Manufacturers shift to biomass to cut energy costs

Manufacturers turn to biomass to reduce energy costs. [Courtesy]

Manufacturers are turning to renewable thermal energy solutions to cut operating costs and reduce reliance on imported diesel amid rising fuel prices and foreign exchange pressures.

A newly commissioned biomass boiler at Unga Farm Care (EA) is expected to cut steam generation costs by about 45 per cent while saving roughly $1 million (Sh129 million) annually in foreign exchange.

The system replaces diesel-powered thermal energy with renewable biomass, helping stabilise energy costs and shield manufacturers from fuel price volatility and currency fluctuations.

Industry officials say energy is increasingly becoming a key competitiveness issue for manufacturers, with firms seeking cost-efficient alternatives to fossil fuels.

“Managing input costs and exposure to foreign exchange volatility has become critical to the long-term sustainability of manufacturing,” said Eng Fredrick Kinge, Plant Manager, Unga Farm Care (EA) Ltd. “This transition strengthens cost predictability while reducing reliance on imported fuels, supporting long-term operational resilience.”

The biomass system is expected to eliminate more than one million litres of diesel use annually, avoiding about 4,800 tonnes of carbon dioxide emissions. It is also projected to generate around 50,000 man-days of employment each year across the biomass supply chain, including agricultural waste collection, processing, and transport.

Energy experts say renewable thermal solutions can help manufacturers cut costs, conserve foreign exchange, and improve long-term operational resilience.

"Industrial thermal energy is one of the biggest cost centers in manufacturing, yet it is rarely treated as a strategic lever,” said Dinesh Tembhekar, Founder and Managing Director, Lean Energy Solutions. “This project proves that manufacturers can cut costs, reduce forex exposure, and decarbonize at the same time.”