Bagasse mainly consists of hemicellulose and cellulose thus allowing significant amounts of chemical energy to be stored in its bonds. This paper outlines the use of this chemical energy as heat which could be supplemented for coal in boilers or in the production of electrical energy. When bagasse is ignited, a large amount of this chemical energy is lost in the form of radiation, ash as well as flue gas. A small portion of chemical energy is converted to heat energy which is such to heat the water or substance. This paper will measure this energy that is released in the form of heat energy or the efficiency of the chemical energy in bagasse. This will be conducted by using an adiabatic wall to thermally isolate the system of the ignited bagasse and water to prevent the escape of heat. This will then be compared to coal, a commonly used fuel and will be used to derive the cost/kJ for each respective fuel.