Pakistani utility purchases 7MW of green cogenerated power based on sugarcane waste biogas
In a first for Pakistan, utility Faisalabad Electric Supply Company (FESCO) has signed a power purchase agreement for 7 MW of green power to be provided by Shakarganj Sugar Mills, located at Jhang Faisalabad. Shakarganj will generate biogas from molasses, a waste product from sugarcane processing, to co-generate electricity and heat. The agreement was signed at the Pakistan Electric Power Company (PEPCO) headquarters between Ahmed Saeed Akhter, CEO of FESCO and CEO Ahsan Saleem, CEO of Shakarganj Sugar Mills.
Shakarganj's is the first power plant in the subcontinent using renewable biomass to produce biogas for cogeneration purposes. The plant will not use any fossil fuel and as such offers the opportunity to be taken up as a project under the UN's Clean Development Mechanism (CDM).
PEPCO, as part of its strategy to bridge the gap between supply and demand of electricity and to promote alternative energies has offered a very attractive tariff for generation of power through biogas produced from molasses, which is directly derived from sugar mills. The benchmark set by PEPCO for such projects is Rs 5.14 (€0.055/US$ 0.082) per kWh.
The contract with Shakarganj Sugar Mills is part of continuous effort of PEPCO to search for local and cheaper fuel, as fossil fuel based electricity generation keeps getting more costly.
Even though small in terms of power capacity, the agreement finalized today is seen as a landmark achievement for Pakistan, as it is set to be replicated amongst the country's large number of sugar mills. PEPCO's managing director Munawar Baseer Ahmad has expressed the hope that all available surplus capacity within the sugar industry will be availed after this break-through and will help end Pakistan's worries over its energy security.
Sugarcane is a key agricultural sector in Pakistan, with the crop grown on around 1 million hectares, mainly in Punjab (62%), Sindh (26%) and the North West Frontier Province (16%). The sector employs more than 1 million people indirectly. Around 80 large sugar mills (map, click to enlarge)crush approximately 45 million tonnes of cane into finished products each year:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: sugarcane :: molasses :: cogeneration :: biogas :: Pakistan ::
PEPCO stressed that green power generation through biogas carries a number of advantages like opportunities to achieve Clean Development Mechanism (CDM) project status and thus obtaining carbon credits; reductions in greenhouse gas emissions; and an opportunity, even for a developing country like Pakistan, to adhere to the spirit of the Kyoto Protocol. PEPCO will futher encourage other sugar mills interested in producing electricity from molasses because the technique is not only cost effective but also environment friendly.
According to the country's leading electricity company, biogas from molasses will help Pakistan reduce its increasing dependence on imported fuel oil and fast depleting locally available gas resources.
Pakistan's Secretary of the Ministry of Water and Power Resources, Muhammad Ismail Qureshi, added that this agreement is likely to bring out the large dormant capacity for local, renewable power generation from biomass, along with new green field projects. A feasibility study of the future energy role for the sugar industry in Pakistan will include co-generation of biogas produced from molasses.
Pakistan's Ministry of Water and Power earlier launched a policy and support scheme to facilitate the sugar industry into becoming a player in the energy sector, drawing on the maximal utilization of biomass resources.
FESCO distributes and supplies electricity to about 2.44 million customers within its service territory with a population of over 15.5 million under a Distribution License granted by National Electric Power Regulatory Authority (NEPRA). The company's geographical service area comprises Faisalabad, Sargodha, Mianwali, Khushab, Jhang, Bhakker, T.T Singh districts.
Shakarganj Sugar Mills is one of Pakistan's larger sugar producers involved in creating a variety of products from sugar cane. In 2006 it produced around 130,000 tons of sugar, 80,000 tons of molasses and 35 million liters of ethanol. The company is diversifying into bioenergy production, focusing on both liquid biofuels and biomass based power.
Map: sugarcane mills in Pakistan. Credit: Pakistan Sugar Mills Association.
References:
FESCO: PEPCO Finalizes a Unique Power Contract - [s.d.] February 24, 2008.
Pakistan Sugar Mills Association.
Qureshi, S. "Significance of sugar industry in national economy", Economic Review, July 2004.
Shakarganj's is the first power plant in the subcontinent using renewable biomass to produce biogas for cogeneration purposes. The plant will not use any fossil fuel and as such offers the opportunity to be taken up as a project under the UN's Clean Development Mechanism (CDM).
PEPCO, as part of its strategy to bridge the gap between supply and demand of electricity and to promote alternative energies has offered a very attractive tariff for generation of power through biogas produced from molasses, which is directly derived from sugar mills. The benchmark set by PEPCO for such projects is Rs 5.14 (€0.055/US$ 0.082) per kWh.
The contract with Shakarganj Sugar Mills is part of continuous effort of PEPCO to search for local and cheaper fuel, as fossil fuel based electricity generation keeps getting more costly.
Even though small in terms of power capacity, the agreement finalized today is seen as a landmark achievement for Pakistan, as it is set to be replicated amongst the country's large number of sugar mills. PEPCO's managing director Munawar Baseer Ahmad has expressed the hope that all available surplus capacity within the sugar industry will be availed after this break-through and will help end Pakistan's worries over its energy security.
Sugarcane is a key agricultural sector in Pakistan, with the crop grown on around 1 million hectares, mainly in Punjab (62%), Sindh (26%) and the North West Frontier Province (16%). The sector employs more than 1 million people indirectly. Around 80 large sugar mills (map, click to enlarge)crush approximately 45 million tonnes of cane into finished products each year:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: sugarcane :: molasses :: cogeneration :: biogas :: Pakistan ::
PEPCO stressed that green power generation through biogas carries a number of advantages like opportunities to achieve Clean Development Mechanism (CDM) project status and thus obtaining carbon credits; reductions in greenhouse gas emissions; and an opportunity, even for a developing country like Pakistan, to adhere to the spirit of the Kyoto Protocol. PEPCO will futher encourage other sugar mills interested in producing electricity from molasses because the technique is not only cost effective but also environment friendly.
According to the country's leading electricity company, biogas from molasses will help Pakistan reduce its increasing dependence on imported fuel oil and fast depleting locally available gas resources.
Pakistan's Secretary of the Ministry of Water and Power Resources, Muhammad Ismail Qureshi, added that this agreement is likely to bring out the large dormant capacity for local, renewable power generation from biomass, along with new green field projects. A feasibility study of the future energy role for the sugar industry in Pakistan will include co-generation of biogas produced from molasses.
Pakistan's Ministry of Water and Power earlier launched a policy and support scheme to facilitate the sugar industry into becoming a player in the energy sector, drawing on the maximal utilization of biomass resources.
FESCO distributes and supplies electricity to about 2.44 million customers within its service territory with a population of over 15.5 million under a Distribution License granted by National Electric Power Regulatory Authority (NEPRA). The company's geographical service area comprises Faisalabad, Sargodha, Mianwali, Khushab, Jhang, Bhakker, T.T Singh districts.
Shakarganj Sugar Mills is one of Pakistan's larger sugar producers involved in creating a variety of products from sugar cane. In 2006 it produced around 130,000 tons of sugar, 80,000 tons of molasses and 35 million liters of ethanol. The company is diversifying into bioenergy production, focusing on both liquid biofuels and biomass based power.
Map: sugarcane mills in Pakistan. Credit: Pakistan Sugar Mills Association.
References:
FESCO: PEPCO Finalizes a Unique Power Contract - [s.d.] February 24, 2008.
Pakistan Sugar Mills Association.
Qureshi, S. "Significance of sugar industry in national economy", Economic Review, July 2004.
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