1. 1 Biomass To Energy Potential On St. Kitts & Nevis Mark Lambrides (OAS/DSD) K.H. De Cuba (OAS/DSD) M. Rivera-Ramirez (ESG) Initial Stakeholders Meeting June13, 2006

2. 2 Content Introduction Mission Scope –Possible Process Overview Challenges Opportunities Biomass Bio-Energy Assessment Follow up

3. 3 Introduction Justifications for Bio-Energy Assessment Shutdown of the sugar industry –Unemployment –Decreased sources of income –Recent increase in sugar prices Current waste management –Health impacts –Environmental impacts High energy prices –High cost of diesel import for electricity generation –High cost of transportation fuels –Dependent on external geo-political forces

4. 4 Introduction Sugar cane scenario overview (1)

5. 5 Introduction Sugar cane scenario overview (2) Area under cultivation*:7,000 acres Quantity produced170, 000 tons Molasses*:5,000 tons Sugar production*:14,000 tons Efficiency*:8.24 tons sugar/tons of sugarcane Typical efficiencies:11.2 tons sugar/tons of sugarcane Sugar price*: Current average world sugar price:.17 US$/lb Unemployment post closure:2,000 people *2004 figures

6. 6 Introduction Current energy scenario overview Current installed capacity: 33.5 MW (2005) Peak demand: 20 MW Firm capacity: 19 MW Demand Growth from 2005-2015:84.5% Average electricity price in St. Kitts:.169 US$/kWh (2005)* Average electricity price in USA:.076 US$/kWh (2004) *At diesel fuel cost of 1.588 US$/gal, currently diesel fuel cost is 3.37 US$/gal

7. 7 Introduction Current waste scenario overview Quantity produced*:17,241 tons/year Predicted landfill capacity:14 years Current landfill capacity**:8 years * Organic fraction of waste ** Due to new land developments, without treatment or separation of waste streams

8. 8 Mission Find if there is reliable biomass feedstock supply for long term production Highlight commercially viable biomass to energy conversion approach Outline strategy for public-private partnership to develop biomass to energy Attract commercially proven developers to consider investment approach in SKN

9. 9 Scope Focused on sugarcane and municipal waste biomass availability on St. Kitts Focus on liquid biofuel and electric power production Potential for value-added products

10. 10 Possible Process Overview

11. 11 Challenges Economies of scale –Modest biomass feedstock availability –Biomass conversion technologies Land use competition Information dissemination on sustainable alternatives –Familiarity with current methods of production

12. 12 Opportunities Environmental/health benefits –CO 2 reduction –Increased soil fertility –Sanitary issues Job provision –Existence of skilled labor force Energy security Economic –Avoided investment cost: No need for additional landfill/waste management alternatives –Decreased expenditures on electricity –Diversification of economic activities

13. 13 Biomass Definition and Sources Organic matter, matter from any living organism Animal/human waste Food crops Grassy and woody plants Residues from agriculture or forestry Organic component of municipal and industrial wastes

14. 14 Biomass As a renewable fuel No net carbon emissions –Carbon dioxide released when biomass is used as fuel is balanced by the carbon dioxide captured when the biomass is grown

15. 15 Biomass Conversion Feedstock Supply Residues Dedicated Crops Harvesting and Handling Collection Processing Storage Transportation Conversion Thermochemical Combustion Gasification Pyrolysis Other Biochemical Anaerobic (fermentation) Anaerobic Digestion Alcohol Fermentation Aerobic Composting Activated (oxygenated) waste treatment Direct Hydrogen Physicochemical Oil extraction Hydrocarbon extraction Utilization Biopower Process and Space Heating Power generation Biofuels Ethanol Biodiesel Methanol Pyrolisis liquids Biogas (methane + CO 2 ) including digester and landfill gas Synthesis gases (CO + H 2 )(for further refinement to liquid/gaseous fuels) Hydrogen Charcoal Biomass solids Others Bioproducts Citric and other acids Composite materials Fertilizer Fibers Lubricants Others Pesticides Structural materials Surfactants

16. 16 Biomass Conversions of interest Feedstock Conversion Thermochemical Combustion Gasification Other Biochemical Anaerobic Digestion Alcohol Fermentation Physicochemical Oil extraction Utilization Biopower Electrical Power Generation Process Heating Biofuels Synthesis gases (CO + H 2 ) (for further refinement to liquid/gaseous fuels) Biogas (methane + CO 2 ) including digester gas Ethanol Biodiesel Others Bioproducts (chemicals and materials Fertilizer Combustion: direct-fired systems. They burn bio-energy feedstocks directly. Gasification: biomass is heated with no oxygen or only about one-third the oxygen needed for efficient combustion. Biomass then gasifies to a mixture of carbon monoxide and hydrogen—synthesis gas or syngas. Biochemical: relies on the abilities of specific microorganisms to convert biomass components to useful liquids and gases, as ethanol or methane.

17. 17 Bio Energy Assessment Objective Financial and economic analysis of a potential Domestic Bio-Energy Programme to test its commercially sustainability

18. 18 Bio Energy Assessment Methodology Resource assessment (supply and demand) Technology identification Evaluate economic and financial feasibility of technologies given the resource availability

19. 19 Bio Energy Assessment Resource Assessment (1) Agricultural crops Sugarcane or palm oil Characteristics of sugar cane Yields and land Collection, processing, and transport Residues generated Storage

20. 20 Bio Energy Assessment Resource Assessment (2) Municipal Solid Waste and Sewage Sludge Characteristics of waste Quantities Collection and treatment Waste landfill capacity

21. 21 Bio Energy Assessment Resource Assessment (3) Additional market data Energy Needs Assessment –Current consumption Local markets for products

22. 22 Bio Energy Assessment Technology identification Direct contact with experts and manufacturers Literature reviews and existing expertise

23. 23 Bio Energy Assessment Economic and financial feasibility Utilize feedstock supply, conversion and market data elements to evaluate feasibility of Domestic Bio-Energy Programme

24. 24 Follow Up Bio-energy as part of the Sustainable Energy Plan (SEP) Legislation Social benefits Institutional capacity Power purchase agreements Investors workshop

25. 25 Follow Up Plans for the assessment Remainder of this week –Data gathering interviews with stakeholders in St. Kitts and Nevis Preparation of preliminary assessment –Draft expected by end of August Stakeholder review and comment on draft Presentation of findings Initiative to facilitate development