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BAGASSE-BASED COGENERATION IN MAURITIUS A MODEL FOR EASTERN AND SOUTHERN AFRICA

By Dr. Kassiap Deepchand Sugar Technologist

2001

AFREPREN in Brief
AFREPREN is an African initiative on Energy, Environment and Sustainable Development supported by Sida/SAREC, Government of Sweden. The African Energy Policy Research Network, AFREPREN, brings together 97 African energy researchers and policy makers who have a long-term interest in energy research and the attendant policy-making process. AFREPREN has initiated policy research studies in 19 African countries, namely: Angola, Botswana, Burundi, Eritrea, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Rwanda, Seychelles, Somalia, South Africa, Sudan, Tanzania, Uganda, Zambia and Zimbabwe. AFREPREN also maintains close collaborative links with energy researchers and policy makers from Cote D'Ivoire, Ghana, Nigeria, Sierra Leone and Senegal. The key objective of the African Energy Policy Research Network (AFREPREN) is to strengthen local research capacity and to harness it in the service of energy policy making and planning. Initiated in 1987, AFREPREN is a collective regional response to the widespread concern over the weak link between energy research and the formulation and implementation of energy policy in Africa.

AFREPREN AFREPREN/FWD House Elgeyo Marakwet Close P.O. Box 30979, 00100 Nairobi GPO Nairobi, Kenya. Tel.: +254 2 566032, 571467 Fax: +254 2 561464, 566231, 740524 Contact: Stephen Karekezi, Director E-mail: Stephenk@africaonline.co.ke or Skarekezi@form-net.com Website: www.afrepren.org

Acknowledgements AFREPREN/FWD acknowledges the generous support of Sida/SAREC, Sweden which financed the publication of this report as well as the associated research study. The views expressed in this publication do not necessarily reflect the official views of Sida/SAREC, Sweden. AFREPREN/FWD also acknowledges, with thanks, the valuable support from Anthony Maina and Amos Mwongera who cross-checked the data contained in this report, and Stephen Karekezi, John Kimani and Jennifer Wangeci for editorial support.

ISBN Number: 9966-9641-1-8

Copyright: 2001, AFREPREN/FWD, and Sida/SAREC. All rights reserved. The material in this publication is copyrighted. Short extracts (of not more than half a page) from this publication may be reproduced by those who wish to do so, provided that the authors, AFREPREN/FWD and Sida/SAREC, are fully acknowledged and a copy of the report or article containing the extract is sent to the Nairobi Secretariat of AFREPREN/FWD.

Executive Summary
This report presents a review of the policy measures pertaining to energy generation from bagasse in Mauritius that have led to the implementation of a number of projects on firm power (using bagasse during the crop season and coal during the intercrop season) generation as well as continuous power (using bagasse during the crop season only) generation. The policy measures include: (i) Performance linked rebates on export duty payable by millers for efficiency in energy conservation to generate surplus bagasse and in energy generation, preferably, firm power. (ii) Income tax exemption on revenue derived from sale of power, and capital allowances in such investment. (iii) Raising of tax-free debentures. (iv) Centralisation of cane milling activities spelling out the guidelines for mills. (v) Bagasse energy pricing. In response to these incentives and policies, the sugar industry has implemented a number of measures to efficiently use energy in sugar cane processing. Such measures include the enhancement of the calorific value of bagasse, reduction in power consumption in the prime movers of sugar manufacturing equipment, reduction in process heat consumption in juice heating and evaporation, adoption of continuous processes, factory computerisation and process automation. The quantity of electricity exported by factory-located power plants rose from 70 GWh in 1988 to 225 GWh in 1998 when 7 continuous and 2 firm power plants were in operation. The figure was expected to reach 360 GWh (or 62 kWh/tonne cane) with the commissioning of one 2x35 MW additional power plant. The bagasse energy projects in Mauritius would then avoid the use of 215,000 tonnes of coal, the emission of 650,000 tonnes of CO2 and the generation of 35,000 tonnes of coal ash. Implementation of cogeneration projects in Mauritius has enabled the country to diversify its energy base, rehabilitate, modernise and centralise cane milling activities, save on the fossil fuel import and, reduce the emission of greenhouse gases, mainly CO2. Mauritius is now in a position to share its experience with other cane sugar producing countries where replication or adaptation of such energy projects could be considered for implementation. A training programme sponsored by USAID/Winrock has already been organised for a team of sugar engineers and technologists from India at the initiative of the Mauritius Sugar Authority in collaboration with the Robert Antoine Sugar Industry Training Centre in Mauritius. The potential of replication of such projects in the Eastern and Southern African Region on the basis of the Mauritian experience has been examined. It has been estimated that the 16 million tonnes of bagasse generated annually in this region has the potential of generating about 5,500 GWh of electricity on the basis of the latest state-of-the art technology. In order to embark on such projects, the policy of the governments in the region on renewable energy has to be clearly defined to enable both the sugar industry and public utility companies to negotiate power purchase agreements. This will serve as the basis of initiating power plant projects. It has been highlighted that each option chosen would require investments which may range from US$5 to 100 million, the latter investment sum being for the highest degree of sophistication. Similarly, the manpower requirement will vary with the option chosen. Electrical energy from bagasse is a commercially proven technology and its exploitation by sugarcane producing countries allows them to substitute a readily available renewable biomass for imported fossil fuel. This results in economic benefits to the country, financial benefits to the sugar industry and positive environmental benefits in terms of reduced greenhouse gas emissions.

Table of Contents
Executive Summary ............................................................................................................................. i List of Tables ...................................................................................................................................... iii List of Figures..................................................................................................................................... iii List of Abbreviations and Acronyms................................................................................................ iv Glossary of Terms............................................................................................................................... v 1.0 1.1 1.2 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5 4.0 4.1 4.2 4.3 5.0 5.1 5.2 5.3 5.4 5.5 5.6 6.0 6.1 6.2 7.0 7.1 7.2 7.3 7.4 Background............................................................................................................................... 1 Cane Processing Operation in Mauritius and Characteristics of Bagasse ............................. 1 Bagasse Energy Development Until 1988 .............................................................................. 2 Sugar Industry Plans and Policies Related to Bagasse Energy .......................................... 4 The Sugar Sector Action Plan (1985) ..................................................................................... 4 The Sugar Industry Efficiency Study (1988) ........................................................................... 4 Bagasse Energy High Powered Committee (1991) ................................................................ 6 The Sugar Energy Development Loan, SEDP (1992) ............................................................ 8 Constraints to Implementation of the BEDP ........................................................................... 8 Funding and the Fiscal Framework (1993-1995) .................................................................... 8 The Centralisation Issue (1994-1997)..................................................................................... 9 Energy Pricing....................................................................................................................... 10 Measures Adopted in Cane Processing ............................................................................... 10 Survey of Power Plants in Mauritius .................................................................................... 11 Continuous Power Plants ..................................................................................................... 12 Firm Power Plants ................................................................................................................ 12 Firm Power Plant at Deep River Beau Champ ..................................................................... 12 Firm Power Plant at FUEL .................................................................................................... 17 Firm Power Plant at Belle Vue.............................................................................................. 17 Progress in Bagasse Energy Generation............................................................................. 20 Evolution of Electricity Generation (1988-1998) ................................................................... 20 Future Potential of Bagasse Energy in Mauritius (2000-2010) ............................................. 22 Bagasse Energy and the Future of the Sugar Industry......................................................... 23 Key Factors Influencing Development of Cogeneration in Mauritius ............................... 24 Assessment of Bagasse Energy Potential............................................................................ 24 Impact on Bagasse Saving ................................................................................................... 24 Emergence of the Cane Sugar Industry as Independent Power Producers ......................... 25 Bagasse Energy Development and Its Impact on the Environment ..................................... 27 Institutional Development ..................................................................................................... 27 Human Resource Development and Retention .................................................................... 28 Replication Opportunities of Bagasse Energy Projects ..................................................... 30 Indian Sugar Industry............................................................................................................ 30 Cane Sugar Industry in Southern and Eastern African Region ............................................ 30 Key Lessons for Eastern and Southern African Countries ................................................ 34 Action Plan for Implementation of Bagasse Energy Development Programme ................... 34 Prioritising Policy Measures for the Successful BEDP in Mauritius...................................... 34 Legal Requirement for Setting Up of an Independent Power Producer (IPP) ...................... 35 Investment Requirement in Bagasse Energy Cogeneration in Mauritius ............................. 35

ii

8.0

Concluding Remarks.............................................................................................................. 37

References ......................................................................................................................................... 38

List of Tables
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Electricity Generation by Source.......................................................................................... 3 Bagasse Based Power Plants in Mauritius Up To Year 2000............................................ 11 Evolution of Electricity Production from the Sugar Industry (GWh) ................................... 20 Evolution of Bagasse Transferred for Power Generation (1988-1998) .............................. 21 Evolution of Tonnage of Bagasse Used for Electricity Generation .................................... 21 Evolution of Cogeneration (1988-1998) ............................................................................. 22 Evolution of Bagasse (In Tonnes) Saved and Sold to Firm Power Plants ......................... 24 Manpower Requirement for Firm Power Plant ................................................................... 29 Potential for Bagasse Energy Development in the Southern and Eastern African Region 31 Potential Electricity Export (GWh) from Bagasse in Countries of Southern and Eastern African Region................................................................................................................... 32 Table 11 Cogeneration Potential in Southern and Eastern African Region ...................................... 33 Table 12 Investment in Continuous Power Plants (US $ x 106)........................................................ 36 Table 13 Investment in Firm Power Plants (US $ x 106)................................................................... 36

List of Figures
Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Map of Mauritius Showing Factory Area Limits ................................................................... 7 Power Plant at Union St. Aubin......................................................................................... 13 Power Plant At Mon Tresor Mon Desert ........................................................................... 14 Power Plant at Savannah.................................................................................................. 15 Power Plant at Deep River Beau Champ.......................................................................... 16 Power Plant at FUEL......................................................................................................... 18 Power Plant at Belle Vue .................................................................................................. 19

iii

List of Abbreviations and Acronyms


BEDP CTEB CEB CEL DRBC FUEL GW GWh HPC IPP IC kWh MDA MTMD MW PPA REE SIE Act TC TCH USA USAID US $ Bagasse Energy Development Programme Centrale Thermique de Belle Vue Limite Central Electricity Board Consolidated Energy Ltd at DRBC Deep River Beau Champ or Beau Champ Flacq United Estate Ltd Gigawatts or 109 watts Gigawatthour High Powered Committee Independent power producers Installed Capacity (effective) Kilowatthour Mon Desert Alma Mon Trsor Mon Desert Megawatts Power purchase agreements Riche en Eau Sugar Industry Efficiency Act Technical Committee Tonne of cane per hour Union St Aubin United States Agency for International Development US dollar = MRs 26.00

iv

Glossary of Terms
Bagasse Bagacillo Crop Season Cogeneration Centralisation Intermittent power Firm power Imbibition Modernisation Rehabilitation The fibrous residue of cane left after the extraction of juice from sugar cane. Fine particles of bagasse Period during which sugarcane is harvested and processed for sugar recovery. It lasts between 15 June to December in Mauritius every year. Refers to an energy system sequentially generating electrical power and thermal energy. A programme involving the closure of some factories and expansion of others in order to achieve technical benefits and economies of scale. Electricity generated from bagasse and exported to the grid after meeting cane processing requirement and is not modulated to the need of the grid. Electricity exported to the grid using bagasse during crop season and coal during the off-season. The process whereby water or juice is applied to bagasse to enhance the extraction of juice at the next mill. Replacement of existing equipment by new equipment of the same capacity with the objective of improving the technical or financial performance. Replacement of old, worn-out, damaged or dangerous equipment with new equipment of equivalent performance potential.

