msw energy landscape

Upload: amol31179

Post on 20-Feb-2018

219 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/24/2019 Msw Energy Landscape

    1/27

    1www.eai.in

    India MSW to Energy

    A White Paper by EAI

  • 7/24/2019 Msw Energy Landscape

    2/27

    2www.eai.in

    India MSW to Energy

    A White Paper by EAI

  • 7/24/2019 Msw Energy Landscape

    3/27

    3www.eai.in

    India MSW to Energy

    A White Paper by EAI

  • 7/24/2019 Msw Energy Landscape

    4/27

    4www.eai.in

    India MSW to Energy

    A White Paper by EAI

    Preface

    With growing public awareness about sanitation, and with increasing pressure on the

    government and urban local bodies to manage waste more efficiently, the Indian solid waste

    to energy sector is poised to grow at a rapid pace in the years to come, opening up

    attractive investment opportunities. As the industry is relatively new in India, a better

    understanding of these opportunities in the Indian waste to energy sector is essential for

    investment decisions.

    The objective of this white paper is to provide inputs on the potential and opportunities of

    the Indian municipal solid waste to energy industry. The white paper has a special emphasis

    on practical and actionable intelligence for Indian entrepreneurs and businesses.

    This document has been prepared by Energy Alternatives India (EAI), a leading Indian

    research and consulting firm with a focus on renewable energy and clean technology.

    I hope you find this whitepaper useful in your efforts to venture into the Indian solid waste to

    energy industry.

    Narasimhan Santhanam

    Cofounder and Director

    Energy Alternatives India (EAI) www.eai.in

    [email protected]

    http://www.eai.in/http://www.eai.in/http://www.eai.in/mailto:[email protected]:[email protected]:[email protected]://www.eai.in/
  • 7/24/2019 Msw Energy Landscape

    5/27

    5www.eai.in

    India MSW to Energy

    A White Paper by EAI

  • 7/24/2019 Msw Energy Landscape

    6/27

    6www.eai.in

    India MSW to Energy

    A White Paper by EAI

    Contents

    Preface ....................................................................................................................................... 1

    Key Takeaways .......................................................................................................................... 7

    1. Potential for Municipal Solid Waste to Energy ................................................................. 8

    1.1 Introduction to Waste ................................................................................................................................ 8

    1.2 Municipal Solid Waste (MSW) ............................ ................................. ................................. ................... 8

    1.3 Municipal Solid Waste Generation and Management Scenario in India ............................ .... 9

    1.4 Potential for MSW to Energy in India ............................... ................................ ................................ .... 9

    1.5 Technological Routes for MSW to Energy ................................ ................................ ....................... 10

    1.6 Prevalent Deficiencies in the MSW Management System in India .............................. ........... 13

    1.7 Key Drivers Enhancing MSW Management and MSW to Energy ................................ ........... 14

    1.8 Future Trends in MSW Generation, Management and Energy Recovery ............................ 15

    2. What are the Opportunities in MSW to Energy for your Business? .............................. 16

    2.1 MSW Value Chain .............................. ................................. ................................. ............................... ....... 16

    2.2 Business Opportunities along the MSW Value Chain...................................................... ............ 172.3 Owning and Operating Solid Waste Management Facilities .............................. ...................... 18

    2.4 Strategic and Financial Benefits from Waste to Energy Business ................................ ........... 19

    2.5 Potential Risks and Barriers in the MSW to Energy Business ............................. ...................... 20

    3. Is Waste to Energy the Right Opportunity for Your Business?...................................... 21

    3.1 Companies that Could Benefit from the Waste to Energy Sector ............................... ........... 21

    3.2 Key Success Factors and Competencies for Waste to Energy Business .............................. . 22

    3.3 Key Indian Players in the MSW to Energy Sector .............................. ................................. ........... 23

    4. Summary ............................................................................................................................. 24

    Waste to Energy Support from EAI ...................................................................................... 25

    EAI Services for the Waste to Energy Sector ....................................................................... 26

    Why EAI for Waste to Energy? .............................................................................................. 27

    http://192.168.1.103/naras%20d/NS/EAI/White%20Papers/Waste%20to%20energy/MSW%20Landscape%20-%20Dec%202011/Dec_2_MSW_Energy_Landscape.docx%23_Toc310603553http://192.168.1.103/naras%20d/NS/EAI/White%20Papers/Waste%20to%20energy/MSW%20Landscape%20-%20Dec%202011/Dec_2_MSW_Energy_Landscape.docx%23_Toc310603553http://192.168.1.103/naras%20d/NS/EAI/White%20Papers/Waste%20to%20energy/MSW%20Landscape%20-%20Dec%202011/Dec_2_MSW_Energy_Landscape.docx%23_Toc310603553
  • 7/24/2019 Msw Energy Landscape

    7/27

    7www.eai.in

    India MSW to Energy

    A White Paper by EAI

    Key Takeaways About 115000 tons of solid waste is generated per day in the country. This

    figure could be twice as much by 2020.

