TSB Sugar Holdings Mills miss out on clean energy tenders

Business Report 8 November 0212.

Local sugarcane millers may miss out on government contracts to produce clean energy because bagasse, an industry by-product, is not regarded as renewable, according to Remgro’s TSB Sugar Holdings unit. TSB engineer Nico Stolz said it supplied 2 megawatts to 7MW to the grid. “If we use the leaves of sugarcane to generate power, we have the potential to supply more.” Sugar millers were willing to invest to produce more energy, the SA Sugar Association said last year. TSB can generate another 20MW at Malalane, the same amount at its Pongola mill and 30MW at Komati, according to Stolz’s estimates. The sugar industry is able to add 1 000MW to the grid, according to Stolz. The price of supply would be “slightly higher” than the government’s long-term price of power, he said. – Bloomberg…

(Editor’s note: I can’t believe that! Of course bagasse is renewable, the sugar farmers keep producing it, whether they want to or not! Therefore energy derived from it is also renewable. It is a biofuel. Let’s hope the powers that be come to their senses. In any case, the bagasse power can always be sold to Eskom in the same way that co-generation power is sold, using net-metering tariffs.)

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