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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 avenues for investment for businesses. As the industry is
relatively new in India, a better understanding of the trends and opportunities in the
Indian waste to energy sector is essential before making 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.
The white paper has been developed by Energy Alternatives India (EAI) as part of
the 2nd RenewCon India 2011 Conference by UBM, held at Mumbai in September
2011.
I hope you find this guide useful in your efforts to venture into the attractive Indian
solid waste to energy industry.
Narasimhan Santhanam
Cofounder and Director
Energy Alternatives India (EAI) – www.eai.in
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Contents
Preface ................................................................................................................................ 1
Key Takeaways from the White Paper .............................................................................. 6
1. Potential for Municipal Solid Waste to Energy .............................................................. 7
1.1 Introduction to Waste and MSW .............................................................................. 7
1.2 Municipal Solid Waste (MSW) ................................................................................... 7
1.3 Municipal Solid Waste Management Scenario in India ......................................... 8
1.4 Potential for MSW to energy in India ...................................................................... 8
1.5 Technological Routes and Potential End Products from MSW ............................ 10
1.6 Key Drivers and Challenges Enhancing Solid Waste Management and Solid
Waste to Energy ............................................................................................................ 12
2. What are the Opportunities in MSW to Energy for Your Business? ............................. 15
2.1 Business Opportunities along the MSW to energy value chain ........................... 15
2.2 Strategic and Financial Benefits from Waste to Energy Business ......................... 16
2.3 Potential Risks and Barriers in the MSW to Energy Business .................................. 17
3. Is Waste to Energy the Right Opportunity for Your Business? ..................................... 18
3.1 Companies Could Benefit from the Waste to Energy Sector .............................. 18
3.2 Key Success Factors and Competencies for W2E Business.................................. 18
3.3 Key Indian players in the MSW to Energy Sector .................................................. 19
Summary ........................................................................................................................... 20
Waste to Energy Support from EAI ................................................................................... 22
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Key Takeaways from the White Paper
About 115000 tons of solid waste is generated per day in the country.
By some estimates, this figure could be twice as much by 2020.
There exists a potential for generating about 1500 MW of power from
municipal solid wastes in the country. The potential is likely to increase
further with economic development.
Currently, biomethanation / anaerobic digestion and Incineration are
the most prevalent and mature technologies for MSW to energy in
India. Gasification and pyrolysis are emerging, and currently
economically less viable than biomethanation.
Lack of proper segregation at source, inadequate treatment facilities
and sub-optimal technologies are some of the key challenges in this
sector.
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.
Companies especially in the following industries could benefit from
opportunities in the waste to energy domain – Energy/Renewable
Energy, EPC, Transportation, Sanitation and Facilities Management.
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.
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1. Potential for Municipal Solid Waste to Energy
1.1 Introduction to Wastes and MSW (I feel MSW is not needed here as we
are explaining that in the following sec)
Growth of population, increasing urbanization, rising standards of living due to
technological innovations have contributed to an increase both in the quantity and
variety of wastes generated by various activities. Broadly, waste can be classified as
urban wastes, industrial wastes, biomass wastes and biomedical wastes.
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, and waste from streets
and so forth. Some of the examples of MSW include: paper, glass, metals, synthetic
polymers, inerts (stones, sand, pebbles etc), hides and leather discards,
pharmaceuticals wastes (tablets, ointments, lotion etc), kitchen wastes (fruit and
vegetable peels, raw and processed food ingredients)
Classification of Municipal Solid Waste
Urban
Waste
Wastes from households, commercial activities etc. (excluding waste
arising from mining, construction or demolition processes etc.).
Industrial
Waste
Solid, semi-solid, liquid, or gaseous or residual materials (excluding
hazardous or biodegradable wastes from industrial operations)
Biomass
Waste
Biomass residue is defined as biomass by-products, residues and waste
streams from agriculture, forestry, and related industries.
