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The overview
Central Azucarera Don Pedro (in short Don Pedro) sugar mill is situated on the main island of Luzon in the
northern part of the country. The sugar mill shows an installed capacity of 12,000 tons of cane per day
(TCPD). The yearly production reaches 1.4 mio TC. Furthermore, it comprises a sugar refinery.
Energy processes
A traditional sugar mill is designed and operated in a way to achieve self-sufficient energy supply. The
sugar cane transforms its energy in the form of bagasse. Bagasse, which is generated after milling the cane
(the extraction of the sugar juice) is burnt in boilers, where steam is produced to run the mill drives and to
supply energy for the processing of sugar. A fraction of the steam is used to generate electricity. Limited
measures have been taken to economize on the consumption of bagasse. At the end of the crushing
season, extended refinery operation will depend on the amount of excess bagasse and considering also the
necessary fuel to run the boilers for the next season start up. In light of climate change, renewable energy
deployment and energy efficiency, the given resources should be utilized more efficiently. Bagasse at
sugar mills offers good potential for producing excess electricity out of the given biomass resources. With
the condition of existing regulations for independent power production and feed-in tariffs for power fed
into grids, the sugar industry can substantially contribute to the nations renewable electricity production.
Besides bagasse other potential resources for energy conversion are also generated during the sugar
production process: These include wastewater from the sugar mill and the filter mud or wastewater from
the alcohol refinery, which in all cases offer opportunities for biogas production.
The sugar industry in the Philippines is comparable to other cane sugar industries worldwide. In a nutshell,
the sugar mills can be described as traditional mills, where bagasse is burnt in low pressure boilers and
steam is delivered to the mill drives for the operation of the mill. Additional steam is converted to electricity
by backpressure turbines. Backpressure steam is then used in the sugar process (boiling house and refinery).
Traditionally associated with low conversion efficiencies, the high overall steam demand is a result of the
demand for steam turbines at the mills and the boiling house operation. In changing the roller mills to
electrical motors, steam could be reduced at the cost of additional electricity demand. In addition,
downstream efficiency measures, particularly in sugar processing in the boiling house and refinery, can also
reduce the overall steam demand. Two considerations are important as well: If the raw sugar mill is equipped
with a sugar refinery, this operation increases the demand on energy. A second option is the operation of a
distillery (fermentation of molasses into alcohol and distillation), which consumes a significant amount of
low pressure steam (if supplied by the sugar mill).
After a site visit and interviews the technical set-up of the sugar mill can be described as follows. The actual
total steam demand lies at 300 tph (tons per hour, installed capacity is 436 tph), out of which three boilers
operate with a pressure level of 400 psi (25 bar). One boiler operates at 900 psi (62 bar, for export). Different
turbines operate on the different pressure levels. The total installed capacity (operational) of the turbines is
at 31.9 MW. A production of 3.5% for filter mud on cane is reported. The filter mud should have a sugar
content of 2.8%. In the table below further figures are summarized. The specific steam consumption with
0.60 t steam per TC is rather high in international comparison. The electricity demand with 41 kWh/TC resp.
51 kWh/TC is also in the higher range. The demand from the refinery would need to be subtracted for an
exact comparison.
Besides the base case, which describes the present situation, the sugar mill could increase the total installed
capacity to 35 MW at a medium pressure level and up to maximum 60 MW if a high pressure level is
selected. As a result, exportation of electricity is significant, as can be seen in the table. On the medium level
some 30 kWh/TC can be exported, on a high level more than 80 kWh/TC.
Additional biomass
The sugar mills are only in operation during the harvest periods. These last for approximately 6 months to a
maximum of 8 months. New biomass power plants with high specific investment costs should run
continuously to return the investment (minimum of 7,000 hours per year). During the rest of the year
bagasse is not available. If multi-fuel boilers are installed, other biomass materials can be used as
supplemental fuel out of the season. The fuel source could be waste from the sugar cane fields or other waste
materials like rice husk or rice straw. Another option is the production of energy crops (energy cane, grasses,
short rotation forestry etc.).
Financial viability
An investment opportunity exists if the produced additional power can be sold to the public grid operators or
to other industrial customers. Usually this option calls for an existing feed-in law and/or similar procedures
and legislation for independent power production. Model calculations have shown that biomass power plants
could produce electricity at prices that are below the proposed feed-in tariff (approx. 16.5 USct/kWh) in the
Philippines. The financial situation at Don Pedro shows the effect, that the technical background would call
for a large capacity.
Due to the production scheme, at the mill the capacity is underutilized at times. A more detailed financial
evaluation would result in exacter figures based on site-specific conditions. The calculated internal rate of
return (IRR) shows acceptable ranges for high pressure options. The economic performance is enhanced if
additional biomass is generated and the power plant runs throughout the year. A total operation time of
7,000 hours and a biomass price of 50 USD per t were assumed in that case.
Project opportunities
The sugar industry in the Philippines is open to investors or joint ventures. Business models, such as build-
own-operate-transfer are possible and considered an option by the sugar millers.
Turnkey solutions
For cogeneration opportunities the ultimate solution is a turnkey biomass power plant. The technology
option would be a multi-fuel boiler and a condensing-extraction turbine at a higher pressure level of at least
40 bar, preferably in the range of 70 bar to 100 bar.
Based on further engineering details, a technical solution for the use of filter mud as standalone operation or
in connection with other wastewater sources could be offered as turnkey option.
Engineering services
Prospects are there for engineering services for planning and supervision of investment projects.
Contact details
For further information, please contact Markus Dietrich (markusdie@gmail.com), Project Development
Programme (PDP), GIZ.
The Philippine Sugar Millers Association (PSMA) based in Metro Manila can facilitate and initiate first
contacts.
Contact: Room 1402 Security Bank Centre, 6776 Ayala Ave., Makati City 1226, Philippines, Phones: +(632)
891-1138; 891-1202, Fax: 891-1144, email: psma@psma.com.ph, Website: psma.com.ph
* The information provided has been gathered in the context of the Renewable Energy Project Development Programme (PDP)
Philippines. The programme is implemented by the Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH on behalf
of the German Federal Ministry of Economic Affairs and Energy (BMWi). The programmes objective is to support the market
development of renewable energies in SE Asia by fostering sustainable German-Philippine business partnerships. This fact sheet is
developed as part of a series of project briefs learn more about potential showcase projects and renewable energy business
opportunities in the Philippines. Liability claims through the use of incorrect or incomplete information are excluded.