Mumias EIA

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Environmental Assessment Project Report Mumias Sugar Cogeneration Project

TABLE OF CONTENTS

1. ENVIRONMENTAL ASSESSMENT OBJECTIVES AND SCOPE OF WORK .....6

1.1. Introduction .............................................................................................................................................6

1.2. Assessment Objectives.............................................................................................................................6

1.3. Scope.........................................................................................................................................................6

1.4. Terms of Reference..................................................................................................................................7

1.5. Responsibilities ........................................................................................................................................7

1.6. Methodology Outline...............................................................................................................................7

1.6.1. Environmental Screening...............................................................................................................8

1.6.2. Environmental Scoping..................................................................................................................81.6.3. Desk Study .......................................................................................................................................8

1.6.4. Baseline Data/Information Gathering...........................................................................................8

1.6.5. Site Assessment ...............................................................................................................................81.6.6. Reporting .........................................................................................................................................8

2. POLICY AND LEGAL FRAMEWORK ...............................................................9

2.1. General Overview....................................................................................................................................9

2.2. Policies ......................................................................................................................................................9

2.2.1. National Environment Action Plan (NEAP).................................................................................9

2.2.2. National Policy on Energy..............................................................................................................9

2.2.3. Kenyan Economic Strategy for Wealth and Employment Creation (2003-7) .........................102.2.4. Policy Guidelines on Environment and Development ...............................................................10

2.3. Legal Aspects .........................................................................................................................................102.3.1. The Environment Management and Co-ordination Act, 1999 .................................................102.3.2. Electric Power Act, 1997 ..............................................................................................................11

2.3.3. The Factories Other Places of Work Act (Cap 514) ..................................................................11

2.3.4. The Water Act 2002......................................................................................................................122.3.5. The Public Health Act (Cap. 242)................................................................................................12

2.3.6. Local Government Act (cap 265).................................................................................................132.3.7. The Sugar Act ...............................................................................................................................13

2.3.8. EIA/ EA Regulations ....................................................................................................................14

3. BASELINE INFORMATION & DATA...............................................................15

3.1. Existing Boiler and Turbine Configuration ........................................................................................15

3.2. Project Site and Topography................................................................................................................15

3.3. Drainage System and Hydrology..........................................................................................................16

3.4. Vegetation...............................................................................................................................................16

3.5. Rainfall and Climate .............................................................................................................................16

3.6. Soils.........................................................................................................................................................16

©Prepared By Environmental Cost Management Centre 2006 2

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3.7. Water Resources....................................................................................................................................16

3.8. Bio-diversity ...........................................................................................................................................17

3.9. Air Quality .............................................................................................................................................17

3.10. Land Use Activities................................................................................................................................17

3.11. Areas of Cultural Importance ..............................................................................................................17

3.12. Environmentally Sensitive and/or Significant Areas..........................................................................17

3.13. Economic Development.........................................................................................................................18

3.14. Social Issues............................................................................................................................................18

4. PROJECT DESCRIPTION AND MAGNITUDE OF OPERATIONS ..................19

4.1. General Description, Ownership and Project Location .....................................................................19

4.2. Nature of the Project and Proposed Development .............................................................................19

4.3. Site Description......................................................................................................................................21

4.4. Project Design and Technology............................................................................................................21

4.5. Process Description................................................................................................................................22

4.6. Sources of Raw Materials .....................................................................................................................22

4.7. Waste Generation..................................................................................................................................23

4.8. Project Construction .............................................................................................................................23

4.8.1. Construction Inputs......................................................................................................................23

4.8.2. Construction Activities .................................................................................................................234.8.3. Current Status of the Project and Construction Period............................................................23

4.9. Project Implementation and Operation...............................................................................................24

4.10. Project Budget .......................................................................................................................................24

4.11. Project Lifetime and Decommissioning ...............................................................................................24

5. ANALYSIS OF ENVIRONMENTAL IMPACTS ................................................25

6. STAKEHOLDER COMMENTS .........................................................................25

7. ENVIRONMENTAL MANAGEMENT PLAN....................................................27

8. CONCLUSION...................................................................................................30


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EXECUTIVE SUMMARY

Mumias Sugar Company Limited is a registered agro based public company in Kenya21, involved in growingand crushing sugar cane to produce sugar. The company ownership is as follows:

1. 34% by the Government of Kenya2. 30% by farmers3. 4% by Commonwealth Development Corporation4. The balance by other shareholders.

The company, which started production in 1972 after completing construction in 1968, is located in Butere-Mumias District along the Kakamega Bungoma Road, 38 kilometres west of Kakamega town and 23 kilometressouth of Bungoma town at the Busia Junction on plot No. FR/257/12 with a total area of 4,295 hectares.

The objective of the project is to satisfy the ever increasing demand for electricity in Kenya with a cleanalternative to the more fossil-fuel based electricity component of the Kenyan national grid. The project aims togenerate not less than 30 MW of electricity, with not more than 10 MW internal consumption by the factory, andat least 20 MW export to the national grid. The project is to be located in Mumias Sugar Company, withinMumias town of Western Province of Kenya.

