Simbhaoli Sugars Ltd

Simbhaoli Sugars Ltd (SSL) has announced that the Company has got registered for carbon credits entitlements by the United Nations Framework Convention on Climate Change (UNFCCC) at the Thirty Fourth meeting of the Executive Board of the Clean Development Mechanism (CDM) held on September 12-14, 2007 at Bonn. Germany.

In this regards, the Company has issued following Press Release :

"Simbhaoli Sugar Ltd, Biomass Power Project has got registered for carbon credits entitlements by the United National Framework Convention on Climate Change (UNFCCC) at the Thirty Fourth meeting of the Executive Board of the Clean Development Mechanism (CDM) held on September 12 - 14, 2007 at Bonn, Germany. The annual credits of emission reduction from power export have been estimated at 44,682 tonnes of CO2e over 10 crediting years.

The selected project is the expansion of bagasse based electricity generation capacity of the Simbhaoli Sugars (SSL) plant located at Simbhaoli, Uttarpradesh, India. The project involves installation of a 22 MW / hr backpressure type turbo generator along with a high pressure (87 kg / cm2) 110 TPH capacity boiler. It primarily aims to generate power and steam for the sugar mill captive consumption purposes, along with export of electricity of 14 MW / hr to Uttarpradesh Power Corporation Ltd (UPPCL) grid. With this the total installed capacity of biomass / biogases based co-generated electricity will go up to 32 MW / hr.

The export of bio-electricity would reduce GHG emissions by replacing fossil fuel dominated grid based electricity with a renewable source of electricity. The high pressure boiler will be fired by biogases, a biomass, produced from the sugar manufacturing process to generate steam, which in turn will run the steam turbine to generate bio-electricity.

"Simbhaoli Sugar cogen unit is energy independent, employing co-generation for its captive steam and power requirement. The present captive steam and power requirement of the sugar unit is met by a congenation place comprising of four boilers and three turbines. Considering the Company's environmental conservation policy project developers full belief in the CDM process and in anticipation of financial support from CDM revenue, the SSL management has decided to install cost intensive, high pressure and high capacity boiler and turbine configuration for increasing the net electricity export to grid. Thereby it has installed a 22 MW backpressure type turbo generator and a high pressure (87 kg / cm2) boiler of 110 TPH capacities": told by Mr. Gurmit Singh Mann, Chairman & Managing Director, SSL.

The revenue from the disposal of CERs has been the integral part of the project viability and the SSL expects a substantial contribution from this account by approaching the organization / entities which requires these CERs at the appropriate time, added by Dr Rao, Executive Director, SSL.

The expansion is in line with the overall de-risking policy of the Company, which focuses on reducing dependence on the sugar business and increasing the stake of non sugar segments such as alcohol, ethanol, bio power etc. in the revenues. Following the expansion plan designed by the Company in the year 2004, SSL has also commissioned the biomass based electricity project at its Chilwaria facility in September, 2007 with the successful completion of first phase of capacity expansion of 8 MW / hr of exportable surplus. This is achieved with installation of 11 MW condension turbine and 80 MT (87 kg / cm2) high pressure boiler. After the completion of expansion of bio power generation capacity at Chilearia, total exportable power shall be 19 MW / hr."