Key figures of the climate change mitigation activitiy

Owner

Homa Bay Biogas One Limited

Country and scope

Kenya

Beneficiaries of the activity

Farmers in the area will benefit from the premium organic fertilizer; Kenyans will benefit from the injection of renewable electricity into the grid

Status

In development

High potential for people, markets and nature

The activity involves the construction and operation of a biogas plant to generate electricity (total capacity of 15.1 MW of electrical power) and organic fertilizer for agriculture in the Lake Victoria region. Approximately 50% of the biomass used to operate the biogas plants consists of water hyacinth (890,000 tons per year), an invasive, harmful aquatic plant in Lake Victoria. The remaining 50% is covered by bagasse, a waste product from sugar production that is deeply rooted in the region.

Fermenting the biomass in the biogas plants prevents methane emissions from entering the atmosphere (especially from the water hyacinth portion). The methane gas produced in the biogas plant is used to generate a planned 117 GWh of renewable electricity, of which 77 GWh is fed into the public grid. The remaining electricity is used to operate the plant. The main product of the biogas plants will be organic fertilizer, which will be marketed as a substitute for synthetic fertilizer and will be the main source of income.

The activity has the potential to transform the fertilizer market in Kenya. The production of local fertilizer reduces farmers' dependence on existing global synthetic fertilizer suppliers.

It also has major positive side effects. For example, it curbs the proliferation of water hyacinth on Lake Victoria, which has spread uncontrollably due to the high nutrient input into Lake Victoria. Among other things, this leads to a lack of oxygen in the lake and the silting up of the lake bed, with devastating effects for the flora and fauna. In addition, the programme will create 250 jobs and small farmers in the region will benefit from special conditions for the purchase of the organic fertilizer produced.

Key aspects of the activity

The activity is being implemented by Homa Bay Biogas One Ltd., a Kenyan project implementation entity. The objective is to introduce a proven biogas generation technology to the African market. The generation of biogas is predicated on the anaerobic fermentation of organic substances. In the absence of oxygen, microorganisms are utilised for the purpose of biomass breakdown and the subsequent production of biogas, which consists primarily of methane and carbon dioxide.

Two environmental problems are addressed: water hyacinths and bagasse. These materials are used as input. The fermentation residue that results from this process is then processed into organic fertilizer.

The activity entails the following main processes:

  • The removal of water hyacinths as a feedstock for the biogas plant and the basis for the organic fertiliser

  • The generation of green electricity constituting a significant component in ensuring the provision of base load.

  • The treatment of bagasse in the biogas plant whose disposal is an ongoing issue of the sugar cane industry.

  • Production of organic fertilisers for utilisation within the agricultural sector of Kenya.

A pioneer project enabled through carbon finance

The activity is the first-of-its-kind in Kenya and in Eastern Africa. It aims to implement a long-term sustainable conversion of biomass waste streams (water hyacinths and bagasse) into biogas and organic fertiliser. The resulting electricity and fertiliser sales are the main income sources of the activity, besides the carbon revenues from the KliK Foundation.

The three founders and initiators Mary Wangui-Horst, Uwe Dölves and Frank Petschow from Thika Way Investments Limited and Homa Bay Biogas One Limited have been working in Kenya for twelve years. They conceived the Water Hyacinth project and brought it to fruition.

"We are delighted that the Foundation for Climate Protection and Carbon Offset KliK is participating in this project. The Homa Bay project is characterised by innovative project development that takes both economic and sustainability aspects into account."

Uwe Dölves, CEO Thika Way

Due to the project's particular emphasis on sustainability, the operating costs are higher than for standard biogas plants. The harvesting of water hyacinths is a particularly labour-intensive process. Approximately 50% of employees are employed in this area alone (123 employees). There are also additional investment costs that are not generally incurred. This pertains to harvesting technology, crushing and transportation. The associated operating costs are also a relevant factor. The carbon revenues from the KliK Foundation significantly contribute to covering these costs and have a positive impact on the overall turnover of the activity which enables the securing of the financing.

The Nationally Determined Contributions (NDCs) are the countries' national climate protection plans under the Paris Agreement. In its revised NDC, Kenya has committed to reducing its greenhouse gas emissions by 32% by 2030 compared to the business-as-usual scenario.

However, the generation of biogas and organic fertilisers it not part of the unconditional targets of the government.

Co-Benefits

Technology employed:

  • Sustainable processing of water hyacinth and bagasse waste products

  • Production of organic fertilizer

Environmental/social/cultural benefits:

  • Direct jobs 245

  • Indirect jobs 150

  • Provision of clean water for the neighboring village community

  • Expansion of infrastructure measures

  • Provision of cooking gas (biogas) for the village community

  • Support for the infirmary in the village

  • Cooperation with Tom Mboya University in the field of biogas (seminars)

  • Training of small farmers in the area of organic fertilizer

With SDGs 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 14 and 15 (see SGD definitions here), this activity contributes to sustainable development at various levels. The annual monitoring process checks whether all of the monitored indicators of these SDGs are on track.

The project makes a fundamental contribution in many areas in the Homa Bay region. The long-term contribution to sustainable agriculture is of particular importance. Importers in Europe are placing greater emphasis on sustainability in the export of agricultural products. This can be demonstrated particularly well through the use of organic fertilisers. The activity aims to contribute to Kenyan farmers having continuous access to these export markets through the use of sustainable agricultural practices.