Piggery Waste

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    Technologies for Rice basedEco-industrial Clustering in Thailand

    C. Visvanathan

    Environmental Engineering and Management,Asian Ins ti tute of Technology,

    Bangkok, Thailand

    [email protected]

    Web: http://www.faculty.ait.ac.th/visu/

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    Country Profile - Thailand

    Population of 64 mill ion in 510,000 km2 , 76 provinces

    GDP per capita (PPP): $8,300

    GDP composition: agricu lture 9.9%, industry 44.1%,services 46%

    Labor force : agriculture 49%, industry 14%, services 37%

    World's 2nd largest tungsten producer and 3rd largest tinproducer

    26 % of the worlds rice exports are from Thailand

    Top imports f rom Japan (22%), China (9.4%)

    Major Environmental Concerns

    air pollution from vehicle emissions

    water pollution from organic and factory wastes

    deforestation

    soil erosion

    wildlife populations threatened by illegal hunting

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    Industrial Development in Thailand

    Major FDI in Thailand : Japan, the United States, Europe, Taiwan,Hong Kong, and Singapore

    Japan has been the largest source of FDI since the late 1970s

    US overtook in 1999 and Singapore in 2001 but in 2000 and 2001Japanese FDI bounded back by increasing equity shares inlocal subsidiaries

    Investments on infrastructure development

    Japan Bank for International Cooperation

    Japan International Cooperation Agency

    ODA for infrastructu re development projects

    Bangkok International Airport

    Eastern Seaboard Development Program

    269UK

    306EU

    2USA

    132Japan

    Apr 2006

    (million US$)

    Country

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    Study Area

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    Bangkok

    Chachoengsao

    Bangkok

    RuralUrbanFringeAreas

    Province area - 5,300 km2

    Administratively divided into 11 districts

    Population of 650,000

    Approximately 2,200 km2 of agricultural lands (70% ofthe population are farmers)

    GPP = US$ 4.2 million (9th rank of country)

    Average population income =US$ 6,600/yr (3rd ofregion and 8th of country, Avg.= US$ 2,300)

    Paddy, Cassava, Sugarcane are the major crops

    Mix of Rural and Urban areas

    Profile of Chachoengsao

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    Bangkok & 5 Study Districts - 1990

    Bangkok & 5 Study Districts - 2003

    Bangkok & 5 Study Districts 1990 - 2003

    Urban Land Use Change

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    Rural Landuse Change 5 Study Districts

    Agricu ltural Lands - 1990

    Agricu ltural Lands - 2003

    Industries - 2003

    Agricu ltural Lands 1990 - 2003

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    Social Issue

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    2

    1

    0

    1

    2

    3

    2001 2002 2003 2004

    MueangChachoengsao Bangkhla BangNam PriaoBangPakong BanPho PhanomSarakhamRatchasan SanamChaiKhet PlaengYaoThaTakiap KhlongKhuean

    Reason :Migration to urban areas and other parts of theprovince in search of employment and livelihood oppor tunities

    Negative population growth in 4 ofthe 5 study dist ricts !

    Population Growth Rate in Chachoengsao Province

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    Environmental Status

    28282115200

    0011000

    1015000

    1001000

    41132100

    6651100

    4222000

    12993000

    ChonburiRayongChachoengsaoPhrachinburiChantaburiTratSakaeo

    TotalOtherHazardouswaste

    Solidwaste

    Wastewater

    Dust/Smoke

    NoiseOdorProvince

    Solid Waste

    About 120 tons/day of MSW (predominantly organic) in 5 study di st ricts

    Collection efficiency:85-100%;

    Pig farms and Poultri es: Solid Waste and Excreta

    Agricultural Residue: Rice husk, Straw

    Wastewater

    250,000 pigs in 800 farms

    A farm w ith 200-2,000 pigs generate wastewater at the rate o f about 12.5L/pig/day

    Aver age BOD of about 1,412 mg/L and maximum BOD of 4,638 mg/L

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    Rice BasedIndustries

    Piggery

    Poultry

    Bio

    mas

    s&

    Biog

    as

    Power

    Gen

    eration

    Case Study Clusters

    200 million tons ofpaddy

    100 rice husk mil ls22 rice noodle

    industries

    250,000 pigs in 800pig farms

    300 tons of piggerywaste

    10 MW Rice huskBiomass power

    Potential forbiogas power

    5 million chicken in332 farms

    700,000 ducks in 100farms

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    Rural Product Chain

    Rice MillsPaddyRice

    Rice Industry

    Wastewater

    Piggery Wastewater

    Solid Waste - Excreta

    Poultry

    High OrganicPotential for Biogas

    Organic Fertilizer

    High Calorific Value

    Potential as biomass

    Organic Fertilizer

    Paddy HuskAgr i. Residues

    Rice Products

    Rural Fringe Urban

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    Value Chain Framework

    ValueIncrea

    se

    Energyconsum

    ption

    Noise/odor/du

    st

    Wastewater

    Environmental

    degradation

    GHGEmission

    CO,CO2,NOx

    Solidwaste

    Lostofnutrie

    nt

    Soilcontamin

    ation

    PollutionInc

    rease

    Rice

    PolishingPaddy

    Processing

    Harvesting

    Intensive

    Cultivation

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    Industrial Network in Chachoengsao

