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Opportunities for development of aSugarcane Industry

Sugarcane as an Energy crop

Harold Davis and Paul Hough

April 2006

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Prevailing Conditions Caribbean Sugar Industries characterised by high cost

Old Technologies, small factories and relatively high wages

Traditionally dependent on preferential prices for raw sugar

Significant price reductions from EU, the main preferential

market

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Future of Sugarcane in the Caribbean

Raw sugar production can no longer

sustain an economically industry

Exploit the total biomass of this unique

crop

Electricity generation and ethanolwill become increasingly important

outputs from sugarcane production

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Features of Guyana Industry

With a production capacity of 320,000 tonnes at unit cost18 per pound sugar, the Guyana Sugar Industry is

probably the most competitive in the SAC group This Industry is also challenged by the new market

prospects arising from the EU cuts

Guysuco has developed a long term strategic plan for costreduction based on expansion and improved efficiency.

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Guysuco-Strategy-1998 Expand Industry & Diversify Product Base

Construct new 8400 tcd mill to produce refined sugar with co-

generation of 10MW electricity Possible joint venture potable alcohol distillery at new factory

Increase yields and reduce production costs on remainder of

industry

By 2010 sugar output 450,000 + tonnes

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Strategy Implementation

Strategy revolves around reduction in production cost to 12 perpound sugar

Cost of operations largely dependent on labour intensive cane

cultivation and harvesting

Progress made with layout modification and reducing operatingcosts by increased mechanisation of agronomic practices

Collaborating with WICSCBS in variety evaluation for energy andother potential uses

24 MPC varieties being propagated

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Characteristics DB 9633

DB 9633 DB 7869

120 tc/ha- Pl+2R 125 tc/ha Pl+2R

Pol% cane 13% - 14% Pol% cane ~ 12%

Fibre% cane 16%-18 % Fibre% cane 14% - 16%

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Skeldon Project Milestones

1999-Commence land development for new sugarcane project atSkeldon

2001-Booker-Tate appointed Project Manger

2002 -World Bank clearance for financing

2003- EIA and Env Permit approved

2004 Agreement for cogeneration component with Power Companyand Financing bank

2005- Env Management Plan approved

2005- Factory Contracts signed

2006- Commence Factory Construction

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Features of Skeldon Project

Net sugarcane cultivation to increase from 4270ha estate

and 310ha farmers to 8700 ha estate and 4250 ha farmers

Factory capacity 8400 tonnes cane per day

Crop duration 27 weeks net!

At steady state design capacity for 1,170,000 tonnes cane

and and production of 110,000 VHP sugar

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Features of Skeldon Project contd.

First diffuser in SAC industries

Rum distillery under consideration as joint venture with

Angostura Ltd. Factory will export 10MW to grid under firm power

agreement

Feasibility study and negotiations for refinery as jointregional venture in progress

Refinery may be sited at alternative Berbice factory givenSkeldons commitment to grid

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Cogeneration Plant Equipment

Two 125 tons/hr Boilers operating at 53 Bar and 485C

Extraction/Condensing T/A output 15MW

Back pressure T/A output 15MW Three Diesel Alternators combined output 10MW

Heavy Fuel Oil for Diesel Alternators

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Plant Operating Features

Sugar factory power - 9900 kW

Process steam - 168000 kg/hr

Cogen plant load - 2700 kW

Cogen plant steam - 5700 kg/hr

Bagasse prod @ 34%cane 400000 t

Bagasse consumed in crop 320000 t

Bagasse storage 54000 t

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Skeldon Cogeneration

operation Projected 10MWexport power from bagasse fired boilers for 37 weeks to

40 weeks including 10 weeks out of crop from stored bagasse

Projected 8MW export power from Diesel alternators when bagasse

stock exhausted Supplementing stored bagasse with imports from Albion will extend out

of crop generation period

6 week window of opportunity for fuel/mpc cane to supplement fuelsupply to plant after juice directed to distillery.

