Developing business opportunities for resource

recovery and reuse (RRR) of domestic and agro-

industrial waste

Dr. Solomie GebrezgabherDr. Avinandan Taron

RRR impact and upscaling project stakeholder workshopJune 11, 2015, Ghana

Urbanization and consumption levels

• Increased urbanization coupled with increased consumptions

levels Significant waste generation

• Cities are becoming vast nutrient sinks while exploiting soils

in farming areas

• Waste generated ends up in open dumps and natural water

bodies Environmental and health challenges

Changing waste challenge into an opportunity

Agriculture

Landscaping/horticulture

Energy: Electricity

Energy: Fuel-briquettes

Faecal

Sludge

Municipal

Solid Waste

Nutrients

(org. fertilizer,

soil

conditioner)

Water

(irrigation)

Agro-waste

EnergyUrine

Wastewater

Waste streams Resource Reuse

Faecal

Sludge

Municipal

Solid Waste

Nutrients (org.

fertilizer, soil

conditioner)

Water

(irrigation)

Agro-waste

Urine

Wastewater

Reuse is not new

• Efforts have often been limited in size, hardly going beyond

the pilot scale

– Waste not viewed as a resource

– Lack of business thinking a bottleneck for attracting

private capital and scaling up reuse of waste

• Need for innovative solutions apply a business perspective

Agro-industrial waste - Energy

Wastewater – Water(irrigation, aquaculture)

MSW, Faecal sludge - Nutrients (ag. production)

Innovative reuse initiatives

Number Business case name Country Location

Scale (pilot,

community,

city,…)

Type of

waste used

Waste product

(biogas, fertilizer,

water, ..)

Process of

waste

treatment

Could be a

business case

because..

Financial

data

available?

1 WASTE CONCERN BANGLADESHDhaka Large-scale business operationSolid waste Fertilizer Composting, co-compostingYes. Replication of Business model in 10 African citiesNot sure

2 BIOGAS SECTOR PARTNERSHIP NEPAL Kathmandu Large-scale??? Replicable?Human excreta, cattle dung and waterBiogas and compost/fertilizerMethanogenic bacteria on biodegradable waste in anaerobic conditionsMaybe but specific to rural settings and may not be practical for urbal sanitation crisisPossible upon request

3 PUNJAB ENERGY DEVELOPMENT AGENCYINDIA Punjab Large-scale Cattle dung Biogas and manure Biologically induced mixing arrangement (BIMA) technology used for anaerobic digestion

4 USAID INDIA Uttar Pradesh Pilot Cattle dung Biogas (thermal and electrical energy) and compostAnaerobic digestionPotential

5 TAMIL NADU ENERGY DEVELOPMENT AGENCYINDIA Tamil Nadu City Wastewater Biogas, Electrical energyHybrid Upward Flow Sludge Media Anaerobic ReactorPotential for replication and given growing demand for sago and starch, wastewater from tapioca processing expected to increase exponentially; sustainable; economic benefits to several sectors

6 KOYAMBEDU WHOLESALE MARKET COMPLEXINDIA Chennai, Tamil NaduCity Organic waste (market waste)Electricity; Biogas (used as fuel in gas engine and excess power generated is exported to the TNEB grid), Manure (dewatered cake is sold)Biologically induced mixing arrangement (BIMA) technology used for anaerobic digestionRepresents a way for the public sector to finance other divisions of the sanitation sector;Potential for replicationPossible

7 M/s HIND AGRO INDUSTRIES, LTD INDIA Aligarh, Uttar PradeshLow-medium scale (individual entrepreneur)Abattoir soild waste (droppings, rumen, fat, agro-wastes, fodder residues and hay)Biogas, biofertilizer Biomethanation (Low Speed Agitator tank Reactor) Replicability and sustainability potential; diverse source of income streams; Implementation agency that keeps them up to date on technical know-how, etc.Maybe

8 M/s AL-KABEER EXPORTS PVT, LTD INDIA Andhra Pradesh Medium scale Feed waste, animal wasteBiogas, Manure Biogas Induced Mixing Arrangement (BIMA) technologyReplicability and potential for up-scalingMaybe

9 SuSanA GHANA Kumasi Pilot Faecal sludge, Solid wasteCompost FS Dewatering with unplanted drying beds and Aerobic Windrows co-composting of organic SW and dewatered sludgePPP which addressses land tenure constraints, third party implementing agencyYes (IWMI was partner)

