The bamboo pulp mill to be constructed at Friendship in Westmoreland is projecting US$1.8 billion in revenue over a decade, and expects to recoup its investment in about half that time.
At current exchange rates that translates to $275 billion in a decade or $27 billion a year on average.
The expected returns and sales turnover are some of the new details that have emerged with the publication of an environmental impact assessment report, or EIA, on the project on the National Environment and Planning Agency’s website.
Such reports generally form the basis of public consultations with communities in which impactful developments are to take place, for residents to air their views. The consultations are a precursor to NEPA’s final pronouncement on whether to grant permits to developments.
The price to construct the bamboo pulp plant, US$335 million ($51 billion), has been known for years, but not the projected “return on investment of 22 per cent, with conservative projections of US$1.8 billion in revenue during the first 10 years” that investor Bamboo Bioproducts Limited was forecasting. At 22 per cent returns, the payback period for the investment would be around four to five years, Financial Gleaner calculations show.
The bamboo farm being established to feed the pulp mill will span some 350 acres.
Bamboo Bioproducts already has prospective takers lined up for the pulp, according to the environmental report, which says letters of intent are in place with consumer tissue and personal hygiene producers that are looking to replace stock consumption with nonwood fibres.
The proposed mill will have the capacity to produce 250,000 air-dried metric tonnes of conventional baled and fluff bamboo pulp per annum. Led by founder and CEO David Stedeford, Bamboo Bioproducts is expected to generate 1,000 direct jobs in Jamaica and 5,000 indirect ones.
“Having been in a state of economic decline for over 50 years, the parish seems ready to welcome bamboo as its newest industry,” the enviro report noted.
“The mill will replace sugar production as the main income earner for the eastern part of the parish, and will replace what is an old, outdated industry with a modern, sustainable mill, supported by sustainable farming practices and ongoing community development and support.”
It, however, cautioned that sound environmental and social practices will need to be the hallmark of the project as it could impact nature, including the surrounding waterways.
“The company has already started to make commitments to stakeholders and the community, indicating its promise to be transparent and inclusive in its processes, with sustainability at the core of how it builds relationships and conducts business,” the report noted.
But, it cautioned: “Whilst the benefits are many, there are some concerns associated with the project. These concerns are well founded by the community...,” it said, while asserting that solutions can be found.
Wood pulp was a US$165-billion market in 2020, according to Allied Market Research data quoted in the EIA report done by consultants Environmental Solutions Limited on behalf of Bamboo Bioproducts. By 2030, the value of the market is projected to reach US$$242 billion.
steven.jackson@gleanerjm.com
