Tea factories target carbon credit cash with green energy schemes

Four tea factories under the Kenya Tea Development Agency (KTDA) in Nyeri County are set to venture into a multi-million shilling hydro-electric power project.

Under the renewable energy project which has seen almost all KTDA-managed factories venture into small hydro electricity generation, the four plants will invest Sh1.3 billion in the venture.

Chinga, Gathuthi, Gitugi and Iria-ini tea factories have already signed a contract with VS Hydro, a Sri Lankan company, to embark on the project at Gura River.

The agency’s board chairman Peter Kanyago said the ground-breaking ceremony would be held on Friday.

Speaking at the weekend after attending a zonal meeting of directors at Ragati Tea Factory in Karatina, Mr Kanyago said this would be a milestone for tea farmers in the region.

He said the hydro-power plant, which is expected to generate five megawatts would cut energy costs and in turn boost farmers’ income.
Mr Kanyago that said all they need is 2.8 megawatts for the four factories; hence the rest would be sold to Kenya Power.

“We have already signed the supply agreement with KPLC,” said Mr Kanyago.

Ragati Tea Factory in Nyeri is the only one not under Gura hydro-power project, but it is partnering with other tea factories in Kirinyaga County.

Ragati Tea Factory chairman Eustace Karanja said plans for their own hydro power project were in the pipeline.

“Preparations are in the final stages and we are tendering at a cost of Sh600 million,” said Mr Karanja.

The agency is encouraging tea factories to develop their own renewable sources of energy to cut down on electricity costs.

It has also advised factories to acquire 600 acres of land to establish tree plantations to serve as a source of renewable energy for boilers used to dry green tea.

Currently, the factories are spend Sh9 per kilogramme on energy and this is expected to reduce once the power project is completed.

In addition, the factories have signed agreements with various authorities for carbon credit payments because of using green energy.

There are 65 tea factories affiliated to KTDA and most of them have achieved 50 per cent compliance. In Meru County, almost all of the tea factories have achieved 100 per cent compliance, said Mr Karanja.

The agency said that at least 20 per cent of factories had acquired the land to plant indigenous trees for energy supply. “These trees will be for own fuel wood as well as for conserving the environment,” said Mr Kanyago.

Through Rainforest Alliance, an initiative of the agency, tea farmers are being trained on good agricultural practices to conserve the environment, he added.

With environmental conservation in mind, farmers would be able to achieve good crop and this would cushion them from adverse weather and increasing cost of inputs.

“It is climate change which is causing this adverse weather, but with the good crop husbandry we cannot have this adverse weather. We are urging farmers not to cultivate on river banks, to plant indigenous trees and this will help in environmental conservation,” said Mr Kanyago.