Phase 2 — 2004

During the harvest season of the year 2004, higher capacity and efficiency is reached through the acquisition of another 15 MW turbo generator, another 65 bar boiler, again targeting a steam consumption at 400 kg per ton of sugarcane crushed. The forecast is to produce around 216 GWh of clean energy annually to supply the regional grid.

Second phase investments are expected to reach approximately US$ 13 million. The investment to increase efficiency is dependent also on the expansion of sugar production. The financial support from certified emissions reductions (CERs) is

CPFL is a leading energy distributor in the State of Sao Paulo.

helpful in improving the mill competitiveness and enhancing the sustainability of the project as a whole.

Considering that the cogeneration depends on the biomass supply to the sugar mill boilers if, for some reason, agricultural operation or transportation is disrupted, the sugarcane will not reach the sugar mill and the boilers will not be able to produce the steam required. For this reason, the expansion plans for energy generation at Santa Elisa come together with significant investments in the sugar production process. The idea is to reduce steam consumption in the sugar production process to release as much as possible to cogeneration.