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Energy Content of Sugar-cane

(Guyana)1 Tonne Cane

110 kg sugar 1800MJ

170 kg stalk fibre 3100MJ140 kg top fibre(trash) 2600MJ

Tot. 7500MJ

1 tonne cane approx. equivalent to 1 barrel of oil

(ex Dr. M. Regis Leal -2003)

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Fuel Potential of Sugarcane

Potential for leaves and tops to contribute to boiler fuel

These should be removed prior to process for efficientextraction of sugars and fermentables

Cellulosic materials associated with alkali and alkaline earthions which can induce slag formation and reduce boilerefficiency

Bagasse has advantage over other cellulosic fuels becauseextraction and washing removes significant amounts ofalkalis and alkaline earths

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Meeting electrical requirements with back-pressure turbogenerators (atconstant steam demand)

Specificsteamdemand(%o

nbeetorcane)

Specific

electricitydemand(kW

h/tbeetorcane)

Electrical self-sufficiency (100 %) and generation of excess power for export (above 100 %)

150

%14013012011010090807060504030

1,5

0,4

160 170

export powerimport power

1,1

1,3

0,7

0,5

1,4

1,2

1,0

0,9

0,8

0,6

1,6

1,7mstPel

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Power Characteristics Integrated Factory with

Annexed Distillery

Front end consumption - 21kwh/t cane

Process consumption - 8 kwh/t cane

Pot export @45 bar 444 C - 92kwh/t cane

Pot export @ 82 bar 525 C - 143kwh/t cane

Distillery consumption ~ 4kwh/t cane

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Cogen Potential 4800TCD Case Study

Cane Production -``````926100t

5MW Plant - 47kwh/t cane10 MW Plant - 95kwh/t cane

12 MW Plant - 113kwh/t cane

15 MW Plant - 142kwh/t cane

Implies a 15 MW facility can probably be supported

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Possible Sugar & Ethanol Production -Guyana Pol% cane 11%, Purity 81%

Standard Process EtOH from final molasses only- sugar

9% cane, EtOH 10l/t cane

A strike only sugar 6.1% on cane, EtOH 25l/t cane A & B strike sugar 7.6% on cane, EtOH- 17l/t cane

Ethanol only 60l/t cane to 66l/t cane

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Ethanol Research 2002 -2004

4800 TCD factory could produce 74000 tonnes sugar and 11.3 M Litersof Ethanol

11.3 M Liters ethanol will permit 10% substitution in Gasolene

Ethanol production from factory generated molasses and fuel caneindicated to cost between 12 to 14 per Liter

Import price of Gasolene in 2003 - 24 per Liter

Gasolene spot price reached 37 per Liter in June 2005

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Production 4800 TCD Case Study

Sugar - 73409t

Ethanol - 11.3M liters(a) Cogen 5MW - 42GWh

(b) Cogen 12 MW - 105GWh

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Study Conclusions Integrated production of sugar, ethanol and energy as electricity offered

best economic potential from a factory of 4800 TCD capacity.

Fuel ethanol rapidly growing market possibilities including import

substitution by gasolene blends and export High fibre energy cane has potential role in extending crop to periods

of weather disruption for power and ethanol production

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Commercial Ethanol prospects

Full feasibility to be conducted for a 12M liter fuel ethanoldistillery from non contract molasses

Strong interest expressed by investors in a 130M liter fuelethanol project from sugarcane on green field site

This project could support a 30MW cogeneration facility

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Planned Future Projects

Guysuco future plans include expansions of Enmore,Blairmont and Albion factories to capacities of 4400 to 5100tcd.

Enmore is planned to be the focus of branded packagedsugar. Albion is being considered as an alternative site for arefinery

The expanded Enmore and Albion factories would have

cogeneration capabilities with minimum exports of 7MW

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Next Steps Feasibility of Proposed factory expansions

Full Feasibility Study of Integrated Production Model

inclusive of ethanol production Support for national commitment to renewable energy with

recognition of the role of sugarcane

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THANK YOU FOR YOUR

ATTENTION