    Municipal solid waste is a potential source for recyclable and inert

    materials and can produce value added products, in addition to energy

    recovery.

    Business opportunities in waste to energy exist in all three stages of waste

    to energy Waste Transportation, Waste Management Facilities, and

    Waste Processing for Energy Recovery.

    Indian government actively encourages private sector participation in

    MSW value chain through a variety of business and operational models.

    Currently, biomethanation and incineration are the most prevalent and

    mature technologies for MSW to energy in India. Gasification and

    pyrolysis are the emerging technologies.

    Inadequate segregation at source, sub-optimal regulations and incentives,

    inadequate treatment facilities and immature technologies are some of

    the key challenges in this sector.

    Key success factors in waste to energy include optimal technology,

    efficient operations, focus on costs, and emphasis on environmental

    protection.

    Some of the prominent companies working in the Indian waste to energy

    sector include: Ramky Enviro Engineers, A2Z, Hanjer Biotech Energies and

    SELCO International.

  • 7/24/2019 Msw Energy Landscape

    8/27

    8www.eai.in

    India MSW to Energy

    A White Paper by EAI

    1. Potential for Municipal Solid Waste to Energy

    1.1 Introduction to Waste

    Growth of population, increasing urbanization and rising standards of living have contributed

    to an increase both in the quantity and variety of wastes generated by various activities.

    Broadly, waste can be classified as urban waste, industrial waste, biomass waste and

    biomedical waste.

    Urban

    Waste

    Wastes from households, commercial activities etc. (excluding waste arising

    from mining, construction or demolition processes etc.). This includes

    Municipal Solid Waste (MSW), Sewage and Fecal sludge.

    IndustrialWaste

    Solid, semi-solid, liquid, or gaseous or residual materials (excluding

    hazardous or biodegradable wastes from industrial operations)

    Biomass

    Waste

    Biomass waste is defined as biomass by-products, residues and waste streams

    from agriculture, forestry, and related industries.

    Medical

    Waste

    Waste generated at health care facilities, such as hospitals, blood banks as well

    as medical research facilities and laboratories.

    1.2 Municipal Solid Waste (MSW)

    Municipal Solid Waste (MSW) includes commercial and residential wastes generated in

    municipal or notified areas in either solid or semi-solid form. It consists of household waste,

    construction and demolition debris, sanitation residue, waste from streets and so forth. Some

    of the constituents of MSW are given in the figure below.

    Biodegr

    adable

    50%Recycla-

    bles

    20%

    Inerts

    22%

    Others

    8%

    Composition of MSW in India

    Kitchen

    waste

    Agro-waste

    Vegetable

    waste

    Garden

    waste

    Recyclables Inerts

    Plastic

    Paper

    Syringes

    Tablets

    Tin can

    Metals

    Glass

    Sand

    Pebbles

    Gravels

    Organics

    Classification and Composition of MSW in India

    Source: CPCB, NEERI

    Municipal Solid Waste

  • 7/24/2019 Msw Energy Landscape

    9/27

    9www.eai.in

    India MSW to Energy

    A White Paper by EAI

    1.3 Municipal Solid Waste Generation and Management Scenario in India

    Indian per capita waste generation is 0.2 0.6 kg/day, which is estimated to increase at1.33% annually. As per estimates, 115000 tons of solid waste is generated per day in the

    country. Management of MSW remains one of the most neglected areas of urban

    development in India.

    MSW management in India involves the interplay of six functional elements - generation of

    waste, storage, collection, transfer and transport, processing and recovery and disposal.

    Most of the MSW generated is dumped into land or in the outskirts of the city without any

    treatment. Municipal agencies spend about 5-25% of their budget on MSW management. In

    spite of such expenditure, the present level of service in many urban areas is so low thatthere is a threat to public health and environmental quality.

    1.4 Potential for MSW to Energy in India

    MNRE estimates that there exists a potential for generating about 1500 MW of power from

    the municipal solid wastes in the country. The potential is likely to increase further with

    economic development. The state-wise break-up of the potential for power production from

    MSW, is presented in the following table.

    Potential for Recovery of Electrical Energy (MW) from Municipal Solid Wastes by Indian States

    State/

    Union Territory

    Recovery Potential

    (MW)

    State/

    Union Territory

    Recovery Potential

    (MW)

    Andhra Pradesh 107.0 Maharashtra 250.0

    Assam 6.0 Manipur 1.5

    Bihar 67.0 Meghalaya 1.5

    Chandigarh 5.0 Mizoram 1.0

    Chhattisgarh 22.0 Orissa 19.0

    Delhi 111.0 Pondicherry 2.0

    Gujarat 98.0 Punjab 39.0

    Haryana 18.0 Rajasthan 53.0

    Himachal Pradesh 1.0 Tamil Nadu 137.0

    Jharkhand 8.0 Tripura 1.0

    Karnataka 125.0 Uttar Pradesh 154.0

    Kerala 32.0 Uttaranchal 4.0

    Madhya Pradesh 68.0 West Bengal 126.0

    Source: TERI and MNRE

  • 7/24/2019 Msw Energy Landscape

    10/27

    10www.eai.in

    India MSW to Energy

    A White Paper by EAI

    Highlights from the Table

    MNRE estimates that the energy recovery potential from MSW could go up to 5200 MW

    by 2017. Of the existing potential, only about 24 MW has been exploited, which is less

    than 1.5% of the total potential.

