Environmentally friendly bio briquettes

Note: This project has been cancelled, due to unforeseen and irregular circumstances.

The applicant, Bio-Solutions Kenya, trades charcoal, sells local charcoal stoves and produces approximately 1,000 litres of bio diesel per month. Formula Feeds has 140 permanent employees who produce poultry and animal feed and dairy meal and it sells one day old chicks. Due to the fluctuating animal feed market and the opportunities of bio briquettes, Formula Feeds is diversifying its activities.

The market for cooking fuel is increasing by 6% annually and if this increased demand is to be met by charcoal and firewood, Uganda will have to import firewood in 2020. As all surrounding countries face the same problem there is potential for suppliers of alternatives for charcoal and firewood. This project introduces the first environmentally friendly alternative for charcoal and firewood.

The bio briquettes of the joint venture are made from agricultural waste like rice husk, coffee husk, peanut shells, cocoa husk and bagasse. The waste is dried and stored at the factory. Throughout the year the waste is transformed into bio briquettes and packed in 10, 30 and 50 kg bags. They are cheaper than firewood, have a higher caloric value and do not produce smoke when used in combination with gasifier stoves produced by the local partner. Lack of smoke is beneficial to health. The suppliers of the raw material are part of Formula Feeds network.

Corporate Social Responsibility (CSR)

The joint venture partners will apply the same CSR strategy as they do in their respective companies. Major items are:

  • Labour norms: all employees of the joint venture will have official employment contracts which include the job description, working hours, wages, rights and duties as well as responsibilities, insurance policy for injuries at work, subscription to the National Social Security Fund. No discrimination in any field, zero tolerance policy towards corruption.
  • Health and safety: Good and safe labour conditions will be assured by regular safety checks and regular safety meetings with all employees to refresh their knowledge about safety procedures. Mouth caps and protective glasses and gloves will be provided for employees at the work floor. Medical insurance, paid maternity leave of two months and regular medical check-ups will be provided.
  • Others: All employees will also be subscribed to the Workmen's Compensation Scheme, a savings fund for employees who lose their job, interest free loan to a maximum of three months wages, contribution for family calamities, social welfare committee, housing and meals to employees who need this, transport for employees who live in areas where no public transport.

Impact

  • Employment and working conditions

The salaries are at least 133% of minimum wages. All employees of the joint venture will have official employment contracts which include the job description, working hours, wages, rights and duties as well as responsibilities, insurance policy for injuries at work, subscription to the National Social Security Fund. No discrimination in any field, zero tolerance policy towards corruption.
Health and safety: Good and safe labour conditions will be assured by regular safety checks and regular safety meetings with all employees to refresh their knowledge about safety procedures. Mouth caps and protective glasses and gloves will be provided for employees at the work floor. Medical insurance, paid maternity leave of two months and regular medical check-ups will be provided.

  • Innovation/Transfer of knowledge

The product, commercially produced bio briquettes and the gasifier stoves, as well as the production process are new to the country.

  • Chain effects

Suppliers of raw materials are threefold, the farms that produce waste on the spot, producing facilities with waste such as coffee husks, and the suppliers that collect the waste, bag it and deliver it to the joint venture.
The first two benefit by receiving income for their waste that would otherwise be in the way or cause environmental damage (bagasse), the third group will benefit by having an extra important buyer thereby increasing their activities and their income.
If the customers are willing and able to switch to the gasifier stove and briquettes they will benefit from the much lower costs for cooking fuel and health wise they will benefit from the cleaner cooking method without smoke.

  • Impact on the sector

In case of a successful programme the resellers (supermarkets and traders) will benefit by adding a successful product in their assortment.

  • Environment

The environment (and those who promote environmental friendly solutions) benefits most as on the one hand waste is put to good use and on the other hand the necessity of using wood (forests) relatively decreases.

  • Position of women

There will be 14 women out a staff of 67. Most of them (9) will be in the medium to high positions.

Project cancelled
Quality EducationDecent Work and Economic Growth

Project number

NL-KVK-27378529-PSI12UG24

Total budget

€ 0

Countries

Uganda

Project status

Cancelled

Budget spent

0 %
0 % spent

Tied status

Untied
Startdate:
Enddate:

Project partners

Bio-Solutions Kenya, Formula Feeds Ltd., Netherlands Enterprise Agency

Sectors

Energy generation, renewable sources - multiple technologies
Transactions
TypeProviderProvider ref.ReceiverReceiver ref.Value (€)DateValue date
Incoming Funds 728,500.00 21-12-2012 21-12-2012
Incoming Funds -558,516.00 23-03-2020 23-03-2020
Incoming Funds -169,984.00 23-03-2020 23-03-2020
Outgoing Commitment Bio-Solutions Kenya 728,500.00 21-12-2012 21-12-2012
Outgoing Commitment Bio-Solutions Kenya -558,516.00 23-03-2020 23-03-2020
Outgoing Commitment Bio-Solutions Kenya -169,984.00 23-03-2020 23-03-2020
Disbursement Bio-Solutions Kenya 254,975.00 13-06-2013 13-06-2013
Disbursement Bio-Solutions Kenya 36,425.00 09-09-2013 09-09-2013
Disbursement Bio-Solutions Kenya 36,425.00 11-12-2013 11-12-2013
Disbursement Bio-Solutions Kenya 36,425.00 10-03-2014 10-03-2014
Disbursement Bio-Solutions Kenya 97,133.00 09-06-2014 09-06-2014
Disbursement Bio-Solutions Kenya 97,133.00 08-09-2014 08-09-2014
Disbursement Bio-Solutions Kenya -558,516.00 23-03-2020 23-03-2020