1. 1 Biomass to Energy Assessment St. Kitts & Nevis Mark Lambrides (OAS/DSD) Kevin de Cuba (OAS/DSD) Pre-conclusions December, 2006

2. 2 Why does sugar matter? Shutdown of the sugar industry –Unemployment –Decreased sources of income –Lost benefits of sugar crop (tradition, erosion, tourism) Traditional energy supplies –High cost of diesel import for electricity generation –High cost of transportation fuels –Dependent on external geo-political forces –Negative environmental impacts (local and global) –Increased reliability of electricity supplies Current waste management –Health impacts –Environmental impacts –Landfill space constraints

3. 3 Current state of the sugar industry

4. 4 Current state of the energy sector Electricity Current installed capacity: 33.5 MW (2006) Peak demand: 20 MW Firm capacity: 19 MW Demand Growth from 2005-2015:84.5% Average electricity price in St. Kitts: 0.17 US$/kWh (2006)* Average electricity price in USA: 0.08 US$/kWh (2006) *At diesel fuel cost of 1.588 US$/gal, currently diesel fuel cost is 3.37 US$/gal Imported Fossil FuelValueUnit Gasoline 12,614m3 3,332,619US gallons Transportation fuel

5. 5 Current state of waste management

6. 6 Objectives Determine if there is reliable biomass feedstock supply for long term ethanol and/or electricity production Highlight commercially viable biomass to energy conversion approaches Outline potential strategy for public-private partnership to develop biomass to energy Attract commercially proven developers to consider investment approach in SKN

7. 7 Methodology of study Biomass resource assessment Technology identification and selection Design of multiple scenarios Techno-economic analysis Sensitivity analysis Results summary Recommendations – Outline a commercial development pathway

8. 8 What do we know? Sugar cane/ bagasse data (1) ParameterValue rangeUnit Available cultivable area2,226 – 2,630ha Sugar cane yield60.6ton/ha Average length of grow cycle10-12months Weighted average length of crushing / harvesting season 120days/yr Variation in length of crushing season20days/yr Sugar cane production134,750 – 159,250ton/yr Bagasse production25,603 – 30,258dry ton/yr

9. 9 What do we know? Sugar cane/ bagasse data (2) ParameterValueUnit Average distance lands to mill?km Weight ratio of wet bagasse on wet cane22 – 30% Sugar cane fiber content18 - 19% HHV of sugar cane17.0MJ/kg LHV of bagasse on dry basis (50% moisture)15.6[1][1]MJ/kg HHV of bagasse on dry basis (50% moisture)18.1[2][2]MJ/kg LHV of bagasse on wet basis7.8[3][3]MJ/kg C as fraction of (C x H y O z )45 - 50% H as fraction of (C x H y O z )5 - 6% O as fraction of (C x H y O z )38 - 45% [1][1] Van Groen, M., “Energy rooted in sugar cubes”, The interaction between energy savings and cogeneration in Indian sugar mills, Utrecht University, 1999 [2][2] Hassuani et al., “Biomass power generation”, Sugar cane bagasse and trash, UNDP Brazil, 2005, page 26 [3][3] Hassuani et al., “Biomass power generation”, Sugar cane bagasse and trash, UNDP Brazil, 2005

10. 10 What do we know? Municipal waste data Waste category 2004 Weight (tons) Organic fraction (%) Green waste1,455? Household10,39035 - 45 Land clearing3,514? Institutional150? Sludge (Septic tank waste)1,876? Ship generated waste6? Total17,391

11. 11 Scenario A – Ethanol (from SKN sugar)

12. 12 Scenario B – Electricity and Cane Juice

13. 13 Complimentary Alternatives Add BMW as feedstock (A & B) Import hydrated ethanol from Brazil, create larger facility, feed in imported and local product to produce ethanol Manufacture other derivatives

14. 14 Critical challenges Available land for sugarcane production (currently ~6,000 acres, optimal 10,000 acres) State of sugarcane harvesting system State of sugar processing system SIZE MATTERS….

15. 15 What's next: Steps to commercialization Remainder of this week - data gathering interviews with stakeholders in St. Kitts and Nevis Preparation of preliminary assessment –Final Draft expected by end of January ´07 Stakeholder review and comment on final draft Presentation of findings Initiative to facilitate commercial development (international tender; short list tender; sole source)

16. 16 Bio-Energy Potential St. Kitts