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Sugarcane bagasse cogeneration in Belize: A review
Renewable and Sustainable Energy Reviews 96 (2018) 58–63
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Sugarcane bagasse cogeneration in Belize: A review Aldair Gongora, Dorien Villafranco
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Department of Mechanical Engineering, Boston University, Boston, MA, United States
A R T I C LE I N FO
A B S T R A C T
Keywords: Electricity generation Sugarcane Bagasse, Biomass, Renewable Energy in Belize
Sugarcane is the most important crop for the economy of Belize. Sugar is Belize's largest contributor to the agricultural sector with exports approximating US$70,000,000 for the year 2015. The biomass residue from the sugar production process, bagasse, is used to generate electricity through cogeneration. The single cogeneration plant in the country contributes about 15% of electricity to the national grid. Belize currently imports about 42% of its electric energy needs from Mexico, and to date, this is the country's most reliable energy source. With energy needs of the country projected to rise at a rate of 4% per annum, and with the costly import of energy, there exists the need to explore the expansion of co- generation energy technologies to increase local energy generation output to the national grid. The current work reviews the state of bagasse cogeneration in Belize and assess its potential for further expansion.
1. Introduction The increasing demand for energy is a global conundrum with challenges in areas of economics, the environment, and social development [1]. Population growth throughout the world has brought with it the continuous surge in energy demand. Though small, the Central American nation of Belize is no exception to this issue. With a population of about 350,000, growing at a rate of 2.4%, the country's energy demand is expected to rise at a rate of 4% annually [2]. It has been estimated that within the next 20 years, Belize will need to increase energy generation by about 80% to satisfy this growing demand [3]. The country currently receives majority of its electricity supply from Mexico through a direct line into its national grid. This source constitutes 42% of the demand for electricity, and is to date, the country's most reliable source of energy. For its size, Belize has a relatively high electric energy demand. The country's peak demand is approximately 96 MW [4]. The costly import of electricity from Mexico has prompted the country to explore several renewable energy initiatives. This started with the Chalillo and Mollejon hydro-electric systems. These systems contribute about 37 MW of power to Belize's national grid which is 39% of the grid's total demand in peak hours [5]. Belize's finances are rooted in the agricultural industry. The sugar industry in Belize is over 150 years old and in the mid 1990's substantially upgraded its capacity to 120,000 t of sugar per year. Bagasse, the fibrous residue from the production of sugar, has been widely utilized in various countries as a means of renewable energy generation. Sugarcane bagasse is readily available in Belize, and, has recently been
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used for electricity generation through means of cogeneration. Section 2 of this paper briefly presents a historical perspective of the Belize sugar industry and its establishment as an imperative proponent in supplying Belize's energy demand. A second imperative proponent in supplying Belize's energy demand are the policies affecting expansion in local energy generation technologies. The Ministry of Education, Science & Technology, and Public Utilities (MESTPU) launched a 2012–2017 Strategic Plan which discussed strategies and pertinent policies that the ministry intends to implement to foster the development of sustainable and environmentally friendly technologies [6]. Section 3 of this paper will outline the current policies that surround the bagasse cogeneration industry in Belize and their overall contribution to a comprehensive and effective framework addressing both energy demand and generation. There is a dire and immediate need to create employment opportunities and mitigate poverty as a result of an unemployment rate of 8.0% in 2016 and a reported 2009 poverty rate of 41.3% [2]. With 42% of Belize's energy imported from Mexico, there is ample opportunity for improving the economy of Belize with investment in renewable energy technologies, specifically bagasse co-generation technologies. Section 4 of this paper discusses the economic benefits garnered from investment in co-generation by analyzing the current co- generation power plant, Belize Co-generation Facility (Belcogen), and the possible addition of a new co-generation plant, through an investment by the Santander Group. Additionally, Section 5 of this paper examines the technical aspect of co-generation technologies and makes recommendations for
Corresponding author. E-mail address: [email protected] (D. Villafranco).
https://doi.org/10.1016/j.rser.2018.07.034 Received 15 October 2017; Received in revised form 5 July 2018; Accepted 20 July 2018 1364-0321/ © 2018 Elsevier Ltd. All rights reserved.
Renewable and Sustainable Energy Reviews 96 (2018) 58–63
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technology has been sparked by the volatility of worldwide sugar prices [27]. Sugar production companies already present in the country have sought to expand their cogeneration capabilities in the hopes of selling electricity to the national grid and other nearby countries. It is believed that such sales would offer stability in the revenue streams coming from current sugar mills by offsetting the volatility of sugar prices [27]. In Pakistan, the government has produced several fiscal incentives for companies to invest in alternative and renewable energy in the form of rebates, loans, grants and tax incentives [29]. Measures were put in place to finance projects based on their energy capacity. Financial packages are determined based on the amount of energy a project is slated to produce for a particular local. Projects have been grouped into two categories: those having a capacity between 1 and 50 MW and those with capacity of 0.004–1 MW [29]. The government hopes that such strategies will increase the amount of energy Pakistan draws from alternative and renewable energy sources as conventional energy sources (gas, oil, coal, electricity) currently meet 90% of the country's energy demand [29]. In 2010, the World Bank recommended that Mexico increase its efforts in bagasse cogeneration. The World Bank's report, however, cited that initial investment costs could be an issue, and that Mexico should look toward the private industry as a source of investments for the required infrastructure [33]. The country has since had success with securing investments from the private sector. Most recently, Grupo PIASA, a company led by Arca Continental inaugurated their cogeneration electrical plant in Oaxaca, Mexico. The plant, requiring an investment of US $61 million, will be able to generate 50 MW/HR [34]. Along with dealing with the struggles of finding capital to support such projects, developing countries wishing to use bagasse cogeneration also face the added difficulty of having poor access to required technology. Nunes et al. study the efficiency of technologies for cogeneration implemented in Portugal. The country's government had intentions to build cogeneration plants with the most effective technology but was forced to cancel several of the projects citing the high cost of raw material and the necessity to import much of the needed equipment as reasons for the projects’ cancellation [28]. It seems that at the time the only solution Portugal has to dealing with its issue surrounding the need for advanced technologies in its cogeneration ventures is to scale back its intended framework for development in the area. Cogeneration presents an opportunity for greater electricity production in Belize; however, alternative renewable energy alternatives such as hydropower, solar power, and wind power are noteworthy. As aforementioned, the Chalillo and Mollejon hydro-electric systems currently contribute approximately 37 MW of power to Belize's national grid. Previous work has shown that potential sites for the development of hydropower exist, but hydropower faces several barriers such as limited access to potential sites, limited hydrological and meteorological on potential sites, and lack of thorough environmental feasibility studies [35]. Moreover, historically, the implementation of hydropower technologies has faced resistance due to possible ecological damage to terrestrial habitats and the disruption of water availability to downstream communities [36]. It is evident that whilst hydropower is an alternative source of renewable energy for Belize, there is significant resistance due to the possibility of severe environmental damage. The second alternative in consideration is solar power. Reports indicate that Belize's average daily solar radiation is estimated to be approximately 5–5.5 kW h per square meter. The reported range of 5–5.5 kW h per square meter per day is below the necessary threshold for the successful implementation and maintenance of concentrating solar power solar plants [5]. Additionally, solar power plants require vast areas of land for generation to be worthwhile. This requirement is disadvantageous to Belize because of Belize's dependence on land for agriculture. The realization of solar power in Belize depends on technological advancements such as more efficient panels and smaller land area requirements. The third alternative in consideration is wind power. Reports
