52 b6- comisa sugar cane ethanol project

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The project is located in the north of Peru, in Sullana Province, Department of Piura, the project would implement 12 000 hectares of sugar cane crops with the propose to generate ethanol. Just to frame the project within the potential context of Sugar Cane for ethanol development in Peru, it is important to take into consideration that our country has a conservative potential of 1 million hectares to develop in the northern. COMISA will partially cover the projected internal demand for this product which balance would have to be covered from abroad. The Project has been finally defined for the exclusive production of ethanol with an initial level of 600,000 liters to be increased to 1'200,000 in the fourth year of operation. Baseline Scenario Which emissions are the proposed Clean Development Mechanism CDM project displacing? Bio-fuels as the Ethanol will be applied to replace the fossils fuels and decrease of CO2 emissions. Other greenhouse gases emissions of this project are nitrous oxide (N2O) and Methane (CH4). What would the future look like without the proposed CDM project? Greenhouse gases emissions from fossil fuel consumption of diesel and petroleum that would have been used in the absence of the CDM. Also many other agro industrial and manufacturing activities will remain using fossil fuels. What would the estimated total greenhouse gas (GHG) reduction be with the project? The ethanol production in 2 stages: 1,200,000 liters per day. It is calculated that the project will reduce 192,000 tCO2e annually that otherwise will be emitted to the atmosphere. The project has the following components Change of the fuel in the irrigation of 11,000 hectares. Change from fuel to diesel to ethanol in the transport vehicles and field machinery. Generation of energy with bagasse boiler for the industrial plant: The diesel use of the Bases Case is avoided for a total of 24 to 28 MW. Increase in efficiency in the heat use in the Alcohol Refinery and effluent treatment. Current Status Earliest project start date Ethanol distillery will come in operation in early 2008. Estimate of time required before becoming operational 1.5 - 2 years. What is the project lifetime? The evaluation horizon is 20 years; but the operation will continue then after. Current status or phase of the project: Under preparation: a Pre-feasibility report on the eligibility, pacing and potential of CER's generation under the CDM and recommendations on the viability to develop the Project under the CDM norms. CERs are required to strength financial ratios for this pioneering project. Pilot Plot under execution to experience the cane development for Ethanol (Mono-saccharoid level Ethanol from juices). Two previous experiences have been carried out successfully, based in traditional cane growing for sugar production (Di -saccharoid level Ethanol from Molasse). Estimated Emission Reductions Annual: an average of 192,000 tCO2-equivalent. Up to and including 2012: 960,000 tCO2-equivalent Up to a period of 10 years: 1,920,000 tCO2-equivalent Up to a period of 7 years: 1,344,000 tCO2-equivalent Up to a period of 14 years: 2,688,000 tCO2-equivalent Project Benefits The project would reduce diesel in agro industrial activities of CORMIPESA. Diesel has a high content of sulphur and with combustion emit sulphur dioxide a high impact local pollutant. The project will contribute to sustainable development because it will displace a fossil fuel system with a biomass based renewable energy system, generating benefits not only by reducing greenhouses gases, but by also reducing other local air pollutants and environmental impacts associated with the burning of residual fuel oil which have deteriorated the local environment. Provide a source of fertilizers to the crops of the area and inputs for the industry. Project Participant and Financing Total project cost estimate: Industrial Facilities: US$ 46,000,000 On-Field Costs: US$ 35,000,000 Total Own Capital: US$ 81,000,000 Sources of finance to be sought or already identified: Equity: NA Debt : NA Carbon finance contribution sought: As much as we can have in advance. Contact Information: Name: Company: E-mail: CDM Promoter: Name: Phone/Fax Number: E-mail: Jorge Raygada Corporacion Miraflores S.A. [email protected] National Environmental Fund (FONAM) Julia Justo, Tania Zamora, David García (51-1) 449-6200 [email protected] [email protected] [email protected] [email protected] B-6 CDM in Peru www.fonamperu.org “COMISA” Sugar cane ethanol Project NATIONAL ENVIRONMENTAL FUND - PERU

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The project is located in the north of Peru, in Sullana Province, Department of Piura, the project would implement 12 000 hectares of sugar cane crops with the propose to generate ethanol.

