The company SBEC Bioenergy Limited has been established to implement the cogeneration project for generation and supply of power to the SBEC Sugar Limited for inhouse consumption and suppply of excess power to the state electricity grid. The company has already entered into a long term conversion agreement with SBEC Sugar for providing power and steam to the sugar unit against the supply of bagasse and water from the sugar plant.

Power and steam are the two critical inputs vital to any process industry. For industries that have a continuous requirement of both steam and power, co-generation is the most economical option. This is where technological expertise matters.

In most sugar mills, the associated cogeneration is seen as a by-product whose benefits and efficiency are seen as inconsequential.

The technology for bagasse-based co-generation for the export of power is well known and commercially practised in several countries, notably the United States, Mauritius and Dominican Republic. The gestation period for such projects is less than that of conventional thermal or hydro power projects.