    Andhra Pradesh, West Bengal, Tamil Nadu, Maharashtra, Karnataka and Uttar Pradesh

    with heavy urban population and industrialized economy generate increased loads of

    MSW and have significant power recovery potential - over 100 MW each.

    Delhi, owing to its high population density, has an energy potential nearly equivalent to

    that of Andhra Pradesh

    Gujarat, being industrially advanced, holds significant promise for energy generation

    from urban wastes.

    Punjab, Haryana, Kerala, Orissa and Jharkhand exhibit only moderate potential for energy

    from MSW in spite of relatively dense population.

    1.5 Technological Routes for MSW to Energy

    Energy can be recovered from the organic fraction of waste (biodegradable as well as non-

    biodegradable) through thermo-chemical and biochemical methods. Incineration of RDF

    pellets for power generation and biomethanation are currently the preferred technologies

    for MSW to energy in India.

    Some emerging technologies such as fermentation, plasma pyrolysis, microwave waste

    destruction and laser waste destruction exist and are at various stages of commercial uptake.

    These merit a continuing review to assess their relevance for possible application to the

    treatment of specific waste types under Indian conditions.

    The pathways illustrating the primary MSW to energy technologies are highlighted below:

  • 7/24/2019 Msw Energy Landscape

    11/27

    11www.eai.in

    India MSW to Energy

    A White Paper by EAI

    Major MSW to Energy Technologies and Pathways

    Municipal Solid Waste (MSW)

    Collection and transportation from point of generation

    Storage and segregation

    Inerts (sand, stones, etc.)

    Landfill

    Recyclables

    Broken glass-

    containers,

    bottles, cups etc

    High moisture biodegradables (kitchen wastes

    etc

    Low moisture organics (Polythene, rubber tyres etc)

    Organics (Hydro-carbon

    materials)

    Anaerobic Digestion Gasification Pyrolysis Incineration/Combustion

    Producer Gas SyngasBiogas

    (Methane)

    Syn-diesel &

    Gasoline

    Electricity Transport Fuel

    Organic

    compounds

    (methanol,

    acetic acid

    etc)

    Pyrolytic gas Biochar

    Heat/Cold Applications

    Ceramics, concrete

    aggregates, recycled

    glass countertops

    Ferrous and non-

    ferrous metals,

    plastics

    Cans, tins, pipes etc

    Digestate

    Fertilizer

    FT ProcessFermentation

    Ethanol

    Ash

    Construction

    material

    Chemical

    feedstock

    (flavors,

    adhesives etc)

    Bio-oil

  • 7/24/2019 Msw Energy Landscape

    12/27

    12www.eai.in

    India MSW to Energy

    A White Paper by EAI

    1.5.1 Comparative Evaluation between various MSW to Energy Technologies

    Parameters Gasification Pyrolysis Incineration Biomethanation

    Method Thermochemical Thermochemical Thermal Biochemical

    End-Products Producer gas

    Syngas, Biochar

    Biooil, Biochar,

    Pyrolytic gas

    Heat , Ash Methane, Compost

    Process principle Partial oxidative

    Conversion

    Reductive

    transformation

    Complete

    oxidative

    conversion

    Anoxygenic

    microbial

    transformation

    Feedstock

    Requirements

    Dry wastes of

    synthetic and

    biological origin

    Dry wastes of

    synthetic and

    biological origin

    Dry wastes of

    synthetic and

    biological origin

    Fluid rich

    biodegradable

    wastes.

    Temperature

    Requirements (C)

    500-1300 380-530 700-1400 35-70

    Cost (Capital &

    O&M)

    High High Medium-high Medium-High

    Prominence in India Emerging Not proven Prominent Most prominent

    Future Potential High Potential Moderate Moderate High Potential

    Efficiency (%) 70-80 70-80 50-60 50-70

    Role for catalysts Non-catalytic Non-catalytic Non-catalytic Catalytic

    Environmental issues

    Concerns with toxic

    gases, organic

    compounds

    emissions and char

    generation.

    Constraints remain

    as tar depositions,

    char and volatile

    organics emissions.

    Ash discharges

    and evolution of

    toxic gases from

    partial

    combustion aslimitations.

    Probability for

    liberation of

    irresistible, pungent

    odor from wastes.