both the existing co-generation plant and the possible new plant that would yield economic benefit and adhere to the current policies. In totality, the paper attempts to contribute to the field by exploring recent technical developments in the renewable energy sector, namely bagasse co-generation technologies, and forming correlations to the economy of the country, thus, presenting an assessment for continued development of renewable energy technologies in Belize. 2. Existing cogeneration strategies and renewable energy alternatives Sugarcane is a crop produced globally on a massive scale. It is estimated that over 1.9 billion tons of sugarcane is produced annually in over 100 countries [23]. Brazil, the world's largest producer of sugarcane, is responsible for 41% of the world's production while India stands at second with 18% of global production [24]. The abundance of land in these geographically expansive countries has allowed them to see substantial production of sugarcane. With such large volumes of sugarcane being produced, energy production from sugarcane is very established in these countries. In Brazil, nearly 20% of the country's energy demand is met by energy obtained from sugarcane products [22]. India has seen its peak production of energy from bagasse cogeneration supply over 3000 MW of power to the country's national grid at times [26]. A typical schematic of the cogeneration process is shown in Fig. 1. Bagasse collected after the milling process is fed into a boiler. Steam from that boiler is fed to a turbine which is connected to a generator that outputs electricity. Part of the electrical energy generated is fed back into the loop to power the boiler and other processes in the factory while the surplus electricity is fed out to an external grid for storage and use in the country's national grid. It is clear that sugarcane bagasse cogeneration can have a substantially positive effect on a country's ability to meet its energy demand using renewable resources. It is often the case, however, that this potential is not realized in several economies of lesser scale which also produce sugarcane. Belize, Mauritius, Morocco, Mexico, Pakistan, and Portugal find themselves among the countries which produce large amounts of sugarcane for their respective sizes but are unable to fully realize its benefits in the renewable energy sector. High technological demands, lack of local expertise, and the unavailability of needed capital are all factors which play into these countries’ inability to fully capitalize on the renewable energy benefits obtained from sugarcane bagasse. This section will highlight several countries with developing economies and their implemented strategies for dealing with the major setbacks associated with the improvement of cogeneration technologies in their respective countries. One of the major impediments to development of cogeneration technologies in several countries with developing economies is the high investment cost associated with cogeneration systems. It has been estimated that the investment cost for such systems lies at US $1400 per installed kW, moreover, once installed, operation costs can rise to US $84.00 per kW per year [25]. In Mauritius, investment in cogeneration
Bagasse Storage
Turbine
Boiler
Generator
Electricity to Milling and Refinery Operations
Surplus Electricity to National Grid
Fig. 1. Schematic of Cogeneration system used to generate electricity. 59
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indicate that Belize has approximately 284.5 square miles of onshore terrain with moderate to excellent wind resource and 3500 square miles of offshore marine water area with moderate to excellent wind resource [5]. The costs of offshore wind power exceed the cost of onshore wind power due to higher foundation and cabling costs. A notable drawback of wind power is that it is an intermittent energy source, which could be problematic in the reliable and sufficient supply of energy to the grid. Despite the aforementioned disadvantages of hydro, solar, and wind power, it is imperative to conduct a thorough analysis of each technology and its impact on Belize's grid before drawing definitive conclusions. This analysis is not in the scope of this paper. 3. Belize's sugar industry Sugarcane is a crop rooted deep in Belize's history. The crop was introduced to the country by Mexican immigrants fleeing the Caste War in 1847. For a period of time, these immigrants, mostly in the north of the country, continued to grow sugar for local consumption. Initially interested in logwood export from Belize, British colonists at the time began to take notice of the increasingly popular crop, and took over sugarcane growth and sugar production in the country. By 1857, the first 100 barrels of sugar produced in Belize was exported to Liverpool, England. The industry continued growing marginally until the late 1990s. Technological advances in the milling, and production process bolstered the sugar production over the years. Today, optimal output results in approximately 120,000 t of sugar being produced each year [7]. Belize stands in a unique state as it pertains to the institutionalization of the sugar industry. Sugarcane is grown in the country through small scale farming with about 90% of the farms being less than 8 ha. The conglomerate of farmers is represented by the several unions for example, the Belize Sugar Cane Farmers Association. Such associations are responsible for providing support services to its members, negotiating the price of sugar cane with the privatized sugar mill in the country owned by American Sugar Refining, Inc. (ASR), and coordinating delivery of the cane to the mill. The government oversees this process through several boards set up within the Ministry of Agriculture, and the Ministry of Energy, Science, & Technology and Public Utilities. It is therefore clear that coordination among all these stakeholders is key to the condition of the sugar industry as it is such an important crop for Belize [8]. Sugar plays a large role in the economy of the country. In 2012, the economy was projected to grow by a very optimistic 5.2% due to technological improvements in agricultural practices and very favorable sugar prices within the EU market. Unfavorable weather conditions that year severely affected the agricultural output, and despite a growth in the tourism industry, the actual economic growth was recorded at only 0.7%. The economy of Belize has been in decline in recent years. For the past two quarters, the gross domestic product of the country has fallen by approximately 1.6%. Due to the limited diversity in export products, the economy is heavily reliant on its agricultural output. The growth of the sugar industry, the country's main export crop, is therefore vital to economic growth [8]. Fig. 2 below shows the export value of sugar from Belize for several years. Exports in Belize totaled about 400 million BZE dollars for the year 2016 [2]. It is thus clear that sugar plays a pivotal role in the country's economy. Despite experiencing such a large growth in recent years, Belize's sugar industry faces several difficulties; many of which are related to the regulatory, economic and technical considerations highlighted in this paper. One striking concern lies in the fact that Belize's sugar cane productivity is among the lowest in the world. Compared to other countries in Central America, Belize's sugar cane yield is about 50% less [15]. A recent investment by the Santander group has resulted in a second sugar production site being recently formed in the country with the goal of increasing the efficiency of sugar production through the use of modern agricultural, technological and commercial practices. The
Fig. 2. Value of Belize's sugar exports from 2002 to 2016 [2].
