Bagasse-Based Cogeneration Project in Brazil

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of the researchBagasse-Based Cogeneration Project in Brazil
FYFY 2004
Main research organizationAssociation of International Research Initiatives for Environmental Studies
Research partner(s)Unialco S.A.
Location of the projectBrazil
Summary of the research report (PDF)Summary(280kb)
Description of the projectUnialco S.A. is located in the western part of Sao Paulo State, Brazil. A project to comprehensively upgrade its bagasse-based boiler / generation facility to enable supply of electricity to the grid is conceived.

The capacity of the project totals 30MW (of which 24MW will be exported to the grid). Annual expected electricity generation is at 104,299MWh. The project activity is characterised by the necessity to construct a long transmission line (32km) with substations.
Sector of the projectBiomass Utilisation
Duration of the project activity/ crediting period2006 to 2026
Baseline methodology/additionalityBaseline: two scenarios were taken as the baseline ("no-action" and "self-sufficiency"). Both assume that electricity will not be supplied to the grid. Baseline GHG emission factor is determined according to the simple adjusted operating margin ( factor the most recent three years), in order to minimise monitoring-related work.

However, it is expected that GHG emission factor calculated this way will underestimate the GHG reduction of the project activity. Therefore, it is proposed that the dispatch analysis operating margin, if provided by the Brazilian government and if deemed applicable through external verification, will be used.

Additionality: additionality assessment is carried out according to the "Tool for the demonstration and assessment of additionality".
Estimation of GHG emissions104,299MWh * 0.453t-CO2/MWh =47,247t-CO2/yr
(grid substitution)

Use of fossil fuel for startup purposes will be monitored, and GHG emission will be taken into account.
Monitoring methodologySince baseline GHG emission is calculated from an emission factor estimated ex ante, main monitoring parameter is limited to electricity supplied to the grid. Use of fossil fuel for startup purposes will be monitored, and GHG emission will be taken into account.
Environmental impactThe project proponent has submitted the RAP (preliminary environmental assessment) to the Sao Paulo State. The RAP concludes that the project activity does not result in consumption of local resources, would not cause adverse effects, and will be beneficial for the region.
Issues and tasks for project implementationThe project proponent is highly motivated; a memorandum of understanding (MOU) has been exchanged between the project proponents to work towards realization of the project activity as CDM.

Hurdles include high interest rates by Brazilian Banks. Tasks to enable the project as a CDM include invitation to key stakeholders including environmental and social NGOs in Brazil.
ValidationDesk review was carried out. Suggestions to align closer with AM0015, explicit reference to Brazilian sustainable development criteria were main points requiring improvement. Other issues include easy-to-understand explanation as well as reference on the level of technology.

Revision to take into account such factors is carried out. And more improvement to submit PDD to the board is required by trial-and-error procedure in the type C study programme on next stage.