1B with Combined Cycle Power)
Sugar cane: Fiber: 15.85%, Pol: 12.65%
High fiber fuel cane: Fiber: 28%, Pol: 8%
Production
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Cane
Refined Sugar (local)
Specialty Sugar (local)
Specialty Sugar (export)
Molasses
Ethanol
Electricity (bagasse)
Electricity (natural gas)
593,388 metric tons
12,000 metric tons
5,000 metric tons
10,000 metric tons
9,215 metric tons
14,000,000 liters/year
102,751 MWh
157,680 MW/year
Option #9. Case 2A + 1B with
Combined Cycle Power
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Benefits
– High sugar production during part of the year and high
fiber for electrical generation and ethanol production
during the remainder of the year
– Combined cycle makes up to 30 MW of firm power
possible
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Constraints
– Need to find a suitable variety of high fiber cane
– Requires larger initial investment
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Acceptable:
– Yes
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Preliminary Indicative Capital Costs: $156.0
million
Project Economics (Option 9)
Major Foreign Exchange Earnings/Import Substitution Savings
Product
Fuel Ethanol
Sugar
Molasses
Power (from fiber)
Power (from natural gas)
Power (from waste)
Quantity
Annual FOREX
Savings (U.S. $)
14.4m liters/year
8.425 million
27,000 MT per year
(local/export)
15.200 million
9,215 MT
0.844 million
102,800 MwH
11.308 million
Balance up to 30 Mw
(158,000 MwH)
2.897 million*
8,200 MwH
0.902 million
Total
* Difference between using Natural Gas versus Fuel Oil/Diesel
US $39.576 million
Project Economics
Historic FOREX Earnings under E.U. Preferential Quotas
Annual Quota
Tonnes
Euro
Gross
Euro/Year
50312
725
36.5 million
50312
625
31.5 million
49300
525
25.9 million
49300
425 (US $25.1 million)
20.9 million
32097
425 (US $16.4 million)
13.6 million
Hence, the new Project’s FOREX benefits compare favorably
with historical economics.
Project Economics
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Any future additional land will be dedicated to Fuel
Ethanol, Power and Molasses
Assures continuance of farming in the traditional
farming area
Provides fuel security
Project complies with E.U. Settlement Requirements
Human Resources
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New positions created by:
– New product lines (ethanol, power, specialty
and refined sugar)
– Extended crushing season
Extensive re-training, where necessary, to relocate existing technical staff
Senior management to take on more
responsibilities
Streamline overhead and administrative
functions
Centralize all functions to new industrial site
Recommendations
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For BAMC
– New Multipurpose Factory
– Cane Production – Replanting Scheme
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Markets
– Specialty Sugars/Refined Sugars (U.S., E.U.,
Canada, and Local)
– Molasses
– Ethanol
– Electricity
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High Fiber Cane Research