Chile’s industrial sector continues to rely on fossil fuels for heat generation, contributing to national greenhouse gas emissions. The activity consists in the transition from coal to renewable biomass for industrial heat generation at the IANSAGRO S.A. Ñuble sugar plant, located in San Carlos, Ñuble Region, Chile. Two coal-fired boilers, each with a capacity of 35 tons of steam per hour, will be replaced by a new biomass boiler capable of producing 70 tons of steam per hour at 47 bar and 450 °C.

The new system will employ 100% untreated forestry biomass residues from nearby wood industries. These residues – sawdust, bark, shavings and woodchips – come exclusively from commercial activities in the nearby area including sawmill industry and harvesting of commercial plantations regulated by CONAF (Chilean National Forest Corporation), ensuring no impact on native forests. Furthermore, there is an oversupply of wood residues in the region beyond the mitigation activity’s demand.

The boiler will be equipped with the best available technologies (BAT) for emissions control, including an electrostatic precipitator (98% efficiency) and a selective non-catalytic reduction (SNCR) system. Diesel will be used only for startup and emergency operations.

The activity generates emission reductions that are additional to those accounted for in Chile’s NDC, contributing to both GHG emission reduction and black carbon abatement. By replacing coal with renewable biomass and implementing advanced particulate controls, the activity will significantly reduce black carbon and air pollutants, hence improving air quality and health in the surrounding community.

Implementation and operation are led by IANSA, with the company Thenergy responsible for monitoring, reporting and verification (MRV). Thenergy was also responsible for project structuring and provided technical support throughout the carbon asset development process. The KliK Foundation will purchase the resulting emission reductions (ITMOs) under the Chile-Switzerland bilateral agreement to make the activity financially viable. Financial analysis shows that without ITMO revenues, the activity would not meet internal investment criteria and its implementation would face significant hurdles. ITMO revenues serve as both an enabler and an accelerator, breaking down barriers, reducing financial uncertainty and ensuring the long-term success of the biomass transition initiative at IANSAGRO S.A. Ñuble factory.

Beyond GHG mitigation, the activity generates major environmental and social co-benefits:

• Air quality and black carbon mitigation: Replacing coal with renewable biomass and implementing high-efficiency air emission controls will reduce black carbon and air pollutants (PM₂.₅, SOₓ and NOₓ), thereby improving local air quality while going beyond Chile’s NDC target of reducing black carbon emissions by 25% by 2030.

• Job creation and skills transfer: New employment in biomass logistics, operations, and maintenance; capacity building in renewable heat technologies.

• Circular economy: Valorisation of forestry residues and promotion of local biomass markets within a regulated and sustainable supply chain.

• Noise reduction and community well-being: Modern boiler design reduces operational noise and dust emissions.

The activity supports the following Sustainable Development Goals (SDGs):

• SDG 3 (Good Health and Well-Being): Lower black carbon and air pollutant emissions.

• SDG 7 (Affordable and Clean Energy): Renewable thermal energy generation.

• SDG 9 (Industry, Innovation and Infrastructure): Retrofit of fossil infrastructure with clean technology.

• SDG 11 (Sustainable Cities and Communities): Improved air quality in urban and rural areas.

This activity is implemented in Chile, where biomass from wood industries is regulated by CONAF (Corporación Nacional Forestal) and SAG (Servicio Agrícola y Ganadero) to ensure sustainable sourcing. The activity complies with national environmental regulations and has received approval through an Environmental Qualification Resolution (RCA). It contributes to Chile’s climate goals, supporting additional emission reduction beyond the targets outlined in the country’s NDC. Stakeholder engagement was conducted through a formal Citizen Participation Process (PAC), ensuring transparency and local involvement.