CANE FARMERS SEEK COMPENSATION FOR SUGARCANE BYPRODUCTS

November 12, 2009

Producing energy from biomass is now a reality in Belize. Belize Cogeneration Energy Limited, BELCOGEN is already selling test power to Belize Electricity Limited and when the project is complete BELCOGEN will be able to produce 31.5 mega watts of power. The facility will use primarily sugar cane fiber commonly known as bagasse as its primary fuel. With the 2009-2010 sugar cane crop beginning at the end of the year cane farmers are already discussing ways of seeking compensation for bi-product of the sugar cane they sell to BSI, the sole owner of BELCOGEN. Chairman of the Belize Sugar Cane Farmer Association Eric Eck says there is a clause in their agreement with BSI that says that they can negotiate for compensation for any bi-product of sugar cane.

Eric Eck; Chairman, Belize Sugar Cane Farmers Association

“It is something in the agreement that is negotiable. I think that we should sit along with BSI and discuss the bagasse that farmers are asking for. We know for a fact that farmers do deserve something for their bi product. We as BSCFA will form a committee to look at the agreement so that we could negotiate with BSI.”

BSI’s Finance Director, Belizario Carballo, says that while cane farmers do not necessarily have a right to compensation for the bagasse, BSI will remain open for discussion with the Belize Sugar Cane Farmers Association.

Belizario Carballo; Belize Sugar Industry Finance Director

“BELCOGEN has already began operation actually as we speak the factory is already completing its link up to the facility and we are already getting our power supply from BELCOGEN. There is already test power being sold to BEL before the full production commences all as part of the commissioning of the facility. So BELCOGEN is soon to be a reality it is a significant investment. It is 62 million dollars that it has taken to bring this about. It is an investment fully by BSI in other words, the bagasse which was previously a waste which came with the cane that we bought from the farmers because we buy cane we do not buy sugar that is a clarification that important to make. The bagasse that comes from the cane which was previously a waste product is now being converted into something that is usable but it has taken 62 million dollars to bring that about. Whilst we are committed to discussing it with the farmers and we have expressed that commitment to them because we have been formally written to in terms of their expectations with regards to BELCOGEN and we need to address it. We are business partners and we do have commercial agreements with the cane famers and we will address it as part of our discussions with them. It is not a case where they can demand any rights or anything like that but it’s just a case of BSI being prepared to discuss it.”

BELCOGEN will supply 13.5 mega watts of power to BEL's national grid satisfying almost 20% of the country's demand.

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