Jamaica Biofuels Report - Ministry of Energy

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higher wood cost will have a detrimental effect on the rate of return making the investmentless attractive.Figure 2: Effect of the cost of wood fuel on the internal rate of return (IRR) of the investmentfor the Frome Estate.Electricity Selling PriceAnother crucial factor, as with any cogen operation, is the price at which excess electricity willbe sold to the State-controlled Utility Company. The Mukherji report assumed $0.10/kWh,although the authors advocated higher prices to make the investment more attractive. For thepurpose of the base case evaluation provided above we assumed $0.10/kWh, but assessed theeffect of higher prices on the base case IRR of 11.50%. We performed a sensitivity analysis byvarying the feed-in tariff between $0.10/kWh and $0.15/kWh. The results are shown in Figure3.The effect of the electricity selling price on the IRR is dramatic underlining the importance ofthis issue to prospective investors. As the feed-in tariff rises from $0.10/kWh to $0.15/kWh, a50% increase, the IRR jumps from 11.50% to 18.73%, a 63% increase. This is not surprising,since the revenues from the sale of electricity represent a significant portion (27.4%) of theFrome operation’s total revenues from the start.It should be noted that when sugar prices fall, electricity from cogeneration provides a financialcushion to help maintain the overall profitability of the mill. Moreover, a year-roundcogeneration plant at the mill largely eliminates any need for the mill to import electricity fromthe grid even in the out-of-season period. In addition, the cogeneration plant provides roundyear capacity to the utility company thereby avoiding the need for Jamaica to build such anamount of additional capacity under its expansion plans.88
Figure 3: Effect of the selling price of excess electricity on the internal rate of return (IRR) ofthe investment for the Frome Estate.These ramifications for the Frome Estate project need to be studied and well understood by allparties involved as the country is seeking investments for its sugar and biofuels industries andstriving to reduce its dependence on foreign oil.89
Page 1 and 2:
Assistance for Biofuels Developm
Page 3 and 4:
TABLE OF CONTENTSEXECUTIVE SUMMARY
Page 5 and 6:
All countries with commercial biodi
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2. Biomass Resource Identification2
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Figure 2: Areas of land in classes
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conditions accumulates dry mass und
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1. Sugar cane varieties and observa
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Sugar cane is naturally tolerant to
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fermentable sugars are calculated f
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purchased in some form from elsewhe
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welfare, but sustainable production
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spacing) for cattle, pigs and other
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3. Human and Institutional Resource
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Finally, Universities can also prov
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Exemption from import duties of cap
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farmers and Midwestern states, wher
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form methyl esters. The caloric val
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cost would be, to future world ener
Page 37 and 38: Figure 6: Typical financing structu
Page 39 and 40: 5. Processing and Distribution5.1 T
Page 41 and 42: are produced and stored for later p
Page 43 and 44: operator and PCJ (and other blender
Page 45 and 46: Figure 9: Schematic representation
Page 47 and 48: Figure 11: Schematic representation
Page 49 and 50: agroenergy/biofuels operations in t
Page 51 and 52: ANNEX IPublic Education and Outreac
Page 53 and 54: In the scoping assessment, input wa
Page 55 and 56: Run over a longer period so that th
Page 57 and 58: estates is completed. The large mil
Page 59 and 60: (a) What waste vegetable oils are o
Page 61 and 62: (g) Information on long term supply
Page 63 and 64: (f) Information to control the spre
Page 65 and 66: Jamaica BroilersJamaica Public Serv
Page 67 and 68: The Jamaica Manufacturers’ Associ
Page 69 and 70: phone hotline and email address wit
Page 71 and 72: ut first, the necessary steps need
Page 73 and 74: etc.), and that labour laws arecomp
Page 75 and 76: campaign management team.75
Page 79 and 80: Annex Ib. BudgetThe budget below is
Page 81 and 82: Activity 5: Best practices forbiofu
Page 83 and 84: Annex Ic. Useful resources for educ
Page 85 and 86: ANNEX IIPilot Project Identificatio
Page 87: Over the 15 years of its depreciate
Page 91 and 92: Pilot Project: Duckenfield Estate -
Page 93 and 94: Additional assumptions involve exte
Page 95 and 96: Sensitivity to Sugar Price30.00%25.
Page 97 and 98: Sensitivity to Ethanol Price30.00%2
Page 99 and 100: Pilot Projects: Discussion of Other
Page 101 and 102: Pilot Project: Biodiesel RefineryBa
Page 103 and 104: iodiesel subsidize it one way or an
Page 105 and 106: Financial Analysis for 3 Million Ga
Page 107 and 108: ANNEX IIIJamaica Biofuels Implement
Page 109 and 110: In-Depth Project Feasibility Studie
Page 111 and 112: Project ImplementationTask Force ac
Page 113 and 114: This table summarizes the area (ha)
Page 115 and 116: Clarendon Figure 1115
Page 117 and 118: Hanover Figure 1117
Page 119 and 120: Kingston St. Andrew Figure 1119
Page 121 and 122: Manchester Figure 1121
Page 123 and 124: Portland Figure 1123
Page 125 and 126: Saint Ann Figure 1125
Page 127 and 128: Saint Catherine Figure 1127
Page 129 and 130: Saint Elizabeth Figure 1129
Page 131 and 132: Saint James Figure 1131
Page 133 and 134: Saint Mary Figure 1133
Page 135 and 136: Saint Thomas Figure 1135
Page 137 and 138: Trelawny Figure 1137
Page 139 and 140:
Westmoreland Figure 1139
Page 141:
ANNEX VSummary of Sugarcane industr
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Jamaica Biofuels Report - Ministry of Energy

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