New government study puts cogeneration potential at 10.2GW

Monday, Oct 20, 2008

Mexico has a maximum feasible cogeneration potential of 10.2GW between the country's industrial sector, state oil company Pemex and sugar producers, general director of Mexico's power savings commission Conae, Emiliano Pedraza, said in a presentation.

Industry presents the greatest opportunity for cogen development, with a feasible 6.09GW capacity assuming industries are allowed to inject excess power into Mexico's SEN grid, according to the presentation, which cited a new government study.

Without injecting excess energy, industries would have a theoretical potential of 2.63GW, a technically feasible potential of 2.29GW (only including projects that could have a cogen efficiency greater than 65%), and an economically feasible potential of 1.99GW.

There is currently a 20MW limit for injecting power from private cogen into SEN, Pedraza said. For its part, Pemex has a cogen potential of 3.1GW.

Pemex is currently developing a 300MW cogen project for its Nuevo Pemex gas processing complex in Tabasco state. It is also studying a 550MW cogen project for its Salamanca refinery in Guanajuato state.

Beyond that, the firm could develop cogen projects at its Tula refinery in Hidalgo state (350MW), Salina Cruz refinery in Oaxaca state (350MW), Morelos petrochemicals complex (CPQ) in Veracruz state (400MW), Cangrejera CPQ in Veracruz state (350MW), Madero refinery in Tamaulipas state (350MW), Cadereyta refinery in Nuevo León state (350MW) and Atasta gas-processing center in Campeche state (100MW), according to the study.

Cogen would be used by Pemex for self-supply to increase efficiency and replace old installations through 2012. After that, Pemex could begin injecting power into SEN. The projects for SEN would require joint development frameworks between Pemex and state power company CFE.

Finally, Mexico's sugar industry would have a 979MW cogen potential using bagasse as feedstock for generation, Pedraza said.

Sugar producers would not face the restriction in injecting excess power into SEN as each company's capacity would be less than 20MW, a Conae spokesperson told BNamericas.

All companies - including Pemex - that inject power from cogen into the grid would need to sign interconnection contracts with CFE, the spokesperson said.