Energy Efficiency in Ingenio Providencia S. A.

(Bogota, January 18, 2007). An important sales agreement for carbon credits was signed by the Andean Development Corporation (CAF) with the company Ingenio Providencia S. A. on behalf of the Dutch government.

The project will permit Ingenio Providencia S.A. to reduce carbon dioxide emissions thanks to a reduction in the coal consumed in its processes by developing activities that result in greater energy efficiency.

The project will result in reductions of about 170,000 tons of carbon dioxide annually starting in the second quarter of 2007. The four stages of the project are aimed at improving energy efficiency by installing new equipment such as evaporators, motors and boilers, as well as making improvements in the interior of the process.

In the first stage, due to begin in March, normal coal consumption is expected to fall by 23,259 tons, while in the second stage the reduction will be an additional 1,105 tons per year. The third stage covers replacement of steam engines by electric motors. In the last stage a more efficient boiler will be installed along with a turbo-generator which will result in a further reduction of 30,000 tons of coal, leaving around 120 MWH per year available for export to the national network.

Ingenio Providencia S.A. currently processes about 2,700,000 tons of sugarcane a year which generate about 791,000 tons of bagasse annually, for production of around 6.5 million liters a month of sugar and alcohol carburant.

Through its Latin American Carbon Program (PLAC), CAF promotes projects to reduce greenhouse gas emissions and contribute to sustainable development, with activities ranging from identification of opportunities to marketing of emission reductions, all in accordance with the terms of the Kyoto protocol.