group's sugar mill began operations in February 2016, and the first export of 6250 t of raw sugar was made in July 2016. It is expected that continued growth in the country's production will have a direct impact in the growth of the Belizean economy [9]. 4. Renewable energy regulations In order to surmise the expansion of renewable energy in Belize, one must first take into consideration the policies surrounding energy, investment, and production within the country. As it relates to the sugar industry in Belize, the government regulates the sector through the Sugar Industry Control Board. The board is comprised of two arms, the Sugar Cane Production Committee (SPCC) and the Sugar Industry Research and Development Institute (SIRDI). The SPCC oversees and coordinates the harvesting and delivery of cane to the sugar mills in the country, while SIRDI is responsible for engaging in research as it relates to the cultivation of sugar cane in the country [10]. It has been the longstanding critique of ASR that government regulations sometimes interfere with their aspirations of making their plant and the sugar industry an efficient commercial sector. Policies which govern renewable energy are formed within the Ministry of Energy, Science & Technology and Public Utilities. In 2012, this Ministry put forth a strategic plan to be executed up until 2017. The strategic plan puts forward several points on renewable energy policies. One of the goals of the plan is to reduce the country's dependence on fossil fuels by 50% by the year 2020. It is also the hope of the Ministry to diversify the renewable energy sector of Belize since the only two methods currently being utilized on a large scale are hydroelectric dams, and sugarcane bagasse cogeneration. The document lays out strategies which intend to increase the provision of modern energy carriers through the utilization of domestic energy resources, and waste material. These policies range from renewable energy sources of biofuels, wind and solar energy, hydro power, and agro and solid waste [6]. Belize is in a poised position to take advantage of several of these renewable energy sources given its abundance of natural resources. With the government's recent interest in pushing the agenda of renewable energy, stakeholders in the sugar industry have been in policy development. These policies would give rise to an enabling environment for private sector investment in the sugar industry and more so investment in co-generation and biofuel technologies for the industry. Much of the detailed policy governing renewable energy in Belize is still in its formative state. With Belize being one of the first Caribbean countries to ratify the Paris Agreement in its own parliament, the development of more detailed regulations surrounding renewable energy in the country must soon be developed [11]. There exists certain 60
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tonnes of ground sugarcane were cut in the 2015–2016 crop with approximately 140,000 t of raw sugar being produced. The plant has a cogeneration design output of 27.5 MW with currently only approximately 14.5 MW of electricity supplied to the national grid, which is approximately 14% of the national grid's needs [8]. With the acquisition of majority of shares by ASR, the positive impact of investment in co-generation is evident. To date, there has been a combined investment of 95 million US dollars in both the sugar and cogeneration plant and ASR plans to continue investing in the plant to increase sugar and power output. Since co-generation is dependent on sugar production, an increase in sugar production would result in an increase in available bagasse for power generation. Hence, the amount of power generated by the plant could be increased. Since the plant is currently not operating at its maximum design output of 27.5 MW, there is significant room for improvement. The doubling of sugar production would result in the plant's contribution to GDP to increase from 5% to 8%. This corresponds to an increased contribution of 10.5 million US dollars. Additionally, foreign exchange would increase from 4% to 10%. With the increase in sugar production, there would also be an increase in Belcogen's electricity supply to the national grid. This increase, as indicated in Table 1, would be from the current value of 14% to a projected value of 22% of the national grid's needs. This corresponds to approximately an increase from 14.5 MW to 21.1 MW, if the national grid's maximum power demand is 96 MW, as previously mentioned. This 8% increase in energy production would result in a decrease in the supply needed from Mexico to 34%. With adequate policy in place, investments by ASR could be realized which would result in positive economic development because of the lower dependence on foreign energy supply and an increase in energy supply by local sources [8]. The Santander Group in 2008 began an investment of 150 million US dollars in the construction and operation of a new sugar mill in Belize. The sugar mill became fully operational in February 2016 and is projected to grow the GDP of Belize by a minimum of 4% [17], which corresponds to cash value of 14.3 million US dollars. Moreover, they intend to further invest in a cogeneration power plant which could lead to a supply of 20% of the local electricity to the national grid. If this is realized, along with ASR's increase in power output, the dependence on Mexico for power would reduce to approximately 19% of the national grid's needs. In 2015, Belize's electricity consumption was 87 thousand MWH, with Mexico supplying approximately 42%, which is approximately 36.5 thousand MWH. For the past six years, the cost of importing electricity from Mexico has been approximately around $160 US dollars per MWH [8]. This results in a payment of approximately 5.8 million US dollars to Mexico. A total decrease to only 14% dependence on Mexico would result in an annual payment of 1.9 million US dollars to Mexico resulting in saving 3.9 million US dollars in foreign payments. The energy sources for the year 2015 are observed in Fig. 3 and the projected energy sources considering both investments from ASR and Santander are depicted in Fig. 4. With adequate policy fostering investment in the expansion of cogeneration technologies, it is evident that there is a positive impact on Belize's economy. However, this impact stems further than the 3.9 million US dollars saved in foreign payments. Growth in income per capita has been observed to be the strongest in outward-looking economies and lowest in inward-looking economies [18]. With the
regulations which require companies to conduct an environmental impact assessment. While the lack of a concrete foundation of regulations may be viewed as drawback, the current state of regulations can be viewed favorably. Underdeveloped policy on renewable energy has been a common theme in the Caribbean. The role of government in these small Caribbean economies in pushing for renewable energy policies is key. Studies have shown however that in countries such as Barbados and Jamaica, while there exists government interest in energy security, this intention is not substantiated by significant legislative backing. Several theories exist as to why this is true one of which hinges on the inability of such economies with limited diversity to practically integrate new technologies into the market primarily because of cost and lack of disposable capital [12]. It is clear that there exists the need to provide a structured set of legislation as it relates to renewable energy production in the country. Doing so is bound to provide much needed stability in the country as it relates to legislation surrounding renewable energy production. This not only provides a pathway for current investors to execute their goals of renewable energy production but provides a stable environment which could possibly attract new investors. Having a concrete set of legislation would reduce uncertainty in the sector. Basic economic theory notes that uncertainty will negatively impact investment. This has been explored on a general scale [13] and even within the Caribbean [14]. Belize currently does not possess the required regulatory framework needed for effective renewable energy generation. There needs to be a thorough development of policy related to this field. If all stakeholders are included in the development of this policy, the country only stands to benefit from this concrete legislation as this would minimize uncertainty which would entail economic benefits. 5. Co-generation economic effects Throughout the years, the economy of Belize has been dependent on the cultivation, production, and exportation of agricultural produce such as sugarcane, citrus products, bananas, and other crops. In addition, Belize has also depended on the tourism sector for economic development [15]. Both the agricultural and tourism sectors employ approximately 28% of the population and jointly represent 34% of the country's GDP [16]. However, the accumulated wealth in these sectors has not been proportionally distributed throughout the country and unemployment and poverty are at 8.0% and 41.3%, respectively [2]. Economic development in Belize has been subject to remarkable advances, but has also been subject to severe setbacks. One area worthy of consideration that could lead to significant economic development in Belize is the energy sector. With fuel importation increasing a 117% during 1980–2013, net imports of electricity rising 47% during 2001–2013, and a current dependence on Mexico for 42% of Belize's energy needs, it is evident that the energy sector is not contributing to economic growth, but rather significantly deterring economic development [4,10]. If the strategy outlined by MESTPU, which was previously discussed in Section 2, is supported with concrete legislation and policy, economic development could be realized from investment in the energy sector. This section discusses two specific proponents that support economic development from investment in the energy sector. The first is the economic development garnered from the sixty-one million US dollar co-generation plant in northern Belize. The second is the possible economic development that could be realized from the Santander Group's investment in a co-generation plant. In 2007, the Belize Sugar Industries Ltd. (BSI) announced that the projected sixty-one million US dollar co-generation project was fully financed. The biomass co-generation plant was successfully commissioned in 2009 and is operated by the Belize Sugar Industries, Ltd. In 2012, American Sugar Refining, Inc., became the majority shareholder of BSI. The Belize Sugar Industry Ltd. reported that over 1.1 million
Table 1 Sugar and energy from bagasse co-generation output in Belize. Company
Status
Sugar (Ton/year)
Energy (MW)
ASR
Current Projected Projected
123,000 250,000 100,000
14.5 21.1 16
Santander
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turbines, respectively. Additional economic benefits mentioned by Bocci et al. were the low transportation costs, increase in diversification, secure supply of local electricity, and employment opportunities. Another study by Seebaluk et al. on the development of cogeneration in Mauritius was done with the intention of offering insight to future industrial development for other African countries, in particular, but also more generally for other countries [27]. The study identified that the major drivers for cogeneration technologies in Mauritius were concerns over dependence on fossil fuels in the electricity sector, the downward price pressure from the reform of the EU sugar regime in the sugar sector, and rising demands for clean electricity. Seebaluk et al. argue that these steps taken highlight the energy supply potential of the sugar industry, but moreover, contribute to agricultural development and socio-economic development. The introduction and development of cogeneration technologies contribute to sustainable livelihoods and multiple economic benefits [27]. The potential economic benefits of ASR and the Santander group along with the observed economic benefits in Indonesia, Peru, and Mauritius indicates that there is economic potential in investments in cogeneration technologies. Moreover, the additional benefits presented by Bocci et al. are benefits that would further contribute to the economic development of Belize. Three main elements in Sir Arthur Lewis’ approach to industrial development in the Caribbean are markets, resource availability, and economy policy formulation [19]. Considering both the agricultural and energy sector in Belize, it is evident that there is a local market for energy consumption, the availability of resource for energy production, and the opportunity to formulate strategic economic policy. Hence, industrial development is viable, which, in turn, would generate economic growth. As a result, it is undoubtedly evident that expansion of cogeneration technologies in Belize would yield notable economic benefits and contribute to the country's economic development.