10 ECoH Holdings Ltd KENYA Nairobi City Organic waste (green waste, market waste, hotels, schools, hospitals, kitchen waste, farmyard manure, crop residues and yard trimmings, slaughterhouse remains)Compost Windrow composting Possible to get financial data

11 Lilongwe City Council MALAWI Lilongwe Community Organic waste (sugarcanes, mangoes, nsima from hospitals, kitchen and animal manure)Compost Open-air, static-pile compostingAspects of PPP/ CBO model address business constraints (financial); Low-level technology; Easily replicated Annual turnover: 40,000Kwacha; Price of product: 100-160 Kwacha

12 NAWACOM KENYA Nakuru Community/City Household organic wasteCompost ? Replicability - success factor/ cooperative model1,500Ksh per bag; 336 members; Access to micro-credit loan facility

13 Waste Enterprisers GHANA Kumasi City Faecal sludge Wastewater 1. Water Stabilization Pond?Sustainable model but may be limited in terms of replicability Available

14 Water for People BOLIVIA Cuchumuela, CochabambaCity Urine and fecesDecomposed urine and fecesUDDTs Sustainability Sale of mushrooms; Pine

15 ROSA KENYA Nakuru City Organic waste, feces, urineCo-compost (organic waste with faecal matter collected from UDDTs)? Replicable; sustainable model without external financial support

16 Karnkata Compost Development LimitedINDIA Bangalore City Organic wasteCompost Windrow composting/ Aerobic decomposition

17 Santiago Composting Project CHILE Santiago Project/ City Biodegradable waste and nontoxic wastewater sludgeCompost/ Sale of emissions reductions? Replicable, self-sustainingProcesses 43000mT of waste/year; Sale of 326,000 of CO2 equivalent

18 Ministry of Agriculture and Rural Development (MARD)& SNVVIETNAM ? Pilot/City Human excreta, cattle dung and waterBiogas, Bio-slurry/organic fertilizer? Can be widely replicated, however success highly dependent on geographical context (peri-urban/ urban)Costs per household: $550

19 Chinese Academy of Science CHINA ? Pilot project Waste straw "Bread grass", biogas Bacteria infested (anaerobic/aerobic)Self-sustaining, however initial financial obstacles N/A

20 Unilever/Triple R Project SOUTH AFRICA? City Food grade wasteCompost * Replicable but may not be cost-effective for factoriesnone

21 Kigali - Biogas RWANDA Kigali City Human feces, urineBiogas Biogas digester Replicated with other institutions (hospitals, academic institutions)Possibly accessible

22 Waste Busters PAKISTAN Lahore City Household/ market waste (organic and inorganic)Compost Windrow composting methodPotential for up-scalingAvailable

23 VermiGOLD INDIA Mumbai City Wet garbage, organic wasteVermicompost Vermiculture Low-level technology, replicability

24 Anamol Krishi Udyog INDIA Nagpur, MaharashtraCity Vegetable market waste, organic household wasteCompost Biologically induced mixing arrangement (BIMA) technology Replicability, has potential to be up-scaled; Profitable and sustainable modelCosts of production available

25 TERRA FIRMA BIOTECHNOLOGY LTD INDIA Bangalore City - large-scale Household and market wasteOrganic compost Vermiculture Historical financial growth; large-scale; Successful producer of organic fertilizer using vercompostingAvailabel in document: http://www.sswm.info/sites/default/files/reference_attachments/SHAH%20et%20al%201997%20Composting%20in%20Bangalore.pdf (pages51-66)

26 Lakshmi Energy and Foods Limited INDIA Punjab City Rice husk Electricity, Bricks (ash from burning husks)* Large-scale; sustainable business model*

27 Cape Flats Treatment Works SOUTH AFRICACape Town City Faecal sludge Biogas, pellets Anaerobic digestion for biogas production; Drying with Swiss Combi Drying system - Stabilised sludge from anaerobic digesters are sintered into pellets at a temp. of 500C using biogas from anaerobic digesters as fuelLarge-scale; sustainable business model400m3/h of biogas; wastre volume?