    Agriculture

    LivestockSmall PowerProducers

    RiceIndustries

    Biogaspower

    OrganicFertilizer

    Biomasspower

    Compost

    Cattlefeed

    AgroProducts

    ExistingExisting butweakPossible, butdoes not exist

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    Strengths Present Cluster Situation

    Raw material and w aste sharing between agriculture and livestock

    Access to Bangkok areas leads to a broad spectrum of markets fo ragricultural and livestock products

    Rapidly improving in frastructure facilities such as roads, watersupply and electricit y in the Province attracts new investments

    Cleaner Production potential at individual firm level, SMI level (e.g.Rice Noodle Industry)

    Ideal Eco-cluster

    Creation of new business that util ize disposed resources as rawmaterials rice husk/biomass pow er generation; piggery wastebiogas

    Increase competitiveness of business by reducing productioncosts; cost reduction in waste disposal + income generationthrough resource recovery from waste

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    Weakness

    Present Cluster Situation

    Use of intermediate technology in farming, harvesting and riceprocessing

    Unscientific methods in livestock farming

    Pollution of local water sources from high organic livestockwastes

    Lack of awareness on technologies and possibi lities in resourcerecovery from agricultural and livestock wastes

    Excessive Migration of population towards urban Bangkok

    Indiscriminate disposal of paddy residues and excreta frompiggeries and poultry farms

    Ideal Eco-cluster

    Increase in inward population migration from additionalemployment pressure on local resources

    Creation of more businesses may exert pressure on naturalresources for raw materials

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    Opportunities Present Cluster Situation

    Increase employment rate by way of creating new business (e.g.small & medium scale power generation using biomass/biogas)

    Increase the local income of the Province leading to improvedliving standards

    Ideal Eco-cluster

    Create additional jobs in rice indus try, piggery and poultry throughnew businesses, services and products in Chachoengsao Province

    Prevent outward population migration, a prevailing social issue inChachoengsao Province, and sustain rural grow th

    Chachoengsao Province is classified under Zone 2 and henceattract new investments thus inc reasing the share of the region inthe national economy

    Cluster formations in Chachoengsao Province, will make theeconomy of scale more attractive

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    Potentials

    Present Cluster Situation

    Biomass power generation from agricult ural residues

    Biogas generation fr om piggery waste

    Community level or decentralized pow er generation

    Organic farming practices - poultry Litt er as organic fertilizer

    Ideal Eco-cluster

    Enhance pollution control through biogas systems in piggery

    Community participation in local indust rial and rural development

    Develop resource conscious agriculture, pig and poultry farming

    Environmentally friendly business practices in agriculture andlivestock waste management

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    SWOP FindingsAvailabi li ty of paddy residues inquantities suitable for biomasspower generation

    Large number of small and mediumscale piggeries and poultri es

    Proximity to urban Bangkok opensavenues for new markets

    Create additional jobs in paddyprocessing, piggery and poultry

    Prevent outward populationmigration from the Province

    Enhance polluti on reductionthrough biomass power and biogassystems

    Indiscriminate disposal of paddyresidues and excreta frompiggeries and poultry farms

    Lack of awareness on technologiesfor resource recovery fromagricultural and livestock wastes

    Excessive migration of populationtowards urban Bangkok

    Decentralized and small & mediumscale power generation systems

    Community participation in localnatural resource management andsmall industry development

    Organic farming from biomass ash

    OpportunitiesStrengths

    Weaknesses Potentials

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    Policy Impacts - 9th NESDB Plan

    Create astrongsocial

    foundation

    Strengthennetworks (social

    and business)linking rural and

    urban areas

    ManagementRestructuring forsustainable rural

    and urbandevelopment

    Establish linkagesbetween rural and

    urbandevelopment

    Strengthen grassrootseconomies to provide

    sustainable incomes for ruralpeople

    Develop cluster basedeconomy consistent with

    regional economic potentials,preferences, and functi ons

    Establish economicclusters linking rural

    and urban areas

    NESDB National Economic and Social Development Board19

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    9th NESDB Plan Strategies

