The proposed small-scale project activity regards the installation of a 3.4 MW biomass cogeneration plant at the PALCASA palm oil mill, which will increase the electricity generation capacity and will dispatch surplus electricity to the Honduran grid. This dispatch of electricity generated from biomass will reduces greenhouse gas (GHG) emissions by substituting fossil fuel generated electricity in the grid. The dominant means of electricity generation in the Honduran grid is through fossil fuel fired power plants.

For the cogeneration residues from the palm oil production process: palm fruit fiber and palm kernel hulls, known fuels, are utilised. Apart from these known fuels Oil Palm empty fruit bunches and switchgrass (graminae) will be utilized. This is technically difficult and an innovative feature for renewable biomass cogeneration in Honduras. The technical experiences of the EECOPALSA biomass project will contribute to the development of renewable energy in Honduras.