How to become more energy efficient
Fairtrade organisations across Africa are committed to combating climate change through committing to solid energy efficiency plans. A smart move, as producers are not only decreasing their impact on the environment, they are also reducing their own energy bills. But how do Fairtrade producers become more energy efficient? What efforts are they making to reduce energy consumption in their organisation?
Case study 1 – A wood-free factory
Profile:
Iriaini Tea Factory
Product focus: Tea
Location: Othaya, Kenya
Type: Small producer – 6.000 farmers
Fairtrade certified since: 2006
Contact: Mathew Ng’enda – mathewngenda@gmail.com
Challenge:
As a tea factory, Iriaini has been heavily dependent on wood as a fuel source. The factory needs 20,000 to 25,000 trees or 20 to 25 acres on a yearly basis. As it takes eight to ten years for newly planted trees to be ready for fuel production, the situation was becoming unsustainable and Iriaini decided to look for an alternative.
Solution:
Iriaini found part of the solution in the use of biomass, a renewable energy source which consists of organic matters like leaves, sawdust, maize combs, coffee husks and twigs and branches. A machine compresses all the materials tightly together into so-called briquettes, which are then ready to be used. Not only is biomass made of materials which are often discarded and can even have a negative influence on the environment, the energy source is also much more energy efficient due to its lower content of moister, (only 10% in comparison to 20-25% in wood).
The plan was only rolled out last year and Manager Mathew Ng’enda, who is in charge of the project, is still addressing some challenges. One of Iriaini’s main concerns is that the boilers in the factory are not suited for the biomass briquettes. The material particulars can block the holes which reduces the air flow. Currently, the boilers are therefore fuelled by a mix of briquettes (30%) and wood (70%). A second challenge is the large amount of space that is required to store the piles of sawdust, maize combs and coffee husks. Nevertheless, the project is now also being implemented on a domestic level. Calculations showed that the 6,000 Iriaini families use even more firewood than the tea factory. Smaller briquettes are being produced with the assistance of German NGO GTZ, while Fairtrade Premium money was invested in the purchase of new demonstration stoves and also to train farmers on how to use biomass in their homes. The vision is that by 2013 all 6,000 farmers will rely on biomass for their energy requirements.
Cost:
The price of the organic materials used to make the briquettes is extremely low as most saw millers are more than happy to get rid of the sawdust and other materials. Iriaini buys up to 7 tonnes of sawdust for the small price of 1,000 Kenyan Shilling (KS) (or 12 USD). It opted to rent the services of a supplier to produce briquettes at the factory instead of buying a compressor machine. Production costs of ten kilo of briquettes are around 80 KS (or 10 USD). The domestic stoves cost around 600 KS (or 7 USD) per set.
Result:
As the project is relatively new, it is difficult to calculate the real impact the biomass has had so far. Mathew and his team are currently developing a system to measure the business benefits. But the project has already proven successful in different ways. Thousands of trees are saved annually and with more families converting to biomass stoves, that number will only increase. Moreover, the new home stoves are three times more energy efficient, making it possible for families to save on their energy bills, while living in a cleaner environment at home.
Case study 2 – Improving insulation
Profile:
Stellar Organics
Product focus: Grapes & wine
Location: Klawer, South Africa
Type: Hired labour
Contact: Veronique Verlinden – V.verlinden@fairtradeafrica.net
Challenge:
In South Africa coal is used as the main energy source to generate electricity. Unfortunately, it is generally considered as thedirtiest form of generating power. Winery Stellar Organics is located in the Western Cape, where during summer months temperatures can soar. The amount of energy required to keep its wine at the right temperature is very high. The organisation’s decision to reduce its carbon footprint not only originated from environmental concerns, it also made perfect business sense.
Solution:
For wine to mature properly, it must be left to sit undisturbed for long periods of time at the right temperature and humidity. Stellar Organics understood that the most cost-effective way of creating a perfect environment was by improving the insulation of the wine cellar. This would not only save on electrical costs, but also would also enhance the quality of its Fairtrade products. The winery decided to opt for spray foam insulation. As a first step, an insulating white foam is being applied to the inside panels of the roof and walls of the cellar. This material will then be coated with a non-porous sealer to protect the foam. This second layer prevents moister and other contaminants damaging the insulation foam, especially when the cellar is being cleaned. Both the white foam and the sealer are made from polyurethane, a durable and flexible synthetic material. The project is currently taking place and will be finished later this year.
