—— Proposal for the Animal Feces Management Chain

Yu HE, University of Amsterdam, NetherlandYing RONG, Peking University, ChinaHui WU, Peking University, China

Urban PollutionUrban Pollution

Soaring Energy Consumption

Soaring Energy Consumption

Health CareProblem

Health CareProblem

High Unemployment

Rate

High Unemployment

Rate

Feces from 3 sources 1. Ecocity?

IntroRevenue

Model

Eco-Impact Strategy Financial

Analysis

Low Power Grid Access Rate

Low Power Grid Access Rate

Power Station2. E-Collector Solution Power Station3. Ecocity!

Waste Transporting

Power Station

Animal Feces

Waste Bin with Dispenser

Developed Collection Method

Electricity

Organic Fertilizer

Irrigation Water

High Quality Environment from a pollution source control which isolates fecal bacteria from people and urban stream water

Convenient Facilities for encouraging residents to clean up after their pets

Professional Service in animal feces collection, sorting and removal for zoo and farms

Job Opportunities as waste truck drivers, workers at power station, facilities’ manufactures, advertisement sales and supervisors

Trash to Treasure Resources Utilization based on methane power generation

Special Power Supply for stadium lighting and related events all over the city

Organic Fertilizer and Irrigation Water for urban green space

An Industrial Chain with the sense of social responsibility

Profit from advertisement and resources selling

Source: Animal Science Journal, Urban Ecosystems, Renewable and Sustainable Energy Reviews

IntroRevenue

Model

Eco-Impact Strategy Financial

Analysis

Farm Pet FecesZoo

There is large amount of animal waste everyday in municipal zoo.

7 ton/day

Help the zoo and nearby farms to handle the manure disposal problem while providing them cash reward

Nearby farms supply urban area with fresh milk and livestock products while leaving unsolved problems of feces.

Set up collection carts, biodegradable gloves and pooper scoopers in mid-level and high-level communities and city-center park popular with dog walkers.

• World Cup implies more urban green space

• We could ask government to sponsor the installation of carts

100 ton/day

150 g/dog/day * 5.7 mio. people * 27.8% (dog rate) * 60% (disposal rate) = 142.61 ton /day

Intro.

Amount

Remark

Power Station

Workers collect feces from 3 channels and transport them to the power station.

Feces could be scooped into a methane digester, a device that uses bugs and microorganisms to digest the material and emit methane.

Feces from 3 sources1. Feces from 3 sources

3. Power Station

249.61 ton/day

Power Station4. Revenue

Electricity

Organic Fertilizer

Advertisement

Irrigation Water

Intro. Revenue

• Outdoor advertisement on the collection carts

• World Cup would be a selling point

$ 1.5 millionper year

• Switch in national grid

• Special power supply for stadium lighting

$ 0.15/kwh* 24 kwh/ ton *249.61 ton/day = $898.6/day

• Surrounding farm lands

• Urban green space and World Cup park

$0.2478/kg * 300kg/ton* 249.61 ton/day = $18556/day

World Bank

• Provide subsidy for new energy program, about $ 0.1 million

Collect Feces 2. Collect Feces

Source: Data in the case, Global Pet Report (2008), Journal of Power Sources , Animal Feces News.

$ 4.624 million/year

IntroRevenue

Model

Eco-Impact Strategy Financial

Analysis

Farms Pet RaisersZoo

Feces from 3 sources1. Impact on HPI

Health

Convenience

Hundreds of full-time and part-time working staff, reducing the high unemployment rate

Power Station

3. Power Station

Energy Saving

Less Pollution

Power Station4. Outputs

Sponsor veterinary hospital animal welfare groups which provide care& adoption services for homeless animals

Power Station5. Corporate Social Responsibility

Improve public power grid rate

• Generating 2,100,000 Kwh of electricity per year

• Saving 650 tons of standard coal and 4,000 cubic meters of water per year

• Reducing 17 tons of incineration ash, 1,600 tons of CO2 and 110 tons of SO2

per yearMore significant

DescriptionFree people from dealing with pets fecesIsolate fecal bacteria from people and drinking water

Reduce pollution in urban green lands

Green

Source: Data in the case, , Renewable and Sustainable Energy Reviews, NCSEA Animal Waste 

Collect Feces 2. Collect Feces

IntroRevenue

Model

Eco-Impact Strategy Financial

Analysis

Feces from 3 sources1. Strategic Goal

Potential Rivalry from other companies dealing with urban waste, or even the government itself

Bargain power of the large animal waste providers, zoo and farms, etc.

