Energy Co-Generation in Sugar Mills: Unlocking Additional Revenue Streams
According to the reports published by the Ministry of New and Renewable Energy, the bagasse cogeneration sector in India currently stands at a staggering 9,806 MW. It has emerged as one of the major segments for renewable energy that is based on biomass. A number of advanced technologies and processes have emerged that have made it simpler for industries to execute energy cogeneration. Bagasse is the fibrous waste in a sugar mill factory that is left after the crushing of sugarcane is complete. Even two decades ago, this was considered a waste, but that is no longer the case. Today, it is considered one of the most credible fuels for the generation of electricity and stream for a sugar manufacturer in India.
They are making use of bagasse to achieve energy cogeneration through the process of CHP (Combined Heat and Power). A sugar plant is successfully reaching its energy requirements and selling the surplus electricity produced to the power grid, which is resulting in an additional revenue stream.
Why Co-generation
A conventional thermal power plant in India has an operating efficiency of 35%. Compared to that, a sugar mill factory in India is able to achieve an operational efficiency of close to 90% with the help of bagasse-based energy cogeneration systems. The exhaust steam generated in the process is a subject of reuse for industrial processing.
To state the facts, nearly 3 tonnes of bagasse are produced from the crushing of 10 tonnes of sugarcane. This volume of bagasse is enough to fulfil the energy requirements of a sugar plant and also generate a significant amount of surplus electricity that is ready for export.
The Road Ahead
It can be understood very well that if a sugar manufacturer is able to sell surplus power, it definitely impacts its annual profit margins. Today, a sugar mill factory in India not only depends on the volume of sugar production but has been successful in diversifying its revenue streams by playing a major role in the renewable energy sector. Considering the growth of this segment in India, it can be expected that bagasse will unlock more profits for sugar businesses in the future.
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