Bagasse Energy Co-Generation in Mauritius and Its Potential in the Southern and Eastern African Countries
1.0 Background

auritius has evolved from an agricultural to a semi-industrial country over the past 2-3 decades, with the sugar industry still occupying a prominent position in the economy. The sugar industry is a significant foreign exchange earner as well as a source of income to workers and to small planters, in varying degrees depending on the size of their holding. This industry is the backbone of the agriculture sector. The industry has been undergoing increasing pressure due to sugar price stagnation or even price cuts and the rising cost of sugar production. These pressures have instigated a number of actions to improve efficiency and diversify its activities both at the field and factory levels, the ultimate objective being to increase revenue through improvement in efficiency in sugar production with a concurrent reduction in cost of production. At the field level, the agricultural operations are increasingly mechanised after thorough derocking and land preparation. In addition, the adoption of improved cane varieties and implementation of irrigation schemes has been accelerated. In the cane processing side, for the same reasons enumerated above, cane-milling operations are being centralised with the smaller mills being merged into larger units. The issue of energy generation carries a high priority in the centralisation process. In addition, the cane-milling operations are being increasingly automated with the adoption of continuous processes. Production of value-added products in the form of special sugars has also been adopted in this strategy of diversification within the sugar sector.

1.1

Cane Processing Operation in Mauritius and Characteristics of Bagasse

The annual cane production in a normal year, that is, a year in which the cane crop is not severely affected by a cyclone or drought, is around 5.8 million tonnes of cane. In 1998, this cane was processed in 14 sugar factories whose crushing capacities varied between 60 tonnes of cane per hour (TCH) to 270 TCH in around 130 days during the period mid-June to November/mid-December. Sugar factories are not in operation on Sundays and Public Holidays. The percentage of sucrose that can be extracted from sugarcane varies from year to year and from factory area to factory area depending, amongst other factors, on cane variety profile in the area and on climatic conditions prevailing both during the growing and the maturing period of the cane. This value has been in the range of 11.19% and 13.00% over the past decade. The proportion of sucrose extracted from cane is thus a function of the quality of cane, extraneous matter content and the factory efficiency. Factory efficiency varied between 85.6% to 87.0% during the past decade. For the 1998 crop, the proportion of fibre in sugarcane was in the range of 12.01% to 18.53% with an average of 15.51%. Similarly, the proportion of bagasse in sugarcane, which is related to the fibre in cane, was in the range of 23.7% and 36.6% with an average of 31.4%. The total amount of bagasse generated annually was thus around 1.8 million tonnes. The bagasse has a gross calorific value of 19,250 KJ/kg at zero moisture content and 9,950 KJ/kg at 48% moisture content. The net calorific value of bagasse at 48% moisture content is around 8,000 KJ/kg. The moisture content is the most crucial parameter in that, the lower the moisture content the higher the calorific value. Bagasse with 45% moisture content can be obtained from sugar factories with good milling processes. Poor milling performance results in bagasse with 52% moisture content. However, most mills produce bagasse with 48% moisture content. The bagasse is burnt as a fuel in boilers to generate steam at high pressure and temperature. During combustion, the steam to bagasse ratio is normally taken as 2.2. Besides moisture, bagasse also contains fibre (which is of lignocellulosic nature), some sucrose (1-2%),
Bagasse-Based Cogeneration in Mauritius 1

and ash mainly in the form of silica, originating from soil and rocks brought in together with cane. Bagasse, by virtue of its moisture content of around 48%, has a poor keeping quality. It is prone to fermentation and associated chemical reactions that may lead to spontaneous combustion and hence fire outbreaks. At 30% moisture content, the keeping quality is improved but energy is needed to dry it. Bagasse drying is generally not practised in the sugar industry. Mill run bagasse has a bulk density of about 130 kg/m3 and hence poses storage problem in that it requires huge storage space and equipment for handling and thus costly. Hence the objective is to burn as much of the bagasse as possible within a short period. Most factories have a bagasse reclaim system to cater for continuous mill operation. Any larger excess is kept in the open or under cover. This may be reclaimed and used during weekends or end-of-crop shutdowns to produce steam and electricity for internal use as well as for export to the grid.

1.2

Bagasse Energy Development Until 1988

Bagasse has always been the major, if not the only, source of combustible in sugarcane producing countries worldwide to meet the energy requirement to process cane into sugar and the by-products. Under normal operating conditions, the sugarcane factory has always been self sufficient in its energy requirement, except that in some cases it might happen that at the start of the crop or in the event of prolonged breakdowns, extraneous fuel in the form of wood, for example, might be necessary. In a number of cases, however, where the factory is being operated efficiently, a surplus of bagasse is generated. Such bagasse is considered as a nuisance and poses disposal problem. In Mauritius, having identified the generation of surplus bagasse after factory equipment modernisation, interest in its exploitation of this resource as energy was aroused after the second world war when the energy requirements of the country started to increase. Since then, much thought was given to this issue and it was constantly the subject of studies, projects formulation, and projects implementation. At an initial stage, the energy sector comprised of small independent private enterprises supplying electricity to consumers and the need became felt for a corporate regulatory body. In 1952, the Central Electricity Board (CEB) was created. In 1956, it became the sole supplier of electricity and became involved in generation, transmission and distribution of electricity. All sugarcane factories generate steam from the combustion of bagasse. This steam is used in the prime movers to drive the factory equipment and turbo-alternators to produce electricity, which in turn powers the electric motors in the factory. The exhaust steam then processes the juice fraction of cane to sugar. The creation of the CEB as the sole supplier of electricity opened the way for the participation of sugar factories as exporters of electricity to the public grid, with the CEB ensuring the transmission and distribution. St Antoine Sugar Factory became the first exporter of electricity to the grid in 1957 when it sold about 0.28 GWh the CEB. More sugar factories started selling power to the grid such that the amount of electricity exported reached 25 GWh by the late 1970s. That electricity was exported to the grid from 17 to 21 sugar factories in the form of surplus power available after meeting the requirements of the sugar cane processing and, in addition, was not modulated to the needs of the utility company, the CEB. The price of such energy was about 0.6 US cents per kWh. Although electricity sold to the grid from this source represented around 16% of total energy demand in the early 70s, both the pricing and supply conditions were not attractive enough to encourage heavy investment. With the increase in demand in electricity as a result of the industrialisation and improvement in standard of living in the country, this percentage fell to around 8%. The other milestone in bagasse energy generation was the implementation of two projects. The first, a sugar factory located at Mdine with a TCH of 170, which entered into a continuous power purchase agreement with the CEB in 1980. This plant had an installed capacity of 10 MW and supplied around 6 MW to the grid. It was designed to generate continuous power, that is, using bagasse as combustible and its operation coincided with the cane-crushing season only. The steam pressure was 31 bars. In 1982, another factory, FUEL, with a TCH of 250, commissioned a firm power plant of 21.7 MW installed capacity, using the turbo-alternator operating on steam at 44 bars. This plant exported electricity all year-round using bagasse as combustible during the crop season and coal during intercrop. With the successful operation of these two units, the amount of electricity generated from bagasse reached 70 GWh. Subsequently, a second sugar factory (Mon Tresor Mon Desert) started continuous power production but its installed capacity was lower (5 MW).
Bagasse-Based Cogeneration in Mauritius 2

The evolution of electricity generation by source in Mauritius is shown in Table 1. The impact of the first firm power plant commissioned in 1984 is evident from this table. The total electricity generated had been constantly increasing over the period. By the year 1988, the sugar industry exported 106 GWh of electricity to the public grid accounting for 19% of the island=s requirement. Of this amount, 72 GWh or 13% originated from bagasse. With these experiences, it became more apparent that bagasse represented an attractive renewable energy resource for electricity generation. Table 1
Year

Electricity Generation by Source


Hydro IC GWh 51 50 68 74 40 56 55 56 54 59 83 60 94 35 65 115 110 140 99 148 85 76 113 104 75 134 104 92 104 30 Cogeneration Bagasse IC GWh 14 14 14 14 14 14 14 15 12 13 27 27 27 27 44 44 42 42 42 42 42 42 42 43 43 43 43 53 90 90 22 25 23 24 24 17 25 24 25 26 27 31 43 32 29 58 73 74 72 56 53 70 85 71 77 84 119 125 194 184 5 45 43 29 34 68 45 54 43 40 46 41 98 23 62 155 Coal GWh Fueloil/Diesel IC GWh 28 27 26 26 37 49 50 68 89 109 109 131 131 131 131 131 131 131 131 149 149 148 142 163 163 154 155 182 176 205 63 73 73 89 144 151 190 228 256 270 245 271 226 304 281 174 213 244 339 310 449 494 498 615 699 682 699 857 842 912 23 23 23 47 47 47 48 80 80 80 76 76 5 7 36 44 69 40 48 106 219 154 162 137 Kerosene IC GWh Total IC 57 66 65 65 76 88 89 108 124 144 159 181 180 181 226 226 223 224 252 270 270 294 284 308 308 332 332 370 397 425 GWh 135 148 164 187 208 224 270 308 335 355 355 362 363 371 380 392 439 487 549 589 668 738 808 870 945 1047 1151 1252 1365 1424 Bagasse % IC 24.6 21.2 21.5 21.5 18.4 15.9 15.7 13.9 9.7 9.0 17.0 14.9 15.0 14.9 19.5 19.5 18.8 18.8 16.7 15.6 15.6 14.3 14.8 14.0 14.0 13.0 13.0 14.3 22.7 21.2 GWh 16,2 16,9 14,0 12,8 11,5 7,6 9,3 7,8 7,5 7,3 7,6 8,6 11,8 8,6 7,6 14,8 16,6 15,2 13,1 9,5 7,9 9,5 10,5 8,2 8,1 8,0 10,3 10,0 14,2 12,9

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999*

15 25 25 25 25 25 25 25 23 23 23 23 23 23 52 52 51 51 57 57 57 57 53 54 54 54 54 54 54 54

IC = Installed Capacity (effective), MW Bagasse-Based Cogeneration in Mauritius 3

* Year 1999 was a severe drought year when only 373,000 tonnes of sugar were produced compared to a normal of around 630,000 tonnes.

