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Brazil: Alta Mogiana Bagasse Cogeneration
(Prototype Carbon Fund)

UNFCCC Reference No.: 0181

2 Project Documents

The objective of the PCF Sugar Bagasse Cogeneration Project is to reduce emissions and generate renewable energy from sugarcane bagasse in Brazil through the development of the Gurani Cruz Alta Bagasse Cogeneration Project and Alta Mogiana Bagasse Cogeneration Project located in the State of Sao Paulo, Brazil, that will result in reductions of CO2 emissions and increased efficiencies.

The projects produce reductions of CO2 emissions through substituting electricity produced by thermal plants with electricity from renewable sources using sugar cane bagasse. The sugar cane bagasse fuels the cogeneration facilities, generating steam from a boiler system which is expanded through turbines producing energy and further heating industrial system. Cogeneration usually provides greater levels of energy per unit of biomass consumed than systems that generate power only.

The projects will improve the energy efficiencies of the Gurani and Mogiana Cogeneration facilities to produce more steam and increase the electricity output supply to the national grid by refurbishing pressure boilers and installing new turbo-generators, thus increasing the capacity of the facilities. The subprojects self supply energy as well as sell it on a commercial basis and will also receive revenue from sale of verified and certified ERs.

The Gurani Cruz Alta Bagasse Cogeneration Project and Alta Mogiana Bagasse Cogeneration Project are expected to generate approximately 917,000 mtCO2e of CERs by 2012 and are sponsored by Açúcar Guarani S.A. and Usina Alta Mogiana S.A. respectively. Guarani and Alta Mogiana are leading companies in the Brazilian sugar market, producing sugar, alcohol and energy.

Located in the region of Sao Paulo, the projects utilize a viable resource abundant to the area. Brazil is the largest producer and exporter of sugar, accounting for 17% of the world’s crop and growing. The State of Sao Paolo, where the plants are located, accounts for 70% of Brazil’s production. The facilities reduce energy loss on transmission because multiple cogeneration power plants can be built closer to where the energy is consumed. Thus the projects are of strategic importance as they help to increase productivity of agricultural land use in a state where availability of land for other productive uses, including food production, is becoming an issue.

The project provides a range of benefits beyond reducing carbon emissions and increasing renewable energy use in Brazil. The generation of electricity through bagasse contributes to employment of people in the sugar industry which now employs more then 500,000 people in Brazil, and supports development of appropriate technology and finance opportunities from national financial institutions. Additionally the projects support the renewable energy market as a framework for emerging projects and by increasing competition among present facilities, which contributes to increased energy capacity and emission reduction.

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