BIO-BASED ECONOMY

Pulp from sugarcane bagasse for the paper industry

Pulp from sugarcane bagasse for the paper industry

Market

Final Products Pulp
Required Inputs Sugar cane bagasse
Competing Products Low competition
Imported pulp
Potential for Export High

Process

Complexity – Type of Process

Simple–chemical treatment

Technology Oxygen delignification, bleaching, and pulping
Equipment and Material Batch/continuous digesters
Human Resources Manual labor and skilled technicians to operate digesters

Business Linkage

Forward Linkage Paper mills and cardboard manufacturers
Local/Regional/Nationwide Local market- nationwide
Backward Linkage Sugar factories
Supporting Entities Waste contractors, equipment suppliers, and testing facilities
Competitive Edge
Lower cost due to local availability and use of waste inputs

Economic Features

Revenue Stream Sales of pulp
CAPEX 300M EGP

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger-sized investment.


Investment Size Large (between 50-500M EGP)

Considerations

Key Challenge Seasonality and high-water content of bagasse, cash flow management, transportation cost, absence of designated recycling areas on industrial zones and absence of formal industrial waste collection services
Advantages Replacement of imported products
Potential Pathways to Growth Production of other bagasse-based feedstock or final products such as food packaging items, paper, boards and alternative fuels

General Impact

Environmental Eco-friendly use of industrial waste
Social Increases returns on industrial waste and creates job opportunities.

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market Intermediary to industries (food, pharmaceutical, wood, and paper)
Lies within the following
value chain/cluster(s)
Sugarcane, municipal, and industrial waste
Impact Promotes value-addition to the sugarcane waste and paper industry
* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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