belize presentation

8/10/2019 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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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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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!!!

belize presentation

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