# Bagasse and black-liquor cogeneration: What to track

Watch crushing seasons, boiler pressure and mill finances

Source page: https://www.materialinsights.org/energy/e_bio_cogen/tracking/

What this tab covers The attributes worth tracking regularly, with the latest value, the direction of travel and why each matters.

Track season length and hours, boiler pressure and kWh per tonne of feedstock, mill finances, abatement per dollar, boiler fouling and carbon rules.

| Category | Attribute | Latest | Trend | Why it matters |
|---|---|---|---|---|
| Operational | **Capacity factor and operating hours** | Pulp mills continuous; Indian bagasse plants normed at 60% load factor (180 season plus 60 off-season days)^[1](https://betterbuildingssolutioncenter.energy.gov/sites/default/files/attachments/CHP_Steam_Turbines.pdf)^[11](https://gercin.org/wp-content/uploads/2025/03/Order-No.-02-of-2025.pdf) | → stable | Off-season fuel and storage decide whether a bagasse plant clears 3,000-4,000 hours. |
| Techno-economic | **Thermal and electrical efficiency over time** | Overall 70-90%; electrical 10-12% (small) to over 30% (large)^[2](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/IRENA-ETSAP_Tech_Brief_E05_Biomass-for-Heat-and-Power.pdf)^[3](https://task32.ieabioenergy.com/?p=4686) | ↗ improving | High-pressure boiler retrofits raise power per tonne of residue. |
| Counterparty | **Host counterparty credit and utilisation rate** | Capacity concentrated in Maharashtra, UP and Karnataka (about 6.8 GW of 9.8 GW, calculated); 2026-27 season started on schedule^[9](https://powerline.net.in/2025/03/07/high-efficiency-levels-tapping-bagasse-based-cogeneration-plants-to-add-to-indias-renewable-power/)^[12](https://www.businesstoday.in/latest/economy/story/sugar-season-2026-27-begins-on-schedule-107-mills-start-crushing-isma-expects-stable-prices-563793-2026-10-26) | → stable | Cane supply and sugar prices drive mill cash flow and payment of export tariffs. |
| Impact | **t CO2e avoided per dollar invested** | About 6.4 t CO2 per USD 1,000 of capex per year (calculated): Rs 1 crore (about USD 104,900) buys about 0.19 MW at Gujarat's Rs 5.22 crore/MW, giving about 920 MWh a year net at 60% load factor and 8.5% auxiliary use; at CEA's 0.727 t CO2/MWh (FY2023-24) that avoids about 670 t CO2^[11](https://gercin.org/wp-content/uploads/2025/03/Order-No.-02-of-2025.pdf)^[17](https://deccanherald.com/business/markets/rupee-rises-15-paise-to-close-at-9535-against-us-dollar-4094458)^[25](https://cea.nic.in/wp-content/uploads/2021/03/User_Guide_Version_20.0.pdf) | → stable | Upper bound: it credits all net output against the grid average. For upgrades only the extra output counts, and a 0.71-0.73 t/MWh factor moves the result by under 3%. |
| Operational | **Heat exchanger fouling and cleaning frequency** | Ash and alkali fouling in bagasse and recovery boilers^[6](https://www1.eere.energy.gov/manufacturing/resources/forest/pdfs/black_liquor.pdf) | → stable | Fouling limits steam temperature and forces outages. |
| Policy | **Local carbon pricing and penalties** | EU ETS December 2026 allowance about EUR 84.50/t (23 October 2026), after trading at EUR 82-87 over the previous month; CBAM certificate price EUR 82.32/t for Q3 2026, up from EUR 75.28 in Q2 (definitive regime since 1 January 2026). India CCTS: intensity targets bind about 490 entities in seven sectors for 2025-26 and 2026-27 against a 2023-24 baseline; no certificate trading had been reported by July 2026, and analysts assume an opening price near USD 10/t CO2e.^[8](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-definitive-regime_en)^[18](https://www.cemnet.com/News/story/182273/eua-trading-in-very-narrow-range-awaiting-news-from-ets-revision-moves-driven-by-gas-price.html)^[19](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/price-cbam-certificates_en)^[20](https://icapcarbonaction.com/en/news/compliance-obligations-under-indias-carbon-credit-trading-scheme-enter-force-seven-sectors)^[21](https://climateriskhorizons.com/app/uploads/2026/07/CCTS-Report_WebsiteDraft_28.07.26-1.pdf) | ↕ volatile | Pulp and paper is a CCTS sector; sugar is not, and neither is covered by CBAM. EU prices sit in the low to mid EUR 80s while ETS reform is debated; India's targets are modest (cement average cuts of about 1.89% by 2025-26 and 3.22% by 2026-27), so CCTS adds little value to recovery projects for now. |
| Market | **Installed bagasse cogeneration in India** | 9,821.32 MW (October 2025, MNRE via Renewable Watch)^[10](https://renewablewatch.in/2025/12/02/green-frontiers-increasing-scope-of-bioenergy-in-the-energy-transition/)^[9](https://powerline.net.in/2025/03/07/high-efficiency-levels-tapping-bagasse-based-cogeneration-plants-to-add-to-indias-renewable-power/) | → stable | Growth has nearly stalled; upgrades of old low-pressure plants matter more than new builds. |
| Technology | **Black liquor gasification** | Projected above 40% electrical efficiency (1999 DOE projection, dated); not widely commercial^[6](https://www1.eere.energy.gov/manufacturing/resources/forest/pdfs/black_liquor.pdf) | → stable | A breakthrough would raise mill power output substantially. |
| Techno-economic | **Recovery boiler scale** | Valmet: 1,950 tDS/d for Klabin (2024 order, start-up due end 2026); 7,200 tDS/d at Aanekoski (2017)^[13](https://www.valmet.com/news/press-releases/2024/valmet-to-deliver-a-new-recovery-boiler-and-an-ash-crystallization-plant-to-klabins-monte-alegre-mill-modernization-project-in-brazil/)^[14](https://bioenergyinternational.com/valmets-technology-plays-key-role-metsa-groups-aanekoski-bioproduct-mill/) | ↗ improving | Bigger, higher-pressure recovery boilers raise power per tonne of pulp. |