The proposed Clean Development Mechanism (CDM) project, the Mumias Sugar Cogeneration Project, is a power capacity expansion project involving the generation of electricity using sugarcane bagasse on site andconsisting of the following activities:

Interim installation of a 5 MVA transformer on the power export line to the Kenya Power & LightingCompany (KPLC) to facilitate 24 hour-a-day export of 2 MW up to commissioning.Installation of 1 new high pressure steam boiler (in the region of 150 t/hr steam at 87 barg pressure and 5250C) at Mumias Sugar Company Limited.Installation of a 22-34 MW turbo alternator to replace at least 3 of the existing 4 alternators at Mumias Sugar Company Limited.

The results of this study show that the proposed Mumias Sugar Cogeneration project does not have a potential

for serious negative environmental impacts. The project is siting within an existing factory and the specific areaalready has a suitable foundation built.

The project uses renewable waste to produce energy in Kenya where at least 50% of the energy is hydro basedand very susceptible to weather patterns. The other potion is significantly fossil fuel based thermal energy whichis prone to exchange fluctuations and other political instability in certain regions of the world. Energy sourcediversification is therefore very beneficial to the whole country.

The potential adverse environmental impacts such as ash, wastewater and particulate matter in flue gases have been adequately mitigated. Plans are also in place to adequately mitigate the health and safety impacts of the project.

From a socio-economic point of view, the project has significant economic benefits not only to the community

but also to the whole country.

21 Mumias Sugar Company changed from a parastatal to public company in 2002.


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The recommendations have been provided in the Environmental management Plan (Section 7) as proposedactions.

This report presents the findings under the following headings:

Environmental impact assessment objectives and scope Nature of the projectMethodologyPolicy and legal issuesBaseline conditions of the siteAnticipated environmental impactsConclusions and recommended mitigation measuresEnvironmental management planAnnexes


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1. ENVIRONMENTAL ASSESSMENT OBJECTIVES AND SCOPE OF WORK

1.1. Introduction

Mumias sugar factory crushes about 380 tonnes of cane per hour, resulting to generation of 967,781.25 tonnes of bagasse per year. A sizable volume of the bagasse is used for generationof electricity for internal use, while unused bagasse is transported to nucleus estates where itis dumped and left to decay. The bagasse which is dumped in the nucleus estates has somenegative effects on the environment during decomposition through emission of methanewhich increases global warming effect.

In order to utilise the excess bagasse and diversify revenue sources, the company would liketo set up a cogeneration project next to the existing sugar factory. The cogeneration projectwill utilise bagasse as raw materials to generate 30 MW of electricity. Of the 30 MWgenerated, 20 MW will be sold to the national grid while 10 MW will be used internally in thefactory and in the domestic areas.

It is recognised that projects such as the proposed cogeneration project by Mumias Sugar

Company Limited could have certain adverse environmental impacts if appropriate measuresto protect the environment are not undertaken.

In order to ensure lasting co-existence of the site activities with other social and economicactivities in the area, and compliance with the Environmental Management and CoordinationAct, 1999, the site operators commissioned this environmental assessment for the project.

1.2. Assessment Objectives

The objective of this assessment is to determine and assess the impacts of the proposed project and to develop appropriate mitigation measures. The assessment also aims to ensurecompliance with the provisions of the Environmental Management and Coordination Act,1999 and to prepare an Environmental Management Plan which can be used as the basis for

future audits.

1.3. Scope

The Kenya Government has put forward measures aimed at protecting the environment bylisting projects which must undergo environmental impact assessment under schedule 2 of EMCA 1999. For a proposed project to get a licence form NEMA, they are required to either submit a project or EIA report depending on the magnitude and nature of the project. ThisEIA report covers the following aspects of the proposed cogeneration project:

The baseline environmental conditions of the areaDescription of the nature and design of the projectDescription of the major activities at the site during construction, operation and

decommissioning phases of the projectProvisions of the relevant environmental lawsIdentification of materials to be used and by-products and wastesIdentification and discussion of the potential adverse impacts to the environment from thesiteEstablish appropriate mitigation measures for these impactsProvision of an environmental management plan.


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1.4. Terms of Reference

The terms of reference for the EIA included the following:Hold appropriate meetings with the management to establish the procedures, definerequirements, responsibilities, and a timeframeProvide a description of the nature, design, activities of the proposed Mumias Sugar Cogeneration Project with a focus on potential impacts to the surrounding environmentInspect the site and its surroundings in collaboration with the managementCarry out a systematic environmental assessment at the site following the gazettedregulationsConduct a stakeholder meeting for the identification of social and community concernsProduce an environmental assessment project report that should contain among other issues identification of key environmental aspects, recommendations on appropriatemitigation measure to minimize or prevent adverse impacts and ensure health and safetyof the workers and neighbouring communitiesDevelop an environmental management plan.

1.5. Responsibilities

While the environmental impact assessment expert provided the technical understanding onthe baseline environmental status, potential impacts, management options and legalframework, the client was provided the following:

Site map(s) showing roads, service lines, buildings layout and the actual size of the siteFull details of nature of the project, design, materials usage and by-products, siteoperational outline and any wastes to be generatedAnticipated measures for handling wastes on the siteAnticipated management programme for the proposed developmentArrangement with surrounding community/stakeholder meetings

The output from the environmental expert included the following:

An environmental impact assessment project report comprising of an executive summary,study approach, operational nature of the project, baseline conditions, impacts andappropriate mitigation measuresAn environmental management plan as part of the report recommendations

1.6. Methodology Outline

The general steps followed during the assessment were as follows:

Preliminary assessment of the siteEnvironment screening, in which the project was identified as among those requiring a project report under schedule 2 of Environmental Management and Coordination Act

(EMCA), 1999Environmental scoping that provided the significant environmental issues related to proposed project and the site activitiesDesk studies and interviews with the site managersDetailed physical inspection of the site and the surrounding areasCommunity/stakeholder comments gatheringReporting


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1.6.1. Environmental Screening

This step was applied to determine whether an environmental assessment project report wasrequired and what level of assessment was necessary. This was done in reference torequirements of the EMCA, 1999, and specifically the second schedule. Issues consideredincluded the physical location, sensitive issues, nature of the project, project design andnature impacts.

