By George Omondi, gmondi@ke.nationmedia.com
In Summary
- US firm building Sh1.9bn biomass plant in Baringo to produce 12 megawatts.
- At full operation, the firm expects to produce 12MW of power to be connected to the national grid.
- The company estimates that each megawatt of more than 800 farmers meaning it has to contract at least 9,600 farmers in Baringo County.
The Baringo-based Cummins Cogeneration Kenya is set to start its first phase of power production in June after securing a power purchase agreement with Kenya Power.
The subsidiary of the US-based Cummins Limited is
signing contracts with farmers to grow and supply Prosopis juliflora
(known locally as Mathenge) weeks after Kenya Power offered to buy its
power at its predetermined rates.
“We share the government’s vision of reducing cost
of electricity but the contract that we have negotiated with the
community is such that any future review of the feed-in tariffs will go
straight to farmers.” Cummins (UK) CEO Rishi Chandra said on Tuesday
during groundbreaking ceremony for the power plant’s construction.
The Power Purchase Agreement (PPA) was facilitated
by the USAID under President Obama’s power Africa initiative which
seeks to mobilise Sh85 billion to lower the cost of electricity in
Kenya.
“The biomass plant represents new development
approach that leverages public-private partnerships to deliver
measurable results,” said USAID’s associate administrator Mark
Feierstein
.
.
Sh1.9 billion will spent in setting up the biomass
plant on 15 acres in Marigat area of Baringo where the invasive
Mathenge plant is widespread.
At full operation, the firm expects to produce
12MW of power to be connected to the national grid. The company
estimates that each megawatt will take yields from more than 800 farmers
meaning it has to contract at least 9,600 farmers in Baringo County.
“This is our first biomass project in sub-Saharan
Africa and the first one that will benefit communities directly,” Mr
Chandra said, contrasting the Baringo project with similar ventures
elsewhere that has seen the company only signing big oil and gas
companies.
On average, a farmer from the county is expected
to earn about Sh80,000 per year from Mathenge tree over the 20 years the
company will be operating in the region. In addition, a total of 2,500
workers will be hired directly by the company to run its operations, the
executives said.
Mr Chandra said the company would be using biomass
gasification method that converts the supplied mathenge plant into
electricity, waste heat and residual char
.
.
The market for electricity has been secured at
Kenya Power but the company still has to find market for waste heat in
the country’s agricultural sector and residual char, which is usually
used as water filtration medium or as fertiliser.
The company hopes to generate a revenue stream of
about Sh680 million each year with electricity generating the bulk with
charcoal, carbon credits and cold storage space generating additional
Sh170 million.
‘Mathenge’ was introduced in arid and semi-arid
lands in the early 1980s to fight desertification but soon took up vast
swathes of land.
It became a subject of national debate six years
ago after members of the Ilchamus community from Baringo dragged a
toothless goat to High Court to seek compensation from government,
saying the weed was destroying their source of livelihood.
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