2.0

Sugar Industry Plans and Policies Related to Bagasse Energy


lans and policies have constantly been worked out over the past decade for the sugar industry in general. In all these plans and policies, the issue of energy generation from bagasse has occupied a prominent position. The key policies and plans are reviewed in the following discussion.

P
2.1

The Sugar Sector Action Plan (1985)

In 1985, a Sugar Action Plan was prepared wherein the issue of bagasse energy potential was addressed. It was highlighted that the realisation of this potential would depend on technical options chosen and factory consolidation or centralisation. A three-pronged approach was proposed: Improvement in energy use in the factory processes, Year - round use of bagasse by having recourse to bagasse storage, The erection of bagasse fired power plants not necessarily linked to the sugar factories or in the form of independent power companies. A legislature Act known as the Sugar Sector Package Deal Act was enacted in 1985 taking on board the elements of the Action Plan. The main outcome of this legislation was the reduction of the export duty payable by sugar producers. One shortcoming of this Act was that it did not make provision for incentives on bagasse energy. In addition, a sugar sector loan negotiated subsequently from the World Bank did not allocate funds on the specific issue of bagasse energy. With respect to bagasse storage to enable year-round electricity generation from bagasse, a full-scale plant to produce 14,000 tonnes of pellets per annum was commissioned in 1985. This plant started operation and production peaked at 4,395 tonnes in 1986. This plant was found to be both technically and financially inappropriate and the project was abandoned in 1987. The option of bagasse pellets as a means of storage was thus ruled out.

2.2

The Sugar Industry Efficiency Study (1988)

In 1988, the Government enacted a Sugar Industry Efficiency Act following a study funded by the World Bank and undertaken by a team of consultants from an international firm with the interaction of a local task force set up by the Government. This legislation contained an all-embracing package of incentives and measures targeted towards improvement in efficiency for all partners of the industry, namely the millers, the miller-planters, the large planters, the small planters and the employees of the sugar industry. It also comprised of measures to restrict land conversion. With respect to cane milling and more particularly bagasse energy, the following measures were promulgated: (a) (b) Introduction of performance linked rebates on export duty payable by millers for bagasse saved and sold for firm electrical power generation, Exemption from payment of income tax for (i) (ii) (c) 75% of the proceeds from the sale of bagasse by a miller to another one for the purpose of generating firm electrical power, 60% of the proceeds from the sale of firm electrical power by a miller to the CEB,

Increasing the initial allowance from 50% to 80% for machinery or plant used for energy saving or for the treatment of fly ash.

Bagasse-Based Cogeneration in Mauritius

(d)

Furthermore, the price for intermittent power was frozen at its existing level of 0.6 US cents per kWh so as to discourage this highly inefficient mode of electricity generation.

Bagasse-Based Cogeneration in Mauritius

Within a year of this enactment in 1989, the two existing power producers, Mdine and FUEL, obtained a review of their power purchase contracts and included an increase in price. A third factory, Mon Trsor Mon Dsert (MTMD) negotiated and obtained a continuous power purchase agreement. The prices were indexed to the average CEB selling price per kWh.

2.3

Bagasse Energy High Powered Committee (1991)

With the positive steps initiated by the sugar industry in response to the provisions of the SIE Act, the Government, with the assistance of the World Bank, set up a High Powered Ministerial Committee to devise a strategy which would optimise the use of bagasse. This committee produced a Bagasse Energy Development Programme (BEDP) for the sugar industry in consultation with all concerned stakeholders the private sector, the public sector and the parastatals. There was consensus that the successful implementation of the BEDP would: Displace investments to be effected by the CEB Reduce the reliance of the country on petroleum products and diversify its energy base Allow for the modernisation and rehabilitation of the sugar industry and improve its viability Allow for the saving in foreign exchange through the reduction in import of fossil fuels Contribute in the mitigation of the enhanced greenhouse effect by displacing fossil fuels thus avoiding the emission of additional carbon dioxide. In line with the above, the following recommendations were made: (i) Setting-up of two firm power plants, 22 MW each, the first one at Union St Aubin (USA) in the South and the other one at Belle Vue in the North. The plants would be located next to the sugar factories which would supply the totality of the bagasse to the plant, which would generate high pressure steam (60 bars) in boilers. This steam would be sent to a condensing-extraction turbo alternator to cogenerate electricity for export to the grid after meeting cane processing requirements and steam (to match with factory exhaust steam requirement). Rehabilitation of the existing power plants (firm at FUEL and continuous at Mdine and MTMD). The possibility of a second unit at FUEL was also addressed. The intermittent power production was to be restricted as much as possible. Each power plant will receive bagasse from the adjoining sugar factory and surplus from satellite factories in the immediate neighbourhood. Figure 1 shows the location of the power plants and the satellite factories. All plants would burn bagasse in the crop season and for part of the intercrop to cater for any surplus stored. The plants would be designed to burn their own bagasse and that supplied from the neighbouring sugar factories. Coal would be burned in the offcrop period in the firm power plants only. Coal was chosen given that it can be burnt in the same boiler and in a strategy to further diversify the energy base. Coal supplying countries are less exposed to political risks and instability. Manpower development, compaction of bagasse and its transport to other factories, and use of cane field residues as a supplementary boiler fuel were the other issues addressed in the Report which would enhance the bagasse energy development.

(ii)

(iii)

(iv)

(v)

Bagasse-Based Cogeneration in Mauritius

Figure 1

Map of Mauritius Showing Factory Area Limits

Bagasse-Based Cogeneration in Mauritius

2.4

The Sugar Energy Development Loan, SEDP (1992)

A loan amounting to US$15 million was negotiated by the Government to facilitate the implementation of the BEDP. This SEDP loan was destined mainly to projects related to enhance bagasse savings in the cluster of sugar factories. In addition, a grant of US$3.3 was made available from the Global Environment Facility Fund of the World Bank to undertake a number of projects and studies in conjunction with the BEDP.

2.5

Constraints to Implementation of the BEDP

It was observed that investments in bagasse saving in the satellite factories were slow and only 40% of the total amount of the SEDP Loan had been disbursed. This was attributed to the slow progress in the implementation of the power plant at Union St Aubin (USA). A number of constraints were identified resulting from a feasibility study undertaken for the power plant at USA. The financial viability of the project was linked to the amount of bagasse available and the efficiency of the dual fuel (bagasse and coal) boiler. Union St Aubin Sugar Factory, with a crushing capacity of 130 TCH, had to rely to a large extent on the supply of bagasse from the satellite factories. In addition, it was established that a firm power plant project would have a reasonable rate on return on investment when its capacity was in the range of 30 MW and not 22 MW. Moreover, satellite factories were of the view that the price of bagasse should be computed on the basis of the CIF price of coal and, in addition, the kWh obtained from that coal should be in the condensation mode. This coal-linked price worsened the financial viability of the project and USA could not enter into a bagasse purchase agreement with the satellite factories. The other bone of contention between USA and CEB was the kWh price indexation in the power purchase agreement. Finally, one potential supplier of bagasse to the power plant at USA, Riche-en-Eau, opted for an investment in continuous power sale to the CEB in 1994 when it had significant surplus bagasse but no buyer of it. Furthermore, funds of sugar companies were, as a priority, diverted to field operations targeted towards mechanisation and irrigation and associated infrastructures to improve cane production. Following the identification of the constraints to implementation, three major issues were addressed in order to facilitate the BEDP: Funding and the fiscal framework Consolidation of cane milling activities through centralisation The kWh price indexation.

2.6

Funding and the Fiscal Framework (1993-1995)

The World Bank SEDP loan was meant to cater for investments in equipment design to generate surplus bagasse from the satellite factories around Union St Aubin. The projects under the BEDP, however, required substantial investments. Loans in foreign currencies were costly, and cost 12% or more - largely influenced by the exchange risk as the Mauritian rupee was depreciating by some 5% annually against the major foreign currencies. Local finance could be secured at 14% or more interest rates. In order to facilitate implementation of the BEDP projects, several enactments were promulgated. For example, the Finance Act 1992 made provision to raise tax free debentures for the generation of electricity from bagasse and the modernisation of sugar equipment. The Finance Act 1993 gave further incentives to enable, in cases of segregated activities, growing companies to offset losses incurred by millers in respect of capital expenditure incurred in energy production from bagasse and in the rehabilitation and modernisation of sugar factories. In 1993, the SIE Act 1988 was amended. The export duty was reduced and rationalised so as to eliminate the disadvantage to large mills. The performance-linked rebate on export duty was extended to producers of firm electricity who saved and used their own bagasse and also to millers selling bagasse to continuous power stations. Furthermore, regulations were promulgated under the Custom Tariff Act whereby a proportion of capital expenditure incurred in the installation of efficient equipment used to enhance bagasse saving and energy generation therefrom was entitled to a refund of export duty payable. Off-setting of unrelieved losses allowed a miller, who is also a planter, to transfer in an income year, any
Bagasse-Based Cogeneration in Mauritius 8

unrelieved loss to a planter related to the miller, proportionate to the share of direct or indirect interest of the planter with miller or of the miller with the planter. Moreover, accumulated unrelieved losses attributable to investment, initial and annual allowances with respect to qualified plant and machinery acquired after the effectiveness of the SIE Act 1988 could be transferred to a related planter. Production of electricity from bagasse is one of eligible plant and machinery. The distribution of the proceeds of the bagasse transfer price fund was modified wherein millers or sugar factory based power companies exporting electricity to the CEB became entitled to benefit from the Fund. This Fund had previously been accruing to growers only. The CEB credit Rs100 per tonne of bagasse used for electricity generation to this Fund. In 1994, the export duty was abolished and concurrently the sugar companies had, as per a Memorandum of Agreement with Government, to segregate growing and milling activities and set up public milling companies. A Sugar Investment Trust (SIT) was created and 20% of the equity shares in the milling companies were sold to planters and workers. Two directors on the Board of the Milling Company were to be from the SIT. In 1995, provisions in the new Income Tax Act which were in favour of bagasse energy were retained and, in addition, tax on milling companies was brought down to 15%. The foreign exchange control was removed. All these fiscal measures thus created an investment-friendly environment but the decision to invest was thus left to the individual operator.

