October 3 (Renewables Now) - The Board of Directors of the Brazilian Development Bank (BNDES) has approved a BRL-62.9-million (USD 16m/EUR 13.9m) loan for additional cogeneration capacity at a bioenergy plant at a sugarcane mill in Sao Paulo state.
With a total investment of BRL 78.6 million, the generation capacity will be increased by 180% to 70 MW, making use of the bagasse left after the extraction of juice from the sugar cane.
Currently, Pitangueiras Acucar e Alcool Ltd's plant produces enough energy for the operation of the sugarcane mill and has a surplus of 90,000 MWh that is sold in the free market. Upon completion of the project in two years, the output will increase, reaching 210,000 MWh in each harvest year. The mill's operator has secured a contract in the A6-2017 energy auction, supply under which will start from 2023. Until then, the power will continue to be sold on the free market.
The expansion involves the acquisition of cogeneration equipment, construction of an elevated substation and a 7-km transmission line, and civil works. The project also includes the interconnection of the substation to the network of Brazilian energy group CPFL Energia SA (BVMF:CPFE3), BNDES said.
(BRL 1 = USD 0.25/EUR 0.22)