1.6.2. Environmental Scoping

The scoping process helped narrow down onto the most critical issues requiring attentionduring the assessment. Environmental issues were categorized into physical,natural/ecological, social, and economic aspects.

1.6.3. Desk Study

The desk study included documentary review on the nature of the site activities, projectdesign, operational requirements, policy and legislative framework as well as the

environmental setting of the area among others. It also included discussions with managersand staff.

1.6.4. Baseline Data/Information Gathering

Site information was gathered through observation and research. The site was visited for inspection of the physical environment and status of the immediate surroundings. A pre- prepared data sheet was used to record information gathered during the visit of the sites. Thefield data sheet addressed various aspects of the project site and the general environment andhad been adopted from the international environmental protocol then adjusted to incorporateissues listed in the EIA regulations in the Kenya Gazette Supplement No. 56 of 13th June2003.

Project design documents, including main drawings, were reviewed. Physical investigationtook into consideration the relatively benign sea environment where the cogeneration plantwill be located. The hydrology and surface geology of the area, the drainage system, and thetypical socio-economic activities around the site were investigated. Also investigated were the public services provided in the area including the drainage systems, water supply/abstractions,and access roads.

1.6.5. Site Assessment

Field visits were meant for physical inspections of the site characteristics and theenvironmental status of the surrounding areas to determine the baseline data and potentialimpacts. The assessors were conducted around the site by a manager of the company.Community/stakeholder consultation comments were also solicited during this stage through

stakeholders meeting at Mumias.

1.6.6. Reporting

In addition to briefing the management, this project report was prepared. The contents werethen presented to the client for submission to the National Environmental ManagementAuthority (NEMA) as required by law.


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2. POLICY AND LEGAL FRAMEWORK

2.1. General Overview

Environmental impact assessment (EIA) is a tool for environmental conservation and is usedfor the identification of significant environmental aspects and impacts of proposed projectswhich when addressed ensure sustainable operations with respect to environmental resourcesand co-existence with other socio-economic activities in the neighbourhood. At the nationallevel, Kenya has put in place necessary legislation that requires environmental impactassessments to be carried out on specified types of operations and projects and reports to besubmitted to the National Environment Management Authority (NEMA) for approval andissuance of relevant licences.

To facilitate this process, regulations on EIA and environmental audits have been establishedunder the Kenya Gazette Supplement No. 56 of 13th June 2003. Besides, a number of other national policies and legal statutes have been reviewed to enhance environmentalsustainability in national development projects across all sectors. Some of the policies andlegal provisions that are deemed relevant to the proposed project are briefly presented in the

following sub-sections. For the purposes of this report, emphasis has been put on those policies and legal provisions that relate to the design, installation and operation of the proposed facilities. Detailed and more comprehensive review will be conducted during thefull environmental impact assessment of the proposed project.

2.2. Policies

2.2.1. National Environment Action Plan (NEAP)

According to the Kenya National Environment Action Plan (NEAP, 1994) the Governmentrecognized the negative impacts on ecosystems emanating from industrial, economic andsocial development programmes that disregarded environmental sustainability. Following onthis, establishment of appropriate policies and legal guidelines as well as harmonization of the

existing ones have been accomplished and/or are in the process of development. Under the NEAP process, EIA was introduced and among the key participants identified were theindustrialists, business community and local authorities.

2.2.2. National Policy on Energy

The National Policy on Energy, Sessional Paper 4 of 2004 recognises that the success of socio-economic and environmental transformation strategies pursued by the government at present and in the future is to a large extent depended on the performance of the energy sector as an economic infrastructure. The paper encourages the use of environmentally friendly andefficient technology for the generation of electricity; and the generation of electricity fromrenewable energy sources through a wider adoption and use of renewable technologies andthereby enhance their role in the countrys energy supply matrix. This enhancement will

reduce the countrys dependence on oil based thermal generation.

The proposed project is therefore in line with the policy.


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2.2.3. Kenyan Economic Strategy for Wealth and Employment Creation (2003-7)

The strategy also identifies implementation of cogeneration (renewable sources of energy) projects as part of the key reforms necessary in the energy sector, which is in line with the posed project. The proposed project will improve the revenue base of Mumias Sugar Company with possible improvement in income of sugarcane farmers and increased jobcreation in the region. At the same time the project will lead to economic improvement of thecountry through increased power availability.

2.2.4. Policy Guidelines on Environment and Development

Among the key objectives of the Policy Paper on Environment and Development (SessionalPaper No. 6 of 1999) are:

To ensure that from the onset, all development policies, programmes and projects takeenvironmental considerations into account,To ensure that an independent environmental impact assessment (EIA) report is preparedfor any industrial venture or other development before implementation,To come up with effluent treatment standards that will conform to acceptable health

guidelines.

