Alliance One pioneers clean energy in Tobacco processing

MOROGORO: MOROGORO Regional Commissioner, Adam Malima, has commended Alliance One for becoming the first tobacco company in the country to power both its processing plant and administrative offices with clean solar energy

Speaking as the guest of honour during a brief launch ceremony held on Thursday at the company’s premises, Malima praised the initiative, which represents a 1.18bn/- investment in renewable energy located in the Kingolwira area of Morogoro Region.

“This project is the first and only one of its kind in Tanzania. It will not only help reduce operational costs for the investors but also significantly reduce reliance on polluting energy sources, especially diesel generators during power outages,” he remarked.

A former Deputy Minister for Energy, Malima reflected on the journey of solar power in Tanzania, noting that there was once widespread doubt about its viability.

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“When I was in Parliament and asked about this energy, the experts I consulted often told me that solar lacked the capacity to power basic household appliances, let alone industrial operations,” he said.

Expressing amazement at the advancement, he described the solar energy system at Alliance One as a “technological marvel”. The plant now generates half a megawatt of solar energy, enough to run all office and processing operations during daylight hours, with Tanesco electricity used at night.

Malima pledged to become an active advocate for solar energy adoption and vowed to encourage other major electricity consumers in the region to visit the site and learn from Alliance One’s example.

“Some of the big energy users in Morogoro rely heavily on diesel generators, which release significant carbon emissions. I was told this plant used to burn 7,500 litres of diesel per hour. You’ve made the switch to clean energy-why shouldn’t others follow suit?” he asked.

Alliance One’s spokesperson, Advocate John Magoti, explained that the company’s shift aligns with President Samia Suluhu Hassan’s directive to prioritise renewable energy.

He noted the project’s uniqueness lies in its financing model: instead of using its own capital, Alliance One partnered with Puma Energy, which funded the installation. Under the agreement, Alliance One pays for the energy it consumes, with ownership of the system transferring to the company after ten years.

“This innovative arrangement enabled us to adopt clean energy without upfront capital expenditure. The system has a projected lifespan of 25 years,” Magoti said.

He insisted that the project reflects the company’s core values: sustainability, innovation and corporate responsibility.

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“This isn’t merely about reducing energy costs; it demonstrates our long-term commitment to responsible business and environmental stewardship. That’s why we’re the first in the nation to implement such a model,” he added.

Engineer Shepherd Karuwa, Alliance One’s Head of Engineering and the project’s lead advocate, explained that the frequent power interruptions previously caused major production setbacks. The company had relied on a diesel generator, which incurred high costs and environmental harm.

“This solar system is not only environmentally friendly but also more cost-effective. We used to spend 55m/- per day on generator fuel. Now, energy costs are down to 25m/- a day,” Karuwa stated.

Alliance One has operated its Morogoro processing plant since 1998, without missing a single crop season. The company currently employs 350 permanent staff and hires approximately 3,000 seasonal workers each year.