Cost:
The cost of the operation was a little over 800,000 South African Rand (ZAR) (or 115,000 USD) – including the acquisition of all materials and the application.
Results:
An independent engineer calculated that the insulation will save over 65% on energy or a total of 147,600 Kilowatt annually. With electricity costs in South Africa being 0.50 ZAR per kilowatt hour (Kw-h) (or USD 0.07/Kw hour), Stellar Organics will be saving 75 000 ZAR (or 10,900 USD) a year, in addition to the environmental advantages of not having to generate the saved electricity. But there are other benefits which have indirect financial implications: – Wine operations can be speeded up as the wine tanks are now in still air because the temperatures between the outside atmosphere and the tank are now closer. – Hygiene in the cellar can meet international standards as contaminants are not blown into the work area. – The cooling system is not working against the external environment and is more efficient, saving even more energy. Moreover, the life of the cooling system is extended because it is not working so hard. But the most important result of the whole operation is that all these benefits are expected to have a positive impact on the quality of Stella Organics wines. The insulation project is a win-win situation on all fronts.
Case study 3 – Lighting up farmers’ houses with solar energy
Profile:
Tambuzi Ltd.
Location: Nanyuki, Kenya
Product focus: Roses
Type: Hired Labour – 250 workers, over 50% women
Fairtrade certified since: 2010
Contact: Maggie Hobbs – jointbody@tambuzi.co.ke
Challenge:
To light up their houses after dark, workers at the Tambuzi flower farm relied on paraffin (or kerosene) as the main energy source. Unfortunately, paraffin has many disadvantages: it is not very effective, can cause health issues and is difficult to transport. But the biggest issue was the rising cost of the energy source. Over the past five years, the price has increased by 9% annually. Tambuzi workers, who earn a monthly salary of 6,350 Kenyan Shilling (KS) (or 75 USD), were spending 600 KS (or 7 USD) a month just on the purchase of paraffin. To put it differently: 10% of their budget was spent on an inefficient, expensive and harmful energy source.
Solution:
The Joint Body decided to send out a questionnaire to ask the workers if they would be interested in switching energy sources. A majority agreed to invest time and money in the search for a cleaner and cheaper solution. The World Bank’s project ‘Lighting Africa’, which supports development of commercial off-grid lighting markets in Sub-Saharan Africa (www.lightingafrica.org/), helped the organisation in the right direction. Finance Director Maggie Hobbs attended a conference in Nairobi on behalf of the Tambuzi Joint Body where she learned more about the concept of solar lighting, its benefits and the products on the market.
The Tambuzi Joint Body then invited five suppliers to the farm, all recommended by Lighting Africa, to demonstrate their systems to the workers. After extensive testing at home and a democratic selection, an Australian company was appointed as the obvious winner. The micro solar lighting system which was chosen by the workers can power 1 to 4 lights, a radio and charge a mobile phone simultaneously. The kit also includes high quality cables which make it possible to light four different rooms at the same time. The battery is uploaded during the day: 8 hours of charging in the sun provides 6 hours of electricity and light during the evening and night.
Cost:
The retail price of a micro solar lighting kit is 7.800 KS (or 92 USD), but the Tambuzi Joint Body managed to lower the purchase price considerably. Because solar power is relatively new in Kenya, the supplier was willing to offer the kits at a special price. Also, the Joint Body decided to buy 225 kits at one time and was able to negotiate an extra group reduction. Lastly, a premium of 2,000 KS (or 23 USD) was given by the Waitrose Foundation. Tambuzisold the kits to its workers for 3,000 KS (35 USD) using favourable loan terms: workers had to pay 250 KS (or 3 USD) per month per kit.
Result:
The energy switch has had a phenomenal result: – Workers can now spend 350 KS (or 4 USD) extra per month until their loan is paid off, then they have 600 KS (or 7 USD) extra to spend. – While in the past families had to share their lamp, making it difficult to use it simultaneously, children can now be doing their homework while mothers are cooking in the kitchen. – Extra daylight hours can be spent working as the family does not need to begin preparing for night prior to night fall. The kits have become so successful that workers are buying extra kits and sending them to their family.