Under this paper, broad categories of development issues have been covered that requiresustainable approach. These issues include the waste management and human settlementsectors. The policy recommends the need for enhanced re-use/recycling of residues includingwastewater, use of low non-waste technologies, increased public awareness raising andappreciation of clean environment. It also encourages participation of stakeholders in themanagement of wastes within their localities. Regarding human settlement, the paper encourages better planning in both rural and urban areas and provision of basic needs such aswater, drainage and waste disposal facilities among others.

The proposed project conserves water through use of high pressure technology and recycling, both of which support this policy guideline. Provisions will be mage for safe disposal of the

ash generated from the project.

2.3. Legal Aspects

Application of international conventions and national statutes and regulations onenvironmental conservation and pollution prevention suggests that organisations have a legalduty and responsibility to conserve resources and discharge only wastes of acceptable qualityto the receiving environment and without compromising public health and safety. The keyinternational and national laws of relevance that govern the management of environmentalresources in the country have been briefly discussed in the following paragraphs. Note thatwherever any of the laws contradict each other, the Environmental Management and Co-ordination Act, 1999 prevails.

2.3.1. The Environment Management and Co-ordination Act, 1999

This Act has sections which regulate the environmental aspects of the energy sector. Part II of the Environment Management & Co-ordination Act, 1999 states that every person in Kenya isentitled to a clean and healthy environment and has the duty to safeguard and enhance theenvironment.


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To achieve this, the Act directs that any operator of any proposed significant undertakingshould carry out an environmental impact assessment and prepare an appropriate report for submission to the National Environmental Management Authority (NEMA), who in turn mayissue a license as appropriate.

The second schedule of the same Act lists management of power projects among the projectsthat must undergo an environmental impact assessment before implementation.

Part VIII section 72 of the Act prohibits discharging or applying poisonous, toxic, noxious or obstructing matter, radioactive or any other pollutants into aquatic environment. Section 73requires those operators of projects, which discharge effluent or other pollutants to submit to NEMA accurate information about the quantity and quality of the effluent. Section 80demands that all owners of an industrial establishment or trade emitting a substance or energycausing or likely to cause air pollution to apply for an emission license from the Authority.However, NEMA has not yet established the emission standards.

Cogeneration projects are renewable sources of energy which utilise bagasse, a sugar cane processing by-product. The waste generated is mainly ash with significant boiler emissionsfrom the stack. The technology to be applied will ensure safe disposal of the ash and adequate

cleaning of the flue gases.

2.3.2. Electric Power Act, 1997

Section 121 (1) c of the Electric Power Act, 1997 empowers the Electricity Regulatory Board(ERB) to enforce environmental and safety regulations in the power sub-sector ; ERB istherefore the Lead Agency in respect of the electric power sub-sector, while section 9 (3) of the requires ERB to take into account the need to protect the environment, conserve naturalresources, and protect the health and safety of service users and the public at large, amongother things; when evaluating applications for licences.

The Act also empowers the board to ensure the licensees provide information to the public onthe environmental performance and sources of their electric power.

To ensure compliance, a copy of this EIA report will be issued to the ERB to verifyconformance before issuing of the licence.

2.3.3. The Factories Other Places of Work Act (Cap 514)

Section 13 states that every factory shall be kept in a clean state and free from effluvia arisingfrom any drain, sanitary convenience or nuisance including accommodation of dirt and refuse.Section 17 of the same Act requires that where any process is carried out which renders thefloor liable to be wet to such an extent that the wet is capable of being removed by drainage,effective means shall be provided and maintained for safe draining off the wet. Section 51requires suitable means of removing dust or fumes from work places. Section 53 of this Actrequires that workers employed in a process involving exposure to wet or to any injurious or

offensive substances, suitable protective clothing and appliances (gloves, footwear, goggles,and head coverage) shall be provided.

Section 4 of Kenya subsidiary legislation of 2004, Legal Notice No. 31 of Kenya GazetteSupplement No. 25 of 24th May, 2004 of the Factories Act Cap 514, requires that, allfactories or other workplace owners to establish a safety and health committee, which shallconsist of safety representatives from the management and the workers.


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The number of the committee members will range from 3 to 7 depending on the size (number)of employees. The Act also requires the management to appoint a competent person who is amember of the management staff to be responsible for safety, health, and welfare in thefactory or workplace. Section 13 goes ahead to state that a health and safety audit of theworkplace be carried out in every twelve months by a registered health and safety adviser. If the owner(s) or management contravenes any of the rules, he/she shall be guilty of an offence.

Under environment health and safety performance in the electric power sub-sector, theelectricity generating stations are regarded as factories. The Factories Act has provisionsdealing with the safety and health of persons working in factory premises, which descriptionencompasses electricity generating plants. The provisions of the Factories and Other Places of Work Act (Cap 514) and the attendant subsidiary legislations are enforced by the Departmentof Occupational Health and Safety of the Ministry of Labour. The Electricity RegulatoryBoard will therefore liaise with the Department of Occupational Health and Safety to ensurethat the safety and health of persons working in utilities in the electric power sub-sector aresafeguarded at all times.

Mumias cogeneration project will be governed by this Act and since the project deals with power generation, appropriate measures will be put in place to ensure safety of workers and

property as a whole. Since Mumias Sugar Company already complies with this the provisionsof this Act, it will extend to the Cogeneration Plan.

