The efficient application of biomass cogeneration, to produce heat and electrical energy for internal processing and non-process demands for 85% of the year, and the production of surplus electricity for exportation to the grid, is the natural trajectory for the Jamaican sugar cane industry. The case study, Frome Sugar Company Ltd., (59,430 tonnes sugar/yr.), has among other environmental benefits, potential avoided fuel costs of US $1.15 billion, sequestering 480,617 tons of carbon with a potential for US$2.4 million in revenue from joint partnering in a Clean Development Mechanism over a 15 year period. Through a US$22.26 million capital investment at 14% interest, and concomitant upgrade of process equipment, overall factory efficiencies can be greatly improved and these benefits obtained. The production of fuelwood from company plantations at US$8.90/ton can facilitate a unit cost of energy (UCE) of US$0.04/kWh, annual income of US$11.37 million and internal rate of return (IRR) of 11.3%. An equal generation capacity using fuel oil to meet surplus generation requirements would cost US$7.95 million in capital costs, UCE of US$0.04/kWh and IRR of 23%. However, legal, market and policy barriers must be removed as an incentive to activate sustainable national environmental, social and economic benefits.

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