4 .77 * O Joint UNDP/World Bank Energy Sector Management Assistance Program_ Activity Completion Report No. 077/8? Country: MATTIUS Activity: BAGASSE POE POTENAL, 1987-2000 OCTOBER 1987 .,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'N 4., \~~~~~ Report of the joint UNDP/Woxtd Bank Enery Sector Manaent Asistance Pmrgam This doaument has a restricted distribuion. Its contents may not,be disdosed without authorization from the Government, the UNDP or the WorId bank. - 8 . . . , 0 . , , r 0 V z t ~~~o ,, 1 . 0 .- The -Joint UNDP/World Bank Energy Setor Manageent Aissistance^ Program (ESMAP) -was. started jin 1983 8 a companion to the snergy o > 6 Assess,ent P'togralb, e4tabiti th 1980 .The sesnm ?ogrba was .. 04e*ttne4 to" ideqnify an4 an*lyke the mos serioua .energy problem. in e Vdeeloping countries. - 'SMAP was, de8gnedas 'a prea:n Mstment facility, .partly to- asie , in iimplementing £he O atti8on ocmtoeen4ed ini the >- n Asserssments . od,yD - *SSONA arrtes -out- pre-iaves t acttfitiz4s in -45 'quutr~ies Und: prov;. iiatit,otional and poliy advice t davelopit .; .-S. ''' country; decis.ioiTihrst The Program aims to. -uppleent, advance, nd * stres gthen the impact , f bila*trel' itad =utilateral resources already availablec for Xecbtl S ,ianc In° the energy sectri. The reports -produc.d under * the BSMAP Program provide governments,. doors, au4 . *. potential investqrs with inforfttion-. nwede4S to spea_ ..p prvo ct pepar- t * atior and aimpementation. (2JSMAP actiVities, fall into two - ,¢r fenr% - f ientjkd ad Sgressng. the ,inspitutiona, ;ii incial, - and 0policy issues of the energy sec ror, Anaud' i dessiL of Seaor osrategiea, jmpro 'ing energy e4.se: - . - . investi4ent rogbns;' and itrengthening tector-ent,p4 .d.' S~~~~nf '4 k I e* -h.tih liousihold,_ Uaral n' ?eewable iner.,- addres.iug the tech- 0' nTial# economic, fihanWiAlt institutioial" and policy is,ues '0 . .. - affecting tenergy supply -and demand incrou4g nergy from htra LtionaL' and modern .sour."es .£rx use b. rra and urban: 0';a * . D , . , ;,househlds' aAnd rurar0 inaostries.. . : . u ,ote -b .t.A '.The' Program is a major international effort' supported 'by the dnNDP the Morld Bank, .and bilateral .agencies in.a number of countries 'nclu4ing the Netherlagds, Canade, Svitzerland, Norbeay. Sveden, Italy, -* Austrella, enmarjk, Prance, Pintand, the United Kingdpm, IreLand, Japan, >Nev Zealand, Iwet'and, n th4 USA. - .0.* Inquiries *; tile ,For further information on the Program or to obtain copies of 0 ?.the copleted, SSWA Frqpots List" At, the'end of' thji4 14ocuii t, enac: .Division for Global and . iOR- Energy Scrategy, Mnagem4'nt .I'nterregional Projects ; and Assessment Diviisiop, United Nations Development ' rn4ustry:anF gnergy Department_- 0- ' Prekrawme World%Oank ° *. ^0 -: -.< One United Nations PlAza; ' 1818 H Street0°*W. 'o O New York, -N.Y' 1001. . Washington, D.C- 20433 - 6 t . i Q > v 0 , A~~~~~~0 ' - a MAURITIUS SACASSE POWER POTENTIALt 1987-.000 OCTOBER 1987 I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ a FORPWORD The Energy Assessment report on Mauritius, published in December 1981, 1/ identified the country's dependence on imported fuel as the key energy sector issue. The major option to reduce this dependence is to substitute indigenous bagasse (crushed sugar cane waste) for imported fuel in power generation. This requires economizing on bagasse use in the sugar industry, handling and storing the resulting surplus, and transporting it to power generating stations for use as fuel. In 1985, the Government of Mauritius requested technical assistance from the joint UNDP/World Bank Energy Sector Management Assistance Program to identify the economic potential for substituting bagasse for alternative fuels in power generation. Two ESMAP missions were fielded for this purpose, 2/ cofinanced by the UNDP Energy Account for Mauritius. The first, in September 1985, evaluated and costed alternative options for bulk handlingi bagasse for power generation. The second, in July 1986, estimated the cost and potential economic supply of surplus bagasse for power generation and the net addition to power supply that would result from its use. This report summarizes their findi;gs. The mission members wish to express their appreciation for the extensive assistance received from the Mauritian Government, particularly the Ministry of Energy and Internal Communications; the Central Electricity Board; the Mauritius Sugar Authority; and the many representatives and staff of the sugar mills visited, who gave most generously of their time and expertise. Valuable field support was provided by the office of the UNDP Resident Representative. 1/ Mauritius: Issues and Options in the Energy Sector Joint UNDP/World Bank Energy Assessment Program, Report 3510-MAS, December 1981. 2/ The first mission comprised Messrs. Willem Floor (Mission Leader, World Bank), Josef Leitmann (renewable energy specialist, World Bank) and Hans Peter Buess (bagasse consultant). The second mission comprised Messrs. Robin Broadfield (Mission Leader, World Bank), Josef Leitmann, Felix Adam (sugar factory consultant) and William Kenda (sugar process consultant). The report was written by Messrs. Broadfield and Leitmann. Secretarial assistance was provided by Ms. Holly Mensing. ACROUTNI AND ABBRWELATIOUS B20 Bagatex 20 Bagasse Baling System CEB Central Electricity Board ERR Economic Rate of Return ESMAP UNDP/World Bank Energy Sector Management Assistance Program FUEL Flacq United Estates Limited CUP Gross National Product COM Government of Nauritius MCA Mauritius Chamber of Agriculture MEIC Ministry of Energy and Internal Communications NSA Mauritius Sugar Authority MSIRI Mauritius Sugar Industry Research Institute NPV Net Present Value SSRR Societe Sucriere de Riviere du Rempart kg kilogram ton metric tonne TPH tons per hour TPD tons per day TPA tons per year kW kilowatt MV Megawatt cW Gigawatt kJ kilojoule NJ Megajoule cJ Cigajoule kWh kilowatt hour MWh Megawatt hour cih Gigawatt hour gallon imperial gallon mm millimeters kW kilometers m' square meters m3/h cubic meters per hour b.d. bone dry m.c. moisture content (all bagasse weights without indication are based on 50% m.c. HHV high heating value NCV net calorific value UWANGE RATES, ElliOT COSTS AMD COUVILSION FACTORS Exchange Rates 1985 15 Rupees (Re) = US$1.00 1 Rupee - US$0.067 1986 13.5 Rupees (Rs) a US$1.00 1 Rupee = US$0.07 Energy Costs (Mauritian Rupees) Fuel Financial Economic Coal (delivered to FUEL) 950/ton 950/ton Coal c.i.f. Port Louis 750/ton 750/ton Diesel oil 13.37/gallon 8.15/gallon Firewood 0.21-0.25/kg 0.17-0.25/kg 22.1-26.0/GJ 17.9-26.0/GJ Charcoal 2.40-2.75/kg 1.87-2.75/kg 88.9-101.9/CJ 69.3-101.9/GJ Net Calorific Value of Alternative Fuels Fuel Moisture Content NCV/kg 3agasse 50X 7,380 20Z 13,320 Coal .n.a. 27,000 Power Generation from Alternative Fuels Fuel kWh Coal 1488/ton Diesel oil 20.3/gallon TaBu OF CONTENT FORE5ORD ............................. i .~~~~~~~~~~~~~~~~~~~~~~~~~~~ I. SUMSARY AND PRINCIPAL CONCLUSIONS ......................... 1 Quantity and Cost of Potential Bagasse Savings.60....... 1 Alternative Uses for Additional Surplus Bagasse......... 2 Evaluation of Bulk Bagasse Handling Systems ............. 3 Potential Economic Supply of Bagasse as a Generating Fuel....................................... 3 8agasse Substitution at Mid-1986 Coal Costs........... 4 Bagasse Substitution at Higher and Lower Coal Cot .............................4 Potential Bagasse-fired Power Generation................ 5 Impact of the Bagasse Payment to Planters............... 5 Investment Returns and Risks of a Sagasse Power Generation Project6... . ............ 6 Recommended Bagasse Baling Demonstration Project........ 7 II, ENERGY SECTOR STRATEGY AND THE POTENTIAL ROLE OF BAGASSE. * 8 Energy Sector Strategy........o ....................*..e 8 Power Subsector Strategy......................... ....... 8 Future of the Sugar Industry and Bagasse Supply......... 10 III. POTENTIAL DEMAND FOR SURPLUS BAGASSt ....................... 11 Introduction ............................. ..... ................. l11 Industrial Process Heating.............................. 11 Tea Industryoe*oooooeo*ooo* ...... . .......................... 11 Other Industries............... ....................... 12 Particleboard and Cellulose Products .................... 12 Household Fe ........................... ........ 12 Power Generation ............. **o*ooe*eo*oo 13 Current Bagasse Power Output....... 13 Scope for Increasing Bagasse-fueled Generation******** 14 IV. POTENTIAL QUANTITY AND COST OF ADDITIONAL BAGASSE SUPPLY.. 16 Estimation Techniquesc hn.i q u es.. . ..................... 16 Existing Analyses of Potential Bagasse Supply and Cost 16 Mission Methodology for Estimating Potential Bagasse aa v i n g s 17 Estimates of Potential Bagasse Savings**..o............. 19 Ranking of Investments to Increase Bagasse Savings...... 21 V. ANALYSIS OF ALTERNATIVE BAGASSE HANDLING SYSTEHS.....o*.*. 24 # ~~~~~~Evaluation C rtra24 Description of Alternative Bagasse Handling Systems..... 24 Loose B...... ....... ... . 24 Pelletising.9 ..e....... ee * .*.gv...... egg..* 26 Briuti qge..... 26 Baling............................................... *27 Bale Size Considerationsi..t.0gerationse.eg.0.....0.0. 28 Comparative Cost of Alternative Bagasse Handling 8 y s t e m s 29 VI. BACASSE POWER POTMNTIAL, 1987-2000.87-2....0 ....0000..... 31 Introduction.....o.. e.. o... eo.......... o... oe . o......... 31 Benefits of Increased Bagasse Uses.....o.o......eo**o..o 31 Potential Economic Supply of Bagasse for Power Generation 32 Estiation M.thodology..o...oooo..ooe.o.. oo... e. oo..o. 32 Economic Supply of Bagasse to FUEL and Medine at Mid-1986 Coal Costs ..e..eg..gg . 9 35 Sensitivity to Higher and Lower Coal Costs....s..... 36 Potential for Additional Firm Bagasse Power Capacity p a c i ty..o.oe...o..eoo o........ooo... 36 Potential Bagasse Power Ceneration from Existing Pl.lt.o.a.ooonootooso ...o.oo.. *oo.....*... 37 Quantity.e.o.ooooo.o... ge..0.. . 0...g. g9 000e 00e.g00. 37 Timing.oeo.ooooooe.oo..oo..e.ooe.oooo.eoooo..oee...*.o 38 Bagasse Power Pricing Issuess u es..o.....o.ooo.o.oo.e.... 39 Power Pricing.o.oooeo.o..... o..ooo......eoo. oee...... 39 Bagasse Payment to Plantersa nt........o...oe rs.... ... 39 Economic Implications of Bagasse Paymentm.e....00e... 43 Recommended Policy .................. *.*............. 43 Economic Returns to Investments in Bagasse Savings and Bulk Handling Facilities for Power Generationtonoeo.oo 44 Sensitivitcy Analysis a l y s isooo ..oooo.ooooo.o..o....o.. 45 VII. RECOMMQENDED FULL-SCALE BACASSE BALING DEMONSTRATION PR O J EC.................................... 46 Rationale and Siting.o.....0.0.0.0000000 00.0.. .e.c.... 46 Baling Plantlane.ogegee ..oe .ee*.ee.. eeege.eeeg g eg.. 46 Bale Storage.o.oooooo..o...ooooo..o..o.o.oo.o..oo.*oo.. 46 Bale-breaking Plant.o.. .0..00. 0000g.e. 0g.e 00. .e.00. g 48 Economic Analysis..... ege o*0000....... e.g...... g.*... 52 I Summaries of Factory Bagasse Surplus and Investment Costso...o..ooo..ooo sooooo too.ooes...... 53 2 Description and Cost of Alternative Bagasse Handling Systems.ooo8 y s t..o.ooo..oooooeeo.oo ... . .eeg. 70 3 Transport Calculations..o......o ..o...oo.o.............o 77 4 Review of the "Bagatex 20" Bagasse Baling System as Operated by the Santa Lydia Sugar Factory, Brazil****.* 78 5 Equipment Specifications for Recommended Baling Proec. o..03 ec0t0*000,.*,.*,, 80 6 Recommended Tea Industry Energy Efficiency/Substitution Analysisn aloy..s..is.g oeeoe.eg o*9o.eoooo..oe..o... 90 TABLES 1.1 Quantity and Cost of Potential Bagasse Savings by 15 Sugar Mills...................................... 2 1.2 Cost of Alternative Bagasse Handling Systems............ 3 1.3 Economic Potential for Additional Bagasse Power Generation ..............*.*** S 1.4 Estimated Costs and Benefits of a Bagasse Power 7 2.1 Power Demand Forecast, 1985-2000 9 2.2 Installed, Available, and Firm Power Capacity, 1985..... 9 2.3 Energy Production by Type of Plant, l985.8 50*000**...... 10 3.1 Power Generation by the Sugar Mills, 1985............... 13 3.2 Potential Firm Capacity and Energy Output of the Three Bagasse-fired Power Stations.................... 14 3.3 Additional Bagasse Supply Required for Year-round Power Generation at Existing Stationstions............ 15 4.1 Forecast 1986 Cane Quantities Processed and Fiber Content by Mil. 19 4.2 Potential Bagasse Savings and Associated Investment Cott. 20 4.3 Potential Mill Investments Costing Less Than US$10 Per Ton of Bagasse Saved v ed........... . 22 5.1 Summary Costs of Alternative Bagasse Handling Systems... 29 5.2 Cost of Alternative Bagasse Handling Systems in Terms of Useful E n e r g y 30 6.1 Assumed Value of Bagasse Generation and Fuel Replacement Savings Per KWH 32 6.2 Power Output from Bagasse at Power Plants................ 33 6.3 Derivation of the Maximum Competitive Cost of Bagasse at the Existing Generating Stations................... 34 6.4 Economic Supply of Bagasse to FUEL on a Coal Replacement Basis.... 35 6.5 Economic Supply of Bagasse to Medine on a Coal Replacement ........................... ......... 35 6.6 Economic Supply of Bagasse to Mon Tresor/Mon Desert on an Alternative Generation Basis ................... 37 6.7 Economic Potential for Additional Bagasse Power Generation ..........44.4 *.....................e 38 6.8 Impact of the Planters' Payment on the Cost of Bagasse to the FUEL Power Plant....................... 41 6.9 Impact of the Rs 100/Ton Planters' Bagasse Payment on Bagasse Competitiveness at FUEL .................... 41 6.10 Estimated Costs and Benefits of a Bagasse Power Project................ ......................... 44 6.11 Results of Sensivity Analysis ........................... 45 7.1 Constance Baling Plant Costs............................ 47 7.2 Constance Bale Store Costs............................. 50 7.3 FUEL Bale Breaking Facility Costs........ . .....**e 51 7.4 Estimated Costs and Benefits of a Bagasse Baling Demonstration Project4 ................................. 52 6.1 Uconomic and Financial Cost of Bagasse Relative to Coal'at the FUEL Power Planta..................... 42 7.1 Layout of Bale Breaking Facility at FUEL................ 49 I. SUMMARY D PMNCIPAL CONCLUSIONS Quantity and Cost of Potential Bagasse Savings 1.1 On average, about 1.5 million tons of bagasse are produced each year in Mauritius as a by-product of sugar manufacture. Over 95X is used by the 19 Mauritian sugar mills to produce power and process steam for their own use. Most of the balance is used by the mills to generate power for supply to the national grid. Small quantities are sold as industrial boiler fuel and animal fodder. 1.2 The sugar mills currently use bagasse inefficiently because it has limited commercial value. By raising boiler combustion efficiency and installing less energy-intensive process equipment and mill drives, the mills could economize on bagasse use and substantially increase the surplus available to substitute for alternative imported fuels. 1.3 Assuming sugar production averages 600,000-650,000 tons per year, as is envisaged by the Sugar Action Plan, the following potential bagasse savings can be achieved at 15 of the 19 existing sugar mills 1/: (a) 103,400 tons by housekeeping measures to economize on bagasse own-use (i.e., without investment); (b) an additional 19,100 tons at an investment cost (excluding bagasse handling and storage) of less than Rs 65/ton (US$5/ton) in associated mill modifications; (c) a further 47,500 tons in investment cost of Rs 65-130/ton (US$5-10/ton) in mill modifications. Technically, at least 360,000 tons of bagasse can be saved by the 15 mills, 170,000 tons of which will cost less than Rs 130 ton (US$10/ton) to save (Table 1.1). 2/ The combined cost of the investments necessary to realize this 170,000 ton saving is Rs 19 million (US$1.39 million). Whether these and related investments in bagasse handling and storage will be economic depends on the potential uses for additional surplus bagasse and the cost at which it can be supplied, relative to alternative fuels. 1/ With the exception of Beau Champ, the sample of 15 mills included all significant potential sources of bagasse supply. 2/ Assuming the full cost of the necessary investments is attributed to bagasse. -2- Table 1.1: QUANTITY AND COST OF POTENTIAL EAGASSE SAVINGS BY 15 SUGAR MILLS Investmen' Cost a/ Item 0 Under USSI-9.9/ton USS1O-14.9/ton USSiS/ton USS5/ton and over Potential bagasse Saving ('000 tons) 103.4 19.1 47.5 35.2 155.1 Cumulative Bagasse Saving ('000 tons) 103.4 122,5 170.0 205.2 360.3 Mill Investment Required (USS'000) 0 147 1,247 1,879 n.a. Cumulative Mill Investment (USS'OOO) 0 147 1,394 3,273 n.e. a/ Excluding bagasse handling and storage. Source: Mission estimates. Alternative Uses for Additional Surplus Bagasse 1.4 The highest-value potential use for additional surplus bagasse, and the only significant alternative to its use in power generation is as a fuel oil substitute for industrial process heating. Current industrial use of bagasse is less than 5,000 tons, due to the small scale of Mauritian industry and thk cost of boiler conversion. There is potential for increased industrial use, psrticularly in the tea industry, a large user of process heat. Draft Terms of Reference for technical assistance to define this potential are attached (Annex 6). However, potential industrial bagasse demand is not significant relative to potential supply. 1.5 Power generation is by far the largest current use of surplus bagasse. In 1985, 58 GWh of grid electricity were generated from bagasse, 15X of total generation. Forty-five GCh were generated by the Fla-q United Estates Limited (FUEL) (21.7 MW), Medine (10 NW) and Mon Tresor/Mon Desert (5 MW) sugar mill generating plants, which are equipped with relatively efficient condensing turboalternators. The remaining 13 GWh were generated by 11 sugar mills equipped with back-pressure generating sets. These sets operate only during the crop season and their output fluctuates with sugar factory operations. The power is neither firm nor subject to modulation by the CEB. -3- 1.6 The highest value use of additional bagasse for power generation, based on existing facilities, would be generate firm power at the FUEL, Medine and Mon Tresor sugar mills. These generating stations are capable of generating 85 GWh, 35 GWh, and 16 GWh per year respectively from bagasse, a total of 136 GWh (35Z of generation in 1985). At present, bagasse supply is insufficient for generation outside the crop season. Only FUEL currently operates year-round, burning coal during the intercrop period. Medine is planning to convert to dual bagasse/coal firing, and then would be capable of year-round operation. Mon Tresor will require a sufficient supply of bagasse for year-round operation. 1.7 Maximizing the use of bagasse at these three generating stations would require the other mills to cease generating power and instead supply surplus bagasse in bulk for use as a generating fuel to FUEL, Medine and Mon Tresor. Their maximum potential bagasse demand for year-round operation is: FUEL, 114,000 tons; Medine, 56,000 tons; and Mon Tresor, 36,000 tons, a total of 206,000 tons. Evaluation of Bulk 3agasse Handling Systems 1.8 Facilities to handle, store, and transport bagasse in bulk will be necessary to supply the generating stations at least cost. There are four potential bulk handling options--loose piling, pelletizing, briquetting and baling. Loose piling is not recommended because of unpredictable fuel characteristics and health risks. Pelletizing, briquetting and baling are all technically feasible. In terms of cost per unit of useful energy, the proven technique of large baling (650 kg bales) is by far the least-cost handling option (Table 1.2). Table 1.2: COST OF ALTERNATIVE 3AGASSE HANDLING SYSTEMS Large System Parameters Pelletizing Briquetting Baling Sagasse moisture content (i) 10.00 10.00 20.00 Net heating value (GJ/ton) 15.30 15.30 13.30 Cost in useful energy (USS/GJ) 2.69 2.06 1.05 Source: Mission estimates. Potential Economic Supply of Bagasse as a Generating Fuel 1.9 It will be economic to utilize additional bagasse as a generating fuel to the point where its economic cost of supply equals the -4- economic benefits of this use. If the bagasse substitutes for an alternative generating fuel, the benefits are the ecotnomic cost of the substitute fuel saved. If it converts previously non-firm bagasse power capacity into firm capacity, the benefits are the cost of alternative generation saved. 1.10 FUEL is already a firm power plant. If, as is planned, Medine converts to coal-firing, its capacity will also be firm. The economic benefit of increased bagasse utilization at these two plants is therefore the economic cost of the alternative fuel saved, which is coal. In mid- 1986, the economic cost of coal supply was Rs 950/ton (US$70.4/ton). In terms of unit cost of power generation, this is equivalent to Rs 0.68/kWh (US$0.05/kWh). 1.11 The only potential new firm bagasse power capacity is Mon Tresor. In view of this plant's age and questionable reliability, it is unlikely to be so rated, even if sufficient economic quantities of bagasse were available for year-round operation. 1.12 The economics of coal substitution will therefore determine the potential role of bagasse in power generation over the next 5-10 years. In the longer term, there may be potential for a new bagasse-fired generating station, depending on the cost of bagasse vis-a-vis alternative generating capacity. Bagasse Substitution at Mid-1986 Coal Costs 1.13 At the mid-1986 economic cost of coal (US$70.4/ton), and adjusting for relative fuel and boiler efficiency, it is economic to substitute bagasse for coal as a generating fuel up to a maximum delivered bagasse cost of US$23.3/ton at FUEL, and US$18.7/ton at Medine. Based on estimates of the cost of bagasse saving (where applicable), baling, storage, transport and boiler feeding, the potential supply of bagasse at less than this cost to each plant is: (a) FUEL: 126,700 tons, of which 112,500 tons could be supplied from six other mills, 14,200 tons by installing a bagasse dryer at FUEL. This is 12,700 tons greater than FUEL's requirement for year-round bagasse generation; (b) Medine: none; 63,500 tons of bagasse could be supplied at a cost competitive with coal, but only by diverting bagasse from the more efficient FUEL plant, where it has a higher economic value and hence should be utilized. Bagasse Substitution at Higher and Lower Coal Costs 1.14 An increase of 10% in the c.i.f. cost of coal would make an additional 19,200 tons of potential bagasse supply to Medine from Mon Desert/Alma economic, on a coal substitution basis. A 20% fall in the c.i.f. cost of coal would make 27,100 tons of potential bagasse supply to FUEL uneconomic. Potential Bdgasse-fired Power Generation 1.15 At mid-1986 coal costs, it is therefore economic to substitute all coal burnt at FUML with bagasse. This would result in 55 CWh of additional bagasse power generation at FUML. Assuming Constance, the nearest bagasse supplier, were to invest in a bagasse baling and storage facility by 1989, 8 GWh of additional bagasse power could be produced in 1990. The balance of 47 GWh could result by 1992, if other competitive bagasse suppliers made the necessary investments in 1991. 