2.3.4. The Water Act 2002

Part II section 18 of the Act provides for national monitoring and information systems onwater resources. Following on this, sub-section 3 allows the Water Resources ManagementAuthority to demand from any person or institution, specified information, documents,samples or materials on water resources. Under these rules, specific records may need to bekept by a factory operator and the information thereof furnished to the authority.

Section 73 of the Act allows a person with license (licensee) to supply water to makeregulations for purposes of protecting against degradation of water sources. Section 75 and

sub-section 1 allows the licensee to construct and maintain drains, sewers and other works for intercepting, treating or disposing of any foul water arising or flowing upon land for preventing pollution of water sources within his/her jurisdiction.

The proposed project will decrease water demand from the current rates because less steamwill be generated. During the operation of the project, any boiler blow downs will be routedto the existing waste water treatment plant. In addition, sugar cane processing generates netwater and therefore the project will not adversely affect the water quantity in the river.

2.3.5. The Public Health Act (Cap. 242)

Part IX section 115 of the Act states that no person/institution shall cause nuisance or condition liable to be injurious or dangerous to human health. Section 116 requires Local

Authorities to take all lawful, necessary and reasonably practicable measures to maintain their jurisdiction clean and sanitary to prevent occurrence of nuisance or condition liable for injurious or dangerous to human health.


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Mumias Sugar Company already operates in compliance with the provisions of this Act. Theywill therefore continue to do so even in the context of cogeneration. There have been requests by stakeholders that the company should consider reviewing the farmer payment terms toreflect the increased earnings from the sugar cane crop.

2.3.8. EIA/ EA Regulations

The environmental impact assessment guidelines require that the study be conducted inaccordance with the issues and general guidelines spelled out in the second and thirdschedules of the regulations. These include coverage of the issues on schedule 2 (ecological,social, landscape, land use and water considerations) and general guidelines on schedule 3(impacts and their sources, project details, national legislation, mitigation measures, amanagement plan and environmental schedules and procedures.


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3. BASELINE INFORMATION & DATA

Project information was gathered through site visit for comprehensive investigation of the physical environmental status of the company operation(s) and that of the immediatesurroundings and discussions with the company managers, staff, and other stakeholders.

3.1. Existing Boiler and Turbine Configuration

The current cogeneration set up at Mumias Sugar Company Limited consists of 7 low pressure (20 bar) boilers providing about 300 t/hr of steam which is used to generate about 15MW of electricity through 5 turbine generators. The steam produced is also to meet the process steam requirements of the sugar mill (See Table 1 below).

Table 1: EXISTING BOILERS AND TURBINE GENERATORS AT MSC

Boilers22 Turbine Generators

SteamCapacit

y (t/hr)

Number of Units

Pressure(Barg)

SteamTemperatur

e(o C)

Age(Years)

Capacity

(MW)

Number of Units

Age(Years)

22 4 20 283 33 723 1 Under 10

55 2 20 380 27 2.5 2 15

110 1 21 380 10 1.25 1 22

1.75 1 22

308 7 15 5

The ash from the boilers is washed out via a wet ash system which then passes throughmeandering channels to settle the ash before discharge into River Nzoia. This system is notvery efficient and some of the ash with some carbon content is washed into the river.

The boiler flue gases contain particulate soot which is discharged into the air from where it

gradually settles towards the ground.

3.2. Project Site and Topography

The Mumias Sugar Cogeneration Project will be located in the old factory site where a strongfoundation already exists. The area is flat, well drained and is made out of concrete like therest of the existing factory site.

Both factory compound and the nucleus sugarcane plantation gently slop towards NzoiaRiver. The surrounding nucleus sugarcane plantations lying on undulating land. Within thenucleus, there are swamps, which have been reclaimed and used for sugarcane growing. Thesite will be located next to the existing sugar mill in a flat area.

22 All the existing boilers are bagasse fired.

23 This back pressure turbine generator is the only reliable generator at MSC currently.


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Nzoia River originates from Mount Elgon/Cherangani Hills area and, as it flows down beforeentering Lake Victoria near the town of Busia, it passes through areas where there are severalindustrial, agricultural and municipal activities, which release wastes into the river. Suchdischarges into the river from upstream activities have reduced the water quality of the river.In addition, the agricultural activities and deforestation around the river have resulted inincreased siltation of the river.

To ensure sustainable use of the river, Mumias Sugar Company, in a private public sector initiative with other organisations have started the Nzoia River Basin Management Initiative.

Mumias company operations use large amounts of water per day, but discharge more water than what is abstracted from the river. To meet the water demand for factory processes anddomestic use, the company pumps raw water from the river using 16" pipe to the water treatment plant located within the factory compound for treatment.

It was confirmed from the Mumias-Butere District Water Resources Management AuthorityRepresentative that the abstraction rates are within the licensed quantities.

3.8. Bio-diversity

There is no major biodiversity within the factory site where the new equipment will belocated.

3.9. Air Quality

The existing boilers burn, bagasse, a by-product of sugarcane milling process, to generatesteam with significant flue gases from the stack. Currently, there is no system for removal of the particulate matter in the flue gases which can cause respiratory problems.

Although no air measurements were conducted near the boilers, it is expected that the particulate matter content of the air is significantly higher than normal because of the flue

gases and the bagasse fluffs in the general area.

3.10. Land Use Activities

The dominant land use in the area is cane growing in general and industrial sugar milling inthe particular are of the project. This will not be affected by the project.