    Restructureeconomy for

    balanced andsustainable

    development

    Develop localeconomies, small and

    medium scaleenterprises, and

    cooperative systems

    Distribute economicgrowth and

    development benefits

    Decentralize growth,in/to regional areas

    Emphasize development ofproduction networks,

    supply chains andservices

    Develop networks(cluster creation) linkingpublic, private, and civil

    sectors

    Market and distributeproducts from local toregional, national andinternational markets

    NESDB National Economic and Social Development Board20

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    Investment Benefits

    Chachoengsao is classified underInvestment Zone 2

    100% waiver of import duty onmachinery for industries in estates

    50% waiver for industr ies outsidethe estate

    Corporate income tax exemption 7 years wi thin i ndustrial estate and3 years outside

    Exemption on import duty for rawmaterial for 1 year in both cases

    Relocating industries f rom Zone 1(Bangkok and surroundingprovinces) to Zone 2 also attractbenefits

    Zone 1

    Zone 2

    Zone 3

    Zone 4

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    Incentives for Rural Industries

    Board of Investment, Thailand identified and classifi ed 30 agroindustri es for special incentives

    Livestock, Slaughtering, meat and food p rocessing, animal feed,agriculture products and waste re-processing identified aspriority activities

    Special reference to Agro processing zones

    Machinery import duty exemption Corporate income tax exemption for a period of 8 years regardless

    of zone with no limits

    Other rights and benefits according to BoI announcement

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    Power Purchase Policy

    Small Power Producers

    Co-generators or facilities us ing renewable energy fuels,

    Sell power to EGAT of no t more than 90 MW for each project.

    Minimum purchase guarantee not less than 80%

    Al lows di rect sale to industr ial estates near the power plants

    Very Small Power Producers (less than 1 MW)

    Agricu ltural residues and wastes f rom agro industries (e.g. ricehusk)

    Products converted from agricult ural residues, and wastes fromagricultural or industrial production processes. (e.g. tapiocawastewater)

    Municipal w aste: RDF, Biomethanation

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    Technology Impacts Paddy Processing

    Agricu ltural Res idues;High calorific value

    Pig farms

    Piggery waste;High organic matter

    Poultry

    Poultry Litter;High organic matter

    Small-scale biomass power

    Decentralized power generationsystems

    Efficient use of resources

    Small-scale biogas generationsystems

    Biogas as fuel for cooking or

    industr ial heat and powergeneration

    Prevents environmentaldegradation

    One Small-scale biomass power generation of 10 MW from rice husk

    Major portion of agricultu ral residues is unscientifically disposedwithout realizing its potentials

    Poultry and Piggery waste disposed in local water-bodies and barrenland - potential to generate biogas is not utilized

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    Agriculture andLivestock

    Biogas

    RiceProducts

    Piggery

    Poultry

    Biomasspower

    Consumption& Markets

    Trade andBusiness

    Export of agri &Livestock Products

    Economic Development& Self-sustaining

    Livelihoods

    Value-addedAgri cu ltural

    Products

    Rural AreaRural Area

    Urban AreaUrban Area

    Biomass PowerGeneration

    DecentralizedRenewable Energy

    Generation

    Value Addition t odiscarded resources

    Processed Agri &Livestock Products

    Cluster

    Eco-cluster

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    Conclusions

    Micro level material flows clearly reveal the presence of inter-firmnetworks as well as potentials for further strengthening

    Lack of appropriate technologies prevents full resource recovery andcomplete reuse between the existing network

    Current national policies are conduci ve Environmental, Agricultural,Investment promotion, Power Generation

    Special emphasis on rural-urban linkages in the NESDB plan

    Agro indust ries in rural-urban f ringe areas have gained prominence inthe NESDB plan with an emphasis on Eco- clusters

    Strategies clearly foresee development of eco-friendly industri es inurban-fringe areas and rural communit ies as a means of sustainablelocal development

    Agro eco-industrial c lusters indirectly contr ibute to His Majesty TheKings Projects on Rice Bank, Cattle Bank and Land Management andDevelopment

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    Recommendations

    Technology Transfer

    Material flows indicate more opportunities for eco-industrialnetworking.

    Cost-effective technologies for Small & Medium -scale,decentralized biomass power and biogas generation isrequired

    Inter-firm networks

    Networks in simple nature exist; but are often weak andunderutilized.

    Several other possible linkages yet to be strengthened andfully exploited.

    Technology Transfer wil l further acceleratethe transformation of the region into a model

    cluster with a bril liant inter-firm network27

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    Thailand is experiencing arevolution in self-sufficient

    local economy through variouslandmark projects initiated by

    His Majesty The King.

    An eco-industrial cluster inurban-rural fringe areas withfood crops and livestock as keycomponents contributes to His

    Majestys vision at large.

    Thank you..28