Project Description:
The development objective of the proposed CDM Project is to contribute to the reduction of
greenhouse gas (GHG) emissions from the “panela” (brown sugar) sector, the second largest source of rural employment in the country. The project would make viable improvements in energy efficiency, quality of product and rural income as well as overall environmental performance of this agro-industry. Once in operation, the project is expected to displace an estimated 133,000 tons of carbon dioxide equivalent (CO2e) by 2017. This will be done through the development of a modern, energy efficient and centralized manufacturing facility that will
replace small, artisan manufacture. The facility will be owned by a company with the participation of small farmers.
The reduction in emissions is caused by gains in economies of scale and in energy efficiency
during manufacture. This process involves three steps: (a) at the farm level cane production will
switch from traditional practices to “organic” certified processes; (b) at the farm processing
facility molasses will be produced, with a water content in the range of 50oB to 60oB and with
biomass as the only energy source; (c) Molasses will then be transformed into high quality panela
products in a central facility that will dehydrate the molasses to 92oB to 98oB. State of the art water-tube boiler technology will be used. The whole process is expected to generate zero GHG emissions by the third year of plant operation by using only biomass as energy source.
The project would also contribute to: (i) increase the income of small family owned farms
through increases in land productivity and the proceeds from their participation in the molasses
processing plant; (ii) training of at least 300 farmers on improved sugar cane production
practices; (iii) basic managerial training to 120 small rural farms; (iv) use of 300 ha to pilot organic production, improving soil conservation cultural practices and creating social links among the participants; and, (v) implementation of a land use environmental plan with farmers participation, and township support; (vi) planting of additional biomass as the plant’s main fuel to reach zero emissions as of the third project year.
Contribution of Project Activity to Sustainable Development:
The project would also contribute to: (i) increase the income of small family owned farms through increases in land productivity and the proceeds from their participation in the molasses processing plant; (ii) training of at least 300 farmers on improved sugar cane production practices; (iii) basic managerial training to 120 small rural farms; (iv) use of 300 ha to pilot organic production, improving soil conservation cultural practices and creating social links among the participants; and, (v) implementation of a land use environmental plan with farmers participation, and township support; (vi) planting of additional biomass as the plant’s main fuel to reach zero emissions as of the third project year.