Power Generation Seen Sustaining Brazilian Sugar Mills
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Brazilian sugar mills should expand into electricity generation to boost their income amid low global prices for the sweetener, London-based trader Czarnikow Group Ltd. said.
While all Brazilian plants use bagasse, the fibre that remains after sugarcane is crushed, as a fuel to generate power for internal use, only 170 sugar mills have the capacity to export electricity, Czarnikow said in a statement today. About 296 mills will be operating in Brazil’s center-south region this season, the company estimates. Technological advances open up the possibility for the sugarcane sector to triple the volume of electricity generated, according to Czarnikow.