THE VALUE OF BAGASSE TO AN AUSTRALIAN RAW SUGAR FACTORY

BAGASSE is presently being considered as a possible raw material for a range of diversification options. In assessing the attractiveness of these options, a value must be placed on the bagasse resource. This paper discusses the present value of bagasse to an Australian raw sugar factory. The value of bagasse depends on the bagasse balance in the factory and the capacity of the factory to generate additional steam and electricity above its own internal demand. If a factory has a surplus of bagasse, the value of wet bagasse is about -$11 per tonne. The negative value is due to the need to dispose of the bagasse. That is bagasse has a cost, rather than a value associated with it. If a factory has excess bagasse and the ability to generate additional electricity, the value of bagasse is between $9 and $28 per tonne, depending on the boiler steam pressure, the boiler efficiency and the turboalternator configuration. Generating electricity out of the crushing season involves additional storage, reclamation and labour costs which will significantly reduce the value of bagasse. If a factory does not have a surplus of bagasse, the value of bagasse is dependent on the type of supplementary fuel. If the supplementary fuel is woodchip, the value of bagasse is about $8 per tonne. If the supplementary fuel is black coal, the value of bagasse is about $21 per tonne.