    Feedstock

    Preprocessing

    Method

    Shredding and

    drying

    Drying Drying and

    pelletization

    Sedimentation of

    organic sludge

    Permitted moisture

    content of feedstock

  • 7/24/2019 Msw Energy Landscape

    13/27

    13www.eai.in

    India MSW to Energy

    A White Paper by EAI

    1.6 Prevalent Deficiencies in the MSW Management System in India

    There is a lack of proper MSWM services in the country primarily due to financial constraintsof ULBs, institutional problems within the departments, fragile links with other concerned

    agencies, lack of suitable staff, and other allied problems. Some of the deficiencies in the

    MSWM system in India include the following:

    No Storage and Segregation of Waste at Source

    Source storage and segregation of waste based on degradability and hazards and

    recyclables separation is rarely done in India. Most households, shops, and establishments

    throw their waste just outside their premises, on streets, in drains, in open spaces, in water

    bodies, and in other inappropriate places. Insufficient segregation at source results in

    suboptimal performance of MSW to energy activities.

    Operational Inefficiencies in Primary Collection of Waste

    Authorities consider themselves responsible only for waste collection at street collection

    points and fail to provide doorstep collection service. Even though such service is now

    mandated in the rules, lack of standardized procedures and irregularity in sweeping

    accumulates the waste to remain in streets. Such operational deficiencies will result in high

    costs for energy recovery.

    Inappropriate System of Secondary Storage of Waste

    Transfer station infrastructures (waste depot sites) are not spacious and are constructed

    with a fore vision to store increasing loads of solid waste. They are often very poorly

    designed and are not synchronized with the primary collection system.

    Irregular Transport of Waste in Open Vehicles

    Open trucks and tractors used to transport waste are loaded manually. This time-

    consuming activity results in loss of labor productivity and increases the occupational

    health risk to workers.

    Lack of Waste Treatment and Inappropriate Disposal at Open Dumping Grounds

    The MSW generated in Indian cities is, by and large, not treated but is directly taken to the

    open dumpsites. Indiscriminate mixing of concrete debris with MSW makes landfill sites

    irreversibly unsuitable for any energy recovery activity.Although India is known for its age-

    old technology of composting agricultural waste, composting of municipal organic waste

    has been a rarity.

  • 7/24/2019 Msw Energy Landscape

    14/27

    14www.eai.in

    India MSW to Energy

    A White Paper by EAI

    1.7 Key Drivers Enhancing MSW Management and MSW to Energy

    Stringent legislative procedures and environmental consciousness drive the effectivemanagement of MSW to rescue the large socio-economic mass in the nation from hazardous

    effects of municipal waste. Some of the key drivers for enhancing municipal solid waste

    management in India are provided below:

    Legal Technological Environmental

    The laws and regulations in

    India at the municipal andcity levels are becoming

    stringent than ever before.

    The consequent threat of

    penalties could act as an

    important driver for MSW

    management (MSWM)

    Though the ability of

    technology to support MSWMis still limited, development of

    new and more effective

    technologies will act as a key

    driver to shape the progress of

    MSW management industry.

    The increasing awareness and

    concern among public andgovernment for protection of

    environment is one of the key

    drivers for MSWM.

    Socio Economic Developmental and

    Competitive

    Incentives

    The poorer sections of the

    society get affected most by

    the harmful consequences

    of unmanaged waste. With

    Indian cities comprising

    large populations under

    poverty level, significant

    health problems andsocietal trauma are

    encountered.

    Competition between cities to

    provide a clean city with good

    municipal environmental

    infrastructure, in order to

    attract investment can be a key

    driver. This appears to be

    particularly important in India

    where competition for foreigninformation technology

    investment is strong.

    A number of current and

    emerging incentives CDM or

    carbon credits, capital subsidies,

    high feed in tariffs and other

    fiscal incentives such as tax

    holidays- can accelerate adoption

    of waste to energy

  • 7/24/2019 Msw Energy Landscape

    15/27

    15www.eai.in

    India MSW to Energy

    A White Paper by EAI

    1.8 Future Trends in MSW Generation, Management and Energy Recovery

    Now Future

    MSW Generation

    Amount of MSW

    Generated in India

    55 million tonnes / Year 300 - 400 million tonnes/year by

    2030

    Waste Composition

    Organic fraction of MSW

    constitute the highest

    percentage followed by inerts

    Organic fraction of MSW will

    increase slightly. While inert

    materials will decrease

    considerably, the recyclable

    fraction, consisting of plastic,paper, and glass, will increase.

    MSW Management

    MSW Management

    The institutional constraints

    within the state government and

    urban local bodies machinery,

    such as lack of technical experts

    to identify bankable public-

    private partnerships (PPP)

    projects, have resulted in poorlyconceived PPP framework and

    projects.

    New trends will emerge as Public

    Private Partnerships (PPP) models

    gain pace with municipalities

    desiring to bring in outside

    expertise, technology, and project

    management skills to improve

    service and delivery efficiency.

    MSW to Energy

    Energy Recovery

    Potential

    1500 MW 5200 MW by 2017

    Energy Recovery

    Options from MSW

    Biomethanation and

    incineration of RDF Pellets

    Plasma arc gasification and ash

    melting technology, thermal

    decomposition technology for

    dioxins.