Fig. 3. Percentage contribution from energy sources in 2015.
Fig. 4. Projected percentage contribution from energy sources.
agricultural sector being an integral component of Belize's economy, the opportunity to both increase export and simultaneously increase and create domestic sources of renewable energy are advantageous to the economy of Belize. Since there is already the existence of a cogeneration facility and the interest to construct and commission an additional facility, then it is economically advantageous to support the expansion by creating policy that fosters and promotes cogeneration expansion. Further- more, with the government's interest in supporting green energy, it is beneficial to support cogeneration expansion because of the existence of infrastructure and facilities. To assess further the potential economic impact of cogeneration technologies in Belize, the economic impact of cogeneration in other countries was considered. Under the Clean Development Mechanism, a mechanism under the United Nations Framework Convention on Climate Change (UNFCCC) [30], Indonesia took part in the CDM project of substituting fossil-fuel-combustion with renewable energy derived from biomass. In particular, Indonesia benefited from sugarcane residues in sugar mills for electricity generation by implementing cogeneration technologies. Indonesia could generate Greenhouse Gas emission reductions of approximately 240,774 or 198,177 tCO2 per annum from the low efficiency generation technologies, which translated to earning approximating 1.36 million US dollars for the largescale implementation or 1.12 million US dollars for a small-scale implementation. It is evident that the implementation of cogeneration technologies has potential for major economic contribution. As put forth by the authors, Indonesia stands to benefit economically from investment in cogeneration technologies [31]. Furthermore, a Peruvian plant in the north coast of Peru was studied by Bocci et. al. by analyzing plant data in tandem with global power plant data to investigate energy efficiency [32]. The authors put forth a comprehensive analysis of power plant perspectives for sugarcane mills. It was concluded that the steam turbine has a payback period of approximately 2 years and internal rates of return of 44.6% and 12.5% for the steam turbine and gas
6. Technical pathways in co-generation In order for the investments, by both companies, to maximize economic benefits, practical technological developments of cogeneration in recent years must be taken into consideration. Developments in cogeneration stem further than the direct combustion of bagasse. Investors could consider the introduction of biofuel technology to convert biomass into biodiesel, bioethanol, or biogas. This section considers the benefits of the introduction of these technologies to support the expansion of cogeneration technologies to yield economic benefit or other technical considerations that could result in economic benefit. Currently, Belcogen produces power using direct combustion of bagasse. In the case of Belcogen, it would be favorable to focus on the achievement of the design output of 27.5 MW, rather than invest in the conversion of biomass to biofuel. As a result, this would mean a focus on the output of the sugar plant, which is not in the context of this paper. The previous section on this paper relating to the economic benefits of renewable energy make mention of the details of the Santander Group's investment in sugar cane growth in Belize. Also discussed was Santander's intent to further invest and bring online another cogeneration plant in the country which could effectively provide the national grid with about 20% of its needs. While this technical pathway of using the sugarcane bagasse for electric energy production through cogeneration would indeed achieve the marked increases in renewable energy production previously mentioned, there exists other routes through which this can be accomplished. Biochemical processing of the sugarcane bagasse can result in ethanol production. Comparative studies have shown that a mature technology which efficiently produces ethanol from lignocellulosic materials, of which sugarcane bagasse is a subset, would be considerably more profitable and could even mitigate the production of more greenhouse gasses than the typical cogeneration process [20]. 62
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While studies have shown the potential for increased profitability from biofuels in comparison to cogeneration, developing economies might not be able to expend the required capital to implement such new technologies. Recent studies have argued that the only economically feasible option at present in Brazil is to use the sugarcane bagasse in the production of electricity generation from biomass combustion [21]. It could be argued that given the scale of Belize's economy in comparison to Brazil's, the same argument would hold in Belize. Additionally, recent technological innovations in cogeneration plants make this a viable option for Belize. A particular technological advancement is higher boiler pressure in cogeneration plants coupled with more efficient turbines enable higher electricity production [27]. Further investigation of this would be required to confirm whether or not the production of bio-oil from sugarcane bagasse would be a viable option for the country.
[7]
[8]
[9] [10]
[11] [12] [13]
7. Conclusion
[14]
Belize's agricultural history has shown that sugarcane is a vital crop to Belize's economy. With Belize's interest in the implementation of renewable energy, there is the unique opportunity to amalgamate both the agricultural and energy sectors in Belize to yield sustainable and realistic economic growth. With strategic policies in place, expansion of the current cogeneration technologies in Belize would drastically reduce the country's dependence on foreign energy. The investment in cogeneration technologies could lead to a direct savings of 3.9 million US dollars per year. Furthermore, investment in cogeneration also yields other benefits such as industrial development which also promote economic growth. The paper has shown that with the necessary regulations in place, Belize can take advantage of its already existing agricultural facilities to stimulate economic growth through the production of renewable energy. The positive conditions such as flexibility in policy development, interest in investment, and pre-existing facilities serve as indicators that the expansion of cogeneration in Belize is the most advantageous pathway toward stimulating practical and sustainable economic growth. Moreover, this paper serves as a foundation to further promote research in the area of renewable energy and economic development in Belize considering the lack of re- search surrounding the regulatory, economic and technical components of Belize's renewable energy sector.
