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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

narsi@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: badri@eai.in

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Notes

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Notes

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Notes