Bio-
medical
Waste
Waste materials generated at health care facilities, such as hospitals,
blood banks as well as medical research facilities and laboratories.
Kitchen waste
Agro-waste
Vegetable waste
Garden waste
Cattle dung
Recyclables Inerts
Plastic
Paper
Old cloth
Syringes
Tin can
Metals
Glass
Carbon paper
Thermo coal
Sand
Organics
Municipal Solid Waste
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1.3 Municipal Solid Waste Management Scenario in India
Management of MSW continues to remain one of the most neglected areas of
urban development in India.
As per estimates, 115000 tons of solid waste is generated per day in the country.
Even small regions within cities could be the source of large amounts of MSW. For
example, a slum in Dharavi in Mumbai generates about 80 tons of MSW per day,
which is almost the same as the waste generation of the entire state of Tripura
(which generates 100 tons per day).
MSW management in India involves 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 on the outskirts of the city
without any treatment. Municipal agencies spend about 5-25% of their budget on
MSW management, but less than 5% of the total amount is spent on final disposal of
waste, which shows that hardly any attention is given to scientific disposal of waste.
In spite of such a heavy expenditure, the present level of service in many urban
areas is so low that there is a threat to the public health in particular and the
environmental quality in general.
1.4 Potential for MSW to Energy in India
There exists a potential for generating an estimated 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 MSW generation and potential
for power production is presented in the following table:
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
Potential for Recovery of Electrical Energy (MW) from Municipal Solid Wastes by Indian States Source: TERI and MNRE; MT – Million Tonnes
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1.5 Technological Routes and Potential End Products from MSW
Energy can be recovered from the organic fraction of waste (biodegradable as well
as non- biodegradable) through thermal, thermo-chemical and biochemical
methods. The table below highlights the basic principles of the technology and the
potential end product that can be obtained from them.
The pathways illustrating the major MSW to energy technologies are highlighted
below:
Technology End Products
Thermal Conversion Incineration – Complete oxidation of waste matter under high temperature and oxygenated conditions
Steam, Purified flue gas, Ash, Heat and
electricity
Thermochemical Conversion A. Pyrolysis - Elevated temperature driven decomposition of organic mass fraction in wastes in the absence of air or oxygen
Pyrolytic gas, Pyrolytic oil, Heat,
Electricity
B. Gasification - Transformation of organic mass similar to pyrolysis but under limited supply of oxygen
Syngas, Electricity, Heat , Synfuel and
Hydrocarbons via FT synthesis.
Biochemical Conversion Biomethanation - Microbial digestion of complex organics in moisture rich wastes to methane under anaerobic conditions
Methane (Biogas), Compost, Power
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Highlights
Gasification and pyrolysis are thermochemical decomposition processes
that are conceptually similar to each other. Both have the advantage of
providing a valuable product as a co-product – along with the main fuel
synthesis/producer gas. Charcoal, which is produced as a co-product,
commands a high value in the market.
While incineration is the simplest and currently the least costly method, it
has two disadvantages – it is relatively more polluting than gasification,
pyrolysis or anaerobic digestion, and it also produces lesser overall value,
as the only by-product is ash, which commands a very low value in the
market.
Biomethanation (anaerobic digestion) produces methane gas as a major
end product, which can consequently be used for heat and power
production. The left over activated sludge serves as excellent compost.
1.6 Key Drivers and Challenges Enhancing Solid Waste Management and
Solid Waste to Energy
1.6.1 Potential Drivers Enhancing Waste to Energy
Stringent legislative procedures and environmental consciousness drive the
technological upgradation for effective management of MSW to rescue the large
socio-economic mass in the nation from hazards of municipal waste. Some of the
key drivers for enhancing solid waste management in India are represented below:
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1.6.2 Prevalent Deficiencies in the Solid Waste Management System in India
Some of the deficiencies in the SWM system in India include the following:
Deficiency Details
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.