1.16 An increase of 102 in the c.i.f. cost of coal would justify an additional 7.5 GWh of bagasse-fired generation from Medine, based on bagasse supply from Mon Desert/Alma. A 202 decrease in the c.i.f. cost of coal, which is close to World Bank projections for the period 1986-95, would reduce additional bagasse-fired generation at FUEL from 55 GWh to 48 GWh (Table 1.3). Table 1.3: ECONOMIC POTENTIAL FOR AODITIONAL BAGASSE POWER GENERATION De Ivered Cost of CoSl Plant USSS9.3/ton USS70.4/ton USS81.5/ton FUEL 48 55 55 Medtne 0 0 7.5 Total 48 55 62.5 Source: Mission estimates. Impact of the Bagasse Payment to Planters 1.17 There are no major economic uses for additional bagasse in Mauritius other than power generation. Its economic opportunity cost is therefore zero. Maximum economic benefit from bagasse use will be realized only if all the economically-competitive supply for power generation is so utilized. 1.18 Currently, Mauritian law requires a payment to cane planters of Rs 100/ton (US$7.4) for bagasse used for any purpose other than sugar production. The impact this bagasse payment will have on the financial cost bagasse supply for power varies from mill-to-mill, depending on the mill's contribution to the total sugar crop. At a c.i.f. cost of coal of Rs 750/ton (US$55.6/ton), equivalent to a delivered cost of Rs 950/ton (US$70.4/ton), it is estimated that the payment would make 31,800 tons of economic bagasse supply to FUEL financially uncompetitive and a further -6- 27,000 tons marginally competitive. If the uncompetitive bagasse was displaced, the resulting economic cost to Mauritius from higher substitute coal imports would be Rs 7.7 million (US$573,000) per year. If the marginally-competitive supply was also lost, the total economic cost would be Rs 14.3 million (US$1,060,000) per year. At a c.i.f. cost of coal of Rs 616/ton (US$45.6/ton) the payment would made 95,100 tons of economic bagasse supply to FUEL financially uncompetitive, at an economic cost to Mauritius of Rs 19.0 million (US$1.4 million) per year. 1.19 Avoidance of this economic cost requires either (a) elimination of the bagasse payment or (b) modification of the payment system so that it does not affect the competitiveness of potential economic bagasse supply. The benefits of the maximum economic use of bagasse would then be shared between the sugar millers, the planters, the Central Electricity Board (CEB), and power consumers. Investment Returns and Risks of a Bagasse Power Generation Project 1.20 A potential bagasse power generation project, defined as the supply of 114,800 tons of baled bagasse for power generation at FUEL by the six least-cost potential suppliers-Constance, Belle Vue, Societe Sucriere de Riviere du Rempart, Beau Plan, St. Antoine and FUEL itself-- would require capital investment of Rs 57.3 million (US$4.2 million), primarily in baling and storage facilities. Annual operating and transport costs would total Rs 11.0 million (US$0.8 million) and annual benefits Rs 35.8 million (US$2.7 million) in a full year of operation (Table 1.4). Based on these estimated costs and benefits, the project has a net present value (NPV) of US$4.8 million at a 14% rate of interest. Assuming no significant distortions in the Mauritian economy, its economic rate of return (ERR) is 36X. There is a risk that costs could be higher and benefits lower than estimated. Under a worst-case scenario of costs 20% higher and benefits 20% lower, the NPV falls to US$1.1 million and the ERR to 19Z. -7- Table 1.4: ESTIMATED COSTS AND BENEFITS OF A BAGASSE POWER PRDJECT (USSIOOO) Ite Year 1 Year 2 Year 3 Years 4-20 Costs Invostment 919 0 3,327 0 Operatino 135 160 517 g17 Transport 0 31 31 298 Total Costs 1,054 191 3,875 615 Benefits 0 436 436 2,651 Net Benefits -1,054 +245 -3,439 +1,837 Source: Mission estimates Recomended Bagasse Baling Demonstration Project 1.21 Although the recommended large bale bagasse handling technique is internationally proven in Hawaii, Latin America and Africa, the tech- nology is unfamiliar to Mauritian sugar mills. Hence, a demonstration bagasse handling, storage and bale breaking project is recommended to familiarize potential bagasse suppliers with the technology. The project involves the supply of 18,700 tons of baled bagasse from Constance, the nearest mill with a substantial current bagasse surplus, to FUEL, the least-cost bagasse-fired power generating station. The project's capital cost is Rs 12.4 million (US$919,000) and its annual operating cost is Rs 2.6 million (US$191,000). At an interest rate of 14X, it has an NPV of US$390,000. Its ERR is 221. A 10 increase in costs and decrease in benefits lowers the NPY to US$267,000 and the ERR to 181. II. ESEUGY SECTO STRATECGY AND THE POTENTIAL ROLE OF BAGASSE Energy Sector Strategy 2.1 Roughly half of Mauritius' current energy requirements are met by bagasse, most of which is used by the island's 19 sugar mills for their own energy needs. Of the other half, about 30Z is met by petroleum products, 15 by wood, and the balance by small quantities of hydropower and coal. 2.2 The country's key energy problem is the burden of energy imports on the balance of payments. From US$10 million in 1973, energy imports rose to over US$50 million in 1984, equivalent to 15X of total export earnings. Although the recent decline in world oil prices has provided temporary relief, oil prices are expected eventually to return to their pre-1985 level. Unless effective action is taken to reduce fuel imports, the energy-induced balance of payments constraint will again become severe. 2.3 The energy strategy recommended for Mauritius is to substitute cheaper indigenous fuels for imported oil and coal, where cost-effective, and to use energy more efficiently. Outside the transport sector, where there is little prospect of indigenous fuel substitutioi, the greatest user of oil and coal is power generation. The growing industrial sector is also a significant oil consumer. This report focuses on the potential for substituting indigenous bagasse for imported fuel in power generation. Analysis is also needed of the least-cost means of satisfying industrial energy demand. 'Power Subsector Strategy 2.4 A power deoand forecast for Mauritius to the year 2000 has been prepared as input to a least-cost power expansion plan. From a level of 327 GWh consumed in 1985, the plan hypothesixes three alternative scena- rios for the growth of power demand (Table 2.1). All imply substantial additions to existing generating capacity and energy production. -9- Table 2.1: POWER DEMAND FORECAST, 1985-2000 (6Wh) Year Ease Case Low Scenario High Scenario 1985 327 327 327 1990 501 471 556 2001 803 647 1033 Source: Mauritius: POwer Sector Oeand Forecast, SWECO (Sweden), January, 1987. 2.5 The existing power generation system is composed of hydroelectric and thermal plants. The hydroelectric plants comprise the Champagne power station (30 MW) and eight smaller hydroelectric stations. The thermal plants consist of the diesel-fueled St. Louis (86.1 MW) and Ft. Victoria (62.4 MW) plants, operated by the CEB, and 14 sugar factory plants. The largest of these, the 21.7 MW FUEL plant, burns bagasse and coal. The second largest, the 10 MW Medine plant, burns bagasse, but will shortly add coal-burning capability. The 12 other plants are exclusively bagasse-fueled. The capacities of the various plants are summarized in Table 2.2. Table 2.2: INSTALLED, AVAILABLE, AND FIRM POWER CAPACITY, 1985 (MN) Installed Available Firin Type of Plant capacity capacity capacity OIl thermal 148.5 120.5 75.0 Hydro 54.1 51.3 10.0 Sugar factory FUEL 21.7 18.0 18.0 others 63.4 17.1 0.0 Subtotal 85.1 35.1 18.0 Total 287.7 206.9 103.0 Peak demand 85.0 Source: CEB. 2.6 The relative contribution to total energy produced by each type of plant in 1985 is shown in Table 2.3. The oil thermal stations produced almost half of the electrical energy, the hydro stations just under 30%, and the sugar factories 271. Of the latter, 15X was generated from bagasse and 121 from coal. - 10 Table 2.3: ENERGY PROCUCTION BY TYPE OF PLANT, 1985 Type of Plant Energy Production (GWh) Ci) OIl thermal 173.6 44 Hydro 114.0 29 Sugar facto les FUEL bagsse 28.3 7 Coal 45.2 12 Others (bagasse) 29.S 8 Subtotal 103.0 27 Total 390.6 100 Source: CE£. 2.7 The potential for further development of hydro capacity is limited. All coal and oil must be imported. The only indigenous fuel vith significant potential for increased use in power generation is bagasse. It is therefore in the interest of Mauritius to make maximum use of this fuel in power generation, to the extent it is the least-cost alternative and has no higher-value use. Future of the Sugar Industry and Bagasse Supply 2.8 The potential availability of bagasse for power generation and other purposes in inexorably linked to the future of the sugar industry in Mauritius. Despite recent expansion and diversification of the industrial sector, sugar production continues to be the single most important economic activity in the country, accounting for just under 50% of total merchandise exports and a quarter of total employment in the organized sector. Maintaining the output and productive efficiency of the industry therefore remains vital to the economic health of Mauritius. 2.9 Annual output of processed sugar declined from an average of 660,000 tons between 1972 and 1979 to 583,000 tons between 1980 and 1983. lowever, favorable climatic conditions resulted in production of 645,000 tons of sugar during the 1985 season, and production in 1986 is expected to top 700,000 tons. Over the last ten years, sugar cane production has ranged from a minimum of 4.3 million tons during a cyclone year to a high of 6.6 million tons. The Sugar Action Plan is based on maintaining output at a level of 600,000-650,000 tons of processed sugar per year. This provides a firm basis for analysis of the potential contribution that bagasse can make to the island's fuel supply. - 11. - III. POTMMTAL DEMAND POR SURPLUS BACASSE Introduction 3.1 Currently, about 95X of the bagasse available in Mauritius is used by the sugar industry to produce low pressure steam for sugar process heating and high pressure steam for driving mill equipment or generating electric power for this purpose. Where quantities surplus to mill requirements are available, bagasse is used by the sugar mills to generate additional electric power for supply to the grid. Small quantities are also used as industrial boiler fuel, primarily in the tea industry. This chapter examines these and other potential sources of future bagasse demand. Industrial Process Heating 3.2 According to the Energy Assessment Report, the industrial sector accounts for about one-fifth of total commercial energy consumption in Mauritius. With the rapid growth of industries in the Export Processing Zone, this figure is expected to rise significantly in the coming decade. The major industrial consumers of fuel and diesel oils are the textile mills, the tea factories, the beverage industry and the edible oils refinery. According to data from a 1986 Industrial Energy Survey by the Ministry of Energy and Internal Communications (MEIC), the tea industry alone accounts for over one-third of industrial consumption of fuel oil. Tea Industry 3.3 A priori, the tea industry is a relatively promising potential market for bagasse as a substitute for imported fuel because: (a) energy accounts for one-third to two-thirds of total operating costs; (b) bagasse is potentially less costly than oil per CJ; and (c) the oil- burning boilers currently used for raising heat to wither and dry tea can be converted to burn bagasse. The industry produces about 8,100 tons of tea per year, each ton of which requires 35 CJ of heat energy for withering and drying. According to an energy survey of the tea industry conducted by the MEIC in April 1986, it consumed 4,750 tons of fuel oil and 5 million kWh of electricity in 1985, costing US$1.8 million. 3.4 It is estimated that 15,600 tons of bagasse would be required to substitute fully for this quantity of fuel oil. With potential energy conservation and management improvements, international experience suggests that specific energy consumption could be reduced to as little as 20 CJ/ton or 162,000 WJ annually. This would require 2,700 tons of fuel oil, costing US$695,000, which could be substituted by 8,900 tons of bagasse. - 12 - 3.5 Several tea factories have already identified potential savings from bagasse substitution and have converted their boilers accordingly. Given a reliable, competitive supply of bagasse, more of the industry might be prepared to make the required investments for the conversion of their fuel oil boilers to bagasse-fired boilers or heat gasifiers. To facilitate this process, Terms of Reference for recommended technical assistance to assess the costs and benefits of potential energy conserva- tion and bagasse substitution investments in the tea industry are presented in Annex 7. Other Industries 3.6 Other industries with fuel oil boilers, such as textiles, might also find bagasse substitution cost-effective. Their conversion costs would probably be higher than those of the tea industry, but the savings could still make the conversion economic. However, as no comprehensive, plant-by-plant information is available on industrial consumption of fuel oil in boilers, it is difficult to estimate potential industrial bagasse demand outside the tea industry. A detailed analysis of the least-cost approach to satisfying industrial energy needs is required. This would comprehensively define the economic potential for utilizing bagasse for heat and steam raising in industry. Particleboard and Cellulose Products 3.7 Until recently, a factory located at the St. Antoine sugar mill, used surplus bagasse to produce particleboard. The plant's capacity was about 3,000 tons, at which it would consume 9,000 tons of bagasse. However, the potential market for particleboard in Mauritius was less than 1,000 tons/year and Mauritian supplies were not competitive in the ne;rest export market, Reunion. Output declined to 400 tons in 1985 and, in 1986, the factory ceased production. 3.8 Although bagasse is used in other countries to produce particleboard and other cellulose products, the small size of the Mauritian market and the island's distant location from potential major export markets make their manufacture uneconomic in Mauritius. Hence this is unlikely to become economic use for bagasse. Household Fuel 3.9 Bagasse, in the form of briquettes, is technically a potential substitute household fuel for increasingly scarce firewood and charcoal. Based on data from a household energy survey published by the MEIC in July 1986, the Ministry of Agriculture's Forestry Department estimates household consumption of fuelwood (firewood and charcoal) at 48,000 tons/year. Fuelwood market prices are about US$15.6-18.S/ton - 13 - (US$1.70-2.00/CJ) for firewood and US$178-204/ton (US$6.80-7.80/GJ) for charcoal. It is estimated that bagasse briquettes could be sold for around US$2.00/GJ. However, no stove modification or consumer acceptability tests have been conducted with bagasse briquettes in Mauritian households. Further, the Government of Mauritius (GOM) has embarked on a program to promote LPC, not densified biomassp as a fuel- wood substitute. Therefore, the household bagasse market can only be noted as an interesting possibility, not as a fi h option, at this stage. Power Generation Current Bagasse Power Output 3.10 Fourteen sugar mills supplied a total of 103 GWh of power to the CEB in 1985 (Table 3.1). Fifty-eight GWh were generated from bagasse, the balance of 45 GWh from coal. Three sugar mills (FUEL, Medine and Mon Tresor) have relatively efficient condensing turbo- alternators. The FUEL plant has a rated capacity of 21.7 MW, Medine 10 MW and Mon Tresor 5 NW. FUEL is capable of burning either bagasse or coal; the other two plants, bagasse only. Due to the current limited supply of bagasse, FUEL is the only plant able to operate year-round. In 1985, FUEL supplied 75 CWh of power, Nedine 13 GWh, and Mon Tresor 3 CWh. 3.11 The remaining 11 mills use small, inefficient back-pressure turbo-alternators to produce power for their own use and a small, variable surplus for sale to the CEB. These units run only during the crop season when the mills are in operation. Their supply of surplus power is not available year-round, fluctuates with mill operations, and is not susceptible to modulation by CE8. Hence it is of relatively low value and commands a very low price, which provides little incentive to expand power output and hence bagasse supply for power generation. Table 3.1: POWER GENERATION BY THE SUGAR MILLS, 1985 (1Wh) Fuel Station Crop Intercrop Total Bagasse FUEL 30 - 30 Medlne 13 - 13 Mon Tror 3 - 3 Others 12 - 12 Subtotal 'a Coa I FUEL 5 40 45 Total 103 Source: CEB. -14 - Scope for Increasing Bagasse-fueled Generation 3.12 The highest-value use for bagasse in power generation is as fuel for the production of firm power. This can be achieved by: (a) displacing coal at the FUEL power station; (b) assuming Medine converts to dual coal/bagasse firing, substituting bagasse for coal there also; and (c) making the Mon Tresor/Mon Desert plant capable of firm, year-round power generation. Due to its age and small size (2.5 MW), coal conversion at Mon Tresor would probably not be economic. Therefore, to become a supplier of firm power, Mon Tresor would need sufficient bagasse for year-round operation. Over the longer term, assuming bagasse supply increased substantially, a fourth option would be construction of a new 10-20 NW bagasse-fueled power station. This should preferably have dual-fuel (bagase/coal) capability and be located at a sugar mill with a large bagasse surplus. 3.13 Based on a conservative assessment of potential generating plant performance, the year-round firm capacity of the three existing bagasse power plants is estimated to be: FUEL, 16 MW; Medine, 6 MW; and Non Tresor, 2.5 MW. Assuming generation for 130 days in the crop period and 145 days in the intercrop at a 70% load factor, and allowing for normal operating problems, potential annual energy output is roughly 85 GWh from FUEL, 35 GCh from Medine and 16 GWh from Mon Tresor, a total of 136 GWh (Table 3.2). Table 3.2: POTENTIAL FIRM CAPACITY AND ENERGY OUTPUT OF THE THREE iAGASSE-F I RED POWER STATIONS FUEL Medine Mon Tresor Period Capacity Energy Capacity Energy Capacity Energy (MN) (GWh) (MN) (Gwh) (MN) (GWh) Crop 16 35 6 15 2.5 6 Intercrop 17 s0 7 20 3.5 10 Year FS 35 16 Source: MSA and mission estimates. 3.14 Based on these potential power outputs and the use of 20% m.c. (stored) bagasse, the quantities of additional bagasse required by the three generating plants to operate year-round on bagasse are estimated to be 114,000 tons at FUEL, 56,000 tons at Medine, and 36,000 tons at Mon Tresor, a combined total of 206,000 tons per year (Table 3.3). - 1S - Table 3,3: ACOITIONAL BAGASSE SUPPLY REQUIRED FOR YEAR-ROUND POWER GENERATION AT EXISTING STATIONS Power StatIon Parameter Unit FUEL MNdine Mon Tresor Potential power output OWh/yr 8S 35 16 Bagasse-ftred output, 1985 Gnh 30 13 3 Shortfall of actual from potential GWh/yr 55 22 13 Eagasse generation efficiency 1/ kWh/ton 483 392 362 Additlonal begesse required '000 tons 114 56 36 I/ See pars. 6.7 for derivatlon. Source: CEO, MSA, Mission estimates. The extent to which it will be economic to satisfy this potential demand for bagasse depends on its economic cost of supply, vis-a-vis alternative fuels, for power generation. - 16 - IV. POTBUTIAL QNTAMI AND AM MT OF ADDITIONAL BAUSS SUPPLY Estimation Techniques 4.1 The potential quantity of surplus bagasse that could be saved by the sugar industry and supplied for other purposes is primarily a function of three parameterss (a) the quantity of cane processed during the crop season; (b) the fiber content of that cane; and (c) the efficiency of bagasse utilization within the sugar mills to produce electricity and process steam for their own use. 4.2 Parameters (a) and (b) differ between mills and from year to year, but are simple to estimate from existing industry data. The actual level of parameter Cc) is estimated most accurately by observation of mill steam and electricity consumption. However, this is a time- consuming and costly process, and subject to considerable measurement error. Consequently, theoretical calculations of energy use, based on known characteristics of mill plant and equipment, are often used for estimation purposes. The potential efficiency of bagasse use--after adjustments to bagasse feed and boiler settings and investments in more energy efficient plants and equipment-is established by simulating the energy requirements of alternative plant configurations. Ezisting Analyses of Potential Sagasse Supply and Cost 4.3 Several different methodologies have been used to estimate mill bagasse requirements and potential economies therein in previous analyses of potential surplus bagasse supply and cost. A study by the Mauritius Sugar Authority (NSA) in 1985 estimated the additional bagasse surplus that would result if a sample of seven sugar facLories reduced their steam consumption from its then current level to a target of 400 kg/ton of cane. Technically, the NSA considered 400 kg/ton a feasible target, and one which would require relatively modest investments. The resulting potential bagasse surplus was estimated to be 146,400 tons/year for the seven mills. 