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[21]
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[26]
[27]
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Sugarcane bagasse cogeneration in Belize: A review Aldair Gongora, Dorien Villafranco
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T
Department of Mechanical Engineering, Boston University, Boston, MA, United States
A R T I C LE I N FO
A B S T R A C T
Keywords: Electricity generation Sugarcane Bagasse, Biomass, Renewable Energy in Belize
Sugarcane is the most important crop for the economy of Belize. Sugar is Belize's largest contributor to the agricultural sector with exports approximating US$70,000,000 for the year 2015. The biomass residue from the sugar production process, bagasse, is used to generate electricity through cogeneration. The single cogeneration plant in the country contributes about 15% of electricity to the national grid. Belize currently imports about 42% of its electric energy needs from Mexico, and to date, this is the country's most reliable energy source. With energy needs of the country projected to rise at a rate of 4% per annum, and with the costly import of energy, there exists the need to explore the expansion of co- generation energy technologies to increase local energy generation output to the national grid. The current work reviews the state of bagasse cogeneration in Belize and assess its potential for further expansion.
1. Introduction The increasing demand for energy is a global conundrum with challenges in areas of economics, the environment, and social development [1]. Population growth throughout the world has brought with it the continuous surge in energy demand. Though small, the Central American nation of Belize is no exception to this issue. With a population of about 350,000, growing at a rate of 2.4%, the country's energy demand is expected to rise at a rate of 4% annually [2]. It has been estimated that within the next 20 years, Belize will need to increase energy generation by about 80% to satisfy this growing demand [3]. The country currently receives majority of its electricity supply from Mexico through a direct line into its national grid. This source constitutes 42% of the demand for electricity, and is to date, the country's most reliable source of energy. For its size, Belize has a relatively high electric energy demand. The country's peak demand is approximately 96 MW [4]. The costly import of electricity from Mexico has prompted the country to explore several renewable energy initiatives. This started with the Chalillo and Mollejon hydro-electric systems. These systems contribute about 37 MW of power to Belize's national grid which is 39% of the grid's total demand in peak hours [5]. Belize's finances are rooted in the agricultural industry. The sugar industry in Belize is over 150 years old and in the mid 1990's substantially upgraded its capacity to 120,000 t of sugar per year. Bagasse, the fibrous residue from the production of sugar, has been widely utilized in various countries as a means of renewable energy generation. Sugarcane bagasse is readily available in Belize, and, has recently been
⁎
used for electricity generation through means of cogeneration. Section 2 of this paper briefly presents a historical perspective of the Belize sugar industry and its establishment as an imperative proponent in supplying Belize's energy demand. A second imperative proponent in supplying Belize's energy demand are the policies affecting expansion in local energy generation technologies. The Ministry of Education, Science & Technology, and Public Utilities (MESTPU) launched a 2012–2017 Strategic Plan which discussed strategies and pertinent policies that the ministry intends to implement to foster the development of sustainable and environmentally friendly technologies [6]. Section 3 of this paper will outline the current policies that surround the bagasse cogeneration industry in Belize and their overall contribution to a comprehensive and effective framework addressing both energy demand and generation. There is a dire and immediate need to create employment opportunities and mitigate poverty as a result of an unemployment rate of 8.0% in 2016 and a reported 2009 poverty rate of 41.3% [2]. With 42% of Belize's energy imported from Mexico, there is ample opportunity for improving the economy of Belize with investment in renewable energy technologies, specifically bagasse co-generation technologies. Section 4 of this paper discusses the economic benefits garnered from investment in co-generation by analyzing the current co- generation power plant, Belize Co-generation Facility (Belcogen), and the possible addition of a new co-generation plant, through an investment by the Santander Group. Additionally, Section 5 of this paper examines the technical aspect of co-generation technologies and makes recommendations for
Corresponding author. E-mail address: [email protected] (D. Villafranco).
https://doi.org/10.1016/j.rser.2018.07.034 Received 15 October 2017; Received in revised form 5 July 2018; Accepted 20 July 2018 1364-0321/ © 2018 Elsevier Ltd. All rights reserved.
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technology has been sparked by the volatility of worldwide sugar prices [27]. Sugar production companies already present in the country have sought to expand their cogeneration capabilities in the hopes of selling electricity to the national grid and other nearby countries. It is believed that such sales would offer stability in the revenue streams coming from current sugar mills by offsetting the volatility of sugar prices [27]. In Pakistan, the government has produced several fiscal incentives for companies to invest in alternative and renewable energy in the form of rebates, loans, grants and tax incentives [29]. Measures were put in place to finance projects based on their energy capacity. Financial packages are determined based on the amount of energy a project is slated to produce for a particular local. Projects have been grouped into two categories: those having a capacity between 1 and 50 MW and those with capacity of 0.004–1 MW [29]. The government hopes that such strategies will increase the amount of energy Pakistan draws from alternative and renewable energy sources as conventional energy sources (gas, oil, coal, electricity) currently meet 90% of the country's energy demand [29]. In 2010, the World Bank recommended that Mexico increase its efforts in bagasse cogeneration. The World Bank's report, however, cited that initial investment costs could be an issue, and that Mexico should look toward the private industry as a source of investments for the required infrastructure [33]. The country has since had success with securing investments from the private sector. Most recently, Grupo PIASA, a company led by Arca Continental inaugurated their cogeneration electrical plant in Oaxaca, Mexico. The plant, requiring an investment of US $61 million, will be able to generate 50 MW/HR [34]. Along with dealing with the struggles of finding capital to support such projects, developing countries wishing to use bagasse cogeneration also face the added difficulty of having poor access to required technology. Nunes et al. study the efficiency of technologies for cogeneration implemented in Portugal. The country's government had intentions to build cogeneration plants with the most effective technology but was forced to cancel several of the projects citing the high cost of raw material and the necessity to import much of the needed equipment as reasons for the projects’ cancellation [28]. It seems that at the time the only solution Portugal has to dealing with its issue surrounding the need for advanced technologies in its cogeneration ventures is to scale back its intended framework for development in the area. Cogeneration presents an opportunity for greater electricity production in Belize; however, alternative renewable energy alternatives such as hydropower, solar power, and wind power are noteworthy. As aforementioned, the Chalillo and Mollejon hydro-electric systems currently contribute approximately 37 MW of power to Belize's national grid. Previous work has shown that potential sites for the development of hydropower exist, but hydropower faces several barriers such as limited access to potential sites, limited hydrological and meteorological on potential sites, and lack of thorough environmental feasibility studies [35]. Moreover, historically, the implementation of hydropower technologies has faced resistance due to possible ecological damage to terrestrial habitats and the disruption of water availability to downstream communities [36]. It is evident that whilst hydropower is an alternative source of renewable energy for Belize, there is significant resistance due to the possibility of severe environmental damage. The second alternative in consideration is solar power. Reports indicate that Belize's average daily solar radiation is estimated to be approximately 5–5.5 kW h per square meter. The reported range of 5–5.5 kW h per square meter per day is below the necessary threshold for the successful implementation and maintenance of concentrating solar power solar plants [5]. Additionally, solar power plants require vast areas of land for generation to be worthwhile. This requirement is disadvantageous to Belize because of Belize's dependence on land for agriculture. The realization of solar power in Belize depends on technological advancements such as more efficient panels and smaller land area requirements. The third alternative in consideration is wind power. Reports
