Global concern for the environment and future of fossil fuels, signing of international
agreements such as Kyoto Protocol and global oil prices are factors leading to investment in
renewable energy production and diversification into energy production. Dynamics of the sugar
industry are changing irrevocably, with increasing importance of cane as feedstock for ethanol.
Global ethanol and bio-fuels production is forecasted to expand. The demand and profitability
of ethanol is being influenced by the growth of flexi-fuel cars. This is particularly evident in
Kenya sugar industry and specifically Mumias Sugar Company is ideally positioned and has
taken advantage of the concept of bio-refinery or integrated sugar production which utilises the
entire crop for a variety of environmentally favourable outcomes. Effective use of by-products
in an integrated sugar plant diversifies the income stream by adding new intermediate-value
and high-value products. Efficient utilization of by-products of the sugar industry provides a
significant impact on the profitability of sugar industry.
The limited crude oil supplies, refining capacity, and rising concern over environmental degradation,
presents a unique opportunity for Mumias Sugar Company to diversify its product range. With this in
mind, Mumias Sugar Company has built a distillery plant with the capacity to produce 22M litres of
ethanol annually The annual production estimates suggest that ethanol production will not displace
the sugar production but it will utilize the molasses output.
The Ethanol project produces extra neutral spirit which is used for alcohol production and
Technical alcohol (Ta) which is for industrial use.