28 Sulabh International Social Service OrganizationINDIA 25 states Country-wide Human excreta, WastewaterCompost, Manure, Pisciculture?Human excreta - biogas digesters; Duckweed-based wastewater treatment; Compost from solid waste - thermophilic aerobic composterCommercially viable business model - portfolio diversification, significant development impact, highly profitable2005 profits - $5m; 6,000 public toi; lets in 25 states; 15 million users daily; 160 biogas plants connected to public toilet complexes

29 East Kolkata Wetlands INDIA West Bengal City,maybe on a larger scale?Wastewater, solid wasteFish Waste stabilization pondsLarge-scale; self-sustaining/commercially viable system; replicable*

30 Ondo State Integrated Wastes Recycling and Treatment ProjectNIGERIA Ondo State Solid waste Compost Semi-mechanical windrow, curing and milling operationsLarge-scale; successful public entity*

31 PRISM BANGLADESHKuhlna City Faecal sludge, wastewaterDuckweed, Fish Waste stabilization pondsSelf-sustaining/ successful?Available in document

32 Cows to Kilowatts Project NIGERIA Ibadan? City Abattoir wasteBiogas Anaerobic digestion of abattoir waseSelf-sustaining *

33 UN-ESCAP/ Waste Concern SRI LANKA/ VIETNAMMatale/ Quy NhonCommunity Solid waste Compost Aerated box methodSelf-sustaining, profit-making enterpriseSince 2007, model plants operating successfully on a self-financed basis under a public-private partnership.

34 Nyongara Biogas Project/ Kenya Industrial Research and Development InstituteKENYA Dagoretti/ Outskirts of NairobiCity Abattoir wasteBiogas High Performance Temperature Controlled (HPTC) biogas digester modelReplicable in developing countries (East Africa) where waste from slaughterhouses represent significant source of environmental challengesPossibly available upon request

35 IFAD Supported Biogas Projects ASIA / PACIFICChina/ Vietnam Mainly Rural setting? Human and animal wasteBiogas (thermal and electrical energy) and compostBiogas digester This case was included because it has the potential to be replicated in the urban context and produce a value-added product that potentially has an all year-round market and addresses environmental issues*

36 KORAT WASTE TO ENERGY THAILAND Muang District City Industrial - wastewater from starch industry/ Sanguan Wongse industriesBiogas - (biofuel and electricity)Anaerobic baffled reactorFinancial viability?*

37 Boeung Cheung Ek Lake CAMBODIA Phnom Penh City? Wastewater Water spinach productionWastewater used as a growth medium for water spinachAgricultural production; Financial viability100-300kg/household; $350-700/yr for 5-10tons

38 Supporting the Informal Wastewater Farming Business in GhanaGHANA Accra - Several citiesCountry-wide Wastewater Direct reuse of wastewaterAgricultural use of wastewaterHigh cost-recovery potential and model is already flourishingAvailable in Cofie and Murray paper

Identification of 150+ RRR

potential success stories across Asia, Africa and Latin America

and analyzing 60+ in detail.

RRR-impact and upscaling project

Two components:

1. Assess the business environment

(investment climate) for RRR sector

2. Assess the economic impact of RRR

businesses

BUSINESS ENVIRONMENT FOR RRR

Business environment for RRR

• Waste management strategies shift focus from a disposal-oriented

approach to a business-oriented approach that emphasizes value

creation and revenue generation

• To achieve success in RRR sector, there is a need for private sector

involvement

• Need for understanding of the business/investment climate under which

the RRR businesses are operating to foster entrepreneurship in RRR

Defining business environment

• Business/investment climate comprise all factors external to firms (policy,

legal and regulatory frameworks; macroeconomic policy; financial access

etc).

• A good investment climate (IC) is central to private sector led growth and

investment

Employment generation, income growth, poverty reduction

Need for IC assessment• Assists Governments/policymakers to identify which

dimensions of the IC need improving.

• Inform Investors/businesses the business environment they

are operating in.

• Assist Donor community to identify specific issues and

develop targeted private sector development programmes.

Framework for assessing IC for RRR

RRR Entrepreneurship determinants

Regulatory framework& Infrastructure

•Cost to start a business•Tax incentives•Access to infrastructure

Markets

•Market size•Domestic sales

Support service

•RRR Network associations•RRR incubators

Finance

•Access to debt•Amount of bank loans to RRR•Interest rate

RRR entrepreneurship performance•Number of RRR firms (birth, death and survival rates)•RRR firm growth rate

ImpactJob creation, amount of waste reduced, Ecosystem services, gender etc.

