Co-generation of Electricity and Steam Using Sugarcane Bagasse and Trash

This project aims at reducing Cuba’s energy-related CO2-emissions by removing barriers to the substitution of sugarcane bagasse and trash for fuel oil in power and steam co-generation. This will be achieved by demonstrating the technical, economic and financial viability to establish companies in the vicinity of sugar mills to co-generate steam and power by using biomass-fired high-pressure condensing-extraction steam turbine technology. By demonstrating the technology and reducing the barriers to its large-scale replication, it is expected that a significant fraction of the biomass energy potential in Cuba can be harnessed in an efficient way. In the medium-term, it is estimated that some 3000 GWh/yr of additional biomass-based power can be supplied to the grid thus reducing annual carbon emissions by over 600,000 tC. To the extent possible, the GEF support to this investment project will be targeted toward reducing the risks to an otherwise attractive investment through the expanded use of contingent financing techniques.