COGENERATION

in
BELIZE
Diversifying the Sugar Cane
Industry

By
Robert Tillett
Chief Plant Engineer
Belize Sugar Industries Limited
11/18/2014

Presentation Outline
1.
2.
3.

4.
5.

Contribution of the Sugar Industry to Belize

World Leaders in Sugar
Rationale for Cogeneration in Belize
Brief Project Description
Challenges and Benefits of the Cogeneration Project

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Key Characteristic of the Belize

Sugar Cane Industry

Private Sector Led, Owned and Managed

Only one sugar factory processing 1.25 M tons of cane

Belize Sugar Industries, Limited is the Cane Processor

95% of cane is grown by independent cane farmers

Belize Cane Farmers Association represent 9000

Farmers

Government regulates through the Sugar Act of 2001

Belize is the Leader in the Caribbean: Lowest cost

producer and highest factory efficiency

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7000 tons cane per day

BSI Factory

300 tons cane per day

10000 tons PWS

110000 tons Commercial Sugar

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CONTRIBUTION OF SUGAR
SECTOR
10 yr Avg 1995 - 2004

Numbers Employed
EMPLOYMENT
As A Percentage of
National Working
Population
As A Percentage of
National Employment in
Agriculture
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9672

13.0

46.3

CONTRIBUTION OF SUGAR
SECTOR
10 yr Avg 1995 - 2004

ECONOMY

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Sugar Industry Revenue

as % of GDP

7.8

Sugar Industry Revenue

as % of Total Agricultural
Production

56.9

CONTRIBUTION OF SUGAR
SECTOR
10 yr Avg 1995 - 2004

FOREIGN EXCHANGE
EARNINGS

USD (Million)

42.1

% of Value of
Domestically
Produced Exports

26.7

% of Value of
Agriculture Exports

33.6

NB: Average Foreign Exchange Earnings projected to be

USD 44 Million in the next 5 yr period.
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Belize: 0.12
Million Tons

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Belize: 0.10
Million Tons

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Drivers for Change

Evolution of International Competitive
Market
Industry Stakeholders Vehicle for Increased
Economic and Financial Returns

Constant Need to Effectively Manage Risk

Facing the Business through
Strategic Development
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10

Facilitators of Change
Industry

Structure
Regulatory Framework Changes
Power Market Liberalization
Competitive Product Pricing

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11

Towards Diversification Cogeneration

The Sugar Industry in Belize remains

strong and viable, but is pursuing growth

opportunities
It has experienced Steady Cane Production
but there is scope for increased field
productivity
However Need to Mitigate the Impact of
External Shocks eg.

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Exposure to increased freight, transport and

insurance cost
Threats to Existing Markets
12

External Market Threats:

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Successful WTO challenge to EU

Regime by Australia, Brazil, and
Thailand
Loss in revenues due to EU price
reductions of 36% by July 1, 2009
General Market Trend - reduce price
but increase quality demand
Previous Oversupply of Sugar to the
World Market
13

Cogeneration will help address

Belize Energy Sector Needs by:

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Meeting Government National Security Interest to

reduce reliance on imported energy supply
Fulfilling Sector Policy of Promoting Renewable
Energy Sources
Provide much Needed additional Capacity and
Energy to the National Grid
Facilitate Displacement of Fossil Fuel based Energy
and Import Substitution
Prove the IPP Model and Regulatory Processes
Reduce Foreign Exchange Demand especially
long-term
14

National Grids Generation Mix

D&G, 20%

Hydro, 17%
Hydro
CFE
D&G
CFE, 63%

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15

Projected Generation Mix with

Cogeneration
D&G, 1%
COGEN,
22%

Hydro,
33%

Hydro
CFE
COGEN
D&G

CFE, 44%
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COGENERATION PROJECT OVERVIEW

Project is the initiative of BSI as Project Promoter
BSI has engaged Booker Tate as the Project Developer

Owned and Operated as a Private Sector Commercial Operation by

Belize Cogeneration Energy Limited (BELCOGEN)
Supply approximately 20% of the National Energy Demand by 2009 (15
years commercial PPA with BEL)

Generate Power and Steam to Supply Tower Hill Factory (20 years power
and steam agreement with BSI)
Commercial Operation Date December 2008

Financed by 55% Debt and 45% Equity

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Projected Allocation of
Capacity and Energy Production

Capacity

MW

Grid
13.5

Energy Supply

GWh

106

Time Utilization %

Represent 20% of grid demand by 2009 and therefore must

be efficient, reliable, stable base load and environmentally
sound.

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IPP
2.5

BSI
9.0

Total
25.0

18

44

168

90

18

Project Description

Key Project Technical Parameters

1.25 M tons of cane

430,000 tons of bagasse to IPP
585,000 tons of process steam to BSI
Two Boilers 90 t/hr, 900 psi (64 bar), 900 deg F (480
deg C)
32.5MW Installed Capacity Cogeneration Power
Plant, this includes:
Extracting Condensing Steam Turbine 15 MW
Back Pressure Steam Turbine 12.5 MW
Two Parallel HFO Generators each 2.5 MW

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Metering

TG

3
2

8
4

Relay Ref

TG

DG

DG

Protection

10
9

11

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Cogeneration - Environmental
Credentials

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Positive Environmental Impact and meets

World Bank Environmental Standards

Reduce Air pollution from stack emissions to

below 100 mg/normal meter cube

No Water Pollution from Cogeneration and

provide additional power to BSI for Water
Treatment

Rigorous Environmental Monitoring in

compliance with the Equator Principles
comprising Environmental Compliance, Social
Responsibility and Corporate Governance
21

Challenges to Project
Development

Still Viewed by Many as a New Niche Sector

Few Economies of Scale given most Plants in the 20 50
MW Range
Significant Capital Investment, Total Project Cost US $1.4
2.0 Million/MW
Historically Renewable Energy Sources has not been
competitive to Fossil Fuel Sources
Security of Fuel Supply bagasse is largely location
specific, while fossil fuel is a more unlimited commodity

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Challenges to Project
Development

Constraints on Finance Resources

Regulatory Process and Framework for IPP model
significant learning curve also having to compete with differing

energy sources

BELCOGEN is an Energy Sector Power Plant,

Independent of Sugar Sector

Change in Mindset
Robust Contractual Framework which Penalizes Poor
Performance

Need Government Support and Political Will

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CARBON CREDITS

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Carbon market undeveloped but expanding

rapidly

Opportunity to Access Clean Development

Mechanism (CDM) Funds

Baseline Study to Quantify Carbon Credits

and project design documents are presently
being developed and funded by BELCOGEN

Valuation yet to be confirmed

24

BSI Achievables
BSI must:

Be financially independent of BELCOGEN

Convert in a Single Repair Season 50-60 Hz
Be Steam and Power Efficient
Process 1.25 million tons of cane
Achieve 82% Overall Time Utilization
Achieve 47 tons fiber per hour

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Cogeneration will Strengthen the

Sugar Cane Industry

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Provide for Value Added Income To BSI

Provide opportunity for Sugar Industry
Expansion to Increase Throughput and to Add
Value
Provide Steam Thermal Energy
Provide Power & Electrical Energy
Provide Investment Opportunity, Security and
Expansion of Market To Farmers
Establish Project Development Credentials
Amongst International Financiers for future
Diversification Initiatives
26

This has been a presentation of

Cogeneration
in Belize
By

Robert Tillett
Chief Plant Engineer
Belize Sugar Industries Limited

Thanks for Your

Attention!!!
11/18/2014

27