  • 7/24/2019 Msw Energy Landscape

    16/27

    16www.eai.in

    India MSW to Energy

    A White Paper by EAI

    2. What are the Opportunities in MSW to Energy for your

    Business?

    2.1 MSW Value Chain

    In many Indian cities, the MSW collection, segregation, transportation, processing and

    disposal are already being carried out by private companies under the operational control of

    the respective municipal corporations, and the state governments enforce regulatory

    policies.

    A typical waste handling system in a country like India includes the following elements: waste

    generation and storage, segregation, reuse, and recycling at the household level, primarywaste collection and transport to a transfer station or community bin, management of the

    transfer station or community bin, secondary collection and transport to the waste disposal

    site (or) energy recovery facility, waste disposal in landfills (or) processing for energy

    recovery.

    The schematic sketch below illustrates the steps carried out in managing the solid wastes in

    India.

    MSW Collection to Energy Value Chain

    Collection and

    Transportation

    Transfer

    station

    Processing

    for Energy

    Recovery

    Recyclable

    Materials

    Separated

    Disposal to

    Landfills

    Waste

    Transportation

    Source

    Storage andSegregation

  • 7/24/2019 Msw Energy Landscape

    17/27

    17www.eai.in

    India MSW to Energy

    A White Paper by EAI

    2.2 Business Opportunities along the MSW Value Chain

    Business opportunities are present in every component mentioned above. The variedbusiness opportunities that exist along the MSW value chain has been discussed below:

    MSW Value Chain Business Opportunities

    Primary collection and

    segregation of inerts,

    dry organics and

    others.

    Collection of reusable plastics and metals etc for sale in local

    market.

    Waste Processing and sell RDF pellets to biomass power

    plants.

    Mobilizing construction debris to make tiles and bricks

    Separation of wet

    organic wastes

    Production and sale compost to bio fertilizer firms.

    Biogas based power generation from sludge for selling it to

    the grid.

    Secondary collection

    and storage

    Maintenance of transfer stations

    High throughput screening of materials for recycling, energy

    recovery and land fill disposals.

    Recycling of wastes Recyclable commodity transactions from transfer stations

    Sale of recycled plastic or metal granules

    Conversion of processed wastes to industrial commodities

    Transportation and

    logistics

    Transporting solid waste from the source to the landfill or to

    the processing centers for energy recovery.

    Revenues from automobile manufacturing and sales to

    corporate bodies and contract holders etc

    MSW to energy

    recovery

    Production of machineries and equipments for energy

    recovery technologies

    Decentralized technology installations.

    Power generation and sale of power

    Production and sale of processed organic feed stocks from

    MSW

    Income from Certified Emission Reductions(CERs)

    Management of wastes

    at dumpsite

    Design and construction of secured landfills

    Urban landscape development at abandoned landfills

    Organization/financing

    for service and value

    chain enterprises

    Debt and equity financing

  • 7/24/2019 Msw Energy Landscape

    18/27

    18www.eai.in

    India MSW to Energy

    A White Paper by EAI

    2.3 Owning and Operating Solid Waste Management Facilities

    Indian government actively promotes the private sector participation in MSW value chainthrough development of defined business models on contract term basis. The various

    business opportunities and models for private sector participation in Indian MSW value chain

    are summarized in the following table.

    *BOOT Build Own Operate Transfer; BOO- Build Own Operate; DBFOT- Design Build Finance Operate Transfer; MC-

    Management Contract; MRTS- Mechanized Refuse Transfer Station

    The general PPP contract structure for an MSW to energy processing facility operating on BOT

    model is illustrated below

    Nominal lease rentals Power Purchase Agreement

    Min assured MSW quantity

    Royalty/Tipping Fee per MT

    Payments againstsale of power

    Grants= % X of Project cost

    Source:http://www.urbanindia.nic.in/programme/uwss/Term_Sheet_Processing.pdf

    Operations in MSW Business Model Average tenure of the

    project (years)

    Collection, transportation and

    cleaning

    MC/Service

    contract/BOOT*

    3-8

    Development of transfer station

    and transportation

    MRTS & BOOT/DBFOT 20

    Waste processing facility to

    derive energy

    BOOT/DBFOT/BOO* 20-35

    Development of sanitary

    landfills and post closure

    maintenance

    MC/DBFOT* 3-20

    Integrated MSW Management Mostly on BOOT 20- 30 (Some project

    tenures are linked to thelife of the assets)

    Municipality

    /ULB/

    State

    Agency

    State Electricity Board

    (SEB)

    Contractor for waste

    processing

    http://www.urbanindia.nic.in/programme/uwss/Term_Sheet_Processing.pdfhttp://www.urbanindia.nic.in/programme/uwss/Term_Sheet_Processing.pdfhttp://www.urbanindia.nic.in/programme/uwss/Term_Sheet_Processing.pdfhttp://www.urbanindia.nic.in/programme/uwss/Term_Sheet_Processing.pdf
  • 7/24/2019 Msw Energy Landscape

    19/27

    19www.eai.in

    India MSW to Energy

    A White Paper by EAI

    2.4 Strategic and Financial Benefits from Waste to Energy Business

    Profitability - If the right technology is employed with optimal processes and allcomponents of waste are used to derive value, waste to energy could be a profitable

    business. When government incentives are factored in, the attractiveness of the business

    increases further.

