Under the ongoing SSMP project, the existing sugarcane area in the Berbice County will be expanded. The cane supply will come from the Skeldon Estate (expanded from 5,727 to 10,412 ha) and from holdings of private farmers (expanded from 300 to 4,465 ha) who will cultivate cane exclusively for sale to the Guyana Sugar Corporation (GUYSUCO). The Guyana Bagasse Cogeneration Project, consisting of a bagasse-powered cogeneration plant, will be added on to the new Skeldon sugar factory design to allow the simultaneous production of electrical power for internal needs and for sale of excess power to the Berbice regional grid. This cogeneration plant will use bagasse from the sugar factory during the cane crop seasons, and will be equipped with diesel generating capacity for co-firing fuel oil during off-crop periods when bagasse stocks have been exhausted. Under this project scheme, surplus electricity will be generated at an average of 10 MW of electricity delivering approximately 77 GWh per year to the regional grid on a firm power, year-round basis. (In addition to the export, 58.8 GWh per year will be produced for internal use at the sugar mill.)

The project will generate Greenhouse Gas Emission Reductions by displacing the use of light fuel oil in diesel engine-driven generators in the Berbice grid operated by the power utility, the Guyana Power and Light Inc. (GPL). As the utility currently has insufficient capacity, there is extensive use of self-generation by industries and households. The project thus has the potential to displace a significant amount of this unregulated and inefficient self-generation as confidence in reliable supply is progressively built over time.

Contribution of Project Activity to Sustainable Development
The cogeneration project will contribute to national sustainable development through the following:

Increased competitiveness: With more efficient energy generation for internal use in the new sugar factory, the cogeneration project will contribute towards increased competitiveness of the country’s sugar sector in the world market. The sugar industry generates about 30% of Guyana’s agricultural GDP and is the largest net earner of foreign exchange in the country; it thus plays an important role in achieving trade balance.

Decreased dependency on fossil fuel: Bagasse cogeneration is important for the energy strategy of Guyana. Cogeneration is an alternative that allows postponing the installation and/or dispatch of thermal energy generation utilities. With the project assisting the country to facilitate utilization of renewable energy resources such as biomass, the country’s dependence on imported petroleum products is reduced.

Creation of local employment: Guyana’s sugar-based industry is a major employer of local labor. It directly employs 25,000 people or about 10 percent of the country’s labor force.

Sustainable clean energy: Bagasse cogeneration displacing the use of fossil fuel results in a cleaner environment and attracts global climate change benefit support. The sale of the CERs generated by the project will boost the attractiveness of bagasse cogeneration projects and will help to increase the production of clean energy in Guyana.