4.4 Estimates of potential bagasse supply presented in the Govern- ment's Action Plan for the Sugar Industry were based on an assumed mill own-use bagasse requirement of 18.5 tons of bagasse per 100 tons of cane processed. At 78X boiler efficiency, achievement of this target energy efficiency level was estimated to result in a bagasse surplus of 430,000 tons in an average (6 million ton) crop year. If average boiler efficiency was raised to 832, the surplus would be about 500,000 tons. - 17 - In both these analyses, it was estimated that the potential bagasse surplus could be produced, handled, stored and transported at a cost competitive with the cheapest alternative fuel for power generation. 4.5 Unfortunately, both these estimation methodologies have severe practical limitations. The first is based on achieving an arbitrary target steam consumption level, untelated to the specific energy-using characteristics of each sugar mill. Hence it may seriously understate or overstate the potential for cost-effective improvements in each mill's energy use. The second approach is still more arbitrary, in that it assumes the achievement of a "model" process steam requirement at each mill, which may or may not be cost-effective in terms of the mill's current process set-up, the relationship between its boiler capacity and steam consumption or the balance between high pressure and low pressure steam requirements. Both studias inadequately address the issue of bagasse handling and storage costs. Mission Methodology for Estimating Potential Bagasse Savings 4.6 The mission's methodology was to base the calculation of potential mill bagasse savings and supply on the estimated energy requirements of each mill, based on its existing plant configuration, and analysis of the most cost-effective potential modifications to each mill that would reduce energy consumption and increase surplus bagasse availability. 4.7 The first step was to estimate current requirements for both high pressure steam for power generation and operation of the prime movers and low pressure steam for process heat. These requirements were compared with potential steam supply from the boilers to identify any potential excess of bagasse, relative to own-use energy needs. By definition, this potential supply requires no investment and has a zero cost, net of bagasse handling, storing and transportation to the user. In some cases, where the mill has a cost-effective use for surplus bagasse, part or all of this estimated potential surplus may be realized. In most cases, however, the surplus currently is of little value and its production imposes additional costs of bagasse disposal on the mill. In these cases, the potential "surplus" is eliminated. 4.8 Taking the existing configuration of each mill and its consequent energy requirements as datum, the second step was to simulate the effect of potential investments in more energy efficient plant and machinery on mill energy requirements. The investments which resulted in the largest net bagasse savings per dollar of expenditure were then costed, the resulting surplus bagasse estimated, and the unit cost of producing that surplus calculated. In order to maintain the balance between high pressure and low pressure steam, this process required several iterations. First, modifications to the process steam utilization system were simulated, for example, extensive vapour bleeding - 18 - from the evaporator and quintuple-effect evaporator operation. Calculations were made in parallel of exhaust steam produced by the prime movers driving the cane preparation department, the milling department and the turboalternators. This figure was then compared with the process steam requirement, after modification, as outlined above. The modifications were costed and the net additional quantity of bagasse estimated. 4.9 Where the exhaust steam produced was in excess of process steam requirements, high pressure steam savings were identified: for example, higher efficiency mill drives and extraction/condensing turbo alternators to reduce electrical generation steam consumption. The cost of these investments was estimated and again expressed in terms of bagasse saved. 4.10 Having estimated the required boiler steam output after the above modifications, options for improving boiler efficiency were evaluated: for example, bagasse pre-drying using boiler flue gases, improved use of sugar factory condensates and improved boiler control systems. The cost was again estimated and compared with the excess bagasse derived from the modification. 4.11 As is evident, use of this methodology to estimate potential bagasse savings requires on-site analysis of each sugar mill. The mission was able to visit and fully analyze potential bagasse savings at 15 of the 19 existing sugar mills. A sixteenth mill (Beau Champ) preferred not to be visited. The three remaining mills (Rose Belle, St. Felix and Belle Ombre) are not considered to be significant potential sources of bagasse supply. 4.12 For projected mill cane throughput (parameter (a)), forecasts for the 1986 crop season were used. As the 1986 crop is large, this represents the upper limit of probable future cane throughput. Observed fiber content by mill for the initial weeks of the 1986 crop was used for parameter (b). Although fiber content varies from mill to mill, it is relatively stable from year to year. Use of a single point observation does not therefore introduce significant error into the calculation. The estimates are given in Table 4.1. 4.13 The forecast total of 5,050,000 tons of cane to be processed by the 15 mills for 1986 is equivalent to a crop of over 6 million tons for the island as a whole. This is close to the recent peak crop of 6.6 million tons in 1982 and above the 1975-85 average of roughly 6 million tons. The low point of recent throughput was 1975, with a total of 4.3 million tons. On average, cane quantity processed per year will be less than that of 1986, and, in extremely low years, could fall to as little as 65X of this figure. 19 - Table 4.1: ESTIMATED 1986 CANE QUANTITIES PROCESSED AND FIBER CONTENT BY MILL Sugar Mill Cone Processed Fiber Content ('000 tons/year) (S) FUEL 700 12.94 Constance 310 14.50 Nadine 5C0 14.04 Beau Plan 300 15.52 Belle Vue 450 15.19 Mon Desert/Alma 360 13.00 Mon Tresor/Mon Desert 280 13.89 Soc. Suc. Riv. Romp. 310 14.65 Riche en Eau 275 13.20 Mount 235 15.04 Brittania 225 12.37 Savannah 310 13.34 Highlands 275 11.98 St. Antoine 270 13.39 Union St. Aubin 250 15.60 Totel 5,050 Source: Mission estimates. 4.14 The mision's analysis of potential mill-modification investments attributes the full cost of each investment to the resulting incremental saving of bagasse. In many cases, this assumption is realistic, in that potential bagasse savings will be the sole or primary incentive for the investment. Where other benefits result, such as improved sugar quality or higher output, it is appropriate to attribute part of the cost of the investment to those benefits. This assessment must be. left to the individual mills. It will have the effect of reducing the unit cost of the affected bagasse saving in proportion to the relative value of the other benefits. Estimates of Potential Bagasse Savings 4.15 Estimates of the potential quantities of bagasse that would be saved at each mill, and their investment cost per ton of bagasse saved, are set out in Annex 1 and summarized by a range of investment costs in Table 4.2. The costs cover only those investments associated with bagasse saving. They exclude costs of bagasse handling, storage and transportation, associated with supply of bagasse to a potential customer. These latter are specific to the purpose for which the bagasse - 20 - is used, the quantities required and the location of the supplier and consumer. They are estimated in the following two chapters for the purpose of power generation. Table 4.2: POTENTIAL 3AGASSE SAVINGS AND ASSOCIATED INVESTMENT COSTS ('000 tons/year) Surplus Avail- Incremental quantities of Bagasse by Cost of able WIthout Ml III Investment In Baaasse Saving Sugar MlII Investmnt a/ Under 55/ton SS-9.9/ton S10-14.9/ton S15/ton and Over FUELb/ - - - - 14.2 ModeIn;b - - - - 11.8 Constance 18.7 - - 12.6 Beau Plan 16.9 - - 10.2 selle Vue 25.2 5.5 - - 7.3 Mbn iDe&rt - - 19.2 - 5.5 Mon Tresor b/ 6.5 3.5 - - 6.1 S. S. RIv. Roep. 11.3 10.1 - 4.9 Rlche en Eau - - 16.8 7.5 Mount - - - 24.0 Savannah - - 23.9 - 9.9 Hlghlands - - - 18.6 St. Antoine 11.9 - - 10.9 10.4 Union St. Aubin 12.9 - 4.4 3.9 Total 103.4 19.1 47.5 35.2 155.1 Cumulative 122e5 170.0 205.2 360.3 a/ Quantity of begasse from cane minus current own-use requirements. Due to I imited begasse market and disposal problems, this surplus Is not necessarily realized. b/ ExcludIlng bagasse currently used for power generation. Note: Amounts of less then 1,000 tons are excluded because of their limited economic significance. Source: Mission estimates. 4.16 Summary conclusions as to potential bagasse savings and their associated costs are: (a) 103,400 tons of bagasse, surplus to mill own requirements, can be saved simply by reducing own-use and without investment in mill modifications; (b) an additional 19,100 tons can be saved at an investment cost of less than Rs 65 (US$5) per ton, and a further 47,000 tons at a cost of less than Rs 130 (US$10) per ton; and - 21 - (c) at least 360,000 tons of surplus bagasse can be saved if all the identified investments are implemented. 3/ Of this total, 190,000 tons (over 501) will cost more than is 130 (US$10) per ton to save. 4.17 Previous analyses of potential bagasse supply and cost, such as those briefly described in paras. 4.4-4.6 above, estimated the average cost of potential bagasse savings to range from Rs 50-100/ton ($3.70- 7.40/ton). The mission's analysis suggests that about 135,000 tons of bagasse could be saved at the 15 mills at a cost of $3.40/ton or less. Total potential savings at a cost of $7.40/ton or less are about 225,000 tons. These totals are substantially below previous estimates. Ranking of Investments to Increase Bagasse Savings 4.18 For each mill, the mission identified at least two investment packages that would increase the quantity of bagasse saved. Their content, capital, and operating costs are summarized in Annex 2. The selection was based on analysis of each mill's current energy require- ments and of alternative cost-effective modifications thereto. The most cost-effective investments, in terms of additional bagasse savings, were generally improvements in the efficiency of process steam use. In some cases, these must be matched by complementary reductions in high pressure steam consumption, generally by replacing steam-driven engines and pumps with electric motors. The potential mill investments that would result in bagasse savings costing less than Rs 130/ton (US$10/ton) are presented in Table 4.3. Their combined cost is Is 18.8 million (US$1.4 million). 4.19 The installation of bagasse dryers to pre-dry bagasse with boiler flue gases prior to burning was an option evaluated for each sugar mill. This would reduce the moisture content of the bagasse from an average of 502 to 351 and increase combustion efficiency. At an average capital expenditure of $890,000 per mill, the investment would cost between $17-61/ton of bagasse saved, depending on the characteristics of the mill concerned. Because the sole rationale for this investment would be to reduce own-use of bagasse, it is appropriate to allocate its full cost to the quantity of bagasse saved. At a cost of US$17/ton of bagasse 3/ The potential savings of bagasse could be increased further by the replacing existing boilers with new high-pressure boilers at several mills. This investment, together with complementary plant changes, was analyzed for The Mount. It was estimated to cost US$37.43/ton of bagasse, if the cost was fully attributed to the incremental quantity of bagasse saved. Although uneconomic on grounds of bagasse saving alone, boiler replacement could be justified if it produces other benefits. - 22 - or higher, such investments would not be viable, except perhaps at FUEL, if costly bagasse handling was not required. Table 4.3: POTENTIAL MILL INVESTMENTS COSTING LESS THAN USSIO PER TON OF BAGASSE SAVED a/ Cost of Quantity of MilIl ature of Investment Capital Cost Sagasse Bagasse) b/ (USS) (USS/ton) (tons/year) Mon Tresor/ Mon Dssert 150 m2 Juice heater 45,801 2.54 3,500 selle Vue 900 kw multistage turbin3a to 100,954 4.35 5,500 drive 1st and 2nd mills 85m2 Juice heater Mon Oesert/ Conversion to quintuple-effect Alma evaporatIon with addition of one 600ma body and one 90O.2 body, 135m2 Julce heater. 378,782 5.08 14,100 Union Conversion to quintuple-effect St. Aubin evaporation with addition of new 400m2 body and operation of effects 2 and 3 In parallel. 225m2 Juice heater. 152,717 6.72 14,100 Savannah Conversion to quintuple-effect evaporation with addition of 900m2 body. 220m2 Juice heater. 1000 kV condensing turbo alternator Electric motor to replace 1D fan steoa drive. 715,065 7.02 23,300 Total 1,393,319 60,S00 a/ Assuming cost of the Investment is fully attributed to increnental bagasse production. b/ Rounded to the nearest 100 tons. Source: Mission estimates. - 23 - 4.20 Whether investments in bagasse saving are economic will depend on the delivered cost of bagasse to the customer, relative to the cost of alternative fuels. That cost will be use- and consumer-specific, and will include the costs of bagasse handling, storage and transport. Because by far the most significant proven demand for bagasse is as a fuel for power generation, the next chapter evaluates the cost of alternative bulk bagasse handling systems for this purpose. The follow- ing chapter then estimates, based on the total cost of bagasse saving, handling, storage and transport, the quantities and sources of potential bagasse supply that could be competitive for power generation. - 24 - V. ANALYSIS OF ALTRMMATIVE UAtMSE EANDLING SYSTEUS Evaluation Criteria 5.1 Four bagasse handling systems-loose piling, pelletizing, briquetting and baling-were assessed in terms of their cost- effectiveness for bulk bagasse supply for clectric power generation. Overall, the preferred handling system should: (a) provide year-round supply of a uniform fuel to the major users; (b) be based on an easily-managed technology that is compatible with sugar mill operations and is flexible with regard to bagasse output; (c) be designed to minimize storage losses and risks of pollution, fire, and to health; and {d) be flexible with regard to scheduling, so that phased implementation is possible. These criteria are used to assess the various bagasse handling options which potentially could be applied in Mauritius. Description of Alternative Bagasse Handling Systems Loose Bagasse 5.2 Loose piling of bulk bagasse is used almost exclusively for wet bagasse production processes, such as pulp and paper manufacturing or hardboard production. After separation of the pith from the fiber by means of depithing machines, the fibers are pumped onto piles as slurry. The continuous flow of liquid allows for fermentation control, which is important for limiting losses from biodegradation. The temperatures inside the piles are monitored periodically and slurry is poured on spots where excessive heat increases have been detected. In some cases, the liquid contains chemicals to increase the "softening" of the fibers. Bulldosers are sometimes used to distribute and compact the fibers. 5.3 Piling of loose, undepithed bagasse in large quantities is rarely practiced for dry process use, such as boiler-firing. Its technical, environmental and economical disadvantages for such use are: (a) Storage Losses-with no means of controlling the degree of fermentation and the development of heat inside loose, dry - 25 - piles, high deterioration losses can occur. Also, the risk of spontaneous combustion inside the piles is high; (b) High Handling Costs and Losses-because of loose bagasse's low bulk density, large storage areas and transport in enclosed trucks are required. This, in turn, entails high costs for piling, reclaiming, loading and unloading, plus handling losses estimated at over 102; (c) Health Hazards-with a dry product, there is excessive formation of dust during handling, storage and transport. This fermented dust is a severe health hazard, causing bagasosis; and (d) Unpredictable Fuel-because the moisture content of loose-piled bagasse varies according to weather conditions and the degree of fermentation, its calorific value cannot be predicted. Thus, on technical, cost, and health grounds, loose piling of bagasse is not recommended as a bulk handling option. Pelletizing 5.4 Pelletization is a high-pressure densification process which requires that bagasse be dried to a moisture content of 10-12% before being fed to the pelletizer. To date, this method has been in three locations: at the Theo Davis mill in Hawaii, USA; at the Beau Champ mill in Mauritius; and at three plants in Cuba. The Hawaiian plant has been closed, the plant in Mauritius has ceased production and the Cuban facilities are at the commissioning stage. 5.5 Pelletization has a number of disadvantages for bagasse handling: (a) High Costs - capital and operating costs per GJ of output are high, relative to other options, because of costly drying equipment, energy, spare parts and control expenses; (b) Die Wear - wear on dies has been higher than expected due to the abrasive character'of bagasse; (c) Difficult Management - the drying and pelletizing process is highly sensitive to fluctuations in sugar mill operation (e.g., flue gas temperature and volume, bagasse flow, etc.). Even with elaborate control equipment, it is difficult to keep these operational parameters within strict limits and thus to achieve a smooth operation; and (d) Fire Hazard - unless pellets are properly cooled prior to storage, they can present a fire hazard. -26- For these reasons, past experiments with bagasse pelletization have not been satisfactory. 5.6 However, pellets have several advantages, including a high bulk density (600 kg/cubic meter), which reduces storage and transport costs. Further, they are a uniform product with a low moisture content. This means that their energy value is predictable, they are an easy-to-handle fuel, and they experience little fermentation (if stored under cover). Therefore, pelletisation merits further analysis as a potential handling option. Briguetting 5.7 Briquetting is another high-pressure densification process which produces log-like cylinders of 15-90 mm diameter from 10-121 m.c. bagasse. This method has been adopted in several facilities world-wide for processing bagasse, although none of these plants is apparently still in operation. Either the sugar mill has closed or the users have changed their fuel requirements or ceased operating. However, the World Bank is financing a pilot bagasse and cane-top briquetting facility in Ethiopia, due for commissioning in 1988. 5.8 Specific experience with bagasse briquettes includes: (a) a sugar mill in the Dominican Republic to supply briquettes to a board mill which never began operation; (b) three sugar mills in Puerto Rico to produce briquettes for board and paper mills; (c) one mill in the Philippines to produce fuel briquettes during the intercrop season at the sugar mill; and (d) a mill in Guadeloupe to produce briquettes for the adjacent board factory. An attempt was also made in Mauritius about eight years ago to produce briquettes for local lime kilns. A plant was installed at the Savannah sugar mill, but its drying and feeding systems were poorly designed and it never entered full-scale commercial operation. The equipment was abandoned after several attempts to operate the system. 5.9 Some of the disadvantages of pelletizing also apply to briquetting, including: (a) Large Investment-although somewhat less than pelletizing plants, the capital requirements of briquetting systems are substantial; - 27 - (b) Power Consumption and Die Wear-these are also less than for pellets, due to the larger circumference and sectional area of briquettes. However, power consumption is still high, especially for drying; and (c) High User Costs-for use in existing mill boilers, briquettes have to be crushed prior to burning. 5.10 Similarly, briquettes have many of the advantages of pellets, naely high bulk density, uniform condition, low moisture content and low fire risk. For these reasons, briquetting is a technically feasible handling option for bagasse in Mauritius. Baling 5.11 Baling is the most common method used around the world to handle, store and transport large quantities of bagasse for dry process uses such as power generation. Currently, all the sugar mills in Mauritius produce small bagasse bales (70-80 kg at 501 m.c.) for start-up at the beginning of the season and for emergency or routine shutdowns during the season. Altogether, 10,000-20,000 tons of such bales are produced annually. Surplus bales are sold to certain tea factories for use in their boilers. 5.12 The major drawbacks of the baling method, along with possibilities for reducing these disadvantages, are: (a) Storage Losses-excessive fermentation losses can occur if the bales are not stored in a way that promotes drying, i.e., with gaps between the bale stacks to permit air circulation. Pre- drying or chemical treatment of bagasse reduces the risk of such exothermic decomposition. (b) Fire Hazard-losses duq to fire can occur since dry bagasse is highly flammable. To counteract this, an appropriate fire suppression system is required. Bales need to be stacked in stand-alone piles with sufficient space to allow for isolation of a burning pile and wetting of surrounding stacks. A net of water pipes and hoses for fire-fighting must be provided for this purpose. (c) High Materials Cost-significant costs can be incurred for baling wire, particularly if a large number of bales have to be handled. These can be reduced by increasing the size of the bales. (d) Cost of Mechanization--when large quantities of bagasse are involved, handling must be mechanized. Again, this is cheaper when la rger bales are produced. - 28 - 5.13 The principal advantages of baling bagasse are: (a) use of a familiar, easily managed technology that is compatible with sugar mill operations and is flexible with regard to throughput; (b) relatively modest investment requirements, compared with pelletizing and briquetting; tc) less dust formation during handling and storage and greater potential for fire control, compared with piling loose bagasse; and (d) possibility of mechanized handling and transport in existing sugar trucks without further modification. Bale Size Considerations 5.14 Potential bagasse bale sizes range from 30 kg (very small), through 70-80 kg (small), to 650 kg (large). Manual handling requires very small bales of no more than 30 kg. The disadvantages of such very small bales are their high costs, due to the large number of bales that must be handled--about 400 per hour for a mill producing 20,000 tonnes of surplus bagasse per year-and their high consumption of binding wire. 5.15 Moving up size range to 70-80 kg bales and into mechanized handling, processing of 20,000 tonnes of surplus bagasse per year still requires handling nearly 200 bales per hour, or one bale every 20 seconds. This again makes mechanization expensive and difficult to manage. 