Background

This project involves the installation of a new high pressure biomass boiler for steam generation at La Providencia Sugar Mill. La Providencia sugar mill was installed in 1882. Historically, steam for sugar processing was generated through a mix of bagasse, natural gas and fuel oil. This new boiler installation will significantly increase the proportion of bagasse used to fire the boiler. Because the same output of steam is required, an increase in bagasse fuel will displace the fossil fuel previously used.

The project

During the sugar manufacturing process, sugar cane is crushed to extract the juices leaving a significant volume of waste biomass, known as bagasse. As a waste product, this bagasse is used to generate power in Argentina’s sugar mills alongside fossil fuels such as gas and fuel oil. However not all of the bagasse is typically utilised due to the inefficiency of the boilers installed.

This project takes the opportunity to upgrade these sugar industry boilers so that they can fire a greater proportion of bagasse and displace fossil fuel. However as a result of the 2001 economic crash in Argentina, general investment conditions in the country are poor. Much of the private infrastructure investment is related to industry-specific initiatives in areas where benefits are directly captured by investors (mining, oil and gas). The injection of capital through carbon finance has enabled the purchase of a new high pressure boiler at the La Providencia Sugar Mill, displacing fossil fuel use with an increased volume of bagasse for its own power generation.

Benefits beyond emissions

Social: The new boiler technology has resulted in new, higher value skills amongst employees.

Economic: The installation of the new boiler using carbon finance is a great flagship project which could be replicated in all 19 other sugar mills in Argentina, generating significant emission reductions.

Environmental: The project reduces requirements for natural gas and fuel oil, reducing not only greenhouse gas emissions but other pollutants associated with the burning of fossil fuels from the local environment.


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