both the existing co-generation plant and the possible new plant that would yield economic benefit and adhere to the current policies. In totality, the paper attempts to contribute to the field by exploring recent technical developments in the renewable energy sector, namely bagasse co-generation technologies, and forming correlations to the economy of the country, thus, presenting an assessment for continued development of renewable energy technologies in Belize. 2. Existing cogeneration strategies and renewable energy alternatives Sugarcane is a crop produced globally on a massive scale. It is estimated that over 1.9 billion tons of sugarcane is produced annually in over 100 countries [23]. Brazil, the world's largest producer of sugarcane, is responsible for 41% of the world's production while India stands at second with 18% of global production [24]. The abundance of land in these geographically expansive countries has allowed them to see substantial production of sugarcane. With such large volumes of sugarcane being produced, energy production from sugarcane is very established in these countries. In Brazil, nearly 20% of the country's energy demand is met by energy obtained from sugarcane products [22]. India has seen its peak production of energy from bagasse cogeneration supply over 3000 MW of power to the country's national grid at times [26]. A typical schematic of the cogeneration process is shown in Fig. 1. Bagasse collected after the milling process is fed into a boiler. Steam from that boiler is fed to a turbine which is connected to a generator that outputs electricity. Part of the electrical energy generated is fed back into the loop to power the boiler and other processes in the factory while the surplus electricity is fed out to an external grid for storage and use in the country's national grid. It is clear that sugarcane bagasse cogeneration can have a substantially positive effect on a country's ability to meet its energy demand using renewable resources. It is often the case, however, that this potential is not realized in several economies of lesser scale which also produce sugarcane. Belize, Mauritius, Morocco, Mexico, Pakistan, and Portugal find themselves among the countries which produce large amounts of sugarcane for their respective sizes but are unable to fully realize its benefits in the renewable energy sector. High technological demands, lack of local expertise, and the unavailability of needed capital are all factors which play into these countries’ inability to fully capitalize on the renewable energy benefits obtained from sugarcane bagasse. This section will highlight several countries with developing economies and their implemented strategies for dealing with the major setbacks associated with the improvement of cogeneration technologies in their respective countries. One of the major impediments to development of cogeneration technologies in several countries with developing economies is the high investment cost associated with cogeneration systems. It has been estimated that the investment cost for such systems lies at US $1400 per installed kW, moreover, once installed, operation costs can rise to US $84.00 per kW per year [25]. In Mauritius, investment in cogeneration
Bagasse Storage
Turbine
Boiler
Generator
Electricity to Milling and Refinery Operations
Surplus Electricity to National Grid
Fig. 1. Schematic of Cogeneration system used to generate electricity. 59
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indicate that Belize has approximately 284.5 square miles of onshore terrain with moderate to excellent wind resource and 3500 square miles of offshore marine water area with moderate to excellent wind resource [5]. The costs of offshore wind power exceed the cost of onshore wind power due to higher foundation and cabling costs. A notable drawback of wind power is that it is an intermittent energy source, which could be problematic in the reliable and sufficient supply of energy to the grid. Despite the aforementioned disadvantages of hydro, solar, and wind power, it is imperative to conduct a thorough analysis of each technology and its impact on Belize's grid before drawing definitive conclusions. This analysis is not in the scope of this paper. 3. Belize's sugar industry Sugarcane is a crop rooted deep in Belize's history. The crop was introduced to the country by Mexican immigrants fleeing the Caste War in 1847. For a period of time, these immigrants, mostly in the north of the country, continued to grow sugar for local consumption. Initially interested in logwood export from Belize, British colonists at the time began to take notice of the increasingly popular crop, and took over sugarcane growth and sugar production in the country. By 1857, the first 100 barrels of sugar produced in Belize was exported to Liverpool, England. The industry continued growing marginally until the late 1990s. Technological advances in the milling, and production process bolstered the sugar production over the years. Today, optimal output results in approximately 120,000 t of sugar being produced each year [7]. Belize stands in a unique state as it pertains to the institutionalization of the sugar industry. Sugarcane is grown in the country through small scale farming with about 90% of the farms being less than 8 ha. The conglomerate of farmers is represented by the several unions for example, the Belize Sugar Cane Farmers Association. Such associations are responsible for providing support services to its members, negotiating the price of sugar cane with the privatized sugar mill in the country owned by American Sugar Refining, Inc. (ASR), and coordinating delivery of the cane to the mill. The government oversees this process through several boards set up within the Ministry of Agriculture, and the Ministry of Energy, Science, & Technology and Public Utilities. It is therefore clear that coordination among all these stakeholders is key to the condition of the sugar industry as it is such an important crop for Belize [8]. Sugar plays a large role in the economy of the country. In 2012, the economy was projected to grow by a very optimistic 5.2% due to technological improvements in agricultural practices and very favorable sugar prices within the EU market. Unfavorable weather conditions that year severely affected the agricultural output, and despite a growth in the tourism industry, the actual economic growth was recorded at only 0.7%. The economy of Belize has been in decline in recent years. For the past two quarters, the gross domestic product of the country has fallen by approximately 1.6%. Due to the limited diversity in export products, the economy is heavily reliant on its agricultural output. The growth of the sugar industry, the country's main export crop, is therefore vital to economic growth [8]. Fig. 2 below shows the export value of sugar from Belize for several years. Exports in Belize totaled about 400 million BZE dollars for the year 2016 [2]. It is thus clear that sugar plays a pivotal role in the country's economy. Despite experiencing such a large growth in recent years, Belize's sugar industry faces several difficulties; many of which are related to the regulatory, economic and technical considerations highlighted in this paper. One striking concern lies in the fact that Belize's sugar cane productivity is among the lowest in the world. Compared to other countries in Central America, Belize's sugar cane yield is about 50% less [15]. A recent investment by the Santander group has resulted in a second sugar production site being recently formed in the country with the goal of increasing the efficiency of sugar production through the use of modern agricultural, technological and commercial practices. The
Fig. 2. Value of Belize's sugar exports from 2002 to 2016 [2].