2.7

The Centralisation Issue (1994-1997)

Until 1993, 19 sugar factories were in operation and their cane crushing capacity ranged between 55 to 250 TCH. It is known that one of the means of reducing cost of production in cane milling is to consolidate cane-milling activities through centralisation. This implies closure of mills and increase in cane crushing capacity in an adjoining mill. However, such closure are normally very sensitive being, more particularly, a socio-economic and political issue, the more so in a country like Mauritius where sugar has been occupying such a dominant role in the economy for 2-3 centuries now. It has to be pointed out outright that mill closures in Mauritius do not imply reduction in cane and sugar production but it implies that the same quantity of cane is produced (around 5 to 6 million tonnes annually) and crushed in a lesser number of sugar factories. This does not pose any major technical problem given that cane-crushing capacity of the mill receiving the cane is increased accordingly. More cane at a given sugar factory thus implies more bagasse on site and hence higher capacity and more efficient boilers. In 1993, the Government was in presence of a request of closure of one sugar factory, St Antoine and it set up a Board of Enquiry to examine the request and make recommendations. After hearing all parties concerned, the Board of Enquiry recommended the closure and spelt out conditions with respect to technical issues, workers and planters. The cane receiving factory, Mon Loisir, had to upgrade its cane processing capacity and the associated infrastructure to enable it to crush the additional cane. The workers opted for a voluntary termination of their contract of employment against an ex-gratia payment in cash and in kind in the form of a piece of land for housing. Planters, on the other hand, were entitled to a fund destined to improve their productivity. The recommendations represented a milestone in the approach to centralisation. In 1994, another factory, The Mount, made a request for closure and this was examined along the same lines adopted by the Board of Enquiry. This closure, besides being warranted by the need to rationalise milling operations, was prompted by the fact that it was tied to the setting up of a firm power plant at Belle Vue in the North. The request was acceded to and, in a Ministerial Statement at the National Statement, the organic link between centralisation and energy generation from bagasse was evoked for the first time. Planters and workers negotiated a package with the proponents of the closure but nobody challenged the principle of a closure. In 1997, the Government came up with a Blue Print on Centralisation of Cane Milling Activities which, besides setting guidelines and conditions to be adhered to in any request and implementation of such closures, emphasised the need to link such closures with energy generation from bagasse. Three requests for closures have been considered subsequent to the publication of this Blue Print and were generally in conformity with the provisions of this document, where energy generation occupied, inter alia,
Bagasse-Based Cogeneration in Mauritius 9

a prominent position. In 1995 and 1997, the relevant section of SIE Act 1988 which referred to Land Conversion was amended, and inter alia, millers and power producers could recoup 20% of the capital expenditure incurred in factory modernisation and power generation. Further amendments were made in 1999 wherein 40% of capital expenditure incurred in power generation could be recouped.

2.8

Energy Pricing

Following a litigation between USA and CEB on interpretation of the kWh price indexation formula in the Power Purchase Agreement, a Technical Committee was set up at the Ministry of Energy to study and interpret the clauses of the draft agreement. This prompted the Committee to have an in-depth analysis of the price setting mechanism using as its basis the cost of a diesel plant of 22 MW capacity proposed by the CEB to arrive at the avoided cost for the firm power plant. The World Bank also worked out the principles and the guidelines and these were used by the Committee. This Committee determined the avoided costs, both economic and financial, and recommended the kWh price for coal and bagasse units. It was, in addition, decided to delink the indexation mechanism to CEB tariffs as it has to reflect costs but this issue was left to negotiations between the contracting parties under the aegis/guidance of the Committee.

2.9

Measures Adopted in Cane Processing

Concurrently, Mauritian sugar factories have been adopting energy conservation and efficiency measures in sugar cane processing. A survey has been carried out in the Mauritian sugar factories to take stock of those measures adopted following the various enactments and policy measures and assess the impact on energy conservation and use as well as energy cogeneration. The impacts have been quantified wherever applicable.

Bagasse-Based Cogeneration in Mauritius

10

3.0

Survey of Power Plants in Mauritius

aving cleared the major constraints to implementation of the projects under the BEDP and the positive response shown by the sugar industry in implementing energy conservation measures in sugar cane processing, proposals for investment in power plants either new or upgrading existing facilities ensued from a number of sugar companies after securing a power purchase agreement. Table 2 shows the various bagasse energy projects in Mauritius as at the year 2000. It is seen that there are 3 firm power plants, each one associated with specific peculiarities such as installed capacities, operating pressures and temperatures, the condensing extraction turboalternator and use of exhaust steam for additional electricity generation. The seven continuous power plants have some specificities compared to each other. Consequently, they have been tailor-made to suit the requirement of the sugar factory in terms of the: Electricity and exhaust steam requirement, Existing steam generating plant and turboalternators, Turboalternators (new or second hand) available in the market The overall target is least investment cost and maximum energy export to the grid. Table 2
Factory

Bagasse Based Power Plants in Mauritius Up To Year 2000


Power Boiler Capacity T/hr 1*110 1*100 1*140 Pressure (bars) & o Temp ( C) 44;430 44;440 45;475 Turbo Alternator Installed Capacity (MW) Cond/Extrac 1*21.7 Cond/Extrac 1*18 1*24.6 1*4 Units from Bagasse (GWh) 60 70 Units from Coal (GWh) 115 85

Type

Start Date Oct.98 Apr.98

FUEL Deep River Beau Champ

Firm Firm

Cond/Extrac Condensing using exhaust steam Cond/Extrac Cond/Extrac Back pressure Cond/Extrac Back pressure Condensing Back pressure Back pressure Cond/Extrac Back pressure Cond/Extrac 7 Cond/Extrac 3 Back pressure

Belle Vue Mdine Mon Tresor Mon Desert Union StAubin Riche en Eau

Firm Continuous Continuous Continuous Continuous

2*140 1*50 2*35 1*70 1*80 1*45 1*43

82;525 32;420 17;250 26;400 31;440 18;310 26;400

2*30 1*10 2*1.5 1*12.5 1*12.2 1* 6 1*3.2 1*1.6 standby 1*15.3 1*12 1*11.2 217.2 MW (128.2 MW Firm, 89.0 MW Cont)

April 2000

105 20

220 -

Jul.98 Jul.97 July.98

14 16 17

Savannah Mon Loisir Mon Desert Alma TOTAL

Continuous Continuous Continuous 3 Firm 7 Cont

1*70 1*35 1*80 1*70 1*50

31;410 17;300 19;325 31;430 24.2;343

Jul.98 Jul.98 Nov.97

20 20 18 360 GWh 235 GWh Firm, 125GWh Cont

420 GWh

Firm: Continuous:

Bagasse during crop and Coal during intercrop Bagasse during crop only.

Source: The Mauritius Sugar Authority Annual Report 1996-1997 Central Electricity Board Annual Report 1995 Bagasse-Based Cogeneration in Mauritius 11

The next section describes briefly three continuous power plants and three firm power plants highlighting the salient features in such installation and also the investment carried out in the sugar factories.

3.1

Continuous Power Plants

A group of 4 factories in the South (USA, Savannah, MTMD and REE) came up with proposals for continuous power plants, each unit with an installed capacity varying between 10-15 MW. These factories generally upgraded their boilers and acquired the turbo generating sets. The investments were about US$4.0 million for each power plant. Two more requests for continuous power generation were made, namely Mon Dsert Alma (11 MW) and Mon Loisir (14 MW) and similar steps were taken in the implementation. Figures 2, 3 and 4 show the essential features of three continuous plants at Union St Aubin, MTMD and Savannah.

3.2

Firm Power Plants

The firm power plants projects were linked to the process of centralisation following the closure of mills, request for which were examined and approved following the guidelines set out in the Blue Print for Centralisation of Cane Milling Activities by Government. Two projects were undertaken, with the first at Deep River Beau Champ in the East of the island. The factory increased its TCH from 170 to 270 to accommodate cane from Constance, which was operating at around 110 TCH. The total cane availability reached around 750,000 tonnes. The other power plant project at Belle Vue sugar factory, which was operating at 175 TCH in 1990, increased its TCH to 310 in 2000 with the closure of two factories, Mount (90 TCH) and Beau Plan (110 TCH). The factory now processes about 900,000 tonnes of cane annually.

3.3

Firm Power Plant at Deep River Beau Champ

This plant (Figure 5) is equipped with a boiler with a rated capacity of 140 tonnes of steam per hour operating at 45 bars pressure and 440oC temperature. The boiler is fitted with a moving grate furnace. The high-pressure steam is fed to a turbo alternator which has a rated capacity of 24.65MW. It is an automatic condensing/extraction turbine and has an average steam consumption of 5 kg/kWh. The extraction part of the turbine consumes 6 kg steam/kWh and the condensing part, 4.2 kg/kWh. Depending on the cane-crushing rate, between 85 to 100 tonnes steam/hour is extracted and 16 to 31 tonnes/hour is condensed through the turbine to generate electrical energy. This plant, when operated in this mode, has one major drawback. The 24.6 MW turboalternator can accept only around 60 tonnes high-pressure steam on the condensing side of the turbine to generate 15 MW. A balance of 9.6 MW is available on the extraction side at 3 bar absolute from the remaining steam provided that this steam is condensed back to the boiler. A low-pressure steam turbo alternator has thus been installed which accepts steam at 2.5 to 4 bar, 160 to 300oC, and exhaust as a condensate at 0.068 bar. The installed capacity of that turbine is 4 MW. With this arrangement in operation only during the inter crop, the power plant is able to export 3.7 MW of additional electrical power to the grid. The total power export is thus 26.5 MW, which would otherwise have been 22.8 without the 4.0 MW unit. The power plant thus increased its electrical energy export to the grid from 50 to 76 GWh, which represents more than 50% additional revenue.

Bagasse-Based Cogeneration in Mauritius

12

Figure 2

Power Plant at Union St. Aubin

Bagasse-Based Cogeneration in Mauritius

13

Figure 3

Power Plant At Mon Tresor Mon Desert

Bagasse-Based Cogeneration in Mauritius

14

Figure 4

Power Plant at Savannah

Bagasse-Based Cogeneration in Mauritius

15

Figure 5

Power Plant at Deep River Beau Champ

Bagasse-Based Cogeneration in Mauritius

16

3.4

Firm Power Plant at FUEL

The second firm power plant project was the erection and commissioning of an additional 18 MW unit at FUEL (260 TCH) which was already operating a 21.7 MW unit. The plant (Figure 6) consists of 2 high pressure boilers, one of 110 t/h steam of FCB design and the other at 100 t/h of John Thompson design operating at a steam pressure of 44 bar and temperature of 440oC. The boilers are fired with bagasse during the crop and coal during the inter crop. The steam from the boilers is fed to two condensing extraction turboalternators having a combined installed capacity of 40.5 MW (or 21.7 + 18.8 MW). Part of the steam is extracted at 2 bars Abs as exhaust for sugar processing in the boiling house. Concurrently, the prime movers of the mills and the ID fan were changed to operate on electric motors fitted with variable speed drives. This brought about a reduction in energy in cane processing in favour of electrical energy for sale to the public grid. The factory has also embarked on a programme of continuous and automated operation of a number of equipment in the various workstations.