    Government Incentives - The government of India already provides significant

    incentives for waste to energy projects, in the form of capital subsidies and feed in tariffs.

    With concerns on climate change, waste management and sanitation on the increase (a

    result of this increasing concern is the newly formed ministry exclusively for Drinking

    Water and Sanitation), the government incentives for this sector is only set to increase infuture.

    Related Opportunities - Success in municipal solid waste management could lead to

    opportunities in other waste such as sewage waste, industrial waste and hazardous

    waste. Depending on the technology/route used for energy recovery, eco-friendly and

    green co-products such as charcoal, compost, nutrient rich digestate (a fertilizer) or

    bio-oil can be obtained. These co-product opportunities will enable the enterprise to

    expand into these related products, demand for which are increasing all the time.

    Emerging Opportunities - With distributed waste management and waste to energy

    becoming important priorities, opportunities exist for companies to provide support

    services like turnkey solutions. In addition, waste to energy opportunities exist not just in

    India but all over the world. Thus, there could be significant international expansion

    possibilities for Indian companies, especially expansion into other Asian countries.

  • 7/24/2019 Msw Energy Landscape

    20/27

    20www.eai.in

    India MSW to Energy

    A White Paper by EAI

    2.5 Potential Risks and Barriers in the MSW to Energy Business

    Policy & Regulatory Barriers

    Lack of clarity of government policies and incentives While MSW management is an

    important aim for every state government and municipal body in India, this goal has not

    translated itself into clear policies on contracts, feed-in-tariffs and other incentives.

    Lack of initiatives from key stakeholdersWhile the roles of the various stakeholders ULBs,

    pollution control boards etc are clear on paper, there is lack of proactive measures and

    initiatives from many of these stakeholders. This is a bottleneck for MSW projects that depend

    so much on governmental approvals for many aspects.

    Environmental & legalSome MSW to energy plants in India, as well as worldwide, have been

    the subject of litigation from environmentalists, society activists and NIMBY neighborhood

    residents. This has been especially true for incineration-based projects, which are still the

    dominant technology for MSW-based power plants.

    Financial Barriers

    Most solid waste to energy projects are capital intensive. Raising significant capital for an

    emerging sector is often difficult.

    Poor financial standing of the state utilities along, with lack of proper policy back up from the

    government has resulted in uncertainties over timely revenues from sale of power. Debt

    instruments dont usually work when the revenue stream is unattractive.

    Availability of waste at zero or near-zero cost which is a vital part of the revenue model, but

    this is not achievable on a consistent basis

    Waste to energy projects are considered as an unsafe investment by some due to lack of short

    term returns

    Technological Barriers

    Some of the emerging technology options large scale gasification for instance - are yet to be

    proven on a commercial scale.

    The characteristics of waste vary with region, source and scale, resulting in uncertainties over

    optimal designs and processes.

    Lack of indigenously developed technology and skilled manpower for emerging process routes

    such as gasification and pyrolysis.

    Other Barriers

    Long lead time for completing all the formalities/ documentation and getting all the approvals.

    Lack of expertise to understand, develop, appraise and put in place a structured and viable

    business model for these projects.

    Shifting priorities of the urban local bodies from waste-to-energy to other issues resulting in

    diversion of funds and other support.

    Lack of clarity for investors in the roles and responsibilities of Urban Local Bodies (ULBs)

    (Public Health and Engineering Departments (PHEDs), Boards, Municipalities, etc).

  • 7/24/2019 Msw Energy Landscape

    21/27

    21www.eai.in

    India MSW to Energy

    A White Paper by EAI

    3. Is Waste to Energy the Right Opportunity for Your

    Business?

    3.1 Companies that Could Benefit from the Waste to Energy Sector

    Companies in domains such as renewable energy (solar, wind, biomass etc.), Engineering,

    Procurement and Construction (EPC), transportation and logistics, sanitation and

    environment, small and large scale power plants, facilities management etc will be ideally

    suited for the waste to energy business. The table below outlines the type of companies that

    will be benefitted in each part of the waste to energy value chain.

    Segregation of dry waste, re-usable, inerts etc

    Segregation of wet wastesand processing

    Transport and logistics

    Storage & secondarycollection

    Recycling of wastes

    MSW waste to energyrecovery

    Management of wastes atlandfills

    EPCs

    Locomotive manufacturing companies (Heavy and Light)

    Private vehicle service stations, Transport agencies

    Part time workers under contract

    Farmers

    Fertilizer companies, Agro-market enterprises

    Other informal sector participants

    Recycling companies

    Rag pickers

    Other informal sector participants

    EPCs

    Construction companies

    MSW junk shop owners

    Logistic services

    EPCs

    Material Recovery Facility (MRF) operators

    Intermediate material processing cottage units

    Environmental engineering companies

    Small and medium junk shop owners

    Technology providers and fabricators

    IPPs and CPPs

    Service technicians

    Producers and dealers of MSW derived RDF pellets.

