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Retrofit generates many benefits for sugarcane chain

The hard battle of units and sugar and ethanol groups for survival is no longer new. The search for alternatives aimed at overcoming the difficulties are, however, among the priorities of the positive agenda of the sector. One way this can be including the retrofit project, developed by TGM, headquartered in Sertãozinho, SP, enabling the modernization of industrial plants, providing operational reliability, cost reduction, sale of surplus energy and cash flow.

The benefits of this project are not aimed exclusively at mills and distilleries. It moves the entire sugarcane production chain, according to information from the director of TGM, Antonio Gallati. It also enables electrical energy supply to the country – of up to 9,5 GWh – creates jobs and boosts business as hotel activities, restaurants and commerce in general in the cities of the regions of mills that undergo this process of retrofit .

Currently 230 units need to be modernized in the country, according to a survey of TGM. But right now, ninety of them are in conditions to offer guarantee and have access to a credit line provided by BNDES. The Sertãozinho company has made contacts with the Ministry of Mines and Energy and the Department of Energy of São Paulo State that arrangements be made for transmission lines and connections to substations where surplus energy generated will be made available for sugarcane biomass.

This task has been the sugarcane units, which hinders their participation in projects in this area – comments Antonio Gallati – because the cost per kilometer of transmission line is around five hundred thousand reais. From BNDES, the TGM already had the signs that the retrofit will have the same credit line that is already available for large projects in energy generation, with payment period of up to twenty years and interest on special conditions. “We also ask the government to guarantee a viable energy price at the auction that pays the investment”, he says.

According to director of TGM, the retrofit project has the partnership of Ceise Br –Centro Nacional das Indústrias do Setor Sucroenergético e Biocombustíveis, which has enabled, for example, contacts with government agencies. Moreover, it has the support, among others, the Sertãozinho Prefecture and the Secretary of Agriculture of the State of São Paulo, Arnaldo Jardim.

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