Operational inefficiencies in
primary collection of waste at the
doorstep
Collection of waste only from street collection
points and poor door-to-door collection.
Irregular street sweeping and
garbage collection
No proper planning and specific benchmarks for
street sweeping.
Inappropriate system of
secondary storage of waste
Very poor waste depot sites for secondary storage
of waste.
Legal
The laws and regulations
in India at the municipal
and city levels are
becoming stricter than
they were earlier. The
consequent threat of
penalties could act as an
important driver for solid
waste management
Technological
The ability of technology to
support SWM is still limited.
Development of new and more
effective waste-to-energy
technologies will act as key
drivers and will play an important
role in the progress of solid waste
management industry.
Environmental
The increasing awareness
and concern among
public and government for
protection of environment
is one of the key drivers for
SWM.
Developmental and Competitive
Where there is an absence of
strong legislation, competition
between cities to provide a
„clean city‟ with good municipal
environmental infrastructure, in
order to attract (often foreign)
investment can be a key driver.
This appears to be particularly
important in India where
competition for foreign
information technology
investment is strong.
Incentives
A number of current and
emerging incentives –
CDM/carbon credits,
capital subsidies, high feed
in tariffs and other fiscal
incentives such as tax
holidays can accelerate
adoption of waste to
energy
Socio Economic
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, this results in
significant health
problems and societal
trauma.
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Irregular transport of waste in
open vehicles
Open trucks for transportation and manual
loading.
Inappropriate disposal of waste at
open dumping grounds
No proper engineered landfills for waste disposal.
Other Deficiencies
1. Waste composition
2. Access to waste
1. High moisture content and a large proportion of
inerts make the waste dense and cause
transportation and treatment problems
2. Many sources of waste such as those
generated in slums are inaccessible
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2. What are the Opportunities in MSW to Energy for Your
Business?
2.1 Business Opportunities along the MSW to energy value chain
The schematic sketch below illustrates the steps carried out in managing the solid
wastes in India. In most of the Indian cities, the MSW collection, segregation,
transportation, processing and disposal is carried out by the respective municipal
corporations and the state governments enforce regulatory policies.
MSW Collection to Energy Value Chain
2.1.1 Waste Handling – Logistics and Transportation
This section of the value chain represents the stage from the doorstep until the
landfill. This section comprises the largest opportunity by value, and can be further
divided into:
Collection
Transportation
Storage
Handling
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
Primary waste collection and transport to a transfer station or community bin
Street sweeping and cleaning of public places
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
Collection and Transportation
Dump Sites
Waste Transportation
Processing for Energy Recovery Recyclable
Materials Separated
Source Storage and Segregation
Disposal to Landfills
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2.1.2 Owing and Operating Solid Waste Management Facilities
Once the solid waste has reached its destination, the key role is to ensure that the
waste is managed and handled in an optimal manner. This is usually done at
landfills.
Landfill management comprises two steps:
Operations and maintenance to ensure that the appropriate environmental
and safety guidelines are followed for the landfill
Where applicable, coordinate the collection of landfill gas.
2.1.3 Waste to Energy Conversion Facilities
Where the waste is not diverted to the landfill, the waste is transported to the energy
recovery plant. Here, the following activities take place:
Waste pre-treatment (mechanical or thermal pre-treatment)
Conversion to energy – through thermal or biochemical processes (includes
combustion system/anaerobic system, boiler/gas engine design, energy
recovery, flue gas cleaning etc.)
Waste post-treatment (residue treatment, land-filling of selected residues)
Business opportunities are present in each and every component mentioned above.
In practice however, each of the three main stages of the value chain – 2.1.1
through 2.1.3 - comes across as a single business opportunity, with all the sub-
components within each of the three being handled by a single business entity.
2.2 Strategic and Financial Benefits from Waste to Energy Business
Profitability - If the right technology is employed and with optimal processes,
waste to energy could a profitable business. When government incentives are
factored in, the attractiveness of the business increases even further.