group's sugar mill began operations in February 2016, and the first export of 6250 t of raw sugar was made in July 2016. It is expected that continued growth in the country's production will have a direct impact in the growth of the Belizean economy [9]. 4. Renewable energy regulations In order to surmise the expansion of renewable energy in Belize, one must first take into consideration the policies surrounding energy, investment, and production within the country. As it relates to the sugar industry in Belize, the government regulates the sector through the Sugar Industry Control Board. The board is comprised of two arms, the Sugar Cane Production Committee (SPCC) and the Sugar Industry Research and Development Institute (SIRDI). The SPCC oversees and coordinates the harvesting and delivery of cane to the sugar mills in the country, while SIRDI is responsible for engaging in research as it relates to the cultivation of sugar cane in the country [10]. It has been the longstanding critique of ASR that government regulations sometimes interfere with their aspirations of making their plant and the sugar industry an efficient commercial sector. Policies which govern renewable energy are formed within the Ministry of Energy, Science & Technology and Public Utilities. In 2012, this Ministry put forth a strategic plan to be executed up until 2017. The strategic plan puts forward several points on renewable energy policies. One of the goals of the plan is to reduce the country's dependence on fossil fuels by 50% by the year 2020. It is also the hope of the Ministry to diversify the renewable energy sector of Belize since the only two methods currently being utilized on a large scale are hydroelectric dams, and sugarcane bagasse cogeneration. The document lays out strategies which intend to increase the provision of modern energy carriers through the utilization of domestic energy resources, and waste material. These policies range from renewable energy sources of biofuels, wind and solar energy, hydro power, and agro and solid waste [6]. Belize is in a poised position to take advantage of several of these renewable energy sources given its abundance of natural resources. With the government's recent interest in pushing the agenda of renewable energy, stakeholders in the sugar industry have been in policy development. These policies would give rise to an enabling environment for private sector investment in the sugar industry and more so investment in co-generation and biofuel technologies for the industry. Much of the detailed policy governing renewable energy in Belize is still in its formative state. With Belize being one of the first Caribbean countries to ratify the Paris Agreement in its own parliament, the development of more detailed regulations surrounding renewable energy in the country must soon be developed [11]. There exists certain 60
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tonnes of ground sugarcane were cut in the 2015–2016 crop with approximately 140,000 t of raw sugar being produced. The plant has a cogeneration design output of 27.5 MW with currently only approximately 14.5 MW of electricity supplied to the national grid, which is approximately 14% of the national grid's needs [8]. With the acquisition of majority of shares by ASR, the positive impact of investment in co-generation is evident. To date, there has been a combined investment of 95 million US dollars in both the sugar and cogeneration plant and ASR plans to continue investing in the plant to increase sugar and power output. Since co-generation is dependent on sugar production, an increase in sugar production would result in an increase in available bagasse for power generation. Hence, the amount of power generated by the plant could be increased. Since the plant is currently not operating at its maximum design output of 27.5 MW, there is significant room for improvement. The doubling of sugar production would result in the plant's contribution to GDP to increase from 5% to 8%. This corresponds to an increased contribution of 10.5 million US dollars. Additionally, foreign exchange would increase from 4% to 10%. With the increase in sugar production, there would also be an increase in Belcogen's electricity supply to the national grid. This increase, as indicated in Table 1, would be from the current value of 14% to a projected value of 22% of the national grid's needs. This corresponds to approximately an increase from 14.5 MW to 21.1 MW, if the national grid's maximum power demand is 96 MW, as previously mentioned. This 8% increase in energy production would result in a decrease in the supply needed from Mexico to 34%. With adequate policy in place, investments by ASR could be realized which would result in positive economic development because of the lower dependence on foreign energy supply and an increase in energy supply by local sources [8]. The Santander Group in 2008 began an investment of 150 million US dollars in the construction and operation of a new sugar mill in Belize. The sugar mill became fully operational in February 2016 and is projected to grow the GDP of Belize by a minimum of 4% [17], which corresponds to cash value of 14.3 million US dollars. Moreover, they intend to further invest in a cogeneration power plant which could lead to a supply of 20% of the local electricity to the national grid. If this is realized, along with ASR's increase in power output, the dependence on Mexico for power would reduce to approximately 19% of the national grid's needs. In 2015, Belize's electricity consumption was 87 thousand MWH, with Mexico supplying approximately 42%, which is approximately 36.5 thousand MWH. For the past six years, the cost of importing electricity from Mexico has been approximately around $160 US dollars per MWH [8]. This results in a payment of approximately 5.8 million US dollars to Mexico. A total decrease to only 14% dependence on Mexico would result in an annual payment of 1.9 million US dollars to Mexico resulting in saving 3.9 million US dollars in foreign payments. The energy sources for the year 2015 are observed in Fig. 3 and the projected energy sources considering both investments from ASR and Santander are depicted in Fig. 4. With adequate policy fostering investment in the expansion of cogeneration technologies, it is evident that there is a positive impact on Belize's economy. However, this impact stems further than the 3.9 million US dollars saved in foreign payments. Growth in income per capita has been observed to be the strongest in outward-looking economies and lowest in inward-looking economies [18]. With the
regulations which require companies to conduct an environmental impact assessment. While the lack of a concrete foundation of regulations may be viewed as drawback, the current state of regulations can be viewed favorably. Underdeveloped policy on renewable energy has been a common theme in the Caribbean. The role of government in these small Caribbean economies in pushing for renewable energy policies is key. Studies have shown however that in countries such as Barbados and Jamaica, while there exists government interest in energy security, this intention is not substantiated by significant legislative backing. Several theories exist as to why this is true one of which hinges on the inability of such economies with limited diversity to practically integrate new technologies into the market primarily because of cost and lack of disposable capital [12]. It is clear that there exists the need to provide a structured set of legislation as it relates to renewable energy production in the country. Doing so is bound to provide much needed stability in the country as it relates to legislation surrounding renewable energy production. This not only provides a pathway for current investors to execute their goals of renewable energy production but provides a stable environment which could possibly attract new investors. Having a concrete set of legislation would reduce uncertainty in the sector. Basic economic theory notes that uncertainty will negatively impact investment. This has been explored on a general scale [13] and even within the Caribbean [14]. Belize currently does not possess the required regulatory framework needed for effective renewable energy generation. There needs to be a thorough development of policy related to this field. If all stakeholders are included in the development of this policy, the country only stands to benefit from this concrete legislation as this would minimize uncertainty which would entail economic benefits. 5. Co-generation economic effects Throughout the years, the economy of Belize has been dependent on the cultivation, production, and exportation of agricultural produce such as sugarcane, citrus products, bananas, and other crops. In addition, Belize has also depended on the tourism sector for economic development [15]. Both the agricultural and tourism sectors employ approximately 28% of the population and jointly represent 34% of the country's GDP [16]. However, the accumulated wealth in these sectors has not been proportionally distributed throughout the country and unemployment and poverty are at 8.0% and 41.3%, respectively [2]. Economic development in Belize has been subject to remarkable advances, but has also been subject to severe setbacks. One area worthy of consideration that could lead to significant economic development in Belize is the energy sector. With fuel importation increasing a 117% during 1980–2013, net imports of electricity rising 47% during 2001–2013, and a current dependence on Mexico for 42% of Belize's energy needs, it is evident that the energy sector is not contributing to economic growth, but rather significantly deterring economic development [4,10]. If the strategy outlined by MESTPU, which was previously discussed in Section 2, is supported with concrete legislation and policy, economic development could be realized from investment in the energy sector. This section discusses two specific proponents that support economic development from investment in the energy sector. The first is the economic development garnered from the sixty-one million US dollar co-generation plant in northern Belize. The second is the possible economic development that could be realized from the Santander Group's investment in a co-generation plant. In 2007, the Belize Sugar Industries Ltd. (BSI) announced that the projected sixty-one million US dollar co-generation project was fully financed. The biomass co-generation plant was successfully commissioned in 2009 and is operated by the Belize Sugar Industries, Ltd. In 2012, American Sugar Refining, Inc., became the majority shareholder of BSI. The Belize Sugar Industry Ltd. reported that over 1.1 million
Table 1 Sugar and energy from bagasse co-generation output in Belize. Company
Status
Sugar (Ton/year)
Energy (MW)
ASR
Current Projected Projected
123,000 250,000 100,000
14.5 21.1 16
Santander
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turbines, respectively. Additional economic benefits mentioned by Bocci et al. were the low transportation costs, increase in diversification, secure supply of local electricity, and employment opportunities. Another study by Seebaluk et al. on the development of cogeneration in Mauritius was done with the intention of offering insight to future industrial development for other African countries, in particular, but also more generally for other countries [27]. The study identified that the major drivers for cogeneration technologies in Mauritius were concerns over dependence on fossil fuels in the electricity sector, the downward price pressure from the reform of the EU sugar regime in the sugar sector, and rising demands for clean electricity. Seebaluk et al. argue that these steps taken highlight the energy supply potential of the sugar industry, but moreover, contribute to agricultural development and socio-economic development. The introduction and development of cogeneration technologies contribute to sustainable livelihoods and multiple economic benefits [27]. The potential economic benefits of ASR and the Santander group along with the observed economic benefits in Indonesia, Peru, and Mauritius indicates that there is economic potential in investments in cogeneration technologies. Moreover, the additional benefits presented by Bocci et al. are benefits that would further contribute to the economic development of Belize. Three main elements in Sir Arthur Lewis’ approach to industrial development in the Caribbean are markets, resource availability, and economy policy formulation [19]. Considering both the agricultural and energy sector in Belize, it is evident that there is a local market for energy consumption, the availability of resource for energy production, and the opportunity to formulate strategic economic policy. Hence, industrial development is viable, which, in turn, would generate economic growth. As a result, it is undoubtedly evident that expansion of cogeneration technologies in Belize would yield notable economic benefits and contribute to the country's economic development.
