Belize Presentation
Transcript of Belize Presentation
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COGENER TION
in
BELIZE
Diversifying the Sugar CaneIndustry
By
Robert Tillett
Chief Plant Engineer
Belize Sugar Industries Limited
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Presentation Outline
1. Contribution of the Sugar Industry to Belize
2. World Leaders in Sugar
3. Rationale for Cogeneration in Belize
4. Brief Project Description
5. 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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BSI Factory
7000 tons cane per day
300 tons cane per day
10000 tons PWS
110000 tons Commercial Sugar
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CONTRIBUTION OF SUG R
SECTOR
10 yr Avg 1995 - 2004
Numbers Employed 9672
EMPLOYMENT
As A Percentage of
National Working 13.0
Population
As A Percentage of
National Employment in 46.3
Agriculture
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CONTRIBUTION OF SUG R
SECTOR
10 yr Avg 1995 - 2004
ECONOMY
Sugar Industry Revenue
as % of GDP 7.8
Sugar Industry Revenue
as % of Total Agricultural
Production 56.9
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CONTRIBUTION OF SUG R
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 M il li on in the next 5 yr per iod.
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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 RiskFacing the Business through
Strategic Development
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Facilitators of Change
Industry Structure
Regulatory Framework Changes
Power Market Liberalization
Competitive Product Pricing
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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.
Exposure to increased freight, transport andinsurance cost
Threats to Existing Markets
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External Market Threats:
Successful WTOchallenge 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
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Cogeneration will help address
Belize Energy Sector Needs by:
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 Displacementof Fossil Fuel based Energyand Import Substitution
Prove the IPP Model and Regulatory Processes
Reduce Foreign Exchange Demand especially
long-term
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National Grids Generation Mix
Hydro, 17%
CFE, 63%
D&G, 20%
Hydro
CFE
D&G
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Projected Generation Mix with
Cogeneration
Hydro,
33%
CFE, 44%
COGEN,
22%
D&G, 1%
HydroCFE
COGEN
D&G
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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 byBelize 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 llocation of
Capacity and Energy Production
Grid IPP BSI Total
Capacity MW 13.5 2.5 9.0 25.0
Energy Supply GWh 106 18 44 168
Time Utilization % 90
Represent 20% of grid demand by 2009 and therefore must
be efficient, reliable, stable base load and environmentally
sound.
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Project DescriptionKey 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 (480deg C)
32.5MW Installed Capacity Cogeneration PowerPlant, 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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TG DG DG TG
Metering Protection Relay Ref
1
2
3
4 5
6
7 9
8 10
11
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Cogeneration - Environmental
Credentials
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
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Challenges to Project
Development
Still Viewed by Many as a New Niche Sector
Few Economies of Scale given most Plants in the 20
50MW Range
Significant Capital Investment, Total Project Cost US $1.4
2.0 Million/MW
Historically Renewable Energy Sources has not beencompetitive 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 PoorPerformance
Need Government Support and Political Will
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CARBON CREDITS
Carbon market undeveloped but expandingrapidly
Opportunity to Access Clean Development
Mechanism (CDM) Funds
Baseline Study to Quantify Carbon Creditsand project design documents are presently
being developed and funded by BELCOGEN
Valuation yet to be confirmed
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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
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 andExpansion of Market To Farmers
Establish Project Development Credentials
Amongst International Financiers for future
Diversification Initiatives
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This has been a presentation of
Cogeneration
in Belize
By
Robert Tillett
Chief Plant Engineer
Belize Sugar Industries Limited
Thanks for YourAttention!!!