BNDES approves R$47 million for sugarcane bagasse energy cogeneration

In Brazil, the Brazilian Development Bank (BNDES) approved a R$46.9 million ($12 million USD) financing for the Central Energética Tupaciguara Ltda. increase its cogeneration capacity and export electricity produced from sugarcane bagasse. Financing will allow the expansion of current capacity from 12 MW to 35 MW per year from 2023. Exports will increase from 5.5 MW to 25 MW per year.

Located in the municipality of Tupaciguara, 50 km from Uberlândia, in Minas Gerais, Central is a special purpose company (SPE), created in 2018 by Grupo Saci Perplan, which operates in the sugar-energy sector. The BNDES funds represent 76% of the total cost of the project and will be used in the acquisition of equipment and civil works to enable the increase of installed generation capacity.

The new cogeneration structure should start operating from the 2019-2020 harvest, with a gradual increase in installed cogeneration capacity. From 2023, the annual generation of the Tupaciguara Power Plant will have reached its maximum capacity, with an increase of more than 190%, going from the current 12 MW to 35 MW. Similarly, the annual power exported should increase from 5.5 MW to 25 MW.