Punjab sugar mills to produce alternative power

The Punjab government is moving forward with plans to revitalize nine, co-operative state sugar mills. In addition to producing sugar and other products, the sites are also expected to generate alternative power, according to the Business Standard.

The nine sugar mills include: Ajnala, Batala, Bhogpur, Budhewal, Fazilka, Gurdaspur, Morinda, Nakodar and Nawanshahr. Combined, they have the capacity to generate 150 megawatts of power, in addition to the power and steam they produce to run the sugar mills.

The mills have signed memorandums of understanding with a variety of private companies, which are expected to set up the co-generation power plants in the mills. The sugar mills will receive a percentage from the sale of electricity by the private companies to a third party. The plants are expected to become operational in September 2010.

After setting up the plants, the state government may make three co-operative distilleries operational as well, according to the Business Standard.

The Punjab government’s recent announcement ties into a study released earlier this month from the from New Delhi-based NGO Centre for Science and Environment. The study shows sugar mills and windmills both produce about 2 GW of energy, but sugar mills do it at half the cost. The study indicates sugar mills are proving to be one of India’s best potential sources of renewable energy. The biomass power from sugar mills comes from bagasse, a waste product of sugarcane cultivation (see Sweet new source of renewable energy in India).

Earlier this month, Mumbai’s Shree Renuka Sugars also announced plans to expand in the sugar mill business. Shree Renuka Sugars increased its equity stake in Pune-based KBK Chem-Engineering to 80.28 percent from 54 percent for an undisclosed amount. As part of its infrastructure with Shree Renuka Sugars, KBK owns or leases five sugar plants throughout India (see Shree Renuka Sugars ups stake in KBK to 80 percent).

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