5.16 In comparison, large bales (650 kg), have several advantages. Less binding wire is required and handling losses are lower. Purthermore, the power consumption to break large bales is substantially smaller than for small bales, since large bales can be fed into a bale- breaker in a steadier flow and under better, automatically controlled conditions. Finally, removal of binding wires is more reliable since large bales always lie the same way on a feeding conveyor, leaving the wires always in the same position and hence easier to locate and remove. Large bales are thus more economic than small bales for handling bagasse in bulk quantities. 5.17 The economic advantages of large baling are confirmed by its use in more than 10 sugar mills in Latin America and Africa. One of these mills uses a variant of the system known as Bagatex 20. This uses a chemical catalyst to accelerate and stabilize bagasse drying and covered storage of the baled bagasse. A brief description of the process is given in Annex 4. - 29 - Comparative Cost of Alternative Bagasse Handling Systems 5.18 In view of its operational shortcomings and evident health risks, the option of loose handling bulk bagasse is rejected as unfeasible. Detailed cost estimates of the other three potential systems--pelletizing, briquetting and large baling-are set out in Annex 2. All three systems were sized to handle a larger volume of bagasse than is likely to be economically competitive, but the same bagasse throughput was assumed for each system. Hence, a smaller throughput of bagasse will not materially alter their comparative cost. Bagasse transportation is assumed to be by Mack-type sugar trucks, at an average cost of US$O.166/ton kilometer. The assumptions used in esti- mating transport costs for each handing option are set out in Annex 3. 5.19 Large bales were found to be by far the least-cost handling option, costing $13.91/ton of bagasse. Briquetting would cost $31.46/ton and pelletizing $41.12/ton (Table 5.1). Table 5.1: SUMM COSTS OF ALTERNATIVE SAGASSE HANDLING SYSTEMS System Cost Component Pelletizing Briquetting Large Baling 1. Pro-drying and processing A, Capital 21.90 11.29 1.30 B. Labor 9.01 6.92 2.52 Subtotal 30.91 18.21 3.82 II. Storage A. Capital 5.14 6.15 2.50 B. Operating 1167 1.85 3.16 Subtotal 6.81 8.00 5.66 111. Transport 3.40 3.40 3.40 IV. Crushing/bale breaking A. Capital o.oo 0.74 0.43 B. Operating 0.00 1.16 0.59 Subtotal 0.00 1.90 1.02 Total 41.12 31.51 13.90 Source: Mission estimates. - 30 - 5.20 More relevant for assessing the costs of the alternative bagasse'handling systems is theii comparative cost per unit of useful energy. On this basis, baling is again by far the least-cost option costing $1.05/GJ, compared with $2.06/CJ for briquetting and $2.69/CJ for pelletising. The comparison is sumnarised in Table 5.2. Table 5.2: COST OF ALTERNATIVE SMASSE HANDLING SYSTEMS IN TEMS OF USEFUL ENERGY Handling moisture Not Heating Cost on System Content Value Energy Basis (5) (SJ/ton) (/0.1) Pelletlilag 10 15.30 2.69 riquetting 10 15.30 2.06 Large Baling 20 13.30 1.05 Source: NSA and mission estimates. - 31 - VI. BACABSE POWER PO=NTIAL 1987-2000 Introduction 6.1 As discussed above, the highest-value potential use for surplus bagasse is as a fuel oil substitute in industry. The tea industry, which already makes limited use of bagasset is the most promising market, although the extent of this potential has yet to be confirmed. However, even total conversion of this industry to the use of bagasse would, after accounting for potential energy efficiency improvements, create demand for less than 10,000 tons of bagasse per year. This represents less than 101 of the bagasse savings that can be realized without investment in mill modifications anJ a much smaller fraction of potential supply. Increased use of bagasse in power generation, where existing facilities can utilize over 200,000 tons, is therefore clearly the major bagasse utilization option. Benefits of Increased Bagasse Use 6.2 Prom an economic efficiency standpoint, bagasse should be utilized for power generation up to the point at which the marginal cost of bagasse-based power equals the value of the resources saved from producing that marginal unit. If bagasse-based power adds firm generating capacity to the CEB system, it should be valued at the cost of alternative generation saved, since its production would permit, at the margin, the deferral of investment in and operation of new generating plant. If it substitutes for an alternative fuel, the bagasse should be valued at the economic cost of the fuel replaced. 6.3 In the case of Mauritius, the FUEL bagasse/coal generating plant is already a source of firm power capacity. Substitution of bagasse for coal at this plant would not add to firm power capacity and should not be so valued. Assuming Medine converts to dual bagasse/coal firing, it too will become part of firm power capacity and the same condition applies. Should additional bagasse supply permit the bagasse- fired power plant at Mon Tresor/Mon Desert to operate year-round, and its capacity be considered firm by CEB, it should be valued at the cost of alternative generation saved. 6.4 Ideally, the value of alternative generation saved is derived from a least cost expansion plan for the power system. In the case of Mauritius, the least cost expansion plan is being prepared and this report is one input. Therefore, an assumption must be made as to the likely value of alternative generation saved. For this purpose, the value of Rs 0.78/kWh is used, the estimated cost of four-stroke diesel generation. - 32 - 6.5 In the case of fuel substitution, the alternative generating fuel at the sugar mill generating stations is coal. Its economic cost of supply to FUEL in mid-1986 was Re 950 ($70.4)/ton. Assuming generation of 1400 kWh/ton of coal produces the base-case values for alternative generation and fuel substitution savings shown in Table 6.1. Table 6.1: ASSUIE VALUE OF SAGSE GENERATION AND FUEL REPLAIW SAVINGS PER KW) Currc Capacity Fuel Replacnst Mauritius rupees 0.78 0.68 U.S. dollars 0.06 0.05 Source: Mission estimates. Potential Economic Supply of Sagasse for Power Generation Estimation Methodology 6.6 The generating efficiency (kWh per ton of bagasse), and location of the three existing bagasse-fired power stations (FUEL, Medine and Mon Tresor) are different. Hence, a plant-specific maximum economic delivered cost of bagasse power, up to which its use as a generating fuel is justified, must be estimated for each station. The methodology used to determine that maximum delivered economic cost is as follows: (a) determine the average kilowatt hours per ton of bagasse achievable at each generation site; (b) value this power, in the case of FUEL and Medine, by the economic cost of coal saved; in the case of Mon Tresor, by the cost of alternative generation; and (c) deduct the costs of bagasse receiving, storage, bale breaking and boiler feeding at the power station. 6.7 Parameter (a), kWh generated per ton of bagasse supplied, is estimated for 201 m.c. bagasse bales, based on their weight at the time of production. This assumes that the bales are produced either by the Bagatex 20 process or air dried to reduce their moisture content to that level. At the time of production, a 650 kg bale of 50 m.c. bagasse has a heating value of 1,790 kcal/kg. After drying to 20X m.c., it weighs approximatley 370 kg and has a heating value of 3,250 kcal/kg. Using the fqrmula: - 33 - P020 'm OSO X "20 X Wt20 N50 X Vt5o whzre P020 = power output (kWh/ton) of 20X m.c. bagasse POq a power output of 502 m.c. bagasse RV 0 a heating value (kcal) of 202 m.c. bagasse RV50 = heating value of 502 m.c. bagasse wt20 = weight of 20X m.c. bagasse bale t 20 = initial weight of 502 s.c. bagasse bale and solving for P050 a 431 kWh/ton at FUEL 350 kVh/ton at Nedine 323 kWh/ton at Mon Tresor estimated power output per ton of bagasse at each generating plant is as shown in Table 6.2: Table 6.2: POIER OUTPUT FROM SAASSE AT POWER PLANTS t(kWh/ton) Plant Poer Outpt FUEL 483 Medine 392 Mon Tresor 362 Source: Mission stimates 6.8 Parameter (b), the vilue of additional bagasse-based power, is estimated for FUEL and Nedine by multiplying the economic cost (per kWh) of coal saved by the kWh generated per ton of bagasse. In the case of Hon Tresor, it is estimated by multiplying the economic cost of alternative generation by the kWh generated per ton of bagasse. Parameter (c), the cost to the power plants of bagasse receiving, storage, bale breaking and fuel feeding, will vary with the throughput of bagasse, but is a small proportion of the total cost of bagasse power. A figure of Rs 0.14/kWh, derived from the estimated costs of a bagasse bale-handling facility at FUEL (see Chapter VII), is used to estimate this item. 6.9 Based on these parameters, the maximum economic delivered cost of bagasse for power generation, on coal substitution basis, is estimated to be Rs 314/ton (US$23.3/ton) at FUEL and Rs 253/ton (US$18.2/ton) at Nedine. The maximum economic delivered cost of bagasse at Mon Tresor, valued at the cost of generation saved, is Rs 268/ton (US$19.9/ton). The derivation of these estimates is shown in Table 6.3. - 34 - Table 6.3: DERIVATION OF THE MAXIMUM COMPETITIVE COST OF BAGASSE AT THE EXISTING GENERATING STATIONS Plant Estimation Perameter Unit FUEL Nadine Mon Tresor 1. Power output from bagess. kWh/ton 483 392 362 2. Value at (a) Rs 0.68/kNh Ri/ton 328 267 n.a. (b) Rs 0.78/kWh Ri/ton n.o. n.e. 282 3. bgasse receiving cost Rs/ton -14 -14 -14 4. MaximAu economic cost of begasse (2-3) RS/ton 314 253 268 5. Maximum economic cost uSS/ton 23.3 18.7 19.9 Source: MSA, CEB, and mission estimates. 6.10 The quantities of surplus bagasse that can be saved by the sugar mills, and the cost of the necessary investments in mill modification, were estimated in Chapter IV. To estimate the quantities of bagasse that can be supplied economically to the bagasse generating stations, the potential bagasse suppliers' handling and storage costs and the cost of transportation to the generating plant must be added to the cost of bagasse saving. The resulting total cost of delivered bagasse from each potential supply source is then compared with the economic value of bagasse on a coal substitution and/or generation saving basis to determine the level of economically-justified bagasee use. 6.11 The unit (per ton) cost of bagasse baling and storage will vary from mill to mill, depending on the volume of bagasse available, location of the bale storage facility, etc. The average cost of large bale production and storage is $9.42/ton (Table 5.1, cost components I and II), based on an average throughput of 26,000 tons per mill. Of this total cost, 401 are capital and 60X are operating costs. This cost is used to estimate bagasse handling and storage per ton for each potential supplier. Capital costs are treated as fized and allocated over the tonnage handled. Operating costs are treated as variable in proportion to the tonnage of bagasse handled. 4/ 4/ For example, the costs of handling and storing 20,000 tons or bagasse are estimated as $9.48 x (0.4 x 26,000/20,000) (capital cost) + $9,48 x 0.6 (operating cost) = $10.62 per ton. - 35 - Economic Supply of Bagasse to FUEL and Medine at Mid-1986 Coal Costs 6.12 Based on the mission's estimates of the total cost of bagasse saving, baling, storage and transport, it is concluded that: FUEL can obtain 126,700 tons of bagasse at an economic cost less than its 1986 coal substitution value. Six mills could supply 112,500 tons and FUEL itself could supply 14,200 tons (Table 6.4). Medine can obtain 63,500 tons of bagasse at a cost less than its 1986 coal substitution value, but only by diverting supplies from FUEL, where the bagasse has greater economic value, due to FUEL's higher generating efficiency and location (Table 6.5). This bagasse should be used at FUEL, so Medine has no economic source of supply. Table 6.4: ECONOMIC SUPPLY OF iAGASSE TO FUEL ON A COAL REPLACEMENT BASIS (coal replacement value of bagasse USS23.3/ton) sagesse Handling Transport Total Potential Suppliers Saving Ccst Cost Cost Cost Quantity (S/ton) (S/ton) (S/ton) (S/ton) ('000 tons) Constance 0 11.0 1.2 12.2 18.7 Soc. Suc. Riv. Reop. 0 10.3 2.8 13.1 11.3 Belle Vue 0 8.9 4.7 13.6 25.2 Soc. Sue. Riv. Reop. 1.7 10.3 2.8 14.8 10.1 Beau Plan 0 11.6 3.7 15.3 16.9 Bile Vue 4.4 8.9 4.7 18.0 5.5 St. Antoine 0 14.0 5.0 19.0 11.9 FUEL a/ 20.1 0 0 20.1 14.2 Union St. Aubin 0 13.3 8.3 21.6 12.9 Total 126.7 a/ Assuming the additional bagasse Is burnt during crop season and no handling or storage costs are Incurred. Table 6.5: ECONOMIC SUPPLY OF iAGASSE TO MEDINE ON A COAL REPLACMENT B3ASIS (coal replacement value of bagasse USS18.7/ton) Bagasse Handling Transport Total Saving Cost Cost Cost Quantity (S/ton) (S/ton) (S/ton) (S/ton) ('000 tons) Belle Vue 0 8.9 5.6 14.5 25.2 Beau Plan 0 11.6 4.8 16.4 16.9 Soc. Sue. Riv. Reop 0 10.3 6.6 16.9 11.3 Soc. Suc. Riv. Roap 1.7 10.3 6.6 18.6 10.1 Total 63.5 - 36 - Sensitivity to Higher and Lower Coal Costs 6.13 The quantity of bagasse that can be supplied economically as a substitute fuel for coal in power generation at FUEL and Medine is dependent on the economic cost of coal. Should this rise, additional quantities of bagasse could become competitive for power generation. Should it fall, the converse could be true. 6.14 The World Bank forecasts that the real c.i.f cost of coal to Mauritius will fall by about 331 between 1985 and 1990, and then rise by 201 through 1995. A reported fall in the c.i.f. cost of coal imports from Rs 750/ton to Rs 616/ton in late 1986 is apparent evidence of the forecast initial decline in progress. For the purpose of power system planning, it is the long-term expected trend in coal prices that is relevant. Two coal ptice scenarios were used to test the potential impact on the economic supply of bagasse for power generation of alternative coal prices: a 201 rise and a 201 fall in the c.i.f. cost of coal, relative to its Rs 750/ton c.i.f. cost at the time of the mission. A 201 rise in ohe c.i.f cost of coal has no practical impact on economic bagasse supply to FUEL, which is all sufficient to displace coal at the lower coal price. At Medine, it would make the substitution of coal by 19,200 tons of bagasse from Mon Desert/Alma economic. A 201 fall in the c.i.f. cost of coal has no impact on bagasse use at Medine, which is using only its own supply. However, it does make potential bagasse supply to FUEL from Union St. Aubin (12,900 tons) and FUEL itself (14,200 tons) uneconomic. Potential for Ad4itional Firm Bagasse Power Capacity 6.15 FUEL is already a supplier of firm power. Assuming Medine converts to dual coal/bagasse firing, it too will become a source of firm power supply. The value of this power to the CEB is the avoided cost of alternative generation. This cost is estimated as Rs 0.78/kWh for four- stroke diesels. The correct pricing signals will be given to existing and potential firm power suppliers in the sugar industry, including FUEL and Medine, if firm power from them is priced by the CEB on this basis. 6.16 Mon Tresor/Mon Desert therefore offers the only potential to convert existing non-firm bagasse power capacity into firm capacity through the supply of additional bagasse. Assuming this plant is sufficiently reliable to be rated as a source of firm power, its output would be valued at the cost of alternative power generation, which again is Rs 0.78/kWh (US$0.06/kWh). The equivalent maximum economic cost of bagasse supply to Mon Tresor is is 268/ton (US$19.9/ton). For less than this cost, 43,300 tons of babasse could be supplied which is more than sufficient to satisfy the plant's need for year-round operation (Table 6.6). 6.17 However, due to its age, small size, and questionable reliability, the Mon Tressor/Mon Desert plant is unlikely to be rated a supplier of firm power. In that event, year-round bagasse-fired - 37 - generation would not be economic. The alternative of part-year operation would be economic only if additional power from Mon Tresor/Mon Desert was priced at a level that made the supply of bagasse costing over US$17/ton economic. That would require a price for power in excess of Rs 0.68/kWh. Table 6.6: ECONOMIC SUPPLY OF EAGASSE TO NON TRESOR/ NON CESERT ON AN ALTERNATIVE GENERATION BASIS (AlternatiV. generation value of bagesse USS19.9/ton) Sagas. Mandl ing Transport Total Potential Suppliers Saving Cost Cost Cost Cost Quantity (S/ton) (S/ton) (S/ton) (S/ton) ('000 tons) Savannah 7.0 8.1 2.0 17.1 23.9 Union St. Aubin 0 15.1 3.8 16.9 12.9 Mon Tresor 0 19.5 a/ 0 19.5 6.5 Total 43.3 a/ This cost could probably be reduced by use of a less capital-Intensive balIng system for these smaller tonnag"s. Source: MIssion estimates. Potential Bagasse Power Generation from Existing Plants Quantity 6.18 The highest-value use for additional supplies of bagasse for power generation is to replace coal at FUEL. At mid-1986 coal prices, sufficient bagasse can be delivered to FUEL, at a cost competitive with coal, to fully substitute for that fuel. This would raise FUEL's bagasse-fired generation from about 30 CWh in 1985 to its year-round potential of about 85 GWh, a net increase of 55 GVh. A 20Z fall in the c.i.f. cost of coal would reduce the economic supply of bagasse to FUEL by 27,000 tons and additional bagasse-fired generation to 48 CWh. 6.19 At mid-1986 coal costs, there are no economic sources of additional bagasse supply to Medine. However, a rise of less than 101 in the c.i.f. cost of coal would make 19,200 tons of bagasse from Mon Desert/Alma competitive. This would result in an additional 7.5 CWh of bagasse power generation from this plant. 6.20 If rated a supplier of firm power, and its power output so valued, the potential supply of bagasse is sufficient for Mon Tresor/Mon Desert to operate year-round. This would add 2.5 NW to power capacity in Mauritius and result in about 16 CWh per year of additional bagasse power - 38 - supply. As stated above, it is not considered likely that this condition can be met. In view of Mon Tresor/Mon Desert's relatively low generating efficiency, additional part-year generation is also -unlikely to be economic. A summary of potential additional bagasse power generation from all three stations is presented in Table 6.7. Table 6.7 ECONOMIC POTENTIAL FOR ADDITIONAL EAGASSE POWER GENERATION (Gwh) Economic Cost of Coal Plant $59.3/ton $70.4/ton S81.5/ton FUEL 48 55 55 Msdlne 0 0 7.5 Total 48 55 62.5 Source: Mission estimates, Timing 6.21 Only two of the least-cost potential suppliers of bagasse to FUEL-Belle Vue and Societe Sucriere de Riviere du Rempart--must invest in mill modifications to realize their potential economic bagasse savings. 75X of the potential economic savings (84,000 out of 113,800 tons) 4/ require only that the mills adjust their plant operation methods to maximize the output of surplus bagasse. However, all potential bagasse suppliers must invest in bulk bagasse handling and storage facilities. Capital costs for handling and storage would total about US$3 million for the five economic suppliers combined. Capital cost of the FUEL receiving facility would be about $0.3 million. Transport is assumed to be by existing sugar trucks, which could be leased on a short-term basis or operated during the intercrop period. The mill's willingness to invest in the necessary bagasse handling and storage facilities will therefore be the key determinant of the quantity and timing of additional bagasse supply. 6.22 Two major factors will determine this. One is the operating cost and reliability of the recommended large baling technique. The other is the price the mills expect to realize from the sale of bagasse. The second issue is addressed in the next section. As to the first, the Mauritian sugar industry is unfamiliar with the large-baling technique. Consequently, a project to Lonstruct a full-scale 4/ Assuming supplies are not required for Union St. Aubin. - 39 - demonstration baling and storage facility at the Constance sugar mill and a complementary bale-breaking and bagasse feed system at FUEL is recommended to familiarixe the industry with the large-bale handling system. The recommended demonstration project is outlined in the next chapter. Should this recommendation be accepted, and assuming instal- lation of the demonstration facility began during the 1987/88 intercrop period, it could be fully operational by 1990. This would add 8 GWh to bagasse power output in that year. Assuming the facility was successful, it could be replicated by the other mills during the 1991/2 intercrop period. FUEL would then be able to obtain sufficient bagasse to generate power year-round in 1992. Increased use of bagasse at Medine would be dependent on a rise in the economic cost of coal. Bagasse Power Pricing Issues Power Pricing 6.23 As Table 6.4 shows, the delivered cost of bagasse varies from supplier mill to mill, depending on the investments needed to economize on bagasse own-use, the volume of bagasse to be baled and stored, and the cost of transportation to the user. The most efficient use will be made of bagasse and the most accurate price signals given to potential suppliers if: (a) the consumers of bagasse, such as FUEL, are free to negotiate directly with potential suppliers of bagasse and alternative fuels for the purchase of these inputs on a least-cost basis; and (b) the bagasse power generators receive a price for their power that is independent of their fuel choice and based on the cost of alternative power generation. Sagasse Payment to Planters 6.24 Currently, sugar cane planters are entitled by law to a payment of Rs 100/ton (US$7.4/ton) for bagasse used for purposes other than sugar production. The objective is to distribute to the planters a share of the proceeds from the use of any by-products of the sugar process. Revenue from the payment scheme is shared between the planters in proportion to the share of the total sugar crop produced from their cane. For example, a sugar estate producing 25,000 tons of sugar from its own cane in a year when the island's sugar crop totalled S00,000 tons would be entitled to a SX share (25,000/500,000 x 100) of the aggregate bagasse payment collected in that year. 6.25 If there was no payment to planters for bagasse used in power generation, the economic benefits from its increased use would be shared between the suppliers of cane and bagasse (the planters and sugar mills), the power generators, the CEB and its customers (electricity consumers). As there are several potential suppliers of bagasse for power, and it is in direct competition with coal, competition to sell bagasse to the generators should allow the latter to capture part of the - 40 - producers' surplus, the balance of which would be shared between the millers and planters. In turn, the CZB's position as a monopsony buyer of power should allow it to capture part of the surplus from them. Part would be retained by CEB and part passed on to electricity consumers. Electricity consumers and/or tax payers would benefit indirectly from the portion the CEB retained through its contribution to net revenue. 