FINANCIAL AND ENVIRONMENTAL INCENTIVES - IMPACT ON THE POTENTIAL OF BIG-CC TECHNOLOGY AT THE SUGARCANE INDUSTRY

Brazilian sugar-cane industry has potential to produce 2-4 GW of power at competitive basis and up to 2-3 times more if financial and enviro nmental incentives are given. About 2.0 GW can,be add to the basic pot ential considering a carbon offset cost lower than 30 $/t C. Some of t he instruments that can be used to deploy this potential are tax credi ts, loans. project loans guarantees, the creation of green markets and external costs evaluation. Biomass Integrated Gasifier-Combined Cycle s (BIG-CC) is the technology considered within the analysis presented in this paper. The results are based on simulations considering cogene ration operation mode during the harvest season aid power plant mode o therwise. The potential was calculated considering the Brazilian sugar -cane production during 1995-96 harvest season (230 million tons). (C) 1998 Elsevier Science Ltd. All rights reserved.