    EPCs

    Civil infrastructure developers

  • 7/24/2019 Msw Energy Landscape

    22/27

    22www.eai.in

    India MSW to Energy

    A White Paper by EAI

    3.2 Key Success Factors and Competencies for Waste to Energy Business

    Optimal technologyThe most appropriate technology depends on multiple aspects such

    as amount of waste generated, degree of segregation and ultimate end product. It is critical

    for the users of technology to consider all these aspects intensively before investing in a

    specific technology.

    Efficiency in every aspect of logistics and transportationEven in developed countries,

    significant efficiencies can be incorporated into the logistics/transportation stage of the

    waste management value chain. In developing countries such as India, the scope for

    improvement in efficiencies is significant, and such improvements could have a significant

    impact on the financial sustainability of the entire project

    Ensuring benefits for all the stakeholders In India, waste management has diverse

    stakeholders, some of them in the informal sector. Rag pickers represent one prominent

    category in this context; another is the society in the vicinity of dump yards, landfills or waste

    to energy power plants. Unless the business model is so structured as to provide benefits to

    all the stakeholders, a number of operational and legal problems could arise.

    Ensuring reliable supply of feedstock at low or no cost It is critical for the waste to

    energy project developer to ensure that the generator of the waste or the municipal

    corporation provides the waste at no cost, and in addition provides a tipping fee. The

    processes for treatment of waste and subsequent energy generation are costly, and thesecosts need to be offset through zero cost feedstock and availability of additional

    monetizations such as tipping fees.

    Emphasis on environmentally sound practices along the entire operational value chain

    Some incineration-based waste to energy plants in India as well as worldwide have faced

    significant opposition from environmental regulators and civil society, owing to allegations

    of pollutants being released to the environment. Such social and legal concerns could

    severely affect the sustainability of waste to energy power plants. Power project owners need

    to undertake extensive analysis of all the aspects along the value chain that could haveadverse environmental impacts, and devise suitable remediation plants.

  • 7/24/2019 Msw Energy Landscape

    23/27

    23www.eai.in

    India MSW to Energy

    A White Paper by EAI

    3.3 Key Indian Players in the MSW to Energy Sector

    Company Headquarters Highlights

    Biomethanation

    M/S Asia Bio- energy Pvt

    Ltd (ABIL)

    Chennai Follows Biogas induced mixing arrangement-

    (BIMA) technology for a 5.1 MW MSW to energy

    project

    Cicon Environment

    Technologies

    Bhopal Upflow Anaerobic Sludge Blanket (UASB)

    technology and activated sludge process are

    followed in installations

    Bermaco/WM Power Ltd Navi Mumbai Completed 11 MW biogas plant in Mumbai using

    WABIO process.

    Sound craft Industries Mumbai Installing 12.8 MW plant at Mumbai with

    technology from Ericsons, USA

    Hydroair Tectonics

    Limited

    Navi Mumbai Adopting aerated and UASB technologies for the

    treatment of waste sludge and biogas generation

    respectively.

    Ramky Enviro Engineers

    Ltd

    Hyderabad Undertaking comprehensive biomethanation

    projects coupled to secure composting and

    landfills. Also involved in incineration and

    presently operating India's largest waste

    incinerator at Taloja, Maharashtra.

    Combustion /IncinerationA2Z Group of Companies Gurgaon RDF based combustion technology with scope for

    cogeneration of heat and power.

    Hanjer Biotech Energies Mumbai Developing 15 MW combustion power plant in

    Surat District with MSW based RDF pellets as fuel.

    SELCO International

    Limited

    Hyderabad SELCO setup the first commercial Municipal Solid

    Waste-processing unit in India in 1999. Have

    installed 6.6 MW using RDF pellets as energy

    source.East Delhi Waste

    Processing Company Pvt

    Ltd

    New Delhi Implementing 10 MW incineration power plant

    with MSW derived RDF pellets as fuel.

    Gasification

    Zanders Engineers

    Limited

    Mohali Has a collaborative gasification technology to

    process multiple feedstocks including MSW for

    power

    UPL Environmental

    Engineers Pvt Ltd

    Vadodara Advanced gasification technology with

    destruction efficiency of 99.9% and emissions well

    below thresholds.*The above companies could in future be using multiple technologies and process routes

  • 7/24/2019 Msw Energy Landscape

    24/27

    24www.eai.in

    India MSW to Energy

    A White Paper by EAI

    4. Summary

    The business of generating energy from solid waste (especially municipal solid waste fromurban areas) is entering a period of rapid growth in India. The dual pressing needs of waste

    management and reliable renewable energy source are creating attractive opportunities for

    investors and project developers. Early movers who have identified the right technologies are

    poised to grow in this promising industry.

