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Sao Paulo State Considering Incentives for Biomass

Brazil’s state of Sao Paulo may provide incentives to sugar-cane mills that burn their waste residues to produce electricity as the region seeks to double its biomass power capacity within three years.

The state’s treasury is considering tax breaks for equipment to upgrade mills’ cogeneration plants, Diogo de Castro, a spokesman for Sao Paulo’s Secretariat of Energy, said today in a phone interview. He didn’t know when a decision may be reached.

Sao Paulo currently produces has 2,600 megawatts of biomass power capacity, and wants to reach 5,000 megawatts by 2014, he said. “The aim is to cut the price of electricity,” generated from biomass.

Other incentives may include deferments of some state taxes and partnerships with utilities to build the substations and transmission lines necessary to connect new power plants to the grid, according to an article yesterday in Sao Paulo-based Folha de Sao Paulo.

The state produces 60 percent of Brazil’s sugar cane, according to the Sao Paulo-based industry association Uniao da Industria de Cana-de-Acucar.

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