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Prepared by Sunil Kumar
Corrtech Energy Ltd.
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Contentsy Project Descriptiony Market & Growth Drivers
y Potential of Bagasse based power generation
y Bagasse based power plant policies
yWhy Gujarat
y Technology /Processes
y
Suggested projecty Project cost
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Continuey Funding
y Returns
y
Parties Involvedy Risk & Risk Mitigation
y Progress
y Players in the market
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Project Descriptiony The proposed project is to set up bagasse based highefficient grid connected cogeneration power plant atexisting sugar mill
y
Private or cooperative sugar plants has accepted theimportance of cogeneration power plant for exportingsurplus power
y Gujarat as one of the leading sugar producers has greatpotential for cogen plant
y The plant will generate required steam for the plantand electricity for the plant and for exporting to thegrid
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Market & Growth Driversy Increasing price of petroleum crude and other fossil
fuels world over and in India in the last two decades,has forced us to cheaper, renewable source of energy
y Present energy deficit..
y In Gujarat..
y 10% of total power generation must come fromRenewable Energy
y Government policies to promote Renewable Energy
y CDM benefits
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Potential of Bagasse based power
plantsy Gujarat has 17 sugar plants in operation with crushing
capability of more than 10 million MT per year
y Bagasse production is 30% of total crushing of sugarwhich creates a potential of 250-300 MW powergeneration
y So far only two sugar plants of all have gone for
execution of cogeneration power plant, rest are waitingfor capable partners
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Bagasse based power plant
policiesy Supply of biomass, In principal agreement
y Subsidy
y Gridy PPA/ Tariff
y Transmission/ Wheeling.
y Tax benefits.
y CDM.
y Other benefits
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Technology/ Processes
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Suggested projecty Mahua Sugar Plant
y Capacity: 4000 TCD
y
Bagasse generated(28%): 1120 Tons/ Dayy Self consumption of bagasse in the process and
running turbines for 6 MW power generation: 1000Tons/ Day
y Days of operation: 190
yAmount of bagasse required to generate 1Kwe=2.2Kg
y Possible power project from 1000 Tons per day bagasse:27.4 MW
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Continuey Power plant proposed: 21 MW
y Total energy generation in a year: 156.37 MU
y
Net energy available for billing: 94.61 MUy Price of biomass: Rs.750 per ton, in case of buying from the
mill Rs. 250 per ton (special rate)
y Mills additional benefit from selling biomass to us atspecial rate is Rs. 2.87 Crore a year
y Mills will give us land and water at free of cost and bagasseat special rate
y The cogeneration power plant will be completely owned bysugar mills after 15 years of it operation
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Project Costy Project cost: Rs. 88 Crore
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Fundingy Loan: 70 % of the project
y Subsidy: Up to 15% of the project
y Equity partners: Axis Bank, CORRTECH & NeoGeoy Net investment of CORRTEC: Rs. 14 crore over a
period of 18 months
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Financials (without CDM
benefits)Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Energyavailable forsale
94.61 MU 94.61 MU 94.61 MU 94.61 MU 94.61 MU
Revenue @Rs. 3 perunit
2838.2 lacs 2838.2 lacs 2838.2 lacs 2838.2 lacs 2838.2 lacs
Fuel, O&M,
Insurance,Interest,Depr.
2160.5 lacs 2068.1 lacs 2065.0 lacs 2033.0 lacs 2003.6 lacs
PAT 677.7 lacs 770.1 lacs 773.2 lacs 805.2 lacs 834.6 lacs
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Returns: without CDM
benefitsy ROE: 31.3% (10 years average)
y IRR: 31.2%
y Repayment of Loan: 10 yearsy DSCR: More than 3.0
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Parties Involvedy Ministry of Non Conventional Energy
y Gujarat Energy Development Agency (GEDA)
y Gujarat Electricity Regulatory Commissiony Sugar Factory Co-operative society
y Other biomass suppliers
y Bank
y Equity partners
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Risk & Risk Mitigationy Funding
y Fuel Supply & Prices fluctuation
y Location disadvantagesy Government policies
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Progressy Meetings with Sugar Factories
y Meetings with regulatory bodies
y Discussion with equipment suppliers
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Players in the markety Kalpataru Power Transmission Ltd.
y Surya Chamble Power Ltd.
yAmrit Envi. Tech Pvt. Ltd.y Birla Corporation Ltd.
y Transend Green Power Ltd.
y Sambhav Energy Ltd.
yJ K Laxmi Cement Ltd.
y Satyam Power Ltd.
y Star Biomass Power Pvt. Ltd.