Fig. 3. Percentage contribution from energy sources in 2015.
Fig. 4. Projected percentage contribution from energy sources.
agricultural sector being an integral component of Belize's economy, the opportunity to both increase export and simultaneously increase and create domestic sources of renewable energy are advantageous to the economy of Belize. Since there is already the existence of a cogeneration facility and the interest to construct and commission an additional facility, then it is economically advantageous to support the expansion by creating policy that fosters and promotes cogeneration expansion. Further- more, with the government's interest in supporting green energy, it is beneficial to support cogeneration expansion because of the existence of infrastructure and facilities. To assess further the potential economic impact of cogeneration technologies in Belize, the economic impact of cogeneration in other countries was considered. Under the Clean Development Mechanism, a mechanism under the United Nations Framework Convention on Climate Change (UNFCCC) [30], Indonesia took part in the CDM project of substituting fossil-fuel-combustion with renewable energy derived from biomass. In particular, Indonesia benefited from sugarcane residues in sugar mills for electricity generation by implementing cogeneration technologies. Indonesia could generate Greenhouse Gas emission reductions of approximately 240,774 or 198,177 tCO2 per annum from the low efficiency generation technologies, which translated to earning approximating 1.36 million US dollars for the largescale implementation or 1.12 million US dollars for a small-scale implementation. It is evident that the implementation of cogeneration technologies has potential for major economic contribution. As put forth by the authors, Indonesia stands to benefit economically from investment in cogeneration technologies [31]. Furthermore, a Peruvian plant in the north coast of Peru was studied by Bocci et. al. by analyzing plant data in tandem with global power plant data to investigate energy efficiency [32]. The authors put forth a comprehensive analysis of power plant perspectives for sugarcane mills. It was concluded that the steam turbine has a payback period of approximately 2 years and internal rates of return of 44.6% and 12.5% for the steam turbine and gas
6. Technical pathways in co-generation In order for the investments, by both companies, to maximize economic benefits, practical technological developments of cogeneration in recent years must be taken into consideration. Developments in cogeneration stem further than the direct combustion of bagasse. Investors could consider the introduction of biofuel technology to convert biomass into biodiesel, bioethanol, or biogas. This section considers the benefits of the introduction of these technologies to support the expansion of cogeneration technologies to yield economic benefit or other technical considerations that could result in economic benefit. Currently, Belcogen produces power using direct combustion of bagasse. In the case of Belcogen, it would be favorable to focus on the achievement of the design output of 27.5 MW, rather than invest in the conversion of biomass to biofuel. As a result, this would mean a focus on the output of the sugar plant, which is not in the context of this paper. The previous section on this paper relating to the economic benefits of renewable energy make mention of the details of the Santander Group's investment in sugar cane growth in Belize. Also discussed was Santander's intent to further invest and bring online another cogeneration plant in the country which could effectively provide the national grid with about 20% of its needs. While this technical pathway of using the sugarcane bagasse for electric energy production through cogeneration would indeed achieve the marked increases in renewable energy production previously mentioned, there exists other routes through which this can be accomplished. Biochemical processing of the sugarcane bagasse can result in ethanol production. Comparative studies have shown that a mature technology which efficiently produces ethanol from lignocellulosic materials, of which sugarcane bagasse is a subset, would be considerably more profitable and could even mitigate the production of more greenhouse gasses than the typical cogeneration process [20]. 62
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A. Gongora, D. Villafranco
While studies have shown the potential for increased profitability from biofuels in comparison to cogeneration, developing economies might not be able to expend the required capital to implement such new technologies. Recent studies have argued that the only economically feasible option at present in Brazil is to use the sugarcane bagasse in the production of electricity generation from biomass combustion [21]. It could be argued that given the scale of Belize's economy in comparison to Brazil's, the same argument would hold in Belize. Additionally, recent technological innovations in cogeneration plants make this a viable option for Belize. A particular technological advancement is higher boiler pressure in cogeneration plants coupled with more efficient turbines enable higher electricity production [27]. Further investigation of this would be required to confirm whether or not the production of bio-oil from sugarcane bagasse would be a viable option for the country.
[7]
[8]
[9] [10]
[11] [12] [13]
7. Conclusion
[14]
Belize's agricultural history has shown that sugarcane is a vital crop to Belize's economy. With Belize's interest in the implementation of renewable energy, there is the unique opportunity to amalgamate both the agricultural and energy sectors in Belize to yield sustainable and realistic economic growth. With strategic policies in place, expansion of the current cogeneration technologies in Belize would drastically reduce the country's dependence on foreign energy. The investment in cogeneration technologies could lead to a direct savings of 3.9 million US dollars per year. Furthermore, investment in cogeneration also yields other benefits such as industrial development which also promote economic growth. The paper has shown that with the necessary regulations in place, Belize can take advantage of its already existing agricultural facilities to stimulate economic growth through the production of renewable energy. The positive conditions such as flexibility in policy development, interest in investment, and pre-existing facilities serve as indicators that the expansion of cogeneration in Belize is the most advantageous pathway toward stimulating practical and sustainable economic growth. Moreover, this paper serves as a foundation to further promote research in the area of renewable energy and economic development in Belize considering the lack of re- search surrounding the regulatory, economic and technical components of Belize's renewable energy sector.
[15] [16] [17] [18] [19] [20]
[21]
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[27]
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