3.5

Firm Power Plant at Belle Vue

The plant (Figure 7) consists of 2 boilers of 140t steam/h capacity each. The boilers are designed to burn around 110 tonnes of bagasse from the cane sugar factory during the crop period to generate steam at a pressure of 82 bars and 525o C. The steam from each boiler is fed to a condensing extraction turboalternator of 35 MW installed capacity. During the crop period, the net power exported to the grid is 52 MW. The power plant supplies all the energy (electricity and exhaust steam) needs of the adjoining sugar factory, which has a crushing capacity of 310 TCH for processing cane into sugar, in exchange of the bagasse and condensate from the sugar factory. During the intercrop, the boiler operates on coal as the combustible and the power plants exports 62 MW to the grid. The power plant underwent commissioning trials in March, 2000. With the implementation of the firm power plant, the sugar factory has been investing in improvement in energy utilisation and devices. These include electrification of mill drives, evaporation station with platular heat exchangers and keshner evaporator effect and use of bled vapour from the four effects. Requests for implementation of two additional firm power plants in the medium term have been made by two sugar companies namely Mdine and Union St Aubin. One factory, Bel Ombre (60 TCH) found in the south western area of the island has already ceased milling operation in 1998 and these two factories are, inter alia, beneficiaries of cane from this factory area. Some preliminary negotiations have already started between the parties involved in the implementation of the projects. It can be thus be concluded that, for bagasse based power plants to be viable, the best option is to have the totality of the bagasse needed in site which implies that the factory should have enough cane crushing capacity to match with the bagasse requirement of the power plant. The concept of generation of surplus bagasse in satellite factories and supply to a power plant is not attractive in the Mauritian context.

Bagasse-Based Cogeneration in Mauritius

17

Figure 6

Power Plant at FUEL

Bagasse-Based Cogeneration in Mauritius

18

Figure 7

Power Plant at Belle Vue

Bagasse-Based Cogeneration in Mauritius

19

4.0

Progress in Bagasse Energy Generation

he overall impact of the measures related to Government policy and incentives, energy use and conservation in sugar cane processing, and bagasse energy generation efficiency is reflected in the quantum of electricity exported to the grid and amount of bagasse used in this system. A survey was carried out and the results are given below.

T
4.1

Evolution of Electricity Generation (1988-1998)

Table 3 shows the evolution of electricity generated from bagasse over the 1988-1998 period during which the issue of bagasse energy development had a high priority in the Mauritian sugar industry. The phasingout of intermittent electricity generation and shift towards continuous as well as firm power is quite evident. Electricity generated from bagasse has increased three-fold over the period. Moreover, by the year 2000, the electricity generated from bagasse was scheduled to reach 360 GWh and the sugar industry located power plants would generate 780 GWh. Table 3 Evolution of Electricity Production from the Sugar Industry (GWh)
Power Fuel Source 1988 Firm Bagasse Coal 41 34 Year 1992 50 44

1998* 112 62

Continuous

Bagasse

19

28

109

Intermittent

Bagasse

12

Total GWh (Bagasse) Total GWh (Bagasse & Coal)

72 106

84 128

225 287

* Includes 30 GWh electricity generated in 1999 from crop 1998 stored bagasse.

Bagasse-Based Cogeneration in Mauritius

20

Table 4

Evolution of Bagasse Transferred for Power Generation (1988-1998)


Bagasse (t) from Satellite Factories for Power Generation

Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Note: * **

Firm 16,337 14,930 27,606 19,307 57,054 57,274 72,290 123,186 108,977 84,483 36,869

Other* 1,910 4,755 9,426 4,183 6,557 6,278 7,152 9,112 14,282

Total 16,337 14,966 30,124 22,771 62,484 63,340 84,098 129,464 116,101 93,595 50,868

Other Purposes 6,200 2,200 3,339 4,808 3,427 4,983 3,474 5,270 3,389 5,959 555

Grand Total** 22,537 17,166 33,463 27,579 65,911 68,323 87,572 134,734 119,491 99,554 51,423

for both continuous and intermittent power excludes factory own bagasse used for exported power.

Source: Annual Reports - Mauritius Sugar Authority

The evolution of bagasse transferred for power generation is shown in Table 4. It is observed that the tonnage was around 22,500 tonnes initially and peaked at around 135,000 tonnes in 1995. It decreased due to the implementation of the continuous power plants as well as the firm ones at the various sugar factory sites, and a lesser amount of bagasse was being transferred. This value would become negligible over time with the implementation of all the projects. This trend is evident in the table below which shows the total equivalent bagasse used for energy generation. It increased by two and a half fold over the 10year period. Table 5 Evolution of Tonnage of Bagasse Used for Electricity Generation
1988 Firm Continuous Intermittent TOTAL 93,256 49,000 34,000 176,256 1992 113,726 70,000 18,028 201,754 1998 254,000 272,032 10,000 536,032

Source: Commercial Scale Cogeneration of Bagasse Energy in Mauritius

It can thus be seen from the figures presented in Table 5 that the policy measures enacted over the period have had a direct incidence on the development of electricity generation from bagasse in Mauritius. There is room for further development and this has positive incidence on the environment as indicated. The evolution of electricity cogenerated from bagasse over the period 1988-1998 is shown in Table 6. The impact of the various measures is quite evident as from 1996 when all constraints to development were identified and attended to.
Bagasse-Based Cogeneration in Mauritius 21

Table 6
Year

Evolution of Cogeneration (1988-1998)


Cogeneration Bagasse Installed Capacity 42 42 42 42 43 43 43 43 53 90 GWh 56 53 70 84 70 76 81 110 125 225* Coal GWh 68 45 54 43 40 46 41 10 23 62 Installed Capacity 270 270 294 284 308 308 332 332 370 397 GWh 589 668 738 808 870 945 1047 1151 1252 1365 Installed Capacity 15.6 14.3 14.3 14.8 14.0 14.0 13.0 13.0 14.3 22.7 GWh 9,5 7,9 9,5 10,5 8,2 8,1 8,0 10,3 10,0 16,5 Total Bagasse %

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

* includes 30 GWh produced in 1999 from crop bagasse. Source: CEB reports Commercial Scale Cogeneration of Bagasse Energy in Mauritius

4.2

Future Potential of Bagasse Energy in Mauritius (2000-2010)

In an era of globalisation, it is useful to compare performance with other countries. The centralisation process is over in Runion Island and only two factories are in operation, each processing around 900,000 tonnes of cane annually. Each factory is equipped with 2 X 30 - 35 MW power plant operating at around 82 bars. These units are now exporting 110 kWh of electricity per tonne of cane. In Mauritius, even after implementation of the projects by the year 2000, the value would reach only 60 kWh per tonne of cane and is well below that obtained in Runion. Several reasons have been identified: The seven continuous power plants operate at 20-30 bars pressure, The two firm power plants operate at 46 bars, Only one firm power plant (Belle Vue) will be operating at 83 bars, The bagasse potential of the 4 factories in Mauritius has so far remained almost totally untapped. The exhaust steam consumption is around 450 kg per tonne of cane and it can over time reduce significantly. The value in the beet sugar industry is around 300 kg. With further centralisation of cane milling activities, improvement in exhaust steam in cane processing, upgrading the efficiency of the power plants by adopting operating pressures of 82 bars and use of cane field residues as supplementary boiler fuel, it can be safely said that 800 GWh of electricity can be exported to the grid. This is more than twice the current amount. Additional cane power may become possible upon successful transfer of wood gasification technology to bagasse and subsequently to other sugar cane biomass fractions. As a first step, the pyrolysis behaviour of such resources was studied in Mauritius and more extensive research is currently under way in Australia.

Bagasse-Based Cogeneration in Mauritius

22

4.3

Bagasse Energy and the Future of the Sugar Industry

The challenges looming ahead for the sugar industry are daunting. In the local context, the cost of production is increasing and in the international scene, sugar prices are decreasing. These will impact negatively on the industry if measures are not taken to mitigate these effects. Factory modernisation, centralisation and optimisation of use of by-products, are measures that will ensure long-term viability of the industry. Bagasse energy development projects are linked with factory modernisation, in that boilers, turbo alternators and other energy efficient equipment represent a major proportion (up to 50%) of the cost of a factory. Embarking on an energy project ensures that this part of the investment, (useful life of 25 years) crucial to sugar processing, is financed independently of sugar activities. Besides, the sale of electricity increases the revenue of the sugar companies. The link of energy projects to centralisation brings about reduction in cost of production. By the year 2000, the number of cane sugar factories had decreased to 14 compared to 21 in 1985. Centralisation would continue in the next 5-10 years and this will be associated with further investments in efficient power plants.

Bagasse-Based Cogeneration in Mauritius

23

5.0

Key Factors Influencing Development of Cogeneration in Mauritius

F
5.1

or cogeneration to be successful in any country, there are key factors that need to be addressed by the respective Governments and stakeholders. Mauritius has taken steps in addressing the following issues.

Assessment of Bagasse Energy Potential

In assessing the potential amount of power and energy that can be exported, the following data relating to factory operation had been taken into consideration and carefully evaluated: The annual cane production (average and range); The cane quality, in particular the evolution in fibre content, brix of juice and syrup along the crop season; The energy consumption of the prime movers and process equipment both during normal operating conditions and during transient stoppages and start ups as a consequence of breakdowns, week end and end of year shut downs, switching off of mill tandem but continuation of boiling house operation, boiler switching-on, and end of year liquidation period; Bagacillo requirement in mud filtration station; The steam requirement for processing.

An evaluation taking on-board above parameters enabled the cogenerator to arrive at a reliable estimate of bagasse and steam on a weekly basis and hence the amount of power and energy that can be made available for export to the grid over the crop period. It also enabled them to decide on the amount of additional bagasse that had to be imported or saved weekly over the crop to cater for variation in fibre (and hence bagasse) along the crop. The utility company, on the other hand, required the IPP to provide service of sufficient quality that is safe and reliable delivery with minimum disruption to the utility and its consumers. The IPP had to receive reasonable revenue for power sold to the CEB. Once the above conditions were clearly understood by the contracting parties, the decision to implement projects was taken upon agreement on a detailed contract.