3.11. Areas of Cultural Importance

The proposed project will be located within the existing Mumias Sugar factory compoundwhere there are no areas of cultural importance.

3.12. Environmentally Sensitive and/or Significant Areas

The only area which was identified as environmentally sensitive is Nzoia River (see 3.7above), which passes through Mumias Sugar Company nucleus estate. The river originatesfrom Mount Elgon/Cherangani Hills area but there are several wetlands along its coursewhich feed it.


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Wastewater generated from ash removal system from boilers is channelled in meanders wheremost of the ash settles out before reaching the river. This method of managing ash is noteffective and some carbon particles and bagasse which is partially burned reaches the river.

3.13. Economic Development

Mumias Sugar Company is the largest and most profitable sugar company in Kenya withsignificant regional and national economic impacts in the country. It provides employment toa number of local community members and other Kenyans at larger. Currently, it exportsabout 2 MW of electricity into the grid.

3.14. Social Issues

The existence of the factory in the region has enabled the farmers to earn a living from sale of sugarcane. The monetary gain of the factory to the community is enormous and cannot bequantified. However, sugarcane growing has sometimes being done at the expense of foodsufficiency by the local household.

The company runs a number of social services such as schools and medical facilities for thelocal and national communities. Particulate matter from the exhaust chimneys couldnegatively impact the health of the communities leaving nearby by causing frequent asthmaticconditions and bronchial problems.


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4. PROJECT DESCRIPTION AND MAGNITUDE OF OPERATIONS

4.1. General Description, Ownership and Project Location

Mumias Sugar Company Limited is a registered agro based public company in Kenya24,involved in growing and crushing sugar cane to produce sugar. The company ownership is asfollows:

34% by the Government of Kenya30% by farmers4% by Commonwealth Development CorporationThe balance by other shareholders.

The company, which started production in 1972 after completing construction in 1968, islocated in Butere-Mumias District along the Kakamega Bungoma Road, 38 kilometres west of Kakamega town and 23 kilometres south of Bungoma town at the Busia Junction on plot No.FR/257/12 with a total area of 4,295 hectares.

In 2005, the company processed 2,348,019 tonnes of cane which resulted in production of 269,184 tonnes of sugar and 967,781.25 tones of bagasse. As part of the ongoing businessexpansion and diversification, Mumias Sugar Company Limited has decided, with theassistance of CDM, to invest in upgrading its cogeneration and grid connection systems thatwill allow the export of 20 MW of electricity to the national grid.

The cogeneration project will be owned and run by MSC as part of the existing factory whereit will also be located.

4.2. Nature of the Project and Proposed Development

The objective of the project is to satisfy the ever increasing demand for electricity in Kenyawith a clean alternative to the more fossil-fuel based electricity component of the Kenyan

national grid. The project aims to generate not less than 30 MW of electricity, with not morethan 10 MW internal consumption by the factory, and at least 20 MW export to the nationalgrid. The project is to be located in Mumias Sugar Company, within Mumias town of WesternProvince of Kenya.

The proposed Clean Development Mechanism (CDM) project, the Mumias Sugar Cogeneration Project, is a power capacity expansion project involving the generation of electricity using sugarcane bagasse on site and consisting of the following activities:

Interim installation of a 5 MVA transformer on the power export line to the Kenya Power & Lighting Company (KPLC) to facilitate 24 hour-a-day export of 2 MW up tocommissioning.Installation of 1 new high pressure steam boiler (in the region of 150 t/hr steam at 87 barg

pressure and 525 0C) at Mumias Sugar Company Limited.Installation of a 22-34 MW turbo alternator to replace at least 3 of the existing 4alternators at Mumias Sugar Company Limited.

24 Mumias Sugar Company changed from a parastatal to public company in 2002.


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The new configuration will consist of 2 boilers and 4 turbines as shown on Table 1 belowwith the resulting reduction of near 40 t/hr of steam for double the amount of electricitygenerated. The new boiler stack will be equipped with a precipitator to capture all the particulate matter from the flue gases.

The ash from the boiler will be disposed of via a dry system which does not have adverseimpact on the open water system. The ash collected will be used for soil conditioning and pHcorrection in the sugar cane plantations.

As part of the project, the 110 t/hr low pressure steam boiler will be retained to generatesteam while the two 55 t/hr and four 22 t/hr boilers will be decommissioned. Most of thesteam will then be used to drive the new and retained turbine generators to produce about 30MW of electricity, 20 MW of which will be exported to the grid after meeting the 10 MWinternal process and domestic demand within the company estate.

Electrical equipment will mostly be imported but considerable local assembly will be done toadapt to specific site requirements.

Table 1: PROPOSED BOILERS AND TURBINE GENERATORS AT MSC

Boilers25 Turbine Generators

SteamCapacity(t/hr)

Number of Units

Pressure(Barg)

SteamTemperatur e(o C)

Age(Years)

Capacity(MW)

Number of Units

Age(Years)

11026 1 21 380 33 7 1 Under 10

2.527 2 15

150 1 87 525 New 22 1 New

260 2 30 4

With the implementation of this project, the power house will be able to supply steam and power for the sugar factorys internal demand, including domestic use, besides supplying the20 MW export to the national grid to replace the portion of the grid electricity that is supplied by thermal plants. The project will therefore reduce GHG emissions directly from thefollowing sources:

Displacing grid electricity (33% fossil-fuel based) with GHG-neutral biomass electricitygeneration. This component of the project activity is expected to achieve GHG emissionreductions of 846,431.38 t CO2e over the 10 year period (2008-2018).Methane abatement through avoidance of dumping of bagasse and instead using it togenerate electricity is expected to achieve GHG emission reductions of 80,128.05 tCO2eover 10 year period.

