Feasibility Study

Fuel Cane Power Generation

Project
for
Prepared by:
Barbados Agricultural
Schaffer and Associates International,
Management
Company, Ltd.
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:

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

Ethanol fuel blends

Green fuel for electricity product

Food security
Tourism

Sustainable/renewable supply of electricity

Minimal impact on tourist areas and green spaces

Economic Growth Driver

Creates employment
Creates economic stability for cane farmers and
investment confidence
Provides renewable source of power (ethanol &
electricity)

Agricultural Operations

Cane Production
Commercial Cane
Fuel Cane

Harvest and Transport Company

Agricultural Input Suppliers
Farmers and Outgrowers

Industrial Operations

Sugar Production

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

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

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

Cane
593,388 metric tons
Refined Sugar (local) 12,000 metric tons
Specialty Sugar (local) 5,000 metric tons
Specialty Sugar (export)
10,000 metric tons
Molasses
9,215 metric tons
Ethanol 14,000,000 liters/year
Electricity (bagasse) 102,751 MWh
Electricity (natural gas)
157,680 MW/year

Option #9. Case 2A + 1B

with Combined Cycle Power

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

Constraints

Need to find a suitable variety of high fiber cane

Requires larger initial investment

Acceptable:
Yes

Preliminary Indicative Capital Costs:

$156.0 million

Project Economics (Option

9)
Major Foreign Exchange Earnings/Import Substitution
Savings
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

Power (from natural

gas)

Balance up to 30 Mw
(158,000 MwH)

2.897 million*

Power (from waste)

8,200 MwH

0.902 million

Product
Fuel Ethanol
Sugar
Molasses
Power (from fiber)

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 Projects FOREX benefits compare

favorably with historical economics.

Project Economics

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

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

For BAMC

New Multipurpose Factory

Cane Production Replanting Scheme

Markets

Specialty Sugars/Refined Sugars (U.S.,

E.U., Canada, and Local)
Molasses
Ethanol
Electricity

High Fiber Cane Research