Government Incentives - The government of India already provides significant
incentives for waste to energy projects. 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 in future.
Related Opportunities - Success in municipal solid waste management could
lead to opportunities in other waste such as sewage waste and industrial and
hazardous waste. Depending on the technology/route used for energy recovery,
eco-friendly and “green” co-products such as charcoal, compost or nutrient rich
digestate (a fertilizer) are produced. These co-product opportunities will thus
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enable the business 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 are available for companies
to become turnkey solution providers
2.3 Potential Risks and Barriers in the MSW to Energy Business
Financial Barriers
Most solid waste to energy projects are capital intensive. Raising significant
capital for a sector that is not fully proven will not be easy in India.
The attractiveness of the revenue model depends on timely receipts from sale
of power generated and availability of waste at zero or near-zero costs. If these
conditions do not continue owing to the poor financial standing of the state
utilities or owing to policy changes by the government, the project‟s
attractiveness could be at risk.
Technological Barriers
Some of the emerging technology options – large scale gasification for instance
– are not yet fully proven.
The characteristics of waste could be different for different regions and for
different sources even within the same region, resulting in uncertainties with
regard to optimal designs and processes.
India does not have indigenously developed technology and manpower for
emerging options such as megawatt-scale gasification and pyrolysis.
Other Barriers
Long time taken for completing all the formalities/ documentation and getting
all the approvals to get the project started.
Long time taken for closure of agreements especially those related to receipt of
raw waste from the urban local body and the power purchase agreements.
The Indian investors‟ lack expertise /capacity to understand, develop, appraise
and put in place a structured viable financial 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.
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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 the following domains could be ideally suited:
Renewable energy domains such as solar, wind, biomass etc.
Engineering, procurement and construction (EPC)
Transportation and Logistics
Sanitation and environmental services
Small or large scale power plants
Facilities management
Handling solid waste or present in any segment of the waste management
value chain
3.2 Key Success Factors and Competencies for Waste to Energy Business
Optimal technology
Efficiency in every aspect of logistics and transportation
Ensuring benefits for all the stakeholders
Ensuring reliable supply of feedstock at low or no cost
Clear business emphasis on benefitting all the stakeholders, especially
regulators and society
Special emphasis on following environmentally sound practices along the
entire operational value chain
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3.3 Key Indian players in the MSW to Energy Sector *
Companies Headquarters Highlights
Biomethanation
M/S Asia Bio- energy
Pvt Ltd (ABIL)
Chennai Follows “Biogas induced mixing
arrangement-(BIMA)” technology for a 5.1
MW Lucknow 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 sludges 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 /Incineration
A2Z 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. They have currently installed
6.6 MW grid connected power plant in
Mahboob Nagar, AP with 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.
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*The above companies could in future be using multiple technologies and process routes
Summary
The business of generating energy from solid waste (especially urban solid waste) is
entering a period of rapid growth in India. The dual needs of waste management
and reliable renewable energy source are having a multiplier effect and have
created attractive opportunities for investors and project developers. Early movers
who have identified the right technologies are already poised to grow in this
promising industry.
At the same time, the „yet to be commercialized‟ technologies, high capital
requirements and an evolving regulatory environment present significant industry
challenges. There are unanswered questions with respect to the viability of waste to
energy projects. The complexity of navigating through these challenges calls for a
clear understanding of the business models and technologies behind the diverse
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 to energy. 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.
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.
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Waste to Energy Support from EAI
If you are looking for business and technology support for waste to
energy look no further than EAI.
Areas of Expertise in Waste Management
EAI‟s 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
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EAI Services for the Waste Management 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 / process routes
for waste to energy
Inputs on all the
government regulations /
incentives 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/technology
routes
Identification of technology
transfer / 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
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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 has 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 IIT‟s and IIM‟s 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
Badri Narayanan
Mob: +91 9042329344
Email: [email protected]
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