Mpanga Growers Tea Factory Ltd

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1 Mpanga Growers Tea Factory Ltd Transition to Green Business Through DSM of Energy Use under Switch Africa Green Project 1

2 Backgroud: Mpanga Growers Tea Factory is located Kabarole, district Western Uganda (Rwenzori foothills) Established in 1966 and incorporated in 1995 Company Website ( ) No of smallholder out-growers 1,300 No of Employees Women 73, Men 267 MGTF supports over 10,000 livelihoods 2

3 Background cont. Tea is nearly 5,000 years old and was discovered, as legend has it, in 2737 B.C. by a Chinese emperor when some tea leaves accidentally blew into a pot of boiling water. In the 1600s, tea became popular throughout Europe and the American colonies. Now, tea is a wonderful beverage consumed and acceptable anytime all times throughout the world and grown widely in countries of Asia, Africa and the Near East. 3

4 Background cont. Uganda is among leading producer and exporter of tea in Africa (73MT) after Kenya (436.MT) and Malawi (48MT) Tea covers an area of about 31,000 hectares (76,600 acres) of the suitable fertile land for tea estimated at over 200,000 ha countrywide The crop is grown by large estates (46 percent of production) and small growers organized as either small estates affiliated with particular tea factory or small scale outgrowers producing 54 percent of the tea. The tea industry employs over 62,000 people, supporting more than 500,000 dependants in Uganda. 4

5 TEA INDUSTRY CONCERNS The small tea growers segment is ill-equipped to address the social, economic and environmental responsibilities at the production level. It is important to empower this segment to respond to the preferences of consumers who seek environmentally, socially and ethically superior products. The poor energy generating and consumption systems affect various environmental components like air, land and water bodies, and also increases the final product cost. High dependence on Agro-chemicals use with related environment and ecosystem degradation concerns Solid waste (tea refuse, packaging materials, etc) and waste water disposal

6 Tea sector challenges Poor infrastructure Aging technologies Post harvest losses /waste generation Drought and unreliable weather 6

7 Sustainable consumption and production The tea industry is one of major agro-industrial sectors after coffee and cotton in Uganda; it is contributing to the national economy through potential employment creation and export earnings Tea processing is one of the energy intensive food processing industries consuming both thermal energy and electrical energy at a rate of 85:15. Energy costs constitute more than 30% of the total tea processing cost. Firewood is the main source of thermal energy used for tea drying. The challenges that the tea industry facing today could be broadly categorized into; high cost of production, low field and factory productivity, shortage of workers, Climate change especially unreliable rainfall and prolonged drought.

8 ENERGY EFFICIENCY AUDITS WITH HELP FROM SAG AND UCPC Energy Audit Team Assessing Power Quality at the Incomers 8

9 Energy Profile HEP Wood Diesel 4% 12% 84% 9

10 Base line Energy Performance Specific Total Energy consumption is currently at 4.8kWh/kg of Made Energy Productivity

11 Identified Energy Management Options Optimize use of day light Retrofit high energy consuming lights with Energy saving bulbs and LEDs Optimize the Withering through process control with use of VFDs to control flow of air Retrofits standard Motors with Efficient ones Improve power Quality with installation of Capacitor banks and harmonic filters Exploit use of solar energy in the withering section 11

12 Overloading of troughs leading inefficiencies in withering section Withering uses around 40% of a factory s total electricity consumption and over 50% of total thermal energy consumption (wood fuel from boilers), making it the most energy intensive process in the tea factory. To minimize energy consumption, fans and warm air use should be kept to a minimum. Poor withering practices Appropriate leaf handling 12

13 Storage of Fuel Wood Firewood is the main source of thermal energy used for tea drying. Poor firewood preservation Appropriate firewood management 13

14 Efficient boiler operation: Over 90% of tea factory energy requirements are for heat used in withering and drying. Ensuring maximum boiler efficiency can significantly reduce energy requirements and production costs. Un-quantified boiler feeding Vs Quantified and regulated boiler 14

15 Rural household energy access and use efficiency Firewood saving stoves Solar lighting for rural HH 15

16 Set targets towards Green Business Measure of progress Units targets Reduction In Energy Cost Reduction in GHG Emission Reduction in Cost Of Production Improved Energy Productivity Increase Number of farmers Served by the company Cost of Energy/Kg of Made Tea kgco 2 Eq/Kg of Made Tea UGX spent/kg of Made Tea kwh/kg of Made Tea Number of farmers 40% 35% 15% 45% 5% 16

17 OTHER AREAS OF SUSTAINABLE CONSUMPTION AND PRODUCTION IN TEA SECTOR INCLUDE: Water resources conservation through rain water harvesting and natural water sources protection 17

18 MGTF encouraging out growers to diversify agricultural production and improve household food security 18

19 Training farmers and company employees on household nutritional improvement methods 19

20 On waste management; we are doing a research about Use of tea waste and livestock to produce compost for crop production 20

21 Adopted actions to address Energy Efficiency Adoption of Energy Policy Integrated Energy Management in Management of the company Reviewed the procurement policy to include sustainability and energy efficiency Repaired of Electric Generator to improve its efficiency and functionality Installation of Efficient of Motors on the Drier 21

22 Long term Plan EMO Equipment suppliers UGX Estimated investment UGX Estimated Saving Pay Back Period Reduction in GHG Emissions Kg CO 2 Kg N 2 Oe Kg CH 4 Exploit of use solar energy for withering Solar Every Day Ltd 2,100,000,000 TBD TBD CHP from Biowood by installing Circulating fluidized bed, dual vessel, Gasifier Agri Power Pacific Incorpora ted 3,500,000,000 TBD TBD

23 Proposed CHP Boiler from Agri Power Pacific 23

24 Thank You Kaihura George Tel