6.26 A payment to planters for bagasse used in power generation redistributes to them a proportion of the economic benefits from its use. However, it also raises the financial cost of bagasse as a generating fuel by an aount equal to Rs 100/ton less the supplier mill's receipts from the bagasse payment scheme. In the example of a supplier mill that contributed 51 of the sugar crop, the net bagasse payment would add Rs 95/ton (Rs 100 - 5X) to the financial cost of any bagasse it supplied for power generation. 6.27 BEtimates of the proportion of the bagasse payment that would be rebated to each potential economic supplier of bagasse to the FUEL power plant, of the net bagasse payment made by each supplier, and of the resulting total financial cost of bagasse, are given in Table 6.8. They are based on the mill's average contributions to the total sugar crop over the 1972-81 period. As the table shows, the Rs 100/ton bagasse payment would add between Rs 92 and Rs 100 per ton to the economic cost of bagasse from these sources. 6.28 The impact of the net bagasse payment to planters on the competitiveness of bagasse vis-a-vis coal for power generation at FUEL is illustrated in Figure 6.1. At an economic cost of coal of Rs 750/ton c.i.f. (Rs 950/ton delivered) 126,700 tons of bagasse are competitive without the bagasse payment. With the bagasse payment, 44,500 tons of potential bagasse supplies from Belle Vue (5,500 tons), St. Antoine (11,900), FUEL (14,200), and Union St. Aubin (12,900) become uncompetitive. A further 27,000 tons (16,900 tons from Beau Plan and 10,100 tons from SSRR) become marginally competitive. At a c.i.f. cost of coal of Rs 616/ton, which is probably more representative of world coal prices for the next 5-10 years, the bagasse payment makes all potentially economic supplies of bagasse financially uncompetitive, with the possible exception of 18,700 tons from the least-cost supplier, Constance. These results are summarized in Table 6.9. - 41 - Table 6,8: IMPACT OF THE PLANTERS' PAYMENT ON THE COST OF BAGASSE TO THE FUEL POWER PLANT Potentlal Potential Contribution Net Economic Total Finan- Sagas.e Sagasse to Sugar sagasse Cost of cial Cost Supplier Supply crop Payment Bagasse of Sagas.. (1) (2) (3) (4) (5) a (3)+(4) (tons) (W) (Rs) (Rs/ton) (Ri/ton) Constance 18,900 2.9 97.1 165 262 Soc. Sue. Rlv. Reap. 1 11,300 0 100.0 177 277 Belle Vue 1 25,200 1.2 98.8 184 283 Soc. Suc. Rlv. Remp. II 10,100 0 100.0 200 300 Beau Plan 16,900 0.9 99.1 207 306 Belle Vue If 5,500 l* 98.8 243 342 St. Antoine 11,9Q0 1.4 98.6 257 356 FUEL 14,200 8.0 92.0 271 363 Union St. Aubin 12,900 5.4 94.6 292 387 Source: "Mauritius: The Sugar Sector: Problems and Prospects," World Bank report No. 5812-WAS, Table Al.16. Mission estimates. Table 6.9: IMPACT Of THE RS 100/TON PLANTERS' EAGASSE PAYMENT ON EAGASSE COMPETITIVENESS AT FUEL Coal * Rs 750/ton c,l,f. Coal 6 Rs 616/ton c.l.f. Impact Supplier Quantity Impact Supplier Quantity (tons) (tons) Uncompetitive FUEL 14,200 Uncompetitive U. St. Aubin 12,900 St. Antoine 11,900 FUEL 14,200 Belle Vue 5,500 St. Antoine 11,900 U. St. Aubin 12,900 Belle Vue 30,700 Subtotal 44,500 Beau Plan 16,900 Marginally S.S.R.R. 21,400 competitive Beau Plan 16,900 Subtotal 108,000 S.S.R.R. St. 10,100 Marginally Subtotal 27,000 competitive Constance 18,700 Total potentially affected 7t,500 Total potentially affected 126,700 Source: Mission estimates. - 42- Fliure 6.1: ECONMC AND FINANCIAL COSTa/ OF BAGASSE RLATIVE TO COAL AT TIM FUEL POWER PLANT 400 350 Cost of coal __________{/l_____@* Rs 750/ton 300 - 57c.l.f. Cost of coal ERs 616/ton g 250 20 2200 50 Source of Supply aj/ Financial cost equals economic-cost plus net bagasse payment to planters. Lesend: 0 Economic cost of bagasse supply. Cost of bagasse payment. Source: Table 6.8. - 43 - Economic Implications of Bagasse Payment 6.29 Apart from relatively small quantities that might be competitive as an industrial boiler fuel, bagasse has no alternative use in Mauritius other than in power generation. Its economic opportunity cost is therefore zero. Mauritius will derive maximum economic benefit from the use of its bagasse resources if they are utilized up to a point where the value of the real resources used in supplying the marginal unit of bagasse equals the economic cost of the alternative fuel saved. 6.30 If the bagasse payment to planters, which is a transfer payment and not a real resource cost, has the effect of making economically competitive bagasse supplies financially uncompetitive, it will reduce the quantity of bagasse supplied for power generation and hence the economic benefits from its use. The potential loss to the economy is represented by cost of the substitute fuels which must be imported to replace the lost bagasse. 6.31 At a c.i.f. cost of coal of Rs 750/ton (US$55.6/ton), it is estimated that the current Rs 100/ton bagasse payment to planters would make 44,500 tons of economic bagasse supply to FUEL financially invi- able. FUEL would require about 31,800 tons of this least-competitive bagasse to fully replace coal. Ift as a result of the bagasse payment, this bagasse supply did not materialize and 10,300 tons of substitute coal imports were required, the annual economic cost to Mauritius would be Rs 7.7 million (US$573,000). If a further 27,000 tons of marginally competitive supply was also lost, the annual economic cost would be Rs 14.3 million (US$1,060,000). At a c.i.f. cost of coal of Rs 616/ton (US$45.6/ton), 95,100 tons of additional bagasse supply would be made uncompetitive by the payment (FUBL's total requirement of 113,800 tons minus 18,700 tons of marginally competitive supply from Constance). This would require 31,000 tons of substitute coal imports, at an annual economic cost to Mauritius of Rs 19.0 million (US$1.4 million). Recommended Policy 6.32 If the government's objective is to ensure that Mauritius derives maximum economic benefit from use of its bagasse resources, the bagasse payment to planters should not deter any new economic use of bagasse. This means it should be less than the difference between the economic cost of potential marginally competitive bagasse supply and that of its competitor fuel. The only means to ensure this is to exempt from the payment system all bagasse additional to that currently used for power generation. A second-best solution, which carries the risk of deterring some economically-competitive bagasse supply, would be to reduce sharply the level of the payment to a nominal amount per ton. - 44 - Economic Returns to Investments in Basasse Savings and Bulk Handlins Facilities for Power Generation 6.33 The viability of investments to maximize the economic use of bagasse for power generation is evaluated by computing their expected net present value (NPV) and economic rate of return (UR). The investment project" is defined as the supply of 113,800 tons of baled bagasse for power generation to FUEL from the six least-cost supply sources-Belle Vue, Constance, SSRR, Beau Plan, St. Antoine and FUEL itself. 6.34 The assumed sequence of investments, and the incidence of their associated operating costs, is that hypothesized in paragraph 6.22. In year 1, investment is made in a bagasse baling and storage facility at Constance and in a bale breaking facility at FUEL. A full year's operating cost is assumed for the Constance facility. In year 2, bagasse is transported from Constance to FUEL and a full year's operating cost for baling, storage and breaking incurred at both mills. The amount of 18,700 tons of baled bagasse is delivered from Constance to FUEL, with a coal-substitution value of US$23.3/ton. Benefits are the resulting additional bagasse generation at FUEL, valued on this basis. In year 3, bagasse saving, baling and storage investments are made at Belle Vue, S8RR, Beau Plan and St. Antoine. FUEL also invests in a bagasse dryer to increase its own surplus. A full year's operating costs are incurred, including the loss of revenue from discontinued CEB export "a bien plaire." Benefits consist of bagasse-based generation using supplies from Constance. In year 4, all facilities are assumed to be in operation, the full 113,800 tons of bagasse supplied, and the full benefits of additional bagasse-fired generation realized. A 20-year project life is assumed. Based on the resulting cash flows in Table 6.8, the project is estimated to have a NPV of US$4.8 million at a 14X opportunity cost of capital and an ERR of 36X. Table 6.10: ESTIMATED COSTS AND BENEFITS OF A BAGASSE POWER PROJECT (USSO'0O) Item Year 1 Year 2 Year 3 Year 4-20 Cost Components Investment 919 0 3,327 0 Operating 135 160 517 517 Transport 0 31 t1 298 Total Cost 1,054 191 3,875 81S Benefits 0 436 436 2,652 Net Benefits -1,054 245 -3,439 +1,837 Source: Mission estimates. - 45 - * Sensitivity Analysis 6.35 Two sensitivity scenarios are hypothesizedt (a) a pessimistic scenario, where costs are 101 above base-case estimates and benefits 102 below; and (b) a worst case scenario, where costs are 20X above and benefits 201 below base. The results are set out in Table 6.10. They demonstrate that the project is viable under even the worst case scenario. Table 6.11: RESULTS OF SENSITIVITY ANALYSIS Case NPV (1a14$) ERR Bse" US$4.8 o II ton 36$ Pesslmlstlc (costs + 108, benefIt -108) USS2.9 m I tlon 298 Worst (cost + 20S, benef Its - 20S) US$1.1 ml lI I on 19S Source: Mission estimates. - 46 - VII * UBOMENDED UULL-SCALE BACASSE BALIUG DE09NOESRAI0O PROJECT Rationale and Siting 7.1 Large-bale handling of bagasse, use of which is the key to minimizing its cost and maximizing its use as a generating fuel, is an unfamiliar technology in Mauritius although technically proven elsewhere. Hence, it is recommended that a full-scale large-baling project be implemented to demonstrate the technology to the Mauritian sugar industry. The project would consist of three components: a baling plant, a bale storage facility, and a bale-breaking plant. 7.2 FUEL, the least-cost bagasse generating station, is the most economic site for the bale breaking plant. A sugar mill located nearby, with a substantial surplus of low-cost bagasse, would be the logical site for the bagasse baling and storage facility. Constance, which could produce up to 18,700 tons of surplus bagasse without additional investment and is located only 10 km from FUEL, could be the most suitable location. A project at these locations, is described, costed, and evaluated below. Detailed equipment specifications and a list of recommended vendors are given in Annex 6. Baling Plant 7.3 Bagasse surplus to Constance's own use requirements would be fed by belt conveyor to a piston-type bale press. The baling process is fully automatic. A hydraulic ram moves forward as soon as the chamber is filled with bagasse. Four wires are tied around each bale by means of an automatic wire-tying device, although manual labor can be used. The wires are supplied from coils located beside the bale press. At the exit of the press, the bales are removed by means of an overhead gantry crane with a gripping device. The bales are then either directly loaded onto a flat bed trailer for transport to the bale storage area or stored in the gantry crane area until the trailer arrives. The maximum capacity of the bale press would need to be 10 tons per hour. Capital cost of the plant would be US$192,582 and operating costs US$59,978 per annum. These are detailed in Table 7.1. Bale Storage 7.4 The Constance mill has a potential competitive output of 18,700 tons per annum of excess bagasse. To store this amount requires 22 bale stacks of 850 tons each. The space requirement is approximately eight hectares. There should be sufficient distance between the storage area - 47 - * and industrial or domestic areas. It is recommended that a fence be installed around the storage area. Tab's 7.1 CONSTANCE SALIN PLANT COSTS *(USS) Item iLocal Foreign Total Capital Costs Construction - stte preparation 2,220 - 2,220 - equipment foundations 1,550 600 2,150 - buildings 3.330 2 000 5.330 Sub-total 7,100 2,600 9,700 Equipment - fed conveyors and chutes 2,220 4,000 6,220 - material conditioners - 112,000 112,000 - disch. conveyors and chutes 2,220 4,000 6,220 - handllng equipment 8 890 6000 14,890 Sub-total 13,330 126,000 139,330 Spares at Delivery - 7S of value - 8,820 8,820 Transport and Delivery - freight and insurance - 14,500 14,500 - local charges 2,780 2.780 Sub-total 2,780 14,500 17,280 Engineering and Installation - engineering cost 1,022 6,430 7,452 - Installation 2,500 5,500 8,000 - comissioning 500 1 SG 2.000 Sub-total 4,022 13,430 17,452 Total Capital Costs 27,232 165,350 192,582 Operating Costs Labor 16,704 - 16,704 Power 1,124 - 1,124 Maintenance 952 1,932 2,884 Insurance 536 536 Consumables - wire 38,230 38,230 -other Items 500 500 Total cost consumables -- 38,730 38,730 Total Operating Costs 18,780 41,198 59,978 -48 - 7.5 One tractor and trailer of 20 ton capacity would be sufficient to transport the bagasse to the storage area. A network of compacted driveways around the stacks would allow access for a mobile crane, the tractor and trailer and the Mack trucks, even during bad weather. A ring of water pipes and hose connecting stations would be provided between the stacks for fire fighting. A water reservoir with a pump station would be located near the storage area. 7.6 Bale storage at Constance will require an investment of US$401,690 in capital costs and will cost US$75,384 annually to operate. These expenses are detailed in Table 7.2. Bale-breakint Plant 7.7 The layout for this facility is shown in Figure 7.1. Trucks arriving at FUEL with bales from Constance (and, eventually, other sugar mills) would be unloaded by means of a gantry crane with a gripping device. The bales from the intermediate store should be transported to the bale breaker by means of tractor and trailers. 7.8 From the trailers, the bales would be placed either directly on to the feed conveyor of the balebreaker (17) or into the intermediate storage area under the gantry crane. The feed conveyor would be equipped with a variable speed drive to regulate the desired feed rate. Both sides along the slat conveyor would be accessible for the removal of baling wires. The wires would be collected and pressed into packages in the wirepress (21) for sale as scrap metal. 7.9 The line of bales would move slowly towards the shredder drum of the bale breaker. The last section of the feed conveyor would be provided with a guide tunnel to prevent the bales from falling apart before reaching the shredder drum. The disintegrated parts would pass through a coarse screen plate at the bottom of the breaker and would then be collected by the conveyor (20). The dust would be exhausted from the breaker casing by means of a dust extraction system (19). This dust is then mixed back into the coarse fraction on the belt conveyor (20) that transports the broken bagasse to the existing bagasse carrier of the boiler feeding system. A magnetic separator (18) on top of the belt conveyor (20) removes wires and other metal that has been overlooked by the operator. 7.10 The bale breaking facility is designed to handle 120,000 tons of bagasse annually, marginally above FUEL's maximum bagasse requirement of 114,000 tons per annum. Such a plant will require US$324,447 in capital and US$25,144 in annual operating costs, as detailed in Table 7.3. - 49 - Figure 7.12 LAYOUT OF BALE BREAKING FACILITY AT FUEL I~~~~~~~A s. _.- _. * Ij so - Table 7.2s CNSTNCE BALE ST0IE COSTS (USS) Item Local Foreign Total Capital Costs Construction - site preparation 77,800 - 77,800 - buildings 11,000 2.000 13,000 Sub-total 88,800 2,000 90,800 Equipment - tractor and trailers 45,000 4S,000 - fire fighting 11,000 80,000 91,000 - mobile crane - 90000 90.000 Sub-total 11,000 215,000 226,000 Spares at Oelivery - 7U of value - 15,050 15,050 Transport and Del I very - freight and Insurance - 18,000 18,000 - local charges 4.400 - 4.400 Sub-total 4,400 18,000 22,400 Engineering and Installation - engineering 4,990 10,850 15,840 - Installation 16,000 15,000 31,000 - MoDilssloning 600 _ 600 sub-total 21,590 25,850 47,440 Total Capital Costs 125,790 275,900 401,690 Operating Costs Labor 24,031 - 24,031 Mlantenance 4,029 8,179 12,208 Insurance - 1,245 1,245 Consumables -lube oil end grease - 7,200 7,200 -diesel fuel - 25.000 25.000 Total Cost Consumables 0 32,200 32,200 Rent 5,700 - 5,700 Total Operating Costs 33,760 41,624 75,384 - 51 - Table 7.3: FUEL SALE BREAKING FACILITY COSTS Item Local Foreign Total Capital Costs Construction - sIte preparation 11,000 - 11,000 - buildings 3,330 2,000 5,330 Sub-total 14,330 2,000 16,330 Equipment - gentry crone 13,300 12,000 25,300 - bale breaker 6,700 85,000 91,700 - magnetic separator 2,800 23,500 25,300 - dust extraction system 1,700 8,500 10,200 - belt conveyor 2,800 15,500 18,300 - wire press 55,000 55,000 Sub-total 27,300 199,500 225,800 Spares at delivery - GS of equlpment - 11,910 11,910 Transport & Delivery - freight and Insurance - 17,000 17,000 - local charges 3,300 - 3,300 Sub-total 3,300 17,000 20,300 EngineerIng and Installation - engineering 2,082 10,025 12,107 - Installation 25,000 5,000 30,000 3 commissionIng 3,000 5,000 8,000 Sub-total 30,082 20,025 50,107 Total Capital 75,012 250,435 324,447 Operating Costs Labor 2,088 - 2,088 Power 4,531 - 4,531 MaIntenance 3,780 7,673 11,453 Insurance 872 872 Consumabias - lube oll and grease 500 500 Total cost consumables 500 500 Site Costs -rent 5,700 5,700 Total Operating Costs 16,099 9,045 25,144 - 52 - Economic Analysis 7.11 The capital cost of the demonstration project is US$919,000, of which US$228,000 is in local costs and US$691,000 in foreign costs. Annual operating costs are US$160,000, of which US$68,000 is in local costs and US$92,000 in foreign costs. Transporting 18,700 tons of bagasse from Constance to FUEL would cost US$31,000 per annum. 7.12 Benefits consist of additional bagasse-fired power generation at FUEL, substituting for existing coal-fired generation. The coal- equivalent value of bagasse at FULL is US$23.3/ton. 18,700 tons of bagasse from Constance has an economic value of US$436,000. 7.13 It is assumed that all capital costs and a full year's operating costs for baling and storage are incurred in year one of the project. Operating costs for bale transport and breaking begin in year two, when the full project benefits are realized. The resulting flow of costs and benefits is shown in Table 7.4. Table 7.4: ESTIMATED COSTS AND GENEFITS OF A BAGASSE BALING DEMONSTRATION PROJECT CUSS OOO) Item Year 1 Year 2-20 Costs Capital 919,000 operating Baling 60,000 60,000 Storage 75,000. 75,000 Transport - 31,000 Breaking - 25 000 Total 1,054,000 191,000 Beutfts - 436,000 Net Benefits -1,054,000 +245,000 Source: Mission estimates. 7.14 Based on this simplified cash flow, the demonstration project has a NPV of US$390,000 at a 14% opportunity cost of capital. Its ERR is 22%. A 101 increase in costs lowers the NPV to US$267,000 and the ERR to 18%. -53 - Aiexc I .1PusIof 17 FUEARM 2OP ?ACOREY B&GASBE SUB= AID INBSDIJ COSTB Factory: F.U.B.L. A B C Cane/yr, tons 700000,00 '700000,00 700000, 00 TCH 250,00 250,00 250,00 Fibre on cane, % 12,94 12,94 12,94 Bagas.e on cane, % 26,*6 28,96 26,96 Bagasse/hr, tons 67,40 87,40 67,40 Bagasse available/hr, tons 64,03 64,03 64,03 Process Steam, kg/TC 420,00 406,00 406,00 Process Steam, kg 105000,00 101500,00 101500,00 Bagasse burnt, T/hr 64,03 62,66 58,95 Excess bagasse, T/hr 0,00 1,37 5,08 Excess bagasse, T/yr 0,00 3836,00 14224,00 Investment, USS 0,00 505000, 00 950000,00 Operating Cost/yr, USI 0,00 98300,00 188000,00 Cost/ton US$ 0,00 25,63 18,10 A = Actual B a Continuous Vacuum Pan to boil A-Strikes C = Bagasse Dryer Annex 1 - 5 - - Page 2 of 17 Factory : XEDINE A B C Cane/yr, tons 500000,00 500000,00 500000,00 TCH 175,00 175,00 175,00 Fibre on cane, % 14,04 14,04 14,04 Bagasse on cane, % 29,90 29,90 29,90 Bagasse/hr, tons 52,33 52;33 52,33 Bagasse available/hr,tons 49,71 49,7l 49,71 Process Steam, kg/TC 366,00 350,00 350,00 Proce-s Steam, kg 64050,00 81250,00 61250,p0 Bagasse burnt, T/hr 49,71 49,15 45,58 Excess bagasse, T/hr 0,00 0,56 4,13 Excess bagasse, T/yr -3,57 1596,43 11796,43 Investment, US$ 0,00 549016,00 890000,00 Operating Cost/yr, US$ 0,00 106972,00 177760,00 Cost/ton USS 0,00 66,86 17,43 A = Actual B = Modifications to evaporator by addition of a 400m2 body to effect No.2 Addition of a continuou;s vacuum pan to boil A-Strikes C = Bagasse Dryer -5SS5- Amex Page 3 of 17 Factory: CONSTANCE A B C Cane/yr, tons 310000,00 310000,00 310000,00 TCH 120,00 120,00 120,00 Fibre on cane, % 14,50 14,50 14,50 Bagasse on cane, % 27,89 27,89 27s89 Baga.se/hr, tons 33,47 33,47 33,47 Bagasse available/hr,tons 31,79 31,79 31,79 Process Steam, kg/TC 492,00 382,00 382,00 Process Steam, kg 59040,00 45840,00 45840,00 Bagasse burnt, T/hr 24,54 20,77 19,65 Excess bagasse, T/hr 7,25 11,02 12,14 Excess bagasse, T/yr 18741,05 28480,22 31373,55 Investment, US$ 0,00 1216215,00 890000,00 Operating Cost/yr, USS 0,00 256656,00 177760,00 Cost/ton USS 0,00 26,35 61,44 A - Actual B = Discontinuing 600kw CEB Export New 1500 kw condensing turbo alternator Modifications to Evaporator & juice heaters as follows:- - New 1600 m2 evaporator body to operate as let effect of a quintuple effect - New 240 m2 juice heater for primary heating of juice from 4th effect vapour - New 350 m2 juice heater for final heating of juice with 1st effect vapour C Bagasse Dryer 5 S6 - Annex I Page 4 of 17 Factory: BEAU PLAN A B C Cane/yr, tons 300000,00 300000,00 300000,00 TCH 115,00 115,00 115,00 Fibre on cane, % 15,52 15,52 15,52 Bagase. on cane, % 31,50 31,50 31,50 Bagasse/hr, tons 36,23 36,23 36,23 Bagas.e available/hr,tons 34,41 34,41 34,41 Process Steam, kg/TC 423,00 392,00 392,00 Process Steam, kg 48645,00 45080,00 45080,00 Bagasse burnt, T/hr 27,95 25,67 24,05 Excess bagasse, T/br 6,46 8,74 10,38 Excess bagasse, T/yr 16861,90 22809,78 27035,87 Investment, USS 0,00 1600665,00 890000,00 Operating Cost/yr, USS 0,00 206875,00 177780,00 Cost/ton US$ 0,00 34,78 42,06 A 3 Actual B 3- Converting quadruple effect to quintuple effect evaporator by adding new 1535 M2 E.S: lst vessel - 225 M2 KS Juice Heater, 290 12 HS Juice Heater and 160 M2 HS Juice heater to make better use of evaporator vapours - Continuous vacuum pan for A-Strikes C Bagasse Dryer _ 57 _ Annex 1 Page S of 17 Factory : BELLE VUE A B C Cane/yr, tons 450000,00 450000,00 450000,00 TCH 180,00 180, 00 180,00 Fibre on cane, % 15,19 15,19 15,19 Bagasse on cane, % 31,20 31,20 31,20 Bagasse/hr, tons 56,16 56,16 58,16 Bagasse avallable/hr,tons 53,35 53,35 53,35 Process Steam, kg/TC 472,00 417,00 417,00 Process Steam, kg 84960,00 75060,00 75060,00 Bagasse burnt, T/hr 43,29 41,08 38,15 Excess bagasse, T/hr 10,00 12,2? 