5.2

Impact on Bagasse Saving

The evolution of bagasse saved and sold to firm power plants is shown in Table 7 below. Table 7
Factory DRBC Beau Plan Belle Vue Constance MDA Mon Loisir Britannia Riche en Eau 1988 6,844 0 90 8,506 897 0 0 0

Evolution of Bagasse (In Tonnes) Saved and Sold to Firm Power Plants
1989 2,120 0 12,810 0 0 0 0 1990 1,633 0 9,875 15,808 132 158 0 1991 6,605 277 248 7,281 2,342 1,160 10 1,384 1992 13,650 0 7,688 14,980 7,992 8,749 0 3,995 1993 15,914 54 6,457 18,495 4,012 10,377 1,742 223 1994 7,955 72 7,081 20,219 9,687 26,632 644 0 1995 18,257 303 42,962 20,904 19,618 20,546 596 0 1996 15,364 3,897 43,768 23,841 15,355 6,676 48 0 1997 0 4,155 40,916 24,906 0 13,405 1,101 0 1998 0 6,106 28,524 0 0 0 1,239 0

Bagasse-Based Cogeneration in Mauritius

24

It is evident that the policy measures enacted over the past decade and the favourable response of the sugar industry in implementing energy saving measures has had a positive incidence on bagasse saved. It is observed from the table before that Beau Plan, Constance and Britannia saved an increasing amount of bagasse over the years to benefit from the relief granted on export duty payable but did not invest in bagasse power plant. On the other hand, the other factories, after having invested in energy conservation measures in the factory, went into energy cogeneration. DRBC erected a power plant in 1997, Belle Vue in 1999, MDA in 1997 and Riche en Eau as from 1994.

5.3

Emergence of the Cane Sugar Industry as Independent Power Producers

The electrical power sector in Mauritius is, from a structural standpoint, quite similar to the ones in countries based on a free market economy. The key partners in this area are the Government acting through the Ministry of Public Utilities, the Central Electricity Board, as an autonomous parastatal body, and Independent Power Producers (IPP). As pointed out earlier, the CEB, created in 1964, has had a virtually monopolistic position in generation, transmission and distribution of electrical energy islandwide and is still to-day playing a predominant role in all these three activities. However, over the past 15 years or so, there has been significant development of the IPPs essentially located within the sugar industry where it was felt that considerable potential for bagasse based energy exists. The declared Government policy has thus been to fully exploit the bagasse energy and once the bagasse use is fully optimised, to further extend Independent Power Production to other players outside the ambit of the sugar industry. The factors, which are of relevance in this strategy of fully exploiting bagasse energy, are as follows: 90% of the countrys energy needs are met by imports and therefore exploitation of locally available resources would reduce such imports. The clear policy of the successive Governments to give their full support to the Sugar Industry fits in the strategy of sugar factory modernisation programme wherein obsolete equipment and machinery have to be replaced by more efficient ones. The rapid growth in Power and Energy demand equivalent to an annual average increase of nine to ten percent over a period of 12 consecutive years, starting from 1986; The need to replace generating plants in the CEB diesel based power stations which have reached the end of their useful life. The financial incidence of the huge investment made by the public sector in a context where electrical energy tariffs were declining in real terms, and were adversely affecting the financial situation. The emergence of concerns on environmental impact of new generating plants and more particularly emission of the so-called greenhouse gases leading to Government commitment in international forum to undertake mitigation measures in the energy sector. The development of new technologies with enhanced possibilities of energy conversion and energy use. The necessity of having a diversified energy base from a strategic standpoint following successive oil crisis and the Gulf war. The favourable impacts on grid interfacing with regard to diverse geographic location of generating plants islandwide and spinning reserve response associated with conventional boiler technology.

The successful commissioning in 1985 and subsequent operation of the first independent firm power plant at FUEL, with a boiler operating at 44 bars and 440oC was a significant milestone in Mauritius and both in the Indian and African continent for a sugar-based power producer. This source of electricity supply
Bagasse-Based Cogeneration in Mauritius 25

proved to a safe and reliable one in that there was minimum disruption to the CEB and its consumers. 5.3.1 Power Purchase Agreements Implementation of a cogeneration unit requires that the sugar manufacturing activity be co-ordinated with the electrical utility company. There is, thus, a contractual relationship between the two parties in what is known as a power purchase agreement (or power supply/purchase agreement) which binds the two parties. Such agreements last over a relatively long period and this period is linked to the useful life of the power plant (that is, the boiler and turbo alternator) which is normally 20 to 30 years. Hence, the cogenerator should be extremely careful when entering into the contractual agreement with the utility. In Mauritius, each power plant, be it in either the continuous or the firm operating mode, has a distinct contract. The six continuous power plants located at sugar factories at Union St Aubin, Savannah, Mon Tresor Mon Desert, Riche en Eau, Mon Desert Alma and Mon Loisir, have a similar power-purchase agreement. The salient features of the contract are as follows: (i) (ii) (iii) (iv) The duration of the contract has set at 15 years and became effective in 1997/98 with provision for extension for additional periods of 5 years upon mutual agreement. Energy is to be supplied using bagasse only as the combustible. Both parties agree that a minimum of 16 GWh of energy would be supplied/purchased every year. The minimum continuous power to be exported to the grid is 4.5 MW during the crop season and 10.5 MW for 20 days after end of crop. The price was set at Rs1.05 and is indexed as from crop 1997 taking into consideration the CIF price of fuel oil in the 2 preceding years. A bagasse transfer price is, in addition, paid by the CEB. There is a provision for Force Majeure or an event year like cyclone or drought when cane (and hence bagasse production) is decreased. The power intake during the daily off peak period (01.00 to 05.00 hours) is set at 3.5 MW and 5 MW thereafter. The contract also specifies mode of payment, compensation for energy imported by the sugar factory during stoppages, metering of energy exported as well as power output, interruption of supply due to breakdowns and method for resolution of disputes. Payment of a bonus of Rs1.0 million for minimum power guaranteed by the power company and as a counterpart, payment of a penalty (Rs1.0 million as a maximum) in case of default like power output reduction.

(v) (vi) (vii)

(viii)

In the firm power purchase contracts for Consolidated Energy Ltd (CEL) at Beau Champ and FUEL power plants, most of the above elements have been taken on board with the following modifications: (i) (ii) (iii) The duration of the agreement is 18 years with the same provision for renewal. 80 GWh of energy is purchased by CEB out of which 45 GWh as a minimum originates from bagasse. With respect to minimum power, 11 MW is as semi-base load, 17 MW as peaking power for 2 hours during evening peak (18.00 to 20.00 hours) in October and November. During the intercrops and Sundays and public holidays, 13 MW is on semibase load, 18 MW as peaking power. On the issue of prices and indexation, the minimum kWh from coal in 1997 was priced at Rs1.43. The minimum kWh price of bagasse is split into 2 components - Rs1.265 paid to the company and Rs0.225 paid as bagasse transfer price. The kWh prices are indexed taking into consideration the coal price, the US $/Rupee exchange rate and to a lesser extent, the ECU/rupee exchange rate and finally the consumer price index in Mauritius.
26

(iv)

Bagasse-Based Cogeneration in Mauritius

(v)

Provisions have also been made for mode of payment, purchase of coal by open international tendering, separate metering of the energy from the two combustibles - coal and bagasse, catering for a force Majeure situation, interruptions of supply, environmental compliance and handling contract disputes. Given that the plant is in operation throughout the year, allowance of 45 days per year is made for scheduled maintenance, and, in addition, scheduled stoppages - 2 per month each of 24 hours duration upon mutual consent. These stoppages are defined in more details for the FUEL power plant. However, penalties are applicable for outages and output reductions.

(vi)

(vii)

The firm power plant at Belle Vue consists of 2 units, each one consisting of a boiler and a matching turboalternator. The power purchase agreement is based along the same principles as the ones outlined earlier but, given that it involves international funding participants, the terms of the contract, which is a document of around 140 pages, are described in more details. However, the duration of the contract is 20 years. The kWh price, which is set at Rs1.43 for coal and Rs1.59 for bagasse, is indexed on, inter alia, the preoperational phase on the basis of cost of erection and during the operation when the cost of production is taken on board. Furthermore, the tariff for the first 12 years of operation during which the debt is being serviced is different from that applicable during the rest of the useful life of the power plant. In this contract, there is an agreement between the firm power company and the milling company for swapping of bagasse and condensate from the sugar factory in exchange for steam and electricity on specific terms and conditions.

5.4

Bagasse Energy Development and Its Impact on the Environment

In a world where growing concern is being expressed on global warming and its impact on climate change, energy generation cannot be dissociated with environmental considerations. In Mauritius, the issue of environment with respect bagasse energy was given prominence by the World Bank BEDP project. The sugarcane plant, being one of the most efficient converters of solar energy into biomass, has been termed a carbon dioxide cleaner in that it absorbs atmospheric carbon dioxide and fixes it into biomass via photosynthesis. The two major components of the sugarcane plant are the sugar fraction and the fibre fraction, the latter being the biggest constituent of bagasse. The bagasse generates carbon dioxide on combustion as well as thermal energy. The bagasse has, in any case, to be disposed-of, otherwise it is a nuisance and incineration is the most commonly adopted means of disposal. This implies that, in any scenario, carbon dioxide is the end product and this is a greenhouse gas. Its negative effect on the ozone layer is well known. Hence burning the bagasse for energy generation is beneficial to the environment, given that this energy would have otherwise been produced from greenhouse producing fossil fuel. The impact of bagasse energy projects in Mauritius on the environment has been quantified and it has been shown that in the short term (2003), the bagasse energy projects would avoid the use of 215,000 tonnes of coal, the emission of 650,000 tonnes of CO2 and the generation of 35,000 tonnes of coal ash. In the longer term when the target of 110 kWh per tonne of cane in energy projects would be achieved, the figures will be 375,000 tonnes of coal, 1,130,000 tonnes of CO2 and 60,000 tonnes of coal ash.

5.5

Institutional Development

The first major concerted effort to address the issue of bagasse energy development was the setting up in 1991 of a high powered committee chaired by the Minister of Agriculture and with members comprising of the Ministers of Energy, Finance and Economic Planning and Development. High officials from the various Ministries and from the private sector including the Joint Economic Council and the Mauritius Chamber of Agriculture also participated in the formulation of the policy and projects destined to Bagasse Energy Development. The World Bank also provided support to the Committee.
Bagasse-Based Cogeneration in Mauritius 27

However, the most significant development occurred with the setting up of a Technical Committee at the Ministry of Public Utilities in 1995. This Committee was chaired by the Secretary for Energy and comprised of high officials from the Mauritius Sugar Authority, the Central Electricity Board, Ministry of Finance and Ministry of Economic Planning and Development. It was set up to address the delays in the implementation of the bagasse energy projects. All requests by the IPP were channelled to this Committee which carried out a thorough appraisal of the proposals and facilitated the utility and IPP to enter into contractual agreements after clearing all issues, with the Government being appraised throughout on the developments.

