1 / 15

THE SUGAR INDUSTRY AT A GLANCE

THE SUGAR INDUSTRY AT A GLANCE. 26 600 growers 25 200 small scale growers 1 400 commercial growers including 323 black growers 14 sugar mills 90 000 Jobs 2,2 million tons of sugar p/a 12 billion rand annual income Estimated 1 Million livelihoods. COST COMPETIVENESS.

roygary
Download Presentation

THE SUGAR INDUSTRY AT A GLANCE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE SUGAR INDUSTRY AT A GLANCE • 26 600 growers • 25 200 small scale growers • 1 400 commercial growers • including 323 black growers • 14 sugar mills • 90 000 Jobs • 2,2 million tons of sugar p/a • 12 billion rand annual income • Estimated 1 Million livelihoods

  2. COST COMPETIVENESS Source: LMC International; Worldwide survey of sugar and HFCS Production Costs; 2012 Report

  3. LAND AND AGRARIAN REFORM • An increase from 5% in 1994 to 21% of freehold transferred • Black growers produce 2.5 million tons of cane • Settlement of claims will see 50% of land ownership in hands of black growers • Land reform in sugar leading the way

  4. RENEWABLE ENERGY DEVELOPMENTS FROM SUGARCANE • Globally more sugar industries are transforming to co-produce sugar, ethanol and electricity • World’s two largest cane producers, Brazil and India, have access to sugar, regulated electricity and ethanol markets • South African sugarcane value chain is cost but not revenue competitive

  5. RENEWABLE ENERGY DEVELOPMENTS FROM SUGARCANE • South Africa - urgent need for additional power generation • Renewable energy as electricity and ethanol part of dti sugar industry strategy

  6. SUGAR INDUSTRY COGENERATION VALUE PROPOSITION • All 14 sugar mills match fuel supply with own energy use • 100% cogeneration implemented at all 14 mills • Generic Sugar Industry Proposal • New Power Island • Medium to High pressure power island • Develop additional area under cane • Develop additional fibre sources • Mill Energy Efficiency and Agricultural Yield Improvements • Cogeneration supplies steam to sugar mill • Sugar mill procures electricity from grid • Power station critical to operation of sugar mill • Tariff based on capital return, operating and fuel cost

  7. POTENTIAL IN SUGARCANE AGRICULTURE AND PROCESSING Electricity & Steam • Currently fuel supply to match own energy use • At high efficiency 2 to 7 times more electricity Other Products: Animal feed, paper, chemicals • Future – cellulosic ethanol Tops and leaves not currently utilized, is about equal to sugarcane fibre Fibre Sugarcane 15% Fibre Global trends • Diversify product offering • Improves revenue & cost effectiveness • Brazil leading in ethanol • India leading in electricity 15% Sugar Sugar to market Sugarcane – one of most efficient plants to convert sunlight to energy Season – ethanol could extend existing 8 months Molasses Water free (blend to E10) Water containing (Fuel Flex Vehicles) Sugars to fuel ethanol

  8. SUGAR INDUSTRY COGENERATION VALUE PROPOSITION • Project timing • Extensive economic and social development • Agriculture and rural development • Jobs and skills development • Green – renewable – emission reduction • Industrialisation • Biomass competitive advantage of KZN and southern Mpumalanga • All 14 mills in this area - no RE projects to date in these areas • Sustainable land reform • Socio-economic development build on and expand existing programs and initiatives

  9. SUGAR INDUSTRY COGENERATION VALUE PROPOSITION

  10. SUGAR INDUSTRY COGENERATION VALUE PROPOSITION

  11. Quality and quantity of jobs • 32 786 jobs • Construction – 7 023 • Operation – 437 • Agriculture – 25 326

  12. COMPARATIVE ASSESSMENT ACROSS RENEWABLE TECHNOLOGIES • Consolidated industry impact • Level of development at different stages

  13. WAY FORWARD • Members of the SA sugar have responded to Request for Registration and Information (RFRI) – 12 July • Require an enabling procurement programme fulfilling both the electricity (Department of Energy) and sugar industry (dti) objectives • Contractual agreements • Procurement approach and timing • Process to engage on low hanging fruit projects • Inclusion of biomass cogeneration in long term energy plans e.g. IRP and IEP

  14. Thank You

More Related