Distribution of our outputs, especially the electricity

Government support and citizen education of eco-environment

Power Station2. Keys to Implementation

Power Station3. Implementation Process

The largest animal waste collector of the Eco-city and the countrySpread our brand worldwide

Expand the source of raw material form merely animal waste to other biodegradable urban wastesSuch as kitchen waste and fallen leaves

Sources

Collection and treatment with other urban wastes

Negotiation with governments for support and subsidy

Cooperate with government in development public power grid

Long-term& win-win contracts and with waste suppliers

Cooperate with government in urban waste classification and recycling

Negotiation with local zoo and farms

Cooperate and NGOs to educate citizens

Expand to other cities of the country

Enter the urban waste recycling market of other countries

a) Multilateral Negotiation

R&D core experts

Recruiting and training of workers

2009.9 2011 2012 2015 Long term

b) Team Construction

Preparation

Timeline

Brand Building and Developmenta) Cooperation

b) Business Expansion

Geographic

Source: Data predicted above, NCSEA Animal Waste, World Bank, Websites of key suppliers 

Feces from 3 sources1.Key Costs Assumptions

IntroRevenue

Model

Eco-Impact Strategy Financial

Analysis

10000 waste bins$10/bin for 5 years of usageFree mounting and monitoring at the government's expense0.5mio gloves/day at 2012$0.02/glove1 pooper scooper/bin*month$2/pooper scoopers200 bins/truck*day$60 transportation costs/truck1 driver/truck*day$15/driver

Pet FecesZoo & Farm

$0.01mio/waste transfer truck for 5 years of usage4 ton feces/truck*day$30 transportation costs/truck1 driver/truck*day$15/driver

Power StationClean Development Mechanism:

1 ton certified emission reductions/300kwh $10/ton CER

$1 million fixed assets for 10 years of usage30% engine oil, parts and maintenance costs at 20123% self-consumption of electricity50 workers/power station*day at 2012$15/worker*dayNo power transmission cost and tax free

Financing50% by bank loan and 6% interest rate

249.61 ton feces/day at 2012

3% growth for collected feces

$ 1.5mio Advertisement Revenue at 2012

10% growth for Advertisement Revenue

Power Station3. Profits Prediction

Project in one city (Thousand $)

Regardless of ways of financing and world bank subsidy, the project’s 5-year internal return rate is 50%.

Profits for 5 years (Thousand $)Power Station4. 50% IRR !

Collect Feces 2. Growth

Rates Estimates

2009 2010 2011 2012 2013 2014Advertisement 1,042 1,250 1,500 1,650 1,815 Electricity 159 255 318 328 338 CDM 36 58 73 75 77 OF & IW 3,386 5,418 6,773 6,976 7,185 Total Revenue 4,624 6,981 8,664 9,029 9,415 Gloves 1,825 2,920 3,650 3,760 3,872 Pooper scoopers 240 240 240 240 240 Transporation 1,241 1,329 1,388 1,397 1,406 Drivers 347 391 420 425 429 PS Operating Costs 80 102 95 98 101 Workers 164 219 274 274 274 Variable Cost 3,897 5,201 6,067 6,193 6,322 Waste Bin 95 Truck 857 Power Station 1,000 500- Depreciation 290 290 290 290 290 Working Cash Needed 974 1,300 1,517 1,548 1,581 World Bank Sponsorship 100 Interest Expenses 85 85 85 85 85 Net Profits 351 1,405 2,222 2,461 2,718