Environmental and Financial Impact Assessment of Natural Gas Cogeneration Plants in the Industrial Sector

Abstract

This paper presents a case study on the impact of the use of natural gas cogeneration plants in industrial facilities from food companies established in the State of São Paulo, aiming at the financial and greenhouse gases emissions (GHG) analysis. It is proposed a comparison between two different energy supply models for two manufacturing plants, the first one based on electricity supply from local grid and steam from natural gas fired steam generators, and a second model that considers the industries energy needs being partially supplied through natural gas cogeneration plants which are installed in each one of the companies. This study indicates the differences of the financial results for supplying electricity and steam in both models proposed, describing the main variations and the reasons for those, besides identifying the main current tariff benefits in the legislation for the different classes of power plants and Energy Market. The summarized greenhouse gases inventory is presented for both industries as well, and a later assessment of environmental impact from the studied cogeneration plants in the overall GHG emissions in the two proposed scenarios is done. Finally, it is presented the relation analysis between electricity and steam supplying costs if compared with the greenhouse gases emissions levels for both proposed scenarios, and how public policies can act in order to guide emissions decreasing, since São Paulo State has promulgated a law in which establishes a major GHG emissions reduction to 2020.

The Sugarcane Complex in Brazil

“…10.428 of 1997 and respectively resulted in the establishment of the ANP, the CNPE and PROINFA, and therefore were of importance for the sugarcane complex. In 2004, the energy regulating agency introduced resolution No.77 that resulted in a 50 % discount in distribution and transmission charges for electricity generated from renewable energy carriers (Silva and Magalhães Sobrinho 2013).…”