Heat and power from eucalyptus and bagasse in Nicaragua : part B : results of environmental, macro- and micro-economic evaluation

Abstract

Two Nicaraguan sugarmills are going to generate power from bagasse during the sugercane season and during the rest of the year from eucalyptus from dedicated energy plantations. This type of power generation is compared with power generation from fueloil on its costs, socio-economic and environmental impacts.' The power selling price from these biomass sources is calculated at 5.7 ¢/kWh (including profit), as compared with 6.8 ¢/kWh for fueloil, assigning a value to bagasse equal to the cost of producing eucalyptus. 73% of the selling price of power from eucalyptus remains in the Nicaraguan economy, while this is between 14 and 30% in the case of electricity from fueloil. Employment generation is more than 3 times higher in the case of eucalyptus than with fueloil. CO, and acidifying emissions of eucalyptus power generation are about a factor 30 lower than with fueloil. Dust emissions can be a problem, unless flue gas cleaning is implemented.