Just to frame the project within the potential context of Sugar Cane for ethanol development in Peru, it is important to take into consideration that our country has a conservative potential of

1 million hectares to develop in the northern. COMISA will partially cover the projected internal demand for this product which balance would have to be covered from abroad. The Project

has been finally defined for the exclusive production of ethanol with an initial level of 600,000 liters to be increased to 1'200,000 in the fourth year of operation.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project

displacing?

Bio-fuels as the Ethanol will be applied to replace the fossils fuels and decrease of CO2

emissions. Other greenhouse gases emissions of this project are nitrous oxide (N2O) and

Methane (CH4).

What would the future look like without the proposed CDM project?

Greenhouse gases emissions from fossil fuel consumption of diesel and petroleum that

would have been used in the absence of the CDM. Also many other agro industrial and

manufacturing activities will remain using fossil fuels.

What would the estimated total greenhouse gas (GHG) reduction be with the

project?

The ethanol production in 2 stages: 1,200,000 liters per day. It is calculated that the project

will reduce 192,000 tCO2e annually that otherwise will be emitted to the atmosphere.

The project has the following components

Change of the fuel in the irrigation of 11,000 hectares.

Change from fuel to diesel to ethanol in the transport vehicles and field machinery.

Generation of energy with bagasse boiler for the industrial plant: The diesel use of the

Bases Case is avoided for a total of 24 to 28 MW.

Increase in efficiency in the heat use in the Alcohol Refinery and effluent treatment.

Current Status

Earliest project start date

Ethanol distillery will come in operation in early 2008.

Estimate of time required before becoming operational

1.5 - 2 years.

What is the project lifetime?

The evaluation horizon is 20 years; but the operation will continue then after.

Current status or phase of the project:

Under preparation: a Pre-feasibility report on the eligibility, pacing and potential of

CER's generation under the CDM and recommendations on the viability to develop the

Project under the CDM norms.

CERs are required to strength financial ratios for this pioneering project.

Pilot Plot under execution to experience the cane development for Ethanol

(Mono-saccharoid level Ethanol from juices). Two previous experiences have been

carried out successfully, based in traditional cane growing for sugar production (Di

-saccharoid level Ethanol from Molasse).

Estimated Emission Reductions

Annual: an average of 192,000 tCO2-equivalent.

Up to and including 2012: 960,000 tCO2-equivalent

Up to a period of 10 years: 1,920,000 tCO2-equivalent

Up to a period of 7 years: 1,344,000 tCO2-equivalent

Up to a period of 14 years: 2,688,000 tCO2-equivalent

Project Benefits

The project would reduce diesel in agro industrial activities of CORMIPESA. Diesel

has a high content of sulphur and with combustion emit sulphur dioxide a high impact

local pollutant.

The project will contribute to sustainable development because it will displace a fossil

fuel system with a biomass based renewable energy system, generating benefits not

only by reducing greenhouses gases, but by also reducing other local air pollutants

and environmental impacts associated with the burning of residual fuel oil which have

deteriorated the local environment.

Provide a source of fertilizers to the crops of the area and inputs for the industry.

Project Participant and Financing

Total project cost estimate:

Industrial Facilities: US$ 46,000,000

On-Field Costs: US$ 35,000,000

Total Own Capital: US$ 81,000,000

Sources of finance to be sought or already identified:

Equity: NA

Debt : NA

Carbon finance contribution sought: As much as we can have in advance.

Contact Information:

Name:

Company:

E-mail:

CDM Promoter:

Name:

Phone/Fax Number:

E-mail:

Jorge Raygada

Corporacion Miraflores S.A.

[email protected]

National Environmental Fund (FONAM)

Julia Justo, Tania Zamora, David García

(51-1) 449-6200

[email protected]

[email protected]

[email protected]

[email protected]

B-6

CDM in Peru

www.fonamperu.org

“COMISA” Sugar cane ethanol Project

NATIONAL ENVIRONMENTAL FUND - PERU