The overall GHG emission reductions expected from the project is 923,085.02 tCO2e over the period (2008-2018).

25 All the existing boilers are bagasse fired.

26 This boiler is to be retained

27 At least one of these two turbines will be operated depending on the power demand


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4.3. Site Description

The proposed cogeneration project is going to be located within the old factory site next to theexisting factory. On the site, a foundation already exists and there will be no major exactionor works on the ground except for installing equipment mounting points. Some additionalwater and steam piping will be required though.

4.4. Project Design and Technology

The cogeneration project activity is based on conventional steam power cycle involving directcombustion of biomass (bagasse) in a boiler to raise steam, which is then expanded through aturbo alternator to generate electricity. The plant comprises of a new 150 t/hr at 87 barg and525 0C in combination with the existing 110 t/hr low pressure (20 barg) steam boiler. Thenew turbo alternator will be in the region of 22-34 MW in combination with 2 or less of theexisting 5 back pressure turbines. The steam extracted from the turbo alternators is used in thesugar plant processes and the power generated is both used in-house and excess is exported tothe Kenya Power and Lighting Company national grid via a high tension line to be upgraded by the Kenya Power and Lighting Company

The steam cycle plant will be located within the factory where the exhaust from the steamturbine is recovered and used for meeting industrial process steam and heat needs. Thetechnology combines heat and power (cogeneration) systems with greater levels of energyservices per unit of biomass (bagasse) consumed than systems that generate power only. For Mumias Sugar Company, steam recovery will not be of much value as the factory will notneed additional steam for efficiency improvement, instead, the project is aimed at utilizingexcess bagasse which is not utilized (dumped in the nucleus estate) at the moment, and boiler efficiency improvement to generate electricity which will be exported to the nationalelectricity grid. The project will result in a net decrease of 30 to 40 t/hr in steam demand butwith a two fold increase in electricity generation.

Figure 1: Schematic diagram of a biomass-fired steam-Rankine cycle for cogeneration using acondensing extraction steam turbine


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The technology involves generation of high pressure steam from pressurized water, with theresulting steam expanding to drive a turbo-generator, and then condensing back to water for partial or full recycling to the boiler. A heat exchanger is used to recover heat from flue gasesto preheat combustion air, and a deaerator is used to remove dissolved oxygen from water before it enters the boiler. An electrostatic precipitator is installed to remove the particulatematter in the boiler flue gases while a dry ash extraction system is used to remove the ashgenerated from the combustion. This is an improvement from the current wet ash systemwhich results in some of the carbon and other compounds in the ash being discharged into the Nzoia River.

The technology used is safe, environmentally friendly and proven. The successful completionof this project activity is likely to contribute to the adoption of similar cogenerationtechnologies by firms in the sugar and other industry sectors in Kenya.

4.5. Process Description

Bagasse will be received from the sugar cane milling process via a conveyor and fed directlyto the boilers to produce steam. The new boiler will produce 150 t/hr of steam at 87 barg and

525 0C temperature while the old retained boiler will generate 110 t/hr of steam at 21 barg pressure and 3800C temperature. The high pressure steam will be used to drive the 22 MWturbo generator to produce electricity and exhaust steam and condensate.

The exhaust steam and condensate will be passed through a deaerator to remove dissolvedoxygen before being recycled back into the boiler drum. The low pressure steam will be useddirectly in the mill for drives and sugar processing. Other than the steam used directly in themilling process, all the steam will be recycled and only little make up will be required fromRiver Nzoia once the system is operational and stable.

Flue gases will pass up the boiler stack which will be fitted with a precipitator to remove any particulate matter in the gases. A heat exchanger is used to recover heat from flue gases to preheat combustion air. The ash will be collected under the boiler using a dry system from

where it will be accumulated awaiting use for soil conditioning or pH correction in the plantations.

The electricity generated will be metered at various locations to determine the quantity usedinternally or exported to the grid.

4.6. Sources of Raw Materials

Every hour, Mumias Sugar factory crushes about 380 tonnes of sugar cane to produce 40tonnes of sugar, 12 tonnes of molasses and 130 tonnes of bagasse. 20% of the sugar canereceived by the sugar mill is grown in the company owned and run nucleus plantations whilethe remaining 80% of the cane input is supplied by the out growers. The key inputs and their approximate annual consumption are shown in Table 2.

Table 2: Raw Materials

Raw Material Source Annual Consumption (tonnes)Sugar Cane Nucleus & out growers

plantations2,615,625

Bagasse Sugar production 967,781

Water River Nzoia Exact amount not determined yet


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4.7. Waste Generation

The main wastes to be generated by the cogeneration project are ash, back wash water fromthe boiler feed water treatment system and boiler water blow down (Table 3 below). The ashwill be piled and used for soil condition and pH adjustment in the plantations while the backwash water and the boiler blow down will be routed to the waste water treatment ponds before discharge into the river.

