76413373 Municipal Solid Waste | Municipal Solid Waste | Waste


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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.....................................................................................................................................................................................................................2 Key Success Factors and Competencies for W2E Business ..................4 Potential for MSW to energy in India ......Contents Preface .......8 1.... Is Waste to Energy the Right Opportunity for Your Business?............................................in 4 .......................18 3..............................1 Key Takeaways from the White Paper ..3 Potential Risks and Barriers in the MSW to Energy Business ...............12 2....................................15 2............................2 Municipal Solid Waste (MSW)...............10 1...............................15 2........................................................ Potential for Municipal Solid Waste to Energy ...............................7 1.................7 1...1 Introduction to Waste and MSW ..........................eai..............................19 Summary .....................................................................................1 Business Opportunities along the MSW to energy value chain .............................................................17 3.................18 3....................................................................22 www.18 3........2 Strategic and Financial Benefits from Waste to Energy Business ...........................................6 Key Drivers and Challenges Enhancing Solid Waste Management and Solid Waste to Energy .........................................3 Key Indian players in the MSW to Energy Sector ....20 Waste to Energy Support from EAI ...........................6 1..............................................................16 2........1 Companies Could Benefit from the Waste to Energy Sector ...................................8 1......5 Technological Routes and Potential End Products from MSW ............7 1.................................3 Municipal Solid Waste Management Scenario in India ............................. What are the Opportunities in MSW to Energy for Your Business? .................................................

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The potential is likely to increase   further with economic development.   Currently. www. Transportation.in 6 . and currently   economically less viable than biomethanation.   Companies especially in the following industries could benefit from opportunities in the waste to energy domain – Energy/Renewable Energy. Waste Management Facilities.Key Takeaways from the White Paper    estimates.     sub-optimal technologies are some of the key challenges in this sector. and   Waste Processing for Energy Recovery.   EPC. biomethanation / anaerobic digestion and Incineration are the most prevalent and mature technologies for MSW to energy in India. Efficient Operations. Focus on Costs and Emphasis on Environmental   Protection.   Lack of proper segregation at source. About 115000 tons of solid waste is generated per day in the country. inadequate treatment facilities and  Business opportunities in waste to energy exist in all three stages of waste to energy – Waste Transportation. By some   There exists a potential for generating about 1500 MW of power from municipal solid wastes in the country.   Some of the prominent companies working in the Indian waste to energy sector include: Ramky Enviro Engineers. Gasification and pyrolysis are emerging. Sanitation and Facilities Management.eai. Hanjer Biotech Energies and  SELCO International. this figure could be twice as much by 2020. A2Z.   Key success factors in waste to energy include Optimal Technology.

and related industries. biomass wastes and biomedical wastes.in 7 . lotion etc). Broadly. It consists of household waste. glass. increasing urbanization. synthetic polymers. inerts (stones. sanitation residue. 1. 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. raw and processed food ingredients) Municipal Solid Waste Organics Recyclables Inerts Kitchen waste Agro-waste Vegetable waste Garden waste Cattle dung Plastic Paper Old cloth Syringes Tin can Metals Carbon paper Thermo coal Sand Classification of Municipal Solid Waste www. forestry. or gaseous or residual materials (excluding hazardous or biodegradable wastes from industrial operations) Biomass residue is defined as biomass by-products. industrial wastes.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. ointments. Solid. liquid.). Some of the examples of MSW include: paper. pebbles etc). sand.1. metals. residues and waste streams from agriculture. waste can be classified as urban wastes. construction and demolition debris. blood banks as well as medical research facilities and laboratories. Waste materials generated at health care facilities. (excluding waste arising from mining. semi-solid.eai. and waste from streets and so forth.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. Potential for Municipal Solid Waste to Energy 1. such as hospitals. Urban Waste Industrial Waste Biomass Waste Biomedical Waste Wastes from households. kitchen wastes (fruit and vegetable peels. construction or demolition processes etc. pharmaceuticals wastes (tablets. commercial activities etc. hides and leather discards.

0 125.0 154.0 Potential for Recovery of