#### Sources

1. [Steam Turbines, CHP Technology Fact Sheet Series (DOE/EE-2976)](https://betterbuildingssolutioncenter.energy.gov/sites/default/files/attachments/CHP_Steam_Turbines.pdf) US Department of Energy, 2025
2. [Biomass for Heat and Power, Technology Brief E05](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/IRENA-ETSAP_Tech_Brief_E05_Biomass-for-Heat-and-Power.pdf) IRENA and IEA-ETSAP, 2015
3. [Power generation and cogeneration (small-scale biomass technologies)](https://task32.ieabioenergy.com/?p=4686) IEA Bioenergy Task 32, 2026
4. [New process will recover more energy from black liquor and improve environmental performance and safety of paper making (1999, dated)](https://www1.eere.energy.gov/manufacturing/resources/forest/pdfs/black_liquor.pdf) US DOE Office of Industrial Technologies, 1999
5. [CBAM definitive regime](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-definitive-regime_en) European Commission, Taxation and Customs Union, 2026
6. [High efficiency levels: tapping bagasse-based cogeneration plants to add to India's renewable power (MNRE data) (trade press)](https://powerline.net.in/2025/03/07/high-efficiency-levels-tapping-bagasse-based-cogeneration-plants-to-add-to-indias-renewable-power/) Power Line, 2025
7. [Green frontiers: increasing scope of bioenergy in the energy transition (MNRE data, October 2025) (trade press)](https://renewablewatch.in/2025/12/02/green-frontiers-increasing-scope-of-bioenergy-in-the-energy-transition/) Renewable Watch, 2025
8. [Order No. 02 of 2025: determination of tariff for procurement of power from biomass and bagasse based cogeneration projects (control period 2023-27)](https://gercin.org/wp-content/uploads/2025/03/Order-No.-02-of-2025.pdf) Gujarat Electricity Regulatory Commission, 2025
9. [Sugar season 2026-27 begins on schedule; 107 mills start crushing (ISMA statement)](https://www.businesstoday.in/latest/economy/story/sugar-season-2026-27-begins-on-schedule-107-mills-start-crushing-isma-expects-stable-prices-563793-2026-10-26) Business Today, 2026
10. [Valmet to deliver a new recovery boiler and an ash crystallization plant to Klabin's Monte Alegre mill (press release)](https://www.valmet.com/news/press-releases/2024/valmet-to-deliver-a-new-recovery-boiler-and-an-ash-crystallization-plant-to-klabins-monte-alegre-mill-modernization-project-in-brazil/) Valmet, 2024
11. [Valmet's technology plays key role in Metsa Group's Aanekoski bioproduct mill (2017, dated)](https://bioenergyinternational.com/valmets-technology-plays-key-role-metsa-groups-aanekoski-bioproduct-mill/) Bioenergy International, 2017
12. [Rupee rises 15 paise to close at 95.35 against US dollar](https://deccanherald.com/business/markets/rupee-rises-15-paise-to-close-at-9535-against-us-dollar-4094458) Deccan Herald, 2026
13. [EUA trading in very narrow range awaiting news from ETS revision; moves driven by gas price](https://www.cemnet.com/News/story/182273/eua-trading-in-very-narrow-range-awaiting-news-from-ets-revision-moves-driven-by-gas-price.html) CemNet (International Cement Review), 2026
14. [Price of CBAM certificates](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/price-cbam-certificates_en) European Commission, Taxation and Customs Union, 2026
15. [Compliance obligations under India's Carbon Credit Trading Scheme enter into force for seven sectors](https://icapcarbonaction.com/en/news/compliance-obligations-under-indias-carbon-credit-trading-scheme-enter-force-seven-sectors) International Carbon Action Partnership (ICAP), 2026
16. [Unlocking Ambition for India's Carbon Credit Trading Scheme (Anirudh TR)](https://climateriskhorizons.com/app/uploads/2026/07/CCTS-Report_WebsiteDraft_28.07.26-1.pdf) Climate Risk Horizons and Energy Transition Ventures, 2026
17. [CO2 Baseline Database for the Indian Power Sector, User Guide Version 20.0 (FY 2023-24)](https://cea.nic.in/wp-content/uploads/2021/03/User_Guide_Version_20.0.pdf) Central Electricity Authority, Government of India, 2024

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_bio_cogen/index.md)
- [Overview](https://www.materialinsights.org/energy/e_bio_cogen/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_bio_cogen/correlation/index.md)
- [Science and thermodynamics](https://www.materialinsights.org/energy/e_bio_cogen/rc-sci/index.md)
- [Engineering and integration](https://www.materialinsights.org/energy/e_bio_cogen/rc-eng/index.md)
- [Economics and contracts](https://www.materialinsights.org/energy/e_bio_cogen/rc-econ/index.md)
- [Impact and additionality](https://www.materialinsights.org/energy/e_bio_cogen/rc-impact/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_bio_cogen/links/index.md)