15,20 Excess bagasse, T/yr 25155,00 30680,00 38005,00 Investment, US$ 0,00 100954,00 890000,00 Operating Cost/yr, USS 0,00 24036,00 177760,00 Cost/ton USS 0,00° 4,35 24,27 A = Actual B = 900 kw multistage turbine to drive 1st and 2nd mills One 55 m2 juice heater Reducing CEB export power by 138 kw C Bagasse Dryer -58 -Anex Page 6 of 17 Factory: XON DESERT ALMA A B C Cane/yr, tons 360000,00 360000,00 360000,00 TCH . 160,00 160,00 160,00 Fibre on cane, % 13,00 13,00 13,00 Bagasse on cane, % 27,30 27,30 27,30 Bagasse/hr, tons 43,68 43,68 43,68 Bagasse available/hr,tons 41,50 41,50 41,50 Process Steam, kg/TC 492,00 384,00 384,00 Process Steam, kg 78720,00 61440,00 61440,00 Bagasse burnt, T/hr 41,50 32,95 30,52 Excess bagasse, T/hr 0,00 8,55 10,98 Excess bagasse, T/yr -9,00 19228,50 24696,00 Investment, US$ 0,00 378782,00 890000,00 Operating Cost/yr, US* 0,00 109039,00 177760,00 Cost/ton US* 0,00 5,67 32,51 A = Actual B = Modifications to evaporator and-juice heaters as follows:- - Converting the evaporator to a quintuple effect by adding one 600 M2 body and one 900 12 body - New 135 K2 Juice heater - Discontinue 1400 Kw CEB Export C = Bagasse Dryer -59 Annex 1 Page 7 of 17 Factory: MON-TRESOR/MON-DESERT A B C. * Cane/yr. tons 280000,00 280000,00 280000, 00 TCE 114,00 114,00 114,00 Fibre on cane, % 13,89 13,89 13,89 Bagasse on cane, % 29,00 29,00 29,00 Bagasse/hr, tons 33,06 33,06 33,06 Bagasse available/hr,tons 31,41 31,41 31,41 Process Steam, kg/TC 453,00 412,00 412,00 Process Steam, kg 51642.00 46968,00 46968,00 Bagasse burnt, T/hr 28,76 27,33 24,84 Excess bagasse, T/hr 2,65 4,08 6,57 Excess bagasse, T/yr 6501,40 10013,68 16129,47 Investment, US$ 0,00 45801,00 890000,00 Operating Cost/yr, USS 0,00 8924,00 177760,00 Cost/ton USS 0,00 2,54 29,07 A = Actual B = Addition of a 150 n2 juice heater C = Bagasse Dryer - 60 - Amex 1 Page 8 of 17 Factory: SOCIETE SUCRIERE DE RIVIERE DU REXPART A B C Cane/yr, tons 310000,00 310000,00 310000,00 TCH 130,00 130,00 130,00 Fibre on cane, % 14,65 14,65 14,65 Bagasse on cane, % 29,88 29,88 29,88 Bagasse/hr, tons 38,84 38,84 38,84 Bagasse available/hr,tons 38,90 38,90 36,90 Process Steam, kg/TC 380,00 380,00 380,00 Process Steam, kg 49400,00 49400,00 49400,00. Bagasse burnt, T/hr 32,13 27,88 25,81 Excess bagasse, T/hr 4,77 9,02 11,09 Excess bagasse, T/yr 11378,91 21513,52 28449,68 Investment, USS 0,00 100954,00 890000,00 Operating Cost/yr, US$ 0,00 17487,00 177780,00 Cost/ton USS 0,00 1,73 36,01 A = Actual 3 3 Discontinuing 600 kw CEB Export C = Bagasse Dryer -61- Aiex I Page 9 of 17 Factory: RICHE EN EAV A B C Cane/yr, tons 275000,00 275000,00 275000,00 TCH 125,00 125,00 125,00 Fibre on cane, % 13,20 13,20 13,20 Bagasse on cane, % 27,31 27,31 27,31 Bagasse/hr, tons 34,14 34,14 34,14 Bagasse available/hr,tons 32,43 32,43 32,43 Process Steam, kg/TC 428,00 369,00 369,00 Process Steam, kg 53500,00 46125,00 46125,00 Bagasse burnt, T/hr 32,40 21,79 21,38 Excess bagasse, T/hr 0,03 7,64 11,05 Excess bagasse, T/yr 67,38 16809,38 24311,38 Investment, USS 0,00 865781,00 . 890000,00 Operating Cost/yr, USS 0,00 181356,00 177760,00 Cost/ton USS 0,00 10,83 23,70 A = Actual B - Converting quadruple effect to quintuple effect evaporator by adding new 1500 X2 .S lst effect -.175 12 KS Juice heater for 2nd stage beating with 3rd vapour - 110 12 HS Juice heater for 3rd stage heating with 2nd vapour - 225 12 KS Juice heater for final Juice heating with steam - Reduce CEB Export by 440 Kw - Replace ID fan steam engine drive by electric motor - 1000 Kw condensing turbo alternator C = Bagasse Dryer -62-Ane Page 10 of 17 Factory : XOUNT A B C Cane/yr, tons 235000,00 235000,00 235000,00 TCH 100,00 100,00 100,00 Fibre on cane, % 15,04 15,04 15,04 Bagasse on cane, % 30,02 30,02 30,02 Bagasse/hr, tons 30,02 30,02 30,02 Bagasse available/hr,tons 28,52 28,52 28,52 Process Steam, kg/TC 458,00 392,00 392,00 Process Steam, kg 45800,00 39200,00 39200,00 Bagasse burnt, T/hr 28,51 21,39 18,30 Excess bagasse, T/hr 0,01 7,13 10,22 Excess bagasse, T/yr 21,15 16753,15 24014,85 Investment, USS 0,00 3178588,00 890000,00 Operating Cost/yr, USS 0,00 826303,00 177760,00 Cost/ton US . 0,00 37,43 24,48 A = Actual B = - 1300 m2 HS 1st vessel evaporator to convert existing quadruple effect to quintuple effect evaporator - 100 m2 juice heater - New 5OT/hr 22 bar water tube boiler to replace existing fire tube.bollers C = Bagasse Dryer - 63 - Annex 1 Page 11 of 17 Factory: SAVANNAgI A B C Cane/yr, tons 310000,00 310000,00 310000,00 TCH 125,90 125,90 125,90 Fibre on cane, % 13,34 MU,34 13,34 Baganse on cane, % 27,05 27,05 27,05 Eagasse/hr, tons 34,06 34,06 34,06 Bagasse available/hr,tons 32,35 32,35 32,35 Process Steam, kg/TC 469,00 399,00 399,00 Process Steam, kg 59047,10 50234,10 50234,10 Bagasse burnt, T/hr 32,13 22,65 18,83 Excess bagasse, T/hr 0,22. 9,70 13,72 Excess bagasse, T/yr 549,46 23891,80 33790,13 Investment, USS 0,00 715085,00 890000,00 Operating Cost/yr, US$ 0,00 163949,00 177760,00 Cost/ton USS 0,00 7,02 17,96 A = Actual B - Conversion of quadruple effect to quintuple effect evaporator by installing a new-900 mQ2 KS 2nd body = 220 m2 KS juice heater for 2nd stage juice heating with 3rd vapour from QE - 160 m2 HS clarified Juice heater - Discontinue 800 kw CEB Export - 1000 kw condensing turbo alternator - Replacement of ID fan steam driven by electric motor C Bagasse Dryer -64 *Aex 1 - 64 - a~ge 12 of 17 Factory: HIGHLANDS A B C Cane/yr, tons 275000,00.. 275000,00 275000,00 TCE 96,70 96,70 98,70 Fibre on cane, % 11,98 11,98 11,98 Bagasue on cane, % 25,33 25,33 25,33 Bagasse/hr, tons 24,49 24,49 24,49 Bagasse available/hr,tons 23,27 23,27 23,27 Process Steam, kg/TC 503,00 396,00 396,00 Process Steam, kg 48640,10 38293,20 38293,20 Bagasse burnt, T/hr 23,01 20,20 16,72 Excess bagasse, T/hr 0,26 3,07 6,55 Excess bagasse, T/yr 737,71 8728,92 18625,50 Investment, US3 0,00 759784,00 890000,00 Operating Cost/yr, US3 0,00 149336,00 177760,00 Cost/ton US$ 0,00 18,09 17,98 A Actual B = - Converting quadruple effect to quintuple effect evaporator by adding a new 1200 m2 KS - 200 m2 KS Juice heater for 1st stage heating of juice with 4th vapour - 125 m2 HS juice heater to be placed In series with existing 139 m2 KS heater for 4th stage juice heating with 1st vapour - Replacement of cane cutters steam engine drives by electric motors - 1000 kw condensing turbo alternator C = Bagasse Dryer - ~~Amnex 1 -65 - MPage 13 of 17 Factory : ST ANTOINE A B C Cane/yr, tons 250000,00 250000,00 250000,00 TCH 100,10 106,10 108,10 Fibre on cane, % 15,60 15,60 15,60 Bagasse on cane, % 33,60 33,80 33,60 Bagasse/hr, tons 35,65 35,65 35,65 Bagasse available/hr,tons 33,8? 33,87 33,87 Process Steam, kg/TC 539,00 461,00 461,00 Process St,am, kg 57187,90 48912,10 48912,10 Bagasse burnt, T/hr 28,81 24,20 19,79 Excess bagasse, T/hr 5,06 9,67 14,08 Excess bagasse, T/yr 11915,93 22778,32 33169,46 Investment$ USS 0,00 568433,00 890000,00 Operating Cost/yr. USS 0,00 122615,00 177760,00 Cost/ton USS 0,00 11,29 17,11 A = Actual B = - Converting existing quadruple effect to quintuple effect by coupling existing 1st and 2nd effects, adding a new 700m2 HS 2nd effect and adding a new 800 m2 HS 3rd effect - 165 m2 HS juice heater for 4th stage heating with 1st vapour - Decrease CEB export from 500 to 100 kw - Replace 1st mill steam engine by 400 kw multistage steam turbine with reduction gears C Bagasse Dryer NOTE : Deduct BOOOT/yr for bagasse supply to Particle Board Factory -66- ArAexl Page 14 of 17 Factory : BRITANNIA A B C Cane/yr, tons 225000,00 22§000,00 225000,00 TCH 95,20 95,20 95,20 Fibre oan cane, % 12,37 12,37 12,37 Bagass- on cane, % 25,21 25,21 25,21 Bagasse/hr, tons 24,00 24,00 24,00 Bagasse available/hr,tons 22,80 22,80 22,80 Process Steam, kg/TC 488,00 398,00 398,00 Process Steam, kg 46457,60 37889,60 37889,60 Bagasse burnt, T/hr 22,80 19,61 16,15 Excess bagasse, T/hr 0,00 3,19 8,65 Excess bagasse, T/yr -0,18 7539,21 15712,01 Investment, USS 0,00 444740,00 890000,00 Operating Cost/yr, USS 0,00 87193,00 177760,00 Cost/ton US$ 0,00 11,56 21,75 A = Actual B =- Converting existing quadruple effect to quintuple effect by adding new 1400 m2 HS lst effect, coupliug existing effects Noe.2 and 3 and adding a new 400 m2 HS 5th effect - 125 m2 HS juice heater for 2nd stage heating with 3rd yapour - Replacing various stem drives, pumps etc. by electric motors C Bagasse Dryer NOTE : With the installation of a new HP boiler, already purchased, the mill drives will have a better water rate as they are designed to operate at 26 bar -67 - Annexl Page 15 of 17 Factory - Union St Aubin A B C Cane/yr, tons 270000,00 270000,00 270000,00 TCH 112,53 112,53 112,53 Fibre on cane, % 13,39 13,39 13,39 Bagasse on cane, % 27,60 27,60 27,60 Bagasse/hr, tons 31,06 31,06 31,06 Bagasse available/hr,tons 29.51 29,51 29,51 Process Steam, kg/TC 413,00 380,00 380,00 Process Steam, kg 48474,89 42761,40 42761,40 Bagasse burnt, T/hr 24,11 22,26 20,65 Excess bagasse, T/hr 5,40 7,25 8,86 Excess bagasse, T/yr 12945,43 17"34,24 21247,21 Investment, US$ 0,00 152717,00 890000,00 Operating Cost/yr, US$ 0,00 29808,00 177760,00 Cost/ton US$ 0,00 6,72 46,02 A = Actual B = Modifications evaporator and juice heaters as follows:- 1st effect : 1046 m2 existing 2nd effect : 1132 m2 required, this can be done by using existing 2nd and 3rd effects in parallel with will give 1162 m2 3rd effect : 581 m2 existing 4th effeet : 581 m2 existing 5th effect 5th effect : NJw 400 m2 One new 225n2 juice heater for primary juice heating with vapour from 4th effect C Bagasse Dryer -68 - Page 16 of 17 STR Op INVMRSWTS AND COSTS FACTOY SC, EQUIPRENT LUFE IJVRBUMINTS oPRACiG COSTS lis US $ Us $/yr. Forign Local Total Foreign Uocal Total F,U,E.L, 8 Continuo Vacuum pa. 25 187000 318000 605000 75880 22420 98300 C Oryet 25 5800Q0 370000 950000 140672 47328 188000 .EDINE B Continuous Vacuum Pan 25 I70000 295000 465000 69900 20650 90550 400 12 HS., Evaporator 25 31656 52360 84016 12126 3696 16422 C Orer 25 544000 346000 890000 133010 44750 177760 CONSTANCE 8 240 12 H,S. Juice Nater 25 26952 46330 73282 11070 3208 14278 350 12 N,S, Juice leater 25 39305 67564 106869 16145 4679 20824 1600 H2 H.S, Evaporator 25 126624 209440 336064 50904 14782 65686 1560 Ku Condessiqg TIA 25 654000 *6000 700000 106500 31000 137500 CD Export loss, 600 kv 18368 18368 C Dryet 25 544000 346000 890000 133010 44750 177760 BEAU PLAN B 160 12 H,S, Juice Heater 25 17968 30886 48854 7381 2139 9520 290 12 K,$, Juice Heater 25 32567 55981 88548 13376 3877 17253 225 12 H.S, Juice Heater 25 25267 43434 68701 10378 3008 13386 1550 12 HS,, Evaporator 25 122667 202895 325562 49312 14320 63632 Continuous Vacuum Pan 25 165000 285000 450000 67645 19980 87625 CI0 Export Loss, 600 kv 15459 15459 C Drpyer 2 544000 346000 890000 133010 44750 177760 E1L E B 856 2 H,. Juice Neater 25 9346 16408 25954 3921 1136 5057 900kw s,ut,turbins lot sill 25 71000 4000 15000 11510 3380 14890 CEO Expott loss, 138 kv 4089 4089 C .Dryr 25 544000 346000 890000 133010 44750 177760 H,D.ALRA 8 135 H2 U,, Juice Heater 25 15160 26060 41220 6228 1805 8033 600 12 H,8, Evaporator 25 47J84 78540 126024 19089 5543 24632 950 12 H.S. Evaporator 25 75183 124355 193538 30224 8777 39001 Relocation of effect No.4 12000 12000 CEB Export loss, 1400 kv 37373 37373 C Oryer 25 544000 346000 890000 133010 U4750 177760 1.T./5,DESERT 8 1S0 12 H,S, Juice Heater 2 16845 28956 4I80) 6919 2005 8924 C Oryer 2 5 44000 346000 890000 133010 44750 I1m760 Ste,S.R.R, B CEB Export loss,600Kv 25 16953 16953 C Dryer 25 544000 346000 890000 133010 44750 177160 - 69 - Anne 1 Page 17 of 17 A.E.t,Eau 8 175 h12 H,S, Juice &Iat# 25 19653 33782 53435 8073 2340 10413 225 02 11,1, Juice Heater 25 25267 4343 68701 10378 3008 13386 110 H2 N,S, Juice Heater 25 12353 2123 33587 5074 1470 6544 1500 112 H,S. Evaporator 25 118710 156350 315060 47723 13858 61581 1000 Ku Cod.Tubo Alte, 25 35S000 25000 380000 57925 16960 14815 Electric bits 20 12i30 235a 149s8 2270 813 3083 CE8 Export loss, 140 tv 11412 11472 t Dryer 25 14400) 346000 890O00 133010 44750 177760 hOUMI 8 100 R2 H,S, Juice Heate 25 11230 19304 30534 4613 1337 5950 1300 h2 H.S.. vporter 25 Mv2M2 170170 273052 41350 12011 53371 Electric motors 20 2100 3960 25000 3784 1355 5139 SO T/hr H,, Boiler 25 2700000 150000 2850000 434843 127000 561843 C Dryer 25 544000 346000 890000 133010 44750 177760 SAVARNA1 8 160 12 H,S, Juice Heater 25 17968 30986 48854 7381 2139 9520 220 2 HA,5 Juice Hatet 25 2.706 42469 67175 10148 2941 13089 900 12 H,S, Evapotator 25 71226 117810 189036 28633 8315 36948 1000kv Cov d.Turbo Altern, 25 355000 25000 380000 57928 16950 74875 Electric Rotor 20 25260 4740 30000 4540 1626 6166 CO Export loss, 800 kv 233S 23351 C Dryer 25 544000 346000 8O9 133010 44750 177760 HIWILANDS 8 125 I2 N,S, Juice Heater 25 14037 2413! 38168 5766 1671 7436 200 02 H.S. Juice Heater 25 22460 38608 61068 9226 2674 11900 1200 12 HS., Evaporator 25 54968 167080 252048 38178 11087 49265 1000 Kv Cond, Turbo Altern, 25 356000 25000 380000 57925 16950 74875 El,Orives for C.C,I & 2 20 24000 4S00 28500 4314 1545 5859 C Dryer 25 544000 3U6000 83000* 133010 44750 177760 ST,ANTOINE B 165 12 HS., Juice Hakter 25 18530 31852 50382 761I 2206 9817 700 H2 H1S. Evaporator 25 65398 91630 147028 222?1 6467 28738 600 12 H,S. EvYporator 25 47484 78540 126024 19089 5543 24632 400 kv lit sill rive 25 230000 150I0 245000 37358 10900 48258 CE8 Export loss, 400 kv 11170 1170 C Otryr 25 SUO40 346000 80O000 133010 4750 177760 BRITANNIA 8 125 12 11S, Juice Heater 25 14037 24130 38167 5765 1671 7436 1400 12 HS., Evaporator 25 110796 183260 294056 44541 12934 57475 400 12 H,S. Evaporator 25 31616 52360 84016 12126 3696 16422 Electric motors 20 24000 4500 28500 4314 1545 5859 C Dryer 25 544000 346000 890000 133010 44750 IM60 U,S,38111 8 225 02 H,S, Juice Heter 25 25267 43434 6t801 10378 3008 13386 400 112 H.S, Evaporator 25 31656 52360 84016 12726 3696 16422 t Dryer 25 544008 346000 890000 133010 44750 17760 Notes :- 1 - Interest on capital 14% 2 - Excess bagasse is cunulative, cost/ton is on increment from B to C 3 - P = Paying, BP a Non-Paying before complete inveslment is effected. - 70 - Annex 2 Page 1 of 7 DECmUTON AD COST Of ALV BAGASSE EANDL SYSTEMS Introduction 1. Detailed descriptions of three hantdling systems-pelletizing, briquetting and baling-and their comparative cost are presented below. The loose piling option has not been assessed due to the significant problems described above which preclude it from further consideration. For the design of each process, the capacities of bagasse processing equipment were sized to handle potential peak throughput, i.e., when cane with the highest fiber oontent is crushed. The capacities of the storage areas were designed to accommodate the peak quantities of excess bagasse. Bsagasse Pellets Process Description 2. A bagasse pelletization system for 15 of the larger sugar mills in Mauritius would consist of twelve pelleting plants (dryer * pelletizer) at the mills which do not generate power and three pre-dryers at the generating mills. A two-stage drying system will be used to bring the bagasse down to 35X m.c. for boiler efficiency and then down to the 10-12Z moisture content required for pelletizing. For storage, twelve pellet stores capable of holding 210,000 tons (10X m.c.) for the intercrop season would be needed. Pellets would be stojed in bulk in tent-shaped buildings. A net storage volume of 350,000 m /year would be required. In-store distribution is done with overhead conveyor systems and trucks can be filled with payloaders. This system is more economic than silos for the quantities that must be stored. Transport to the three mill power plants would be done during the intercrop season with existing Mack-type sugar trucks. With a bulk density of 600 kg/cubic meter, 24 tons of pellets could be hauled by each truck per trip. For a theoretical maximum of 210,000 tons per annum, 8,750 trips would be required with each trip averaging 20.5 km one way. Once the pellets were delivered, they would be burned in the boilers at each power plant to produce electricity. Only the new Fives-Cail-Babcock boiler at FUEL is currently designed to burn pellets. The boilers at Medine and Mon Tresor would require some modification if they are to consume pellets. Modification costs have not been estimated below but should not significantly affect the final price of the product. - 71 - Annex 2 Page 2 of 7 Financial Costs 3. Some of the figures used in this calculation were obtained from the Bagapel pelletiming plant at the Beau Champ sugar iill. However, it was not possible to obtain actual operating costs since, to date, the plant has not operated continuously over a sufficiently representative period of time; thus, these costs have been based on experience with similar equipment elsewhere. 4. The combined capital and operating costs for twelve pelleting plants and three pre-dryers are presented below in Table 1. Table 1: CAPITAL AND OPERATING COSTS FOR PELLETIZATION Ite Coost (USS'OOO) (11iS/ton, 10 m.c.) I. Polleting and Drying Equlpment A. Capital 35,500 21.90 S. Operating - Labor 312 1.49 - Power (22 GWh) 330 1.57 - Maintenance 1.250 5.95 Subtotal 1,892 9.01 II. Storage A. Capital 9,000 5.14 8. Operating 350 1.67 Ill. Transport 715 3.40 Subtotal, capita' 44,500 27.04 Subtotal, operating 2,957 14.08 Total 41.12 a/ 10$ discount rate for annualIzation. Source: Mission estimates Thus, pellets would cost $41.12/ton to produce and transport. In energy terms, this is equivalent to $2.64/GJ. The actual figure would be slightly higher as costs for boiler modifications have not been incorporated. - 72 - Annex 2 Page 3 of 7 Bagasse Briquettes Process Description S. Each of the 15 mills would be equipped with a pre-dryer that is operated with boiler flue gases to dry all the bagasse to approximately 35% m.c. before feeding the sugar mill boilers. The excess would pass through secondary dryers to reach a final moisture content of 10-12%. The heat for these dryers will be provided by bagasse-fired incinerators. Thus, the dependence on a steady flue gas supply from the sugar mill boilers can be eliminated. This dependence is one of the operating problems at the Bagapel plant. The fines that contain dust, soot and abrasives will be screened out before the final drying stage. This will reduce wear on the briquetting press substantially. The dry bagasse wil' then be densified into briquettes of 90 m diameter by means of twin-head piston briquettors. The hourly briquetting capacity required for the maximum potential excess bagasse is about 80 tons per hour; thus, 40 briquettors are required. The smllest mill would be equipped with three briquettors and the largest with eight machines. For storage, the same methods used with pellets is recommended. As the existing power plant boilers are not suited to burning large-diameter briquettes, the briquettes will be crushed before being fed to the boilers. The costs for three crushing machines located at the power plants are included in the cost calculation. Financial Costs 6. Fifteen pre-drying plants will be required for this system the capital and operating costs of which are summarized in Table 2. For the off-season, 210,000 tons of 102 m.c. brique$tes will have to be stored, requiring a net storage volume of 420,000 m or a gross storage building volume of 650,000 m . For transport, Mack-type sugar trucks will also be used but with slightly larger containers than the current ones (12 instead of 10 m3). Bagasse briquettes would cost $31.46 per ton to produce and transport to the power plant boilers. In energy terms, this is equivalent to $2.06/GJ. - 73 - Annex 2 Page 4 of 7 Table 2: EAGASSE BRIQUETTING COSTS Itoo Cost -- (USSIOOO) (USS/ton, 10S m.c.) I. Pro-drying plants A. Capital 4,720 2.96 B. Owprating 234 1.11 II. Briquetting plants A. Capital 13,500 8.28 S. Operating 1,220 S.81 Iil. Storage A. Capital 11,000 6.15 B. Operating 390 1.85 iv. Transport 715 3.40 V. Crushing A. Capital 1,200 0.74 B. Operating - labor 60 0.29 - power (3.1 GWh) 109 0.52 - maIntenance 74 0.35 Sub-total 243 1.16 Subtotal, capital 30,420 18.13 SubtotaI, operating 2,801 13.33 Total 31.46 a/ JO% discount rat for annual lzatljn. Sour: Mission estimates Baled Basasse Process Description 7. Bate presses. The surplus bagasse that is not consumed by the sugar mill boilers would be conveyed to a bale press. These are hydraulic presses that produce large bales (1.5 ml weighing 600 kg each). The tying of the binding wires is done automatically. Each press has a capacity of 17-20 tons per hour of bagasse. Two mills would be equipped with two bale presses and the other eleven mills with one press each. For the cost calculations, no bale presses have been included for the three mills with condensing turbo-alternators since all their excess bagasse would be used for power production during the crop season. For operational security reasons, it may be necessary to install a press at each of these mills in the boiler is not able to burn surplus bagasse iu_ediately due to a shutdown. -74 - Annex 2 Page 5 of 7 8. Bale storage. Bales would be transported to an open-air storage area by a tractor-trailer. The bales are loaded onto the trailer with a small gantry-type hoist near the bale press. At the bale store, the unloading and stacking is done by means of a mobile crane. Sufficient spaces would be provided between the bale stacks to allow isolation of a single stack in the event of fire. Fire-fighting equipment would consist of a pipe network with hose reels between the stacks. A separate water reservoir with a pump station would be provided for the fire suppression water supply. The spaces between the stacks would be kept clear of loose bagasse and weeds. 