Table 3: Waste Generation

Type Waste Source Disposal Method

Solid Ash Boilers Discharged in piles and disposed of in plantations as soil conditioner

Liquid Water treatment backwashBoiler blow down

Boilers Disposed of via the waste water treatment ponds into the river

Gaseous

Flue gases and particulate matter

Boilers-Bagassecombustion

To the atmosphere via electrostatic precipitator and high stack

4.8. Project Construction

4.8.1. Construction Inputs

Construction will require the following inputs:

Some raw construction materials such as ballast, cement, stones, sand, and steel since thefoundation is already in placeConstruction labour force (both semi-skilled and skilled)Some water for construction purposes, especially for plinths and other equipment mounting pointsHeavy machinery (hoisting equipment and delivery trucks)

4.8.2. Construction Activities

Construction activities will involve the following:

Site preparation, including construction of plinths and equipment mounting pointsProcurement and delivery of construction materialsStorage of materials, including fuelsConstruction, with significant welding activitiesDisposal of construction wastesCompletion of the development and commissioning

4.8.3. Current Status of the Project and Construction Period

The project has evolved from preliminary through to final detailed design stages. Alreadyconstruction tender has been awarded for the start of construction and approval for generationlicense is under process.

The construction period is expected to last about 22 months from the date of commencementestimated to be October 2006. Most of the work will be carried out during standard workinghours (from 0800hrs to 1700hrs).


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5. ANALYSIS OF ENVIRONMENTAL IMPACTS

The proposed site lies within the Mumias Sugar Company existing milling factory, which isalready developed as an industrial site and no settlements are going to change. Furthermore,the project is to be operated as an integral part of the existing operations. The project impactscan therefore, not be separated from the total impact of the entire factory and companyoperations. The potential environmental impacts mainly relate to construction, operation andmanagement of the cogeneration plant as opposed to the project siting and site preparation.These are:

The construction activities, waste generation and their management.The operations of the cogeneration plant, waste and their management.

During the construction phase, the most important aspect is occupational health and safety of all involved in the activity. Not much waste is expected as the foundation is already in place, but minimal excavation, some waste construction materials and off cuts are expected. Highstandards of health and safety and full compliance with the Factories and Other Places of Work Act will be required as a mitigation measure.

During operation the following waste will be generated:Solid waste Boiler ashLiquid waste Boiler water wash back water and boiler blow down, both of which aregenerated from intermittent activitiesGaseous emissions flue gases from the stack which could contain particulate matter.

In the assessment of the impacts, therefore the following considerations were taken:

Mumias Sugar Company intends to collect and continue using all the ash as soilconditioner and pH adjuster in the plantations as is the current practice.All the liquid waste will be routed to the existing waste treatment ponds and since noincrease is expected either in quantity or pollutant load as a result of the cogeneration

projects, the waste will be treated adequately through the existing system pendingdisposal into the river.The gaseous emissions are composed of carbon dioxide, carbon particles and traces of bagasse dust. A system to remove the particulate matter will be installed with the new boiler.

The most likely impacts are described in Table 4 below. Some are short term and a few arelong term.

6. STAKEHOLDER COMMENTS

A stakeholders consultative meeting was held in Mumias to inform them about the projectsand its potential impacts. The meeting concluded that the project was beneficial and should

proceed to implementation. Suggestions were however put for increased employment fromthe local community, provision of some of the power generated to the local community,especially common facilities such as markets and shopping centres and compensation of thelocal farmers and community in consideration for the additional value added from the sugar cane fibre.

The detailed minutes with the list of participants are in Annex 1 below.

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E n v i r o n m e n t a l A s s e s s m e n t P r o j e c t R e p o r t

M u m i a s S u g a r C o g e n e r a t i o n P r o j e c t

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2 8

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2 9

a n d v e g e t a t i o n

7

C o m p l i a n c e

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c r i t i c a l r e l e v a n t e n v i r o n m e n t a l l a w s ,

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r e q u i r e d b y l a w ,

R e v i e w a l l c o n t r a c t u a l a g r e e m e n t s t o r e f l e c t

t h e e n v i r o n m e n t a l l e g a l r e q u i r e m e n t s ,

R e v i e w a c o r p o r a t e e n v i r o n m e n t a l p o l i c y

g u i d e l i n e ,

O b t a i n n e c e s s a r y w a t e r a b s t r a c t i o n p e r m i t f o r

t h e a d d i t i o n a l w a t e r a b s t r a c t i o n .

C o n t i n u o u s

-

M u m i i a s

S u g a r

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a n y

A l e g a l r e g i s t e r w i l l

e n s u r e c o m p l i a n c e

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g u i d e l i n e s a t a l l

t i m e s ,

O b t a i n n e c e s s a r y

p e r m i t s w h e r e

r e q u i r e d , e . g . W a t e r

a b s t r a c t i o n p e r m i t .

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8. CONCLUSION

The results of this study show that the proposed Mumias Sugar Cogeneration project does not have a potential for serious negative environmental impacts. The project is siting within an existing factory andthe specific area already has a suitable foundation built.

The project uses renewable waste to produce energy in Kenya where at least 50% of the energy is hydro based and very susceptible to weather patterns. The other potion is significantly fossil fuel based thermalenergy which is prone to exchange fluctuations and other political instability in certain regions of theworld. Energy source diversification is therefore very beneficial to the whole country.

The potential adverse environmental impacts such as ash, wastewater and particulate matter in flue gaseshave been adequately mitigated. Plans are also in place to adequately mitigate the health and safetyimpacts of the project.

From a socio-economic point of view, the project has significant economic benefits not only to thecommunity but also to the whole country.

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