5.6

Human Resource Development and Retention

The sugar industry in Mauritius, with its 19 sugar factories, has built up over the years a mass of professional managers and engineers, the latter dealing with energy generation and use in sugar cane processing. Such a situation has enabled the successful implementation of bagasse energy projects and operation of the power plants. Local institutions have been able to provide training of the personnel required at all levels starting from skilled labour in welding, electrical installations, mechanics to professional engineers. The University of Mauritius was established in the early 70s after being upgraded from a College of Agriculture, which had been offering mainly diploma courses in Sugar Technology and Agriculture a long time back. The University of Mauritius has been providing a pool of engineers initially trained at diploma level in electrical, mechanical, civil engineering and sugar technology and subsequently offered degree course in these subjects. Many of these engineers joined the sugar industry and have learnt cogeneration while on-the-job and are occupying key positions in the sugar factory and power plants. A number of the Mauritian engineers have also received their initial training in institutions like the Louisiana State University, Baton Rouge, USA, which is well known in the sugar industry. Mauritius as an ACP sugar producer sells its sugar at a remunerative price to the EU under the sugar protocol and has nearly always been able to maintain its production to a level that it maximises its revenue from sugar sale. The industry has thus always been able to offer an attractive salary package and fringe benefits and this has enabled the industry to retain a significant number of the senior professionals in the industry. For continuous power plants, the existing personnel with minimal appropriate training could cope with this new activity within the sugar factory given that such personnel were familiar with the operation of the boiler and turboalternator for sugar processing as well as export of intermittent electricity. The personnel to operate the firm power plants especially the ones working at a pressure of 82 bars and having a higher degree of sophistication require a team of operators with a highly specialised skill. Such personnel consist of shift engineers, boiler water treatment specialist, automatic control engineers, pipe and valve fitters, welders, turboalternator fitters and electricians. For the power plants, operating at 44 bars, expertise was developed locally in that the plant at FUEL was fully operational over the past 15 years or so. Hence the requisite nucleus of trained personnel was available. Table 8 below presents a breakdown of the personnel operating the 3 firm power plants. It is observed that the most sophisticated power plant, which has adopted a high degree of automation, requires 0.5 person per MW installed capacity and the least sophisticated 1.5.

Bagasse-Based Cogeneration in Mauritius

28

Table 8

Manpower Requirement for Firm Power Plant


DRBC Manager Assistant Manager Engineers Shift Supervisor Boiler Attendant Turbo Alternator Operator Mechanic Electrician Combustion Attendant Inc clarification Combustible handling attendant Driver (furnace ash + Health and safety van) 3 3 3 4 3 3 3 3 6 5 1 1 CTBV 1 1 3 20 5 9 9 3 3 6 6 6 6 FUEL 1 1

Day operation Water treatment Lubrication Cleaning TOTAL Average per MW installed capacity 1 1 3 32 1.1 38 0.5 4 60 1.5 2 1

Bagasse-Based Cogeneration in Mauritius

29

6.0

Replication Opportunities of Bagasse Energy Projects

ith the successful demonstration of the bagasse energy projects in Mauritius, opportunities are now offered to other cane sugar producing countries to replicate or adapt such projects. In addition, Mauritius is well positioned to share its experience given the wide range of technical options available. These options include continuous power plants, seven in number using boilers operating at pressures between 24-31 bars to generate steam. This stream is fed into condensing-extraction turboalternators in a variety of set-up taking into consideration energy requirement of sugar cane processing and existing infrastructure, the efficiency of energy use and energy generation in the most financially beneficial manner. In addition, the wide range of firm power plants (3 in number) based on boilers generating steam at pressures of 44 bars and 83 bars and equipped with matching condensingextraction turboalternators. All these plants are located within an area of around 1,850 km2 and are thus easily accessible.

6.1

Indian Sugar Industry

Sharing of the Mauritian experience to the outside world has already started. The Mauritius Sugar Authority, in collaboration with a local training institution, the RASITC (Robert Antoine Sugar Industry Training Centre), has already organised a one-week training programme on sugar mill cogeneration meant for a group of sugar technologists and engineers from India. This programme was sponsored by the USAID/Winrock International. It is known that India is one of the largest sugarcane producing countries with a production of around 2025 million tonnes obtained from processing around 200-300 million tonnes of cane. Hence, a significant potential of cogeneration of energy exists from sugar cane bagasse. This issue is currently being extensively addressed.

6.2

Cane Sugar Industry in Southern and Eastern African Region

Table 9 shows the statistics on cane production for South Africa, Swaziland, Malawi and Zimbabwe. It is observed that most (if not all) of the sugar factories have a crushing capacity which is well suited for retrofitting a cogeneration unit. In addition, the factories utilise cane diffusion technology (implying high imbibition water requirement) in their sugar recovery process. This technology is known to require less high-pressure steam and electrical power for the prime movers. Besides, cane processing lasts for a relatively longer period, over 250 days in a number of cases. This implies that less coal or other complementary fuel (normally of fossil origin) would be required for year-round or firm power generation. Moreover, the fibre content in cane is around 15% and the bagasse content is 31% with moisture content of 51%. The moisture content is on the higher side but can be reduced by improving the bagasse dewatering process. This measure will also improve the net calorific value (NCV) of the bagasse currently around 6,500-7,500 KJ/kg. In Mauritius, the bagasse at 48% moisture has a NCV of around 8,000 KJ/kg. The potential energy that can be exported to the grid from the sugarcane factories depends on the technology adopted. For continuous power plants in Mauritius generating steam at around 25 to 31 bars, the current level of efficiency is around 50 kWh/tonne cane. For units operating at a steam pressure of 44 bars, around 80 kWh/tonne cane of electricity is exported and in the most sophisticated installation operating at 82 bars pressure, about 110 kWh/tonne cane of electricity is exported. These values have been used in quantifying the potential of energy that can be exported from countries in these regions. In the case of Mozambique, from 1978/79, two factories were in operation to process around 550,000 tonnes of cane to produce 56,000 tonnes of sugar. However, over the past decade, the production was around 27,000 tonnes of sugar. It is anticipated that with the rehabilitation process presently underway, the cane production may reach 550,000 tonnes or more. In the case of Kenya, sugar production has been around 450,000 tonnes and cane production can range between 4 to 4.5 million tonnes. In the computation of cogeneration potential for these two countries, the cane production estimates of 550,000 tonnes and 4.5 million tonnes respectively have been used.

Bagasse-Based Cogeneration in Mauritius

30

From Table 10, it is observed that around 50 million tonnes of cane are produced annually in the Southern and Eastern African region. In addition, depending on the option of power plant operating mode chosen (continuous or firm), between 2,500 to 5,500 GWh of electricity can potentially be exported to the national grid. The sugarcane industry in the African continent produces 8.3 million tonnes of sugar. Cane production can be assumed to be 83 million tonnes and hence the electricity export can potentially reach 8,300 GWh using the latest state-of-the-art technology for the entire continent. Table 10 shows the cogeneration potential in the Southern and Eastern African Region computed on the basis of data obtained from the region, and the conversion efficiency obtained in the most sophisticated installation in Mauritius. It is seen that the sugarcane industry has a potential of 5,886 GWh of electricity export to the grid and this represents 2.8% of the total amount of electricity generated in that region. Table 9 Potential for Bagasse Energy Development in the Southern and Eastern African Region Crop 1998
Country & Factory TCH Total 6 Cane x 10 Crushing days Fibre content in cane (%) 14.80 14.44 14.27 14.71 14.01 14.92 15.39 15.18 14.85 14.75 13.96 12.90 13.90 15.05 14.92 14.66 14.90 14.28 12.44 15.46 15.28 15.29 14.45 Bagasse content in cane (%) 32.60 27.28 29.28 30.64 29.00 31.95 30.77 30.73 33.40 30.40 27.62 29.12 28.18 29.91 32.00 30.42 30.70 28.70 24.67 34.24 29.17 30.73 31.02 Imbibition as a % of fibre 356 295 295 351 368 352 394 318 335 291 265 292 387 369 437 343 364 337 321 290 312 296 365 Moisture content of bagasse 52.96 45.31 49.65 51.43 52.79 51.97 49.89 51.07 54.13 50.71 50.55 54.00 50.68 48.30 52.55 51.00 50.39 49.94 50.11 52.23 45.74 48.54 51.44 NCV bagasse

South African Mills ML 320 KM 250 PG 235 UF 286 EN 96 FX 537 AK 355 DL 320 MS 419 GH 297 NB 289 UC 144 ES 256 SZ 445 UK 255 Industry 296 Swaziland MH 283 UB 307 SM 296 Malawi NH 250 DW 158 Zimbabwe HV 422 TR 480 South Africa ML Malelane KM Komati PG Pongola UF Umfolozi EN Entumeni Swaziland MH Mhlume Malawi NH

1.71 1.41 1.19 1.23 0.46 2.18 1.73 1.47 2.08 1.59 1.72 0.83 1.43 2.52 1.39 22.93 1.26 1.53 1.08 1.10 0.68 2.33 2.45

301 294 276 235 261 213 241 241 245 268 288 288 275 272 283 328 255 246 236 249 202 261 273

6,359 8,025 7,105 6,529 6,782 6,774 7,459 6,693 7,287 6,530 6,677 7,375 6,619 6,958 7118 7282 7812 -

FX AK DL MS GH UB

Felixton Amatikulu Dornall Maidstone Gledhow Ubombo Ranches DW Dwangwa

NB UC ES SZ UK SM

Noordberg Union Co-op. Sezela Umzimkulu Sinunye

Sugar Corp. of Malawi, Nchalo TR

Zimbabwe HV Hippo Valley

Triangle

Bagasse-Based Cogeneration in Mauritius

31

Table 10

Potential Electricity Export (GWh) from Bagasse in Countries of Southern and Eastern African Region
Annual Cane Production x 106 1.71 1.41 1.19 1.23 0.46 2.18 1.73 1.47 2.08 1.59 1.72 0.83 1.43 2.52 1.39 22.93 2.83 3.07 2.96 Malawi Continuous Power @ 50 kWh/TC South Africa Firm power @ 44 bars & 80 kWh/TC Firm Power @ 82 bars 110 kWh/TC

Country and Factory

ML KM PG UF EN FX AK DL MS GH NB UC ES SZ UK Industry MH UB SM

85.5 70.5 59.5 61.5 23.0 109.0 86.5 73.5 104.0 79.5 86.0 41.5 71.5 126.0 69.5 1,146.5 Swaziland 141.5 153.5 148.0

136.8 112.8 95.2 98.4 36,8 174.4 138.4 117.6 166.4 127.2 137.6 66.4 114.4 201.6 111.2 1,834.4 226.4 245.6 236.8

188.1 155.1 130.9 135.3 50.6 239.8 190.3 161.7 228.8 174.9 189.2 91.3 157.3 277.2 152.9 2,522.3 311.3 337.7 325.6

NH DW HV TR

2.50 1.58 Zimbabwe 4.22 4.80

125.0 79.0 211.0 240.0 Mozambique

200.0 126.4 337.6 384.0

275.0 173.8 464.2 528.0

0.55 Kenya 4.50 Mauritus 5.80 Grand Total 55.74

27.5

44.0

60.5

225.0

360.0

495.0

290.0 2,787.0

464.0 4,459.2

638.0 6,134.4

Bagasse-Based Cogeneration in Mauritius

32

Table 11

Cogeneration Potential in Southern and Eastern African Region


Installed Capacity GWh Generated - 1996 33 417 821 216 189 361 30 39,951 700 517 174 1,966 120 1,330 4,119 610 8,599 1,151 160 179,444 1,330 1,740 1,131 7,830 207,564 Bagasse X 3 10 tonnes (1994) 40 600 1,072 272 695 1,910 8 7,338 1,663 424 163 1,708 15,893 Cogeneration Potential GWh 14 220 393 100 259 710 3 2,720 616 157 61 633 5,886 % 11.7 16.5 9.5 16.4 3.0 61.7 1.9 1.5 46.3 9.0 5.4 8.1 2.9

Burundi Ethiopia Kenya Madagascar Malawi Mauritius Rwanda South Africa Sudan Tanzania Uganda Zimbabwe Total

Assuming bagasse % cane = 30 and kWh/tonne cane = 110

Bagasse-Based Cogeneration in Mauritius

33

7.0

Key Lessons for Eastern and Southern African Countries

F
7.1

ollowing the success of cogeneration in Mauritius, there are lessons that could be learnt by other sugarcane-producing African countries. This is especially if they are considering diversifying the source of power. Outlined below are key lessons that have led to the successful implementation of cogeneration in Mautirius.

