BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION IRENA, Martinique, June 23 2015 CURRENT ENERGY MIX HEAVILY CARBON-INTENSIVE IN THE CARIBBEAN EXAMPLES OF PROPORTION OF FOSSIL FUELS IN DOMESTIC ENERGY MIX 98% 95% 94% 85% Cuba Jamaica Martinique Haiti ● Given climate change issues, more renewable energy is needed on the islands ● Baseload renewable power production (biomass and geothermal energy) is crucial for small electricity grids balance BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 2 Bagasse cogeneration, key to sugarcane industry competitiveness 3 BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 3 HIGH ENERGY EFFICIENCY COGENERATION PRODUCER SUPPLYING STEAM TO INDUSTRIAL CUSTOMERS AND ELECTRICITY TO THE GRID ● A distinctive positioning ● Long-term power purchasing agreements with interesting tariffs for biomass ● Robust and competitive sugar mills ● Long-term financing in local currency BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 4 SUGARCANE INDUSTRY IN THE CARIBBEAN ● Sugarcane is at the core of Caribbean islands traditional agriculture and economy ● The cane/sugar/rum sector generates between 200,000 and 300,000 jobs in the region ● Energy costs management (steam and electricity) accounts for a large part of sugar mills competitiveness on the global market ● High energy efficiency cogeneration of bagasse takes part in the competitiveness of sugar mills BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 5 A CRUCIAL PARTNERSHIP FOR MARIE-GALANTE SUGARCANE INDUSTRY: ALBIOMA’S 15 MW PROJECT ● ● SUGARCANE INDUSTRY 1,600 farmers (out of 12,000 inhabitants) ADVANTAGES OF ALBIOMA’S PROJECT IN MARIE-GALANTE 7 millions euros in annual revenue coming from sugarcane harvesting Interdependence ● SRMG SUGAR MILL Single sugar mill on the island ● Dependent to state subsidies ● Need to revamp its facilities ● Subject to environmental regulations compliance ● Slow down in production ● 28 millions euros of investments avoided ● 1 million euro per year of operations and maintenance costs saved ● Subsidies dependence reduced for the sugar mill ● Gain in reliability: lowered number of outages ● Gain in profitability: faster restarting following sugar mill stoppage ● Albioma’s project is key to the survival of Marie-Galante sugar mill, hence to the survival of the whole local sugarcane industry BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 6 Biomass cogeneration, driver to fight against climate change in the Caribbean 7 BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 7 GALION 2 –BAGASSE/BIOMASS BASELOAD PLANT IN MARTINIQUE Sugarcane field – Brazil ● Contract signed with EDF in December 2014 ● Essential to Galion sugarmill persistence ● 40 MW installed capacity ● 30-year contract ● Competitive electricity price compared to diesel alternatives ● €170 million invested ● 80% of capital owned by Albioma ● Commissioning scheduled for first half of 2017 BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 8 GALION 2 – CONTRIBUTION TO ENERGY TRANSITION IN MARTINIQUE Proportion of renewable electricity production in Martinique 60% 50% ● Regional target of Energy Transition Act: 50% renewable energy by 2020 ● Galion 2 will increase the island’s share of renewable electricity production to 21% (from 6% in 2013) ● Contributing to the fight against climate change – Objective of the COP 21 environment conference Targets set by Act 40% 30% 21% 20% 10% 6% 0% 2013 2023 BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 9 GALION 2 – ENVISAGED BIOMASS SOURCES Local biomass 40% Imported biomass 60% Bagasse Imported pellets Cane straw Wood by-products Wood chips Galion 2 Energy crops BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 10 Biomass free from conflict of use to serve Caribbean energy independence 11 BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 11 ALBIOMA IS COMMITTED TO AVOID CONFLICT OF USE IN ITS THERMAL BIOMASS ACTIVITY ● Internal Biomass Charter is in application which states that Albioma commits to: ● Give priority to local biomass resources ● Set up biomass supply chains taking into account risks of conflict of use related to – Ground use – Biomass mobilization – Water resources allocation ● Reduce significantly green house gases emissions along the whole supply chain ● Comply with Corporate Social Responsibility principles related to – Biodiversity – Environment – Workers and communities – Transparency BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 12 SUSTAINABLE PELLETS POTENTIAL IN THE CARIBBEAN (1/2) SURINAM ● In Surinam, 230 000 m3 of wood are processed in several saw mills concentrated near Paramaribo and generate 45% (104 000 m3) of sawn wood and 55% (126 000 m3) of waste. ● The wood waste free from conflict of use can be collected and used as raw material for 2 plants built on the same site : a wood pellet plant for export (e.g. to Martinique) as well as a cogeneration plant who would provide electricity and heat to the pellet plant, as well as electricity to the local grid. FRENCH GUYANE ● ● Several projects to grow of biomass free from conflict of use dedicated to energy : ● bamboo, ● miscanthus, ● elefant grass… These crops can be transformed into pellets for export to Guadeloupe and Martinique, and also used in a cogeneration plant supplying both pellets plant and local grid BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 13 SUSTAINABLE PELLETS POTENTIAL IN THE CARIBBEAN (2/2) CUBA ● Marabu : local invasive plant, available in huge quantities (1.2 million ha), potential biomass source free from conflict of use to: ● Enable cogeneration units in sugar mills to operate and produce electricity out of crop season ● Feed pellets plants for the export in the Caribbean market BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 14 THIS MODEL CAN BE EXPORTED TO OTHER CARIBBEAN ISLANDS: THE CUBAN EXAMPLE Caribbean islands have to deal with specific issues (small electricity grids preventing economies of scale) Carribean islands need to fight against climate change with its own strengths Realistic target: 20% bagasse/biomass in local electricity mix within 10 years BIOMASS TO ENERGY PROJECTS IN THE CARIBBEAN AND CROSS-ISLAND TRADE FOR POWER PRODUCTION 15