Minas Gerais Sugar Plants to Invest $230 Million in Carbon Credits Related Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Associação das Indústrias de Açúcar e Álcool (AIAA) (Minas Gerais, Brazil) and Sindicato da Indústria do Açúcar e do Álcool (Minas Gerais) announced a plan to obtain carbon credits for sugarcane bagasse burning as a means of generating power. The capital investment will be used for the replacement of boilers and new cogeneration projects.

The project is a joint venture between Key Associados (Sao Paulo, Brazil), which will be responsible for the project's structural development, and Kreditanstalt für Wiederaufbau Bankgruppen (Frankfurt, Germany), a reconstruction credit institution, which will assume the costs and whose aim is to promote Programmatic Clean Development Mechanism (CDM) in developing countries.

The sugar plants associated by AIAA are expected to generate 2,500 megawatts (MW) by 2015. This means about $60 million per year for the group, with the commercialization of 3 million carbon tons. The sugar companies should invest about $230 million for the facilities' adaptation, specifically to replace existing equipment and expand current powerhouses.

The Programmatic Clean Development Mechanism, included in the Kyoto Protocol, is related to coordinated actions by which private or public entities implement policies which lead to the reduction of gas emissions.

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