Action Plan for Implementation of Bagasse Energy Development Programme

In implementation of bagasse energy projects, the following Action Plan is being proposed on the basis of the Mauritian experience of BEDP. (1) Government Policy (2) (3) Renewable energy development Use of bagasse for energy

Sugar Industry - Evaluation of energy requirement for sugar cane processing + quantification of bagasse availability and its energy potential. Public Utility Energy Demand of the country and quality of energy e.g. base load or peak load. Bagasse energy generation can meet only base load demand.

(4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

Memorandum of Understanding between utility and sugar company Conduct of Feasibility Study Power Purchase Agreement (PPA) between the two parties Investment using PPA as bank guarantee for loan Project detailed design Issue of tenders Evaluation of tenders Award of Contract Erection and Commissioning Operation

7.2

Prioritising Policy Measures for the Successful BEDP in Mauritius

In case the policy measures have to be prioritised based on the success recorded in the Mauritian BEDP, it can take the following order: Incentives for efficient use and conservation of energy in sugar cane processing to generate surplus bagasse. Facilitation for financing bagasse energy projects and appropriate tax regime.

Bagasse-Based Cogeneration in Mauritius

34

Centralisation of cane milling activities linked with bagasse energy generation to enable availability of enough cane (and hence bagasse) at a given site to match with size of power plant (35 MW as a minimum). Bagasse energy pricing and setting up of an independent Technical Committee under the Ministry of Public Utilities to evaluate proposals and act as a facilitator between the utility and power companies.

7.3

Legal Requirement for Setting Up of an Independent Power Producer (IPP)

In Mauritius, there is at present no consolidated legislation on the specific issue of an IPP, but there is an on-going exercise to set up a regulatory body on this issue. Hence, whatever development has occurred with respect to bagasse energy co-generation has largely been based on existing legislations, namely The Electricity Act (1939), The Central Electricity Board Act (1964), and The Concession Projects Act (1997). The relevant parts of the Acts are given below. 7.3.1 The Electricity Act (1939)

As per the Electricity Act, undertakers wishing to establish undertakings for the supply of electricity for public and private purposes and for the supply of electricity in bulk shall first apply to the CEB for a permit to act as an undertaker. Such applications when being considered favourably has to be published in the Government Gazette and objections, if any, by any party, with reasons for same are sent to the CEB. After consideration of the application and of any objections, the CEB may, subject to the approval of the President of the Republic of Mauritius, refuse to grant a permit or may issue a permit on such terms and conditions as it thinks fit and for periods not exceeding 20 years. The undertaker shall within 12 months of approval begin the supply of energy. 7.3.2 The Central Electricity Board Act (1964)

The Central Electricity Board (CEB) is responsible for the control and development of the electricity supplies generally in Mauritius and is thus responsible for the grant of a licence to the undertaker for the supply and distribution of electricity. The CEB is empowered to prepare and carry out development schemes with the general object of promoting, co-ordinating and improving the generation, transmission, distribution and sale of electricity for all purposes throughout Mauritius as required. 7.3.3 The Concession Projects Act (1997)

All the cogeneration projects in Mauritius except the one at Belle Vue have been based on the above legislations and the relevant power supply/purchase agreement. This is the CTBV firm power project involving foreign participation and investment of around US $100 million, which was based on the recently promulgated Concession Projects Act of 1997. It has been based on the concept of BOO (Build, Own and Operate) Scheme. Electric power generation, transmission and distribution is one of the projects eligible to be implemented under the provisions of this Act. This Act makes provision for the creation of a Concession Projects Division, sets out the rules and regulation for project implementation and the establishment of a one-stop shop to deal with applications within 4 weeks.

7.4

Investment Requirement in Bagasse Energy Cogeneration in Mauritius

As discussed earlier, the cane sugar factories in Mauritius were induced by a series of policy measures to invest in improvement in energy utilisation and conservation coupled with adoption of continuous and automated sugar cane processing technologies. These investments were carried over a 3-6 year period at the end of which the investment in the power plant itself was made. In the case of the continuous power plants, most of the factories upgraded their existing boilers and one acquired a good second boiler. With respect to the turboalternator, most of the factories opted for a new
Bagasse-Based Cogeneration in Mauritius 35

one and a few ordered second hand equipment. Table 12 shows the investment made by sugar companies in such plants.

Table 12

Investment in Continuous Power Plants (US $ x 106)


Union St Aubin Savannah 0.75 3.84 MTMD 0.77 2.69

Sugar factory process improvement and electrification of prime movers Boiler and Turboalternator

0.54 4.04

With respect to the firm power plants, a similar approach was adopted in energy for sugar cane processing and the power plant. The investments made in the implementation of the project are given in Table 13. Table 13 Investment in Firm Power Plants (US $ x 106)
FUEL 0.9 13.1 DRBC 10.5 21.7 CTBV 11.5 100

Sugar factory process improvement and electrification of prime movers Boiler and Turboalternator

This 24.6 MW unit of the power plant was a second hand one acquired from a sugar factory (Beau Fond) in Reunion and its original cost was US $12 million (US $500 per installed kW).

Bagasse-Based Cogeneration in Mauritius

36

8.0

Concluding Remarks

his study clearly demonstrates that sugarcane bagasse, a renewable energy resource available in sugarcane producing countries, has the commercial potential of generating power for the public grid through a range of processes shown to be technically and financially viable in Mauritius. Such a strategy fits in the worlds commitment of promoting renewable energy development to reduce greenhouse gas emissions as well as reduce global warming. The Bagasse Energy Development Programme in Mauritius, which has been facilitated by a series of policy measures and incentives provided by Government, has to a great extent achieved the set objectives of: (i) (ii) (iii) (iv) Diversifying the energy base of the country; Enabling the rehabilitation, modernisation and centralisation of cane processing operations; Saving on fossil fuel which would have otherwise been imported; and Reducing the emission of greenhouse gases, mainly CO2.

By the end of the year 2001, 360 GWh of electricity should be generated from bagasse obtained from 5.5 million tonnes of cane processed annually in Mauritius. Concurrently, around 215,000 tonnes of coal, 35,000 tonnes of coal ash and emission of 650,000 tonnes of CO2 should be avoided. There is, however, further room for development, in that, there is the potential of generating 110 kWh/tonne of cane using state-of-the-art proven technology as in Runion and at Belle Vue in Mauritius, whereby the Mauritian sugar industry can export 600 GWh of electricity from bagasse to the grid with further environmental benefits. Additional potential exists in the form of canefield residues for export of power to the grid. Enhanced power generation through gasification could become possible if the current extensive research being undertaken on this issue proves successful. With the success demonstrated in the Mauritian context, opportunities are offered for replication or adaptation of cogeneration projects elsewhere in other sugarcane producing countries. This would allow such countries to substitute a readily available renewable biomass for imported fossil fuel, while ensuing economic benefits to the country, financial benefits to the sugar industry and positive environmental consequences in terms of greenhouse gas emissions and global warming. On the basis of experience acquired in Mauritius, with 50 million tonnes of cane processed annually in sugarcane producing countries of the Southern and Eastern African region, it is potentially possible to export between 2,500 to 5,500 GWh of electricity to the public grid in those countries. This export will bring significant benefit to the improvement in the quality of life in the rural area where the sugar factories are normally located. The continuous power plants require the least investment (US $4 million for a 15MW) and the most sophisticated plant is the most expensive (US $110 million for 70MW). Manpower requirements also vary with the mode of operation of plant (continuous or firm) and the degree of sophistication including automation of operations.

Bagasse-Based Cogeneration in Mauritius

37

References
Anon (1999). Training Programme on Sugar Mill Cogeneration. Magazine of the Public Relations Office of the Sugar Industry, Sept, 368: 10-14. Anon (1998). Annual Report - Mauritius Sugar Industry Research Institute, Reduit, Mauritius Anon (1998). Proceedings of the South African Sugar Technologist Association, Durban, South Africa. Anon (1986). The Sugar Sector: Problems and Prospects, Report No. 5812-MAS. The World Bank, Washington D.C., USA. Anon (1979). Proceedings of the South African Sugar Technologist Association, Durban, South Africa. Anon (1978). Annual Report and Accounts - Central Electricity Board, Mauritius Bhagavan, M. R. (1996). Energy Utilities and Institutions in Africa. AFREPREN, Nairobi, and Zed Books, London. Central Electricity Board (1995), Annual Report 1995, Mauritius Deepchand K. (1987). A Note on the Pyrolysis Behaviour of Sugar Cane Fibrous Products. Biological Wastes, 20:203-208. Deepchand K. (1986). Economics of Electricity Production from Sugar Cane Tops and Leaves: A Preliminary Study. Int. Sug. JNL 88 (1055): 210-216. Hebrard, G. (1999), Personal Communication from CEB. Joyce, J.A. et al (1987). Gasification Technology for Large Scale Co-generation in the Australian Sugar Industry. Paper presented to the XXIII ISSCT Congress, New Delhi, India, 22-26 February 1999. Licht, L.O. (1998). World Sugar and Sweetener YearBook 1998/99. Mauritius Sugar Authority (1997), The Mauritius Sugar Authority Annual Report 1996-1997, Mauritius Ministry of Agriculture and Natural Resources (1991). Report of the High Powered Committee on Bagasse Energy Development Programme. Ministry of Agriculture, Fisheries and Natural Resources (1997), Blue Print on Centralisation of Sugar Milling Activities. United Nations (1994). Energy Statistics Yearbook. United Nations, New York. UEB (1997). The Third Report and Accounts of Uganda Electricity Board, UEB, Kampala. World Bank (1996). How do sub-Saharan African Utilities Compare? The World Bank, Washington DC.

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