    At the same time, significant barriers exist. The yet to be commercialized technologies, high

    capital requirements, predominant dependence on government machineries for many parts

    of the business value chain and a sub-optimal regulatory environment present significant

    industry challenges. These challenges have resulted in many critical questions regardingwaste to energy/value project viability remaining unanswered.

    The complexity of navigating through these challenges calls for a clear understanding of the

    stakeholders and their roles, business models, and technologies behind the waste-to-energy

    solutions. Given the need for critical knowledge on the viability of waste to energy projects

    before venturing into this niche sector, assistance from an advisory and research firm is

    imperative.

    EAI has been researching the waste to energy sector in India for the past few years, and we

    have developed an exhaustive understanding of the various technology options for waste toenergy. We have worked with prestigious clients such as Bill & Melinda Gates Foundation

    and Pepsi Co. for waste to energy projects, and can offer actionable market intelligence and

    support for those keen on exploring this sector.

  • 7/24/2019 Msw Energy Landscape

    25/27

    25www.eai.in

    India MSW to Energy

    A White Paper by EAI

    Waste to Energy Support from EAI

    If you are looking for business and technology support for waste toenergy, look no further than EAI.

    Areas of Expertise in Waste Management

    EAIs waste to energy division can provide extensive research and consulting assistance for

    energy recovery from the following types of waste:

    Municipal Solid Waste

    Industrial Solid and Liquid Waste

    Agro Residues and Crop Waste

    Sewage Waste and Fecal Sludge

    Hazardous Waste

    Our team has excellent exposure to energy recovery using the following types of processes:

    Anaerobic Digestion / Composting

    Gasification

    Pyrolysis / Thermal Depolymerization

    Fermentation

    Combustion / Incineration

    Clients

    EAI consulting team has been assisting several organizations in diverse renewable energy

    domains. The fact that a major percentage of our business comes from client referrals bears

    ample testimony to the quality of our research and consulting.

    EAI has undertaken Waste to Energy research projects for many clients including global

    clients such as Pepsico and Bill and Melinda Gates Foundation.

    Some of our other esteemed consulting clients include

    Reliance Industries Bhavik India Group

    Vedanta Resources Green Concretex Global

    World Bank Agarwal Group

    Minda Group Jivanlal and Sons Group

    iPLON GmbH Indo-Italian Chamber of Commerce

  • 7/24/2019 Msw Energy Landscape

    26/27

    26www.eai.in

    India MSW to Energy

    A White Paper by EAI

    EAI Services for the Waste to Energy Sector

    Market Intelligence Techno Commercial

    Feasibility Consulting

    Financial and Business

    Advisory Services

    Market and region specific

    potential analysis and

    forecasting for waste to

    energy sector in India.

    Intelligence on all the

    current and emerging

    technology or process

    routes for waste to energy

    Inputs on all the

    government regulations orincentives and approvals

    relating to waste

    management and waste to

    energy projects

    Intelligence on current

    incumbents and

    stakeholders in the Indian

    waste management and

    waste to energy projects

    Key success factors and

    bottlenecks that critically

    influence the waste to

    energy industry in India.

    Feasibility analysis for

    different process or

    technology routes

    Identification of

    technology transfer or joint

    venture partners for

    implementation

    Financial modeling and

    techno economic

    valuations to assess the

    viability of different waste

    to energy technologies

    Development of

    unique business plans

    to attract sources of

    finance.

    Development of

    differentiated waste to

    energy business

    models with highest

    value to all the

    stakeholders

    Investment structuring

    and financing support

    for waste to energy

    projects

    Leveraging CDM, REC

    and other benefits to

    increase the

    attractiveness of waste

    to energy projects

  • 7/24/2019 Msw Energy Landscape

    27/27

    India MSW to Energy

    A White Paper by EAI

    Why EAI for Waste to Energy?

    EAI is one of the few companies in India who have in depth knowledge of the market,

    technology and business aspects of waste to energy industry across its entire value chain.

    We have an exceptional understanding of the technology options and process routes for

    waste management for diverse types and scale of waste.

    Our past work on diverse assignments in waste to energy for global companies such as

    Pepsi Co., Bill & Melinda Gates Foundation etc., and our current assignments in this field

    have provided our team with unique perspectives and insights on all the key challenges

    and bottlenecks in the entire value chain.

    Our large network of technical contacts for waste to energy in India and globally will

    assist our clients get easier access to latest technological solutions.

    Our multi-disciplinary team with chemical and biochemical technology professionals

    ensures that our recommendations will always come with a seal of scientific approval.

    Our management team comprising professionals from IITs and IIMs ensure that our

    recommendations, blue prints and business models are powerful and state- of- the - art.

    To know more on how EAI can assist you, contact

    Narasimhan Santhanam

    Mob: +91-90435 39679

    Email:[email protected]

    mailto:[email protected]:[email protected]:[email protected]:[email protected]