9. Transport. Transport to mill power plants would take place during the intercrop season by means of idle sugar trucks. A Mack-truck with two trailers, each with a loading platform of 2.4 m x 6.2 m, can load 52 bales (490 kg each with 201 m.c. after storage). Thus, 25 tons could be transported with each truckload. These trucks are currently operating in Mauritius. At the point of consumption, the bales would be unloaded by a small gantry-type hoist adjacent to the balebreaking plant. 10. Balebreaking. At each of the three electricity-generating mills a balebreaker would be installed. The bales would be fed onto the feeding conveyor of the balebreaker by means of the same hoist that is used to unload the trucks. One worker would remove the binding wires when the bales are on the feeding conveyor. The waste wires would then be pressed into bundles by means of a hydraulic press; these could then be sold as scrap metal. The bales themselves would be broken by means of a toothed Totor. Then, the loose bagasse would be collected on a belt conveyor that is equipped with a strong electromagnetic separator. The conveyor feeds the bagasse into the feeding system of the boiler. To avoid excessive dust formation, the balebreaker would have a dust exhaust system. Financial Costs 11. Twelve automatic baling plants will make bales of the 35% m.c. bagass!; each bale will have an initial weight of 600 kg and a volume of 1.5 m . Open-air bale stores will require 4 m of land per ton of bagasse; the initial moisture content will reduce to 20% after storage for several months. For transport, the costs of loading and unloading are included in the calculations for the bale stores and balebreaking plants. Transport cost calculations are detailed in Annex 4. Assuming an average of two round-trips per shift and 230 days for the intercrop season, 7-8 %.rucks would be required for the distribution of the bales to the powe7 plants. Currently, there are thirteen of these Mac trucks lying idle during the off-season. 12. A detailed breakdown of local, foreign and total costs for each phase of the baling system is provided in Table 3. Bagasse baling and transport to the power plants costs about $13.91/ton. In energy terms, this is equivalent to a cost of $1.05/GJ. - 75 - Annex 2 Page 6 of 1 Table 3: BALED BAGASSE CAPITAL AND OP£RATING COSTS (USS) Item Local Fore Ign Total S/Ton a/ 1. Baling plants A. Capital - constructlon ISO 30 180.00 - equlpent 50 1,785 1,835.00 - spares at del. 0 93 93.00 - transport 30 1U5 185.00 - eng. & Install 40 250 200,¢ Subtotal 2,313 2,563.00 1.30 B. Operating - labor 168 0 168.00 - power (1.3 Gnh) 19 0 19.00 - maintenance 25 60 85.00 - binding wire 0 384 384.00 Subtotal 212 444 656.00 2.52 11. Bale stores A. Capital - construction 1,080 144 1,224.00 - equipmsnt 60 3,360 3,420.00 -spresa t del. 0 72 72.00 - transport 24 156 180.00 -eng .& Install 48 156 204.00 Subtotal 1,212 3,888 5,100.00 2.50 B. Operating - labor 360 0 360.00 - power (diesel) 0 80 80.00 - maintenance 130 200 330.00 - land rent 53 0 53.00 Subtotal 543 280 823.00 3.16 Ill. Transport 0 886 886.00 3.41 IV. Bale breaking A. Capital - construction 33 3 36.00 - equipment 85 535 620.00 - spares at del. 0 30 30.00 - transport 8 62 70.00 - rng. & Install 25 80 105.00 Subtotal 151 710 861.00 0.43 8. Operating - labor 72 0 72.00 - power (1.6 GWh) 57 0 57.00 - Maintenance 10 15 25.00 Subtotal 139 15 154.00 0.59 Subtotal, capital 3,933.00 4.23 Subtotal, operating 2,519.57 9.6B Total 13.9 i a/ 10 discount rate for annualization. Source§: - 76 - Annex 2 Page 7 of 7 FINANCIAL ASSUMPTIONS Basic data used for cost calculations - e2change rates s Rs 15/$, PF 8.51$ SPr 2.2/$, DM 2.7/$ - discount rate s 10X - electricity ($/kWh) s during crop season 0.015 s during intercrop season, 0.035 =- diesel : 0.3 $/liter (0.85 kg/liter) - transport s 0.17 $/ton-km (based on 24 tons/trip - binding wire s 0.6 $/kg - site costs (rent) s 415 $/hectare, year (52 p.a. from Rt 50,000 per acre) Plant life - construction, building s 20 years - equipment, spares, etc. : 15 years Labor $/Year 4 shifts* - unskilled 1,500 6,000 - semiskilled 2,000 8,000 - skilled X , 500 10,000 * All labor costs are based on 4 shift operations. Basic data for energy calculations NCV of bagasse calculated with MSI U formula: @ 50Z m.c. s 7,380 e 452 m.c. s 8,370 @ 35 m.c. s 10,350 @ 20X m.c. : 13,320 e 102 m.c. : 15,300 NCV of coal 2 27,000 kJ/kg - 77 - Annex 3 TRANSPORT C O Assumptions For all three handling options, transport would be by existing Mack-type trucks, which have two trailers, each with a platform 2.4 m wide x 6.2 m long, holding two containers per trailer. The assumed transport charge is $0.166/ton kilometer (Re 4/ton mile). Pellets With a bulk density of 600 kg per cubic meter, 24 tons of pellets could be loaded on each truck in four containers, each with a volume of 10 m3. With 210,000 tons of pellets per year, 8750 trips would be required. If transport is operated for three shifts per day, with two round-trips made per shift and the intercrop season an average of 230 days, then seven trucks would be required. Assuming the above distribution of fuel needs per power plant, the average transport distance would be 20.5 km one way. Thus, transport costs would be 20.5 km x 210,000 tons x $0.166/ton km = $714,630 or $3.4/ton. Briquettes With larger containers (4 x 12 m3 instead of 4 x 10 m3), each truck would carry 24 tons of briquettes. With 210,000 tons per year required, 8750 trips would be taken over an average distance of 20.5 km and seven trucks would be required. Thus, transport costs for briquettes are identical to those for pellets ($3.4/ton). Bales An average of 260,000 tons of bales would have to be transported annually; this amounts to 533,333 bales weighing 488 kg. each (20X m.c.). A Mack truck can load 52 bales or 25 tons per trip (see Figure 3). Transport to FUEL would be: 16 km x 153,400 tons x $0.166/ton km $407,430. Transport to M6dine would be: 34 km x 67,600 tons x $0.166 u $381,530. Transport to Mon Tr6sor would be: 15 km x 39,000 tons x $0.166 - $97,110. Thus, total transport costs for bales amount to $886,070 per annum or $3.41 per ton. With 260,000 tons per annum and 25 tons per trip, the trucks would have to make 10,400 trips per intercrop season. If transport was carried out in a three-shift operation, and assuming two round-trips per shift with a 230-day intercrop season, 8 trucks would be required for the distribution of bales to power plants. - 78 - Annex 4 Page I of 2 iZYlW Of MMU *SAGATRI 20" DhCAsA E BALING SYsTE AS OPNAUTD BY TOE SANTA LYDIA SUGAR FACTOKY, BAUZIL Process Description At the beginning of the sugar season, a 10 tonne/hr chain drive shredder (manually fed by forklift) feeds the Bagatex 20 (B20) to an uncovered conveyor which inputs the B20 into the normal boiler bagasse feed system. Once a surplus of bagasse is generated, it is moved by small tractor to a conveyor that foeds into the treatment shed. The conveyor feeds into the bale press which is a piston press similar to a waste paper press. The press capacity is 10 tonnes per hour. As the bagasse drops into the bale press, it is sprayed with a chemical catalyzer. After pressing, the bales are manually tied with wire and moved outside bI an overhead lift. Bale size is flexible and ranges from 0.72a3 to 1.44m . The bagasse is then piled manually between 2x2 inch wooden slats (not pallets). A fork lift transfers the piles to a maturing shed that is probably more sturdy and costly than necessary. When the shed is full, outside storage under plastic sheets is used for maturation. This is satisfactory provided the plastic does not touch the tops and sides of the bales, thus permitting unrestricted air circulation. Roughly 2.3- 2.7 tons can be stored per m of storage area, and the maturing facility should be sized accordingly. To handle 40,000 tonnes of bagasse, the Usina Santa Lydia sugar factory employs 22 people on a 3-shift operation (6 people per shift for processing and an extra 4 people on day shift only for inventory control). The only "skilled" personnel employed are the drivers. Other skills are taught during training in operating the process machines. Financial Evaluation A conservative estimate of the cost of the B20 process at the Santa Lydia sugar factory (excluding royalty charges) is set out in Table 1. Performance 820 does not appear to deteriorate over a 4-year period if rain protected. User experience suggests that boiler operations are not adversely affected by switching to B20. Concerns with combustion temperatures and tube metal temperatures appear to be overstated. Operational changes in fuel/air ratios generally can handle any such variations. There appears to be no "magic" in the process that will inhibit its successful application in Mauritius and other similar environments. - 79 - Annea 4 Page 2 of 2 Table 1: Estimated Cost of the Bagates 20 Process a/ I. Capital Costs US$ /tonne A. Site preparation and bldg. $260,000 .98 S. Equipment 258,000 1.09 - feed chute 6,000 - belt conveyor 9,000 - bale press (1) 168,000 b/ - wood stick separator stock 3,000 - fork lifts (3) 60,000 - tractors (1) 12,000 C. Spares 18,060 .07 D. Transport and Delivery 37,295 .16 E. Engineering and Installation 75,500 .32 Subtotal $2.62 II. Operating Costs A. Labor 26,000 .83 B. Power 23,225 c/ .74 C. Maintenance 28,640 d/ .92 D. Consumables 26,000 .82 Subtotal $3.31 Total a/ Based on throughput of 40,000 tonnes/year. Assuming 15 tonne/hour press. Assuming lube oil recycling, which reduces cost to $8,000/year. Assuming 50X of cost is attributed to sugar factory as tools and labor are shared. no - Annex 5 page 1 of 10 NMI I IT SPsIcIII&TOU NM I BALING PROJECT I. GENERAL RD.QUIUNEMTS 1.1 All equipment proposed by possible suppliers must be of simple design and easy to operate. 1.2 The proposed equipment must be described in detail with the offer. Construction materials and the type of components must be indicated. Pamphlets and actual or typical drawings must be provided with the offer. If possible, a list of similar reference installations should be provided. 1.3 Special Tools Any special tools for mai.tenance and/or for operation of the equipment must be indicated and included with the offer. 1.4 Spare Parts Basic spare parts for the first 2000 operating hours must be offered as a separate item. The supplier must guarantee the supply of spare parts for a period of at least 15 years after delivery at competitive prices. Should he not be in a position to supply spare parts any more then he must provide drawings and specifications. 1.5 Painting All ferrous metal surfaces without machined finishes must either be zinc-bath coated or must be provided with one coat of primer and one coat of finish paint after the surface has been sandblasted or cleaned with a wire brush. Surfaces with machined finishes must be provided with a removeable protective coat to avoid the formation of rust. All bolts, nuts and washers must be galvanized or promatized. 1.6 Electric Motors All electric motors should be according to the IEC standard, they must be the squirrel cage type T.HF.C. (totally enclosed fan cooled). Degree of protection: IP 54 acc. to IEC. Insulation class B acc. to VDE 0530 (German electric standard). They must be suitable for continuous operation (around the clock). A1 gear motors are to be from SEW. No drum type motors are desired for belt conveyors. Electric power: 380 V, 50 cycles. Annex 5 page 2 of 10 1.7 Motor Controls All motor controls must be offered with the equipment. Motor starters, fuses, push buttons, indicating lamps and relays with spare r/o's to incorporate some logic interlocks from other plant components must be offered in panels. Starters for motors with more than 10 kW power rating are to be of the star-delta type. Push buttons will generally be installed at sight distance from the equipment. The motor controls of some equipment will be incorporated in the L.V. switchboard. The motor control components will be standardized as much as possible during detailed planning to facilitate the spares requirements. 1.8 Guards Belt drives and other rotating parts must be protected with guards acc. to DIN 31001 (German general standard). Sight contact with the rotating parts should be allowed as much as possible by using wire mesh surfaces. 1.9 Belt conveyors Upper belt idlers must be 20' troughed. Diameters of drive and return pulleys must be large. They must be supported in grease- lubricated ball bearing pillow blocks with sealed housings. Drive pulleys must be provided with a snub pulley to obtain additional wrap. The belts must consist of three-ply polyester reinforced material. Cleaning scrapers must be provided in front of the return pulleys to avoid material built-up on the interior surface of the belt. The loading chutes are provided with skirt plates sufficiently long to avoid overspillage of bagasse. The drives must consist of shaft-mounted reduction gears, v-belt drives, belt guards and electric motor mounted on adjustable supporting plates. Access for maintenance and supervision must be granted by a walkway all along one side of the conveyor. 1.10 Manuals The supplier must provide operating and maintenance manuals, spare part lists and drawings in French and English after receitpt of the order. - 82 - Annex 5 page 3 of 10 II. EQUIPMENT SPECIFICATION FOR PREDRYING 1/ AND BALING EQUIPMENT 2.1 BAGASSE CHUTE WITH SLIDING GATE AND BELT CONYBYORS Flow sheet item no. 2, 3.1, 3.2 Qty 1 off, each Intended use: to convey bagasse from the existing mill carrier to the inlet feed screw of the rotary drum dryer. The chute must be provided with a manually operated sliding gate that allows for interrupting and adjusting the flow rate in accordance with the flue gas exhaust temperature of the dryer. Capacity: up to a8 tons/h of bagasse with 45-50Z m.c. Bulk density approx. 80-100 kg/ml Construction: The conveyors must be provided with sealed chutes at the charging and discharging ends to avoid formation of dust. The conveyors must be supported from the floor level and a walkway must be provided along on one side of the conveyors. Overall lengths: item 3.1: 40m item 3.2: 23m The sliding gate must be fitted underneath the existing 1.2 m wide bagasse carrier. 2.2 FLUE GAS DUCT WITH INLET DAMPER Item no.: 4 Intended use: to aspirate the flue gases from the existing chimney at the discharge port of the ID fan and to convey the flue gases to the inlet of the rotary drum dryer. Capacity: up to 180'000 m3/h with temperatures up to 3006C. Construction: made of mild steel sheet metal. The connecting piece at I/ Analysis by the 1986 mission showed that installation of a bagasse drying facility is not economic. A description of this part of the bagasse baling system is retained for the sake of completeness. - 83 - Annex 5 page 4 of 10 the chimney must be provided with an isolating damper to isolate the dryer plant and discharge of the flue gases through the chimney when the dryer is not operating. The duct must be provided with insulation and it must be supported from the floor level. Overall length approx. 35 m. 2.3 ROTARY DRUM DRIER Item no.: 5 Qt: ~~1 Intended use: to pre-dry bagasse with boiler flue gases. Capacity: infeed up to 38 to_fs/h of bagasse @ 45-50% m.c. wit13 a bulk density of approx. 80-100 kglm . Flue ga. es 120'000 -180'000 m /h with 220-3000C inlet temperature. Humidity of flue gases at dryer inlet: llSgIkg. Expected humidity at cyclone outlet: 175 g/kg when operated with 2500C at inlet and 95C at oulet. Construction: made of structural and sheet metal mild steel with air locks at bagasse inlet and outlet to avoid bleeding of fresh air into dryer; collecting hopper at discharge end to collect the coarse particles of the bagasse and discharge onto a belt conveyor; exhaust fan, ductwork and cyclone separator(s); screw conveyor to collect the dust from the cyclones and discharge onto belt conveyor. All parts in contact with flue gases must be insulated to avoid condensation. The dryer must be designed to avoid deposits of bagasse and/or dead corners that can cause "cold spots: and condensation. The rotary drum is supported by concrere posts. Collecting hopper, exhaust fan,.ductwork, cyclones and dust screw conveyor must all be supplied with supports to the floor level. The supporting structures must be provided with ladders and walkways for supervision and maintenance. 2.4 BELT CONVEYORS AND FEED CHUTE Item no.: 6, 7, 8 93: 1 off, each Intended use: to convey the predried bagasse from the dryer outlet to elither the mill carrier or directly to the bale press. It must also be possible to divide the flow that some falls into the mill carrier and the rest flows to the bale press. Capacity: up to 32 tons/h Q 38Z m.c. Bulk density 70-80 kg/m3. Constructiont the conveyors must be provided with sealed chutes at the charging and discharging ends to avoid formation of dust. Each conveyor must be equipped with a walkway along on one side. Conveyor (6) must be suppored from the floor level. -84- Annex 5 page 5 of 10 Overall lengths item 6: 2 m item s 8 m The feed chute (7) must be equipped with adjustable flaps to guide the bagasse flow either back into the mill carrier or onto belt conveyor (8). It must also be possible to divide the flow so that one part falls into the carrier and the rest onto conveyor (8). The lower part of the chute must be designed to collect the escess bagasse from the lower deck of the mill carrier and discharge it onto conveyor (8). 2.5 sALE PRESS Item no.: 9 Intended uses to compress bUXasse with m.c.'s varying between 25-50X to bales with a volume of 1.5 m each with bqgasse e 351 m.c. Bulk weight of the loose lagasse approx. 70-80 kg/m. Expected bulk density of bale: 400 kg/r Capacity: up to 30 bales per hour of 1.5 m3 each with bagasse at 331 3s.c Bulk weight of the loose bagasof is approximately 70-80 kg/". Expected bulk density of bales: 400 kg/m . Construction: made from welded and bolted structural steel. The press is equipped with a feed chute between the belt conveyor (8) and the compression chamber. The baling cycle must be activated automatically by means of a light barrier when the compression chamber is filled with loose bagasse. The ram is activated by a hydraulic system. The press must be provided with an adjustable automatic bale length measuring device. 4 binding wires must be tied automatically around each bale when the full length is reached. The tension pressure at the exit of the press must be adjustable. The press must be equipped with a device to form a bore of approx. 100 m in diameter in the center of the bale to allow for the escape of heat and humidity when stored. The finished bales must be pushed to a line of approx. 5 bales on a guide channel before they are removed with a gripper. 2.6 GANTRY CRAVE Item no.: 10 Intended uses to rmove bales at the exit of the bale press and to place them either onto trailers or onto the intermediate storage area. - 85 - Annex 5 page 6 of 10 Capacity: lifting capacitys 1.5 ton. Maximum cycle: 30 bales per hour. Construction: the gantry crane consists of a structural steel frame, a mobile bridge with 8 m span and an electric chain hoist with a gripping device. The gantry is S a wide, 12 m long and 6 a high. The bridge and the hoist are driven by electric motors that are controlled from floor level by means of a control unit hanging from the hoist. The electric power is fed via suspended cable and collector carriage. The ends of the runways are limited by means of puffers to avoid overriding. III. EQUIPMENT SPECIFICATION FOR THE SALE STORE 3.1 TRACTOR AND TRAILERS Item no.: 11 gSs 1 Tractor and 2 Trailers Intended use: to transport the bales from the bale press in the sugar mill to the bale store. Capacity: each trailer must have a loading capacity of 20 tons and the tractor must be able to pull one trailer at a time. Construction: the trailers must be of a sturdy flat bed design with pneumatic tires. Size of the platforms 6.2 m long x 2.4 m wide. The tractor must be equipped with a water-cooled diesel engine and it must be capable of pulling one trailer at a time over fairly flat terrain. Drive preferrably of the agricultural rear-wheel type. Attaching devices: adjustable rear twin tow hook and front draw bar. 3.2 MOBILE CRANE Item no.: 12 Q>S: I1 Intended use: to stack and unstack bales at the bale store. Stacking from flat bed trailers and unstacking onto Mac-type trucks. Capacity: lifting capacity: 1 ton at 15 m reach and 15 m hook height. Construction: The crane must be provided with a diesel engine and a 4 wheel drive system. All movements must be achieved by a hydraulic drive system; 4 hydraulically operated outriggers with levelling device to allow for fast dislocation. The hydraulic boom must be equipped with a gripping device suitable for bales with a size 2 m long x 1.02 a high - 86 - Annex 5 page 7 of 10 x 0.76 m wide. The crane must be provided with working lights to allow for operation at night. It must be equipped with an overload safety device. 