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Background of peat business |
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Peat is is classified as a slowly renewable biomass fuel. The peat reserve in Rwanda is estimated to 155millions of meter cube. Peat is mostly used as heating energy source. RIG is focused on sod peat production, installation of Peat Pellets factory and Power plant use milled peat as low materials. RIG has embarked on the implementation of the first of three PEAT based products. The first phase feasibility study for PEAT production was completed and is being implemented since the beginning of 2008. By end of February 2009, PEAT production facility will be producing enough PEAT to fire the production of 100,000 MT of cement at CIMERWA plant. The PEAT production plant is currently geared to supply peat to CIMERWA for the production of 100,000 MT of peat fired cement. In 2009 CIMERWA will install a new 600,000 MT peat fired cement production plant which will be completed in 2010. |
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Due to a scarcity of traditional petroleum resources Rwanda faces serious energy problems, with the majority of the population relying on wood as source of energy. The current scenario is a threat to Rwanda’s natural environment and the leading cause of deforestation within the country.
The potential for energy development from peat has been known since the 1990's. Studies have been carried out, by EKONO ENERGY ltd a Finland based company to provide alternative source of sustainable energy and identified Cimerwa as most promising factory which can use peat. RIG signed a contract in October 2007 with POYRY Oy to update the feasibilities studies on peat use in CIMERWA. The Peat Energy Company Ltd (PEC) is a subsidiary company of the Rwanda Investment Group (RIG) which will run peat business. This group has been granted different bogs (Rwabusoro, Busoro, Akanyaru and Cyohoha) concession for peat production. PEC intends to produce 24,000 tons/years at the phase1; this amount will be used at Cimerwa old factory. The quantity produced will increase by year 2010, the time the new Cimerwa plant will be completed. The second phase implementation planed in March 2009, will involve construction of standalone pellets plant or a combined pellets and power plant. The pellets will be used in Cimerwa new plant and the power will be sold to Electrogaz. The capacity of pellets plant will be 100,000 tons/years and the power production will be 10 MW or 3MW (depending on feasibility studies conclusions). |
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Peat Pellet and power plant |
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In order to increase the energy capacity of sod peat, RIG will manufacture the peat pellets. Pellets will be used to replace coal in the new plant of CIMERWA. The Pellets plant can be a stand alone or coupled with a power plant. RIG will do a coupled power and pellets plant. The pellets can be used to replace the coal and wood chips used by many Rwandeses for cooking, it can be exported because it is easy to transport. RIG has conducted a study and it plans to build a power plant of 10Mw and a pellets plant of 100,000 tons/ year. |
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Diversified peat products |
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There is a diversified and inter-twined range of products that will be produced by PEC.ltd and related facilities. The two primary projects noted in paragraph 1 above, will be implemented in two separate phases over the next five years. |
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Investments 