Industry Minister drives investment in bagasse-based products to curb imports

Daily News Egypt
4 Min Read

Deputy Prime Minister and Minister of Industry and Transport Kamel Al-Wazir chaired the 21st meeting of the Ministerial Group for Industrial Development, with participation from the Ministries of Military Production, Electricity, Environment, Local Development, and Housing. Also in attendance were representatives from the Arab Organization for Industrialization, the Federation of Egyptian Industries (FEI), and the Industrial Development Authority (IDA).

The meeting focused on mechanisms to maximize the use of sugarcane waste (bagasse), converting it into value-added products or ethanol instead of burning it as an alternative fuel in sugar factories.

The Ministry of Supply and Internal Trade presented its plan to integrate bagasse into various industries, including particleboard, paper, fiberboard, and ethanol production. In response, the Minister instructed the IDA to coordinate with the Ministry of Supply and the FEI to promote private sector investment in this field, leveraging modern technologies.

These efforts aim to reduce pollution caused by bagasse burning, optimize resource utilization, and cut down on imports of raw materials used in the paper, wood, and fiberboard sectors.

The meeting also reviewed progress on localizing animal feed production using agricultural and livestock waste, with particular emphasis on utilizing palm fronds in the manufacturing of medium-density fiberboard (MDF). Al-Wazir called for expanding the committee to include the Ministries of Supply and Public Enterprises, along with the FEI, to scale up investment and manufacturing capacity.

Minister of Environment Yasmine Fouad highlighted ongoing implementation measures under the National Strategy for Agricultural Residues. The strategy includes an executive plan linked to a geographic map detailing agricultural waste distribution across Egypt’s governorates.

Egypt generates an estimated 40 to 45 million tonnes of agricultural waste annually, which holds significant potential for conversion into animal feed and organic fertilizers.

Local Development Minister Manal Awad emphasized the potential of agricultural and livestock waste to be utilized in biogas and compost production units. She reiterated the government’s commitment to maximizing the use of slaughterhouse waste by installing biogas units in all facilities to convert waste into fertilizer and gas.

The meeting also examined the potential to expand production at the Petrochemicals Holding Company’s PVC plant, a key player in the plastics industry. Current production stands at 80,000 tonnes annually, with plans to raise it to 120,000 tonnes—contingent on the availability of ethane gas, the plant’s primary input.

To ensure adequate supply, the Alexandria Supply Chain Company has been established to import and distribute ethane gas required for sustained operations.

Al-Wazir underscored the importance of enhancing output from existing facilities and establishing new PVC production plants to meet domestic demand and support industry growth.

He also directed the National Food Safety Authority to consider expanding its branch network, particularly in Upper Egypt, to ease the burden on food manufacturers seeking export inspection certificates. The move aims to eliminate the need to transport product samples to Cairo, where transit conditions can alter their chemical composition.

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