3.3 FIRE FIGHTING SYSTEM Item no.: 14 CSYS 1 set Intended use: to prevent further spread of a fire in case one stack starts by keeping the surfaces of the adjacent stacks wet. Capacity: the system for the commercial scale pilot plant must be for 5 stacks of 850 tons each (351 m.c. basis). Construction: the system must be designed in such a way that it can later be extended to the full scale as ultimately required for Constance. It consists of a central electric pump station, a net of distribution pipes, a set of fire-fighting equipment consisting of overfloor hydrants, hose reel cabinets with fire hoses, trailers for hoses with adjustable jet pipes, all with quick couplings. A modest fire alram system eith an alarm horn located in the guard house must be included. The detailed design should be awarded to a company specializing in fire-fighting techniques. Sizing of pump, pipes, hoses and jet nozzles are very important. Instructions on fire fighting techniques must be provided. IV. EQUIPMENT SPECIFICATION FOR BALE BREAKING PLANT 4.1 CANTRY CRANE Item no.: 16 2qy 1 gantry with 2 cranes Intended use: to unload bales from arriving trucks and trailers and to place them either into the intermediate bale store or directly onto the feed conveyor of the bale breaker. Capacity: lifting capacity: 1.5 ton. Maximum cycles 30 bales per hour for each crane. Construction: the gantry crane consists of a structural steel frame, 2 mobile bridges with 8 m span each with an electric chain hoist and with a gripping device. The gantry is 8 m wide, 24 m long and 6 m high. Bridges and hoists are driven with electric motors that are controlled from the floor level by means of control units hanging from the hoists. Electric power is fed via suspended cables and collector carriages. - 87 - Annex S page 8 of 10 Puffers on the ends of the runways and between the bridges prevent collisions or overriding. 4.2 BALE BREAKER STATION Item no.: 17 Qtys ~1 Intended use: to disintegrate the bales and to feed the disintegrated bagasse onto a belt conveyor. Capacits: up to 50 bales per hour Q 20-25X m.c. with 490-520 kg each bale i.e. approx. 25 tons/h. Construction: the bale breaking station consists of bale feeding conveyor and bale breaker. The slat type feed conveyor is equipped with a variable speed drive to adjust the desired feed rate. Platforms along both sides of the conveyor allow easy removal of the binding wires. The conveyor is provided with supports to the floor level. The bale breaker is a welded construction made from heavy mild steel plates. The drum- type rotor is provided with exchangeable steel teeth. The rotor shaft is supported with grease lubricated spherical roller 'bearings. Two flywheels avoid shock loads on the motor. The rotor is driven by an electric motor via a v-belt drive with one of the flywheels serving as a v-belt pulley. One section of the top housing is provided with hinges to allow easy access to the teeth of the rotor. The entrance of the breaker is a guide tunnel to avoid having the wireless bales fall apart before reaching the rotor. The disintegrated bagasse falls through a coarse screen in the bottom of the breaker. The bale breaker sits on a concrete foundation. The upper section is provided with a dust exhaust hood. 4.3 MAGNETIC SEPABATOR Item no.: 18 Intended use: to remove wire pieces that were overlooked by the operator in front of the bale breaker. Capacity pick-up height between belt and magnet 200 mm, belt speed up to 2 m/s, thickness of bagasse layer up to 150 mm. Construction: permanent type magnet supported on a frame from the floor level. The magnetic block must be moveable sideways for easy removal of wire pieces. The space between the belt conveyor and the magnet must be adjustable. Annex 5 page 9 of 10 4.4 DUST IXTRACTION SYSTEM Item no.s 19 QtyS ~1 Intended uses to extract the dust from the bale breaker and to deposit it back onto the belt conveyor. Capacit:t approx. 5'000 m3/h of air. Construction: the extraction system consists of. conveying p£pe, high efficiency cyclone separator, rotary valve at bottom of cyclone and extraction fan with discharge pipe at top of cyclone. The parts are made of mild steel metal sheet. The cyclone must be provided with supported to the floor level. 4.5 BELT CONVEYOR Item no.: 20 Qtys ~1 Intended use: to collect the disintegrated bagasse from underneath the bale breaker and to convey it into the existing boiler feed carrier. Capacity: up3to 25 tons/h of ba gsse with 20-25 m.c. and a bulk density of 60-75 kg/i i.e. approx. 400 m'/h. Construction: The ;onveyor must be provided with dust-tight chutes at the charging and discharging end. It must be equipped with a walkway along all of one side. It must be supported from floor level. Overall length: 20 m. 4.6 HYDRAULIC PRESS FOR SCRAP WIRE Item no.: 21 Qt 1 Intended use: to compress the wires that were removed from the bales into packages for sale to a scrap metal dealer. Capacity: up to 300 kg/h if waste wire with 2.8 mm diameter, tensile strength of wire 50 kglmm'. Weight of compressed packages approx. 40-50 kg. Annex 5 page 10 of 10 Construction: the hydraulic press should be moveable on wheels. It must be equipped with an electric drive and a hydraulic system. The compression chamber should be 1 m long, 0.4 m high. The compression chamber cover must also move hydraulically. The knife edges and the walls of the compression chamber must be provided with exchangeable wear plates. LIST OF RECOMMENDED VENDORS BELT CONYYORS Jost Brothers AG., CH-3527 Heimberg, SwitzerlandHEFO AG., CH-4222 Zwingen, Switzerland FLUE GAS DUCT, GENERAL STEELWORK Forges Tardieu, Port Louis, Mauritius ROTARY DRUM DRYER SWISSCOMBI V. Kunz AC., DH- 5606 Dintikon, Switzerland BALE PMSS Amerilcan Baler Co., Carl 0. Goettsch Company, Cincinnati, Ohio 45202 GANTRY CRANE (CHAIN HOISTS) R. Stahl, D-7000 Stuttgart 1, West Germany FLAT BED TRAILERS W. Stocklin AC, CH 4143-Dornach, Switzerland MOBILE CRANE Eder GmbH., D-8302 Mainburg, West Germany FIRE FIGHTING SYSTEM Jomos Feuerloschtechnik AG., CH-8032 Zurich, Switzerland BALE BREAKER Condux-Werk KC., D-6451 Wolfgang bei Hanau, West Germany MAGNETIC SEPARATOR Swisstool AG., CH-8021 Zurich, Switzerland DUST EXTRACTION SYSTEM Ventilator Stafa AG., CH-8712 Stafa, Switzerland WASTE WIRE PRESS Maschinenfabrik 8. Back & Co. KG., D-5900 Siegen, West Germany . -90- Annex 6 Page 1 of 7 ETM INDUSTRY USi! sEPIfCIUCY/SUANTALIJTI 0 hLYSIS Introduction and Background Energy Sector Overview and Strategy Mauritius' commercial energy requirements are met in roughly equal parts by indigenous bagasse and imported petroleum products, although these two fuels are consumed in very different ways. Bagasse, a by-product of the sugar industry, is used almost exclusively to meet the energy needs of that industry; its contribution as a direct energy source to the rest of the country is very small. The energy requirements of the remainder of the economy are met primarily (about 90 percent) from imported petroleum products, supplemented by a small amount of hydroelectricity and imported coal. The crux of Mauritius' energy problem and, the principal focus of the Energy Assessment Report prepared in 1981, I/ is how to reduce the bill for imported oil, which grew from $10 milf'Ion in 1973 to nearly $60 million in 1980, since when it has slightly declined. The key to achieving this objective, the Assessment noted, lay in a program to improve the very low efficiency with which the sugar industry utilizes bagasse to generate steam and electricity. These improvements would allow the sugar mills to produce more surplus bagasse, which could then be used to generate electricity for the rest of the economy and as a substitute for imported fuels. Based on these improvements in bagasse energy production, as well as a modest, but sustained effort to improve the efficiency of energy use in all sectors of the economy, the Assessment outlined an "Accelerated Energy Program" which would enable the country to reduce its dependence on oil imports from 90X of commercial energy in 1980 to about 601 by 1990. Energy Efficiency and Fuel Substitution in the Tea Industry The tea industry is one of the most promising industrial candidates for achieving significant fuel oil savings because energy efficiency is low, energy costs are a large proportion of operating expenses, and the oil-burning boilers currently used for raising heat to wither and dry tea can be modified to burn substitute fuels. The industry produces about 8000 tonnes of tea per year in 8 factories, each tonne of which requires 35 GJ of heat energy for withering and drying. 1/ Mauritius: Issues and Options in the Energy Sector, December 1981, Report of the Joint UNDP/World Bank Energy Assessment Program (No. 3510-MAS) - 91 - Annex 6 Page 2 of 7 280,000 CJ are required annually, equivalent to 6700 tonnes of fuel oil, costing $1.7 million. The actual use of imported oil is in fact somewhat less as at least three factories are burning some bagasse instead. The international target for energy use in withering and drying tea is 10 GJ/ton for fuel oil and 20 CJ/ton of biomass, as opposed to the industry's current consumption of 35 GJ/ton. There is thus substantial potential for energy saving from an appropriate combination of energy efficiency improvements and the substitution of lower-cost fuels, such as bagasse, for oil. To realize these potential energy savings, a plant-by-plant audit of current energy use patterns, tha scope for efficiency improvements and the alternative means of reducing energy costs is required. It would build on a preliminary review by the Ministry of Energy and Internal Communications. Based on this analysis, a costed and prioritized program of recommended energy efficiency improvements, including no cost/low cost housekeeping changes and investments in plant modifications or replacement would be prepared. The investments would be brought to pre-feasibility status and potential vendors identified. Finally, the impact of the recommended program on the demand for different fuels and on the balance of payments would be quantified. Objectives The goal of the activity is to evaluate the potential for improving energy efficiency in the tea industry and to recommend the most cost-effective package of energy efficiency improvement measures in each Mauritian tea factory. In specific terms, the principal objectives are: (a) to identify means by which an immediate improvement in energy efficiency in tea withering and drying can be achieved, with minimal (low/no cost) investments, through the application of improved housekeeping, maintenance techniques, minor layout changes, better instrumentation, operational control, etc.; (b) to identify economic and financially justifiable means by which improvements in combustion and heat transfer and in motive power can be achieved through investment in significant plant modification and rehabilitation or with new plant; (c) to identify cost-effective boiler modifications and substitute fuel storage systems which would allow each factory to convert from fuel oil to bagasse or other more economic fuels; and (d) based on the economic cost of alternative fuels and their relative combustion efficiencies, to calculate the economic and financial costs and benefits of the alternative conservation and conversion measures, recommend an optimal package of such - 92 - Annex 6 Page 3 of 7 measures for each factory, and quantify the energy and foreign exchange savings that will result. Scope of Work This activity will require the services of an energy audit engineer who has experience with the tea industry and with biomass combustion5 and an energy economist. The auditor and economist will visit each tea factory to identify and evaluate opportunities for energy conservation and substitution of oil with baled bagasse and other fuels. This work can be divided into four tasks: (1) energy efficiency audits; (2) identification of energy efficiency improvements; (3) identification of potential energy substitution measures; and (4) economic analysis and prioritization of alternatives. Task 1: Enersy Efficiency Audits. This will consist of: (a) collection of data on the types of energy-using equipment currently in operation in the eight plants and their technical specifications/performance characteristics; and (b) review of existing processes and the efficiency of energy use in each plant. Statistics and data regarding factory throughput, machinery, performance and operating costs are available from the Mauritius Tea Development Authority (MTDA) and from the technical management of the private sector tea processors. Task 2: Identification of Energy Efficiency Improvements. This will involve identifying energy efficiency measures involving: (a) low/no cost changes; and (b) conservation measures requiring larger- scale investments. The possible options for improved energy utilization in tea drying that would be evaluated include: (a) combustion efficiency improvements; (b) improved heat transfer efficiency (whether steam/air or direct air heaters); (c) improved steam efficiency, including optimization of heat transfer and condensate recovery; (d) improved air mass flow including optimization of fan efficiencies for the head/flow operating regime; and (e) in cases where bagasse is presently used, improved fuel preparation prior to combustion. - 93 - Annez 6 Page 4 of 7 These analyses should identify low cost energy savings, based on conservation measures that can be taken almost immediately, with minimum engineering input and capital investment. These typically show a simple payback of under one year. They would include minor changes in layout, improved fuel preparation, better maintenance, tighter operational control, corrective improvements to steam circuits and air- fuel ratios, and improved housekeeping, staff education and training. They would also identify more substantial investments which promise an acceptable economic rate of return, i.e., at least 15%. Such measures might include the introduction of new and more efficient combustion equipment and/or heat exchangers, and possibly the introduction of innovative equipment, such as gasifiers. Task 3: Identification of Potential Cost-saving Energy Substitution Measures. This will entail identifying the technical miodications, managerial changes, training needs and storage requirements for conversion from fuel oil to baled bagasse or other more economic fuels in each factory where such conversion appears to be justified. In such cases, the consultant will prepare preliminary designs and costings for the civil, electrical and mechanical works required to receive, store, retrieve and combust the lower-cost fuel. Task 4: Economic Cost/Benefit Analysis. Based on estimates of the economic and financial cost of alternative fuels, an evaluation will be made of the costs and benefits of each potential efficiency improvement and conversion investment. Improvements and conversion measures in each mill will be ranked in descending order of cost effectiveness and a recommended package of measures specified. The aggregate impact of these measures on energy consumption by fuel type and on the balance of payments will be quantified. Organization and Cost The analysis will be performed by an energy auditor and an economist, working under ESMAP supervision. The energy auditor will arrive first in Mauritius and will spend 20 working days (2 days per factory initially, plus briefing and wrap-up) gathering performance data and conducting energy audits. Halfway through his stay, the economist will arrive for 10 working days to undertake the economic analysis. Once home, the economist will have 10 working days to prepare his report, which will be forwarded to the energy auditor. He will have 15 working days to complete his analyses and compile it and other consultant's work into a single document. The total cost of consultant services will be not more than US$44,000, as detailed below: - 94 - Annex 6 Page Sof 7 Table 1: CONSULTANT BUOGET Iteo Staff-days Cost (USS) A. Fees -Energy auditor 20 (fIlod) + 15 (howm) + 4 (travel) 15,600 -E-onomlst 10 (f tled) + 10 (home) + 4 (traevl) 7,200 sub-total 22,800 B. Per diem -Energy auditor 22 1,716 -Economist 12 936 Sub-total 2,652 C. Travel 7,800 D. Auditing equipment 1,0 E. Misollanous/contingency 2,000 Sub-Total 36,252 F. ESMAP Costs -per diem 12 ?36 -travel 3,900 -staff time 24 2,500 Sub-Total 7,336 Total 43,588 Source: Mission estimates. Staff of the UNDP/Vorld Bank Energy Sector Management Assistance Program (ESMAP) will provide technical supervision of the consultants, including review of and assistance with revisions to the report. The cost of this supervision, to be provided jointly for this and the proposed surplus Bagasse Production project, has been included in the cost estimate. The consultants will be supplied with background data and relevant reports, such as the MEIC report on energy efficiency in the tea industry and the ESMAP document on bagasse handling. In-country work will be expedited because of the quality and accessibility of relevant information in Mauritius. The MTDA Energy, and the Ministries of Agriculture and Industry will assist the consultants in advance and during their fieldwork by securing active cooperation of the management .- 95 - Annex 6 fagel 6of 7 and senior technical staff of each tea factoryt scheduling appointments, and offering technical and practical assistance in the execution of fieldwork and the preparation of the draft report. Close liaison with the MEIC will be essential in view of their interest and activity in this area. Consultants' Terms of Reference The energy auditor will be responsible for the followings (a) collecting available data on existing equipment, technical -specifications, performance characteristics and energy consumption in the tea industry; (b) conducting energy efficiency audits and boiler conversion reviews for each of the eight tea factories, including a series of measurements of energy utilization and combustion efficiency; Cc) identifying potential energy efficiency improvements, including lowno-cost process changes, investment in more efficient energy-using equipment and investment in fuel-substitution conversions; Cd) provide design drawings, technical specifications and a list of recommended vendors for those investments; (e) advise the economist on the foreign and local capital and operating costs of any recommended investments and process changes and the expected fuel oil savings that will result; (f) review plans for and prepare similar recommendations for any proposed new tea factories; (g) outline the training needs, managerial requirements and time scale for implementation of the above recommendations; and (h) in consultation with the econovist, prepare the final report. The economist will undertake the following tasks: (a) estimate the economic and financial cost of alternative fuels appropriate for use in the tea industry; (b) compile the foreign and local capital and operating costs of potential energy efficiency improvements and conversion measures at each tea plant, based on assumed operating lifetimes; - 96 - Annex 6 Page? 7of 7 (c) rank the potential investments at each factory, in descending order of economic cost-effectiveness; (d) specify and calculate the economic and financial costs and bnefits of the optimal investment package at each plant, including IRIs and UPVs over a range of possible discount rates; and (e) in consultation with the energy audit consultant, prepare a disbursement sebdule for an industry-wide set of investments. o5 mmc Uca UAMIU SSZTU3fO -|ti Sw_ oa sisTAM PRw MtLw tte.st Gapleted Project Formulatin ead Justification '' '(I.n P4nama Powst System Loss Reduetion Study 'June, 1983 ' Zimbbwe Power system Loss Reduction Study June, 3983 Oti Lanha Powet System Loss Reduction Study July, 1983 M'alawi 'technical Assistance to hIpror the °fficiency of Fuelvo*4 Use in the Tobtego Industry -ovembirp 1983- ' R. ~ enya Per 8ysteR Hffic Rncy Boport Mareh, 1984, # , SU4Da Pov Syetes ftficiency Scudy dy June 1984. Soa t 8eee1eEeetrie Power 8ysten Bfficlteny Study 'Augpust, 1984.$ The Gambia Solar Water Heatin8"'Retrofit Project Pebrusro, 11985 * Ra dglodesh Sowr System "tfic4ency Study Februery, 1985 The Gambia Slar Photovoltaic'Appticatiton aitch, 198 Seneal Inustrial Energynaservation Project June, 1983 burundi I proved Cbarzco.4'ookstove Strately Septemr, 1983 Thailand Rurva Epergy Issues tod Options Septem_r, i983 9 ' Etbiopia Poer System Efficiency Study October,-1985 --- Burundi Peot Utiliztaion Project ovwaber, 1985 -ot0wana Pump Electrification Prefeasibillty Study January, 1986 Uganda Energy tfficiency in Tobacco Cuting Industry PFebrury, 198S Indonesia Powet Ceneration Efficiency Study Pebruary, 1986 Ugantda Fuulwod/forestry fessibility Study Warch, 1986 Sri lanka Itndustrial. Energy Cansrtint o- F-easibiity Studios for Selectod Itdmatries March, 1986 TORO Wood Recovy in the -anisbsto Lake April, 1986 - stan Improv"d Charcoal Cookstove, Strategy Agust, 1986 gthiopta Agricultural Residue Uriquettieg - Pilot Project December, 1986 atbiopia Sagasse Stody ' December, 1986 Par, Proposal fora 9tve' Dissemination Program Ln the Sierra February, 198?- bend. Improved Char¢oal Piout ionT echnlques February, 1987 teys Solair Water Heating Study - 'ebruary, A98t Indonesia tnergy Efficieney Improvement in- the BricIk Tile and Line Industries 1 an Java March, 18 Walaysia Sabah Power Sysyem ificiency Study mer¢h, 1987 Cate 9 mTproved siesass Utilizaeion-Pi}ot d'tvoire jects Usiag Agro-Industrial Residues `April, 19871 Mauritius Power Syste". fficienty Study may, 1987 -otswana 'Tuli Stock Forms lectriffcation Pre-feasibility Study July, 1987 Sudan 'Energy Forestry Project- July, 198i Ghana Sawmill Residues Utilisttion Study July, -1981 thailand Accelerated 'Diase}otiin of Improved ' 'Stoves and jharcoal Kilns September, 1987 Inacitutional and Poligt-Suppt Sudan Management Assistance to the Ministry of Enegy and Iining gay, 1983 -urun4i Review of Petroleum i4ort and Distribution Arrangemnts . - January, 1984 Papua Now energy Sector Insticutionat Review? -CGinea Propals for Strengthening the Department -f tMinerals and Energy October, 1984 Papua new Cuinea Power TUriff Study . Octaber, 1994 Costa Rica RecoMMende Tech. Asst. Projects Movembe, 1984 Ugandw Institutional Strengtheoing in-the Etergy Sector Januaey, 1985 Cuinta- ' Recommended Technical Assistance 'Sissan Projects in the Etectric Powet Sector April, 1985 Zinbaebe - Power Sector MIntgement Assistance Projecti Background, Objectives, and otrk Ptan April, 1985 The Cambia Petroteum Supplif anagement Assistance April, '1985 Burundi Present4tion cf Energy PrJoects for the FQurth Pive-Year Plan (1983-1947) 'May, 1985 et;bcria' Retdoended Technical Assistance Projects June, 1g85 - ' Burkina Technical Assistance Pr*ogram March, '1986 " - ' -. Senegal Assistance GCive for Pr4piration of tocuments for E4ergy Sector oQnorsw Meeting, April, 1986 Zambia Energy Sector unstitutional Review Iove*ber, 1986 Jamaica Petroleum Procurement, Refining, and 5 Distribution. - oveAber- 1986 Botavana Review of Electricity 'Seivice CO*eection Policy July 1987?