Brazil Turns to Sugarcane Bagasse Power Generation

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Brazil Turning to Sugarcane Bagasse Power Generation to Reduce its Dependence on Hydropower

Cape Town – Brazil is increasingly turning to alternative power generation fuels such as biomass in order to increase electricity supply and reduce its dependence on hydropower. Biomass power represents around 4.1 percent of the total installed capacity in Brazil at present and most biomass cogeneration is based on sugarcane bagasse.

New analysis from Frost & Sullivan the growth partnership company (https://www.energy.frost.com), reveals that 3.0 GW of power was generated through the use of sugarcane bagasse in Brazil in 2007. This is expected to reach 12.2 GW in 2014.

“The Brazilian sugar and alcohol sector intends marketing surplus energy to the national grid,” notes Frost & Sullivan Industry Analyst Julio Campos. “This is leading the sector to invest in new technologies, including cogeneration equipment.”

There is a clear trend toward the implementation of boilers with higher steam-production capacity. New boilers and steam turbines with higher capacity and efficiency would substantially increase the electricity surplus the plants would be able to sell.

“The National Bank for Economic and Social Development (BNDES) has created several credit lines to finance power plants that requiree new equipment and upgrade in order to produce excess energy that can be sold to the national grid,” Campos says. “At present, there are 47 projects under BNDES and these have the potential to contribute 1.4 GW of cogenerated electricity to the national grid in 2008 and 2009.”

However, unattractive prices are discouraging companies looking to sell their excess electricity to the national grid. Brazilian sugar and alcohol plants produce around 95 percent of their electricity needs, purchasing the remaining 5 percent from national-grade transmission and distribution (GT&D) companies. Plants claim that the prices they pay to those companies for this additional power are several times higher than the prices paid by GT&Ds for the plants’ electricity surplus.

“Another significant restraint for the cogeneration market is the lack of connection to the electric grid,” says Campos. “In addressing this, many sugarcane cogeneration-related associations such as Associação Paulista de Cogeração de Energia (COGEN-SP- Paulista Association of Cogeneration) and ANEEL are working on building generation distributive center units that will collectively transmit electricity cogenerated in the mills and input it into the grid.”

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the sugarcane bagasse for power generation in Brazilian markets, then send an e-mail to Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

Sugarcane Bagasse for Power Generation in Brazilian Markets is part of the Energy & Power Growth Partnership Service program. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company’s TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan’s Growth Partnerships, visit https://www.frost.com.

Sugarcane Bagasse for Power Generation in Brazilian Markets
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Contact:

Patrick Cairns
Corporate Communications – Africa
P: +27 18 468 2315
E: patrick.cairns@frost.com

https://www.frost.com 

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