ECOSYSTEM APPROACH TOWARDS

ECONOMIC ASSESSMENT OF DIFFERENT

RRR BUSINESS MODELS

Benefits CostsSocio-Economic Estimated number of direct and

indirect jobs created

Increase in yield/productivity

Labor hours saved

Revenue or cost saving to

municipality/society/business

Generation of electricity

Improved sanitation

Gender implications

Estimated number of jobs lost

Increased exposure to bad odor

Health Reduced exposure to wastes

Health care costs savings

Productivity gains due to improved

health

Time savings

Increased exposure to products

recovered from wastes

Increased health risks due to

possible pathogen survival

Environmental Estimated GHG emissions

reduction

Improved soil quality

Reduced water pollution

Groundwater recharge

Benefits derived from

recovered land

Estimated GHG

emission from process

Observed

eutrophication

Economic Assessment – An exampleBusiness Model Baseline Scenario

(Key Inputs)

Alternate Scenario

(key Inputs)

Impact indicators

Environmental Financial/Economic Social

Nutrient Models

Large Scale

composting

MSW is collected

and landfilled (open

or in engineered)

and also open-

dumped based on

the collection

efficiency.

Utilizing the

organic fraction of

MSW for

composting.

GHG emissions –

(i) from

transportation (ii)

emissions from the

MSW - methane

(landfill)

Reduction in the

landfill life

Reduction in

leachate treatment

cost

Increase in soil

fertility

Capital costs –

investments made to

start-up the business

O&M costs specific

to the business

Revenue streams –

(i) Sale of compost,

(ii) Tipping fees, (iii)

sale of recyclables

(iv) carbon credit

(VER)

Employment

creation

Costs for additional

MSW collection &

transportation;

investments made

for land

procurement;

charging user fees

from the households

Reduction in

externalities

• Why do we need ecosystem services approach?

– Primarily to meet the needs of sustainable production and consumption

• What are ecosystem services?

– Benefits people obtain from nature – it comprises of the dynamic

interactions between the living and the nonliving environment

• Inclusion of both natural and human-modified ecosystems

• “Services” encompass both tangible and intangible benefits

• How can we classify ecosystem services?

– The Millennium Ecosystem Assessment (MA)

– The Economics of Ecosystems and Biodiversity (TEEB),

– The Common International Classification of Ecosystem Services

(CICES)

The Ecosystem services approach

Defining Ecosystem Services

Provisioning services –

• Food , raw materials, fresh water and medicinal resources

Cultural services –

• Recreation

• Tourism

• Aesthetic appreciation

• Spiritual experience

Habitat or supporting services –

• Habitat for species &maintenance of geneticbiodiversity

Regulating services –

• Local climate and air quality

• Carbon sequestration and storage

• Moderation of extreme events

• Wastewater treatment

• Erosion prevention and maintenance of soil fertility

Framework

Physical Flows and natural inputs, products and residuals (Source: SEEA, 2012)

Framework continued…

Human Interactions Changes in ecosystem services

Production

Reuse

Studying impacts of

RRR business models

Valuation of ESS

Methodology

Quantify the impacts of policy options

Approaches in theImpact Assessment

(i) Environmental Impact Assessment,(EIA); (ii) Strategic Environment Assessment, (SEA);

(iii)Life-Cycle Analysis (LCA); (iv) Risk Assessment;

(v) Cost-Effectiveness Analysis; (vi) Multi-Criteria Analysis (MCA) and

(vii) Cost-Benefit Analysis (CBA)

Assess the effects on welfare

Establish Environmental baseline

Qualitative Assessment

Valuation of ESS

• The preliminary activity involves Scoping followed by Screening of the environmental impacts

• Use of a ranking methodology, expert opinion, secondary review for each of the services

Qualitative Assessment frameworkCategory Baseline / Do

Nothing

(Option 1)

Use MSW for

generating

Briquettes

(Option 2)

Use MSW for

generating

electricity

(Option 3)

Use MSW for

producing

Compost

(Option 4)

Use MSW with

faecal Sludge for

producing fortifier

(Option 5)

Provisioning Services

Food ? ?

Fiber & Fuel +++ +++

Fresh Water

Regulating Services

Air Quality regulation - - - - - +

Water regulation

Climate regulation

Natural hazard regulation

Pest regulation - - - ++ ++ ++ ++

Disease regulation - - - ++ ++ ++ ++

Erosion regulation 0 0

Water purification and waste treatment - -

Cultural Services

Cultural heritage

Recreation and tourism

Aesthetic value - - - ++ ++ ++ ++

Supporting Service

Soil formation

Nutrient cycling +++ +++

Water cycling

Photosynthesis ++ ++

Thank you!