Paper mill recovery hinges on cheaper energy

In the other six sugar companies, bargassee is either used to produce small amounts of electricity, like in Chemilil Sugar Company or thrown away.

Pan Paper Mills, now renamed Webuye Paper Mills, can take advantage of this availability of the raw material to either manufacture paper or generate electricity or do both.

Other raw materials that the factory can use to produce paper include straws of rice and wheat, which can also be easily obtained from the region.

Rice is grown at Ahero Irrigation Scheme in Nyanza and in Mwea Irrigation Scheme in greater Kirinyaga.

Rice straws have a fibre recovery rate of 85 per cent.

Wheat is grown in the Rift Valley, which borders Webuye.

The use of bargasse will also help open new income streams for the cash-starved sugar factories and farmers.

Using bargasse gives the factory opportunity to cut its energy costs by up to 30 per cent.

The residue from use of agricultural waste can be converted into fertiliser, which is beyond the reach of many farmers.

Bargasse has fibre recovery rate of 87 per cent, making it more competitive than wood, whose fibre recovery rate is slightly above 90 per cent.

So, shouldn’t the government have used the money it has committed to first acquire the technology to enable the factory use sustainable raw materials to make paper and produce its own electricity instead of taking a politically correct decision?

President Kibaki on Thursday told the Ministry of Finance to release Sh500 million that will be used to immediately revive the company and a further Sh1.1 billion to be set aside in the coming budget.

The company will have its name changed from Pan Paper Mills to Webuye Paper Mills.

Its reopening is a major win for the country because of employment opportunities and savings on foreign currency that had been used to import paper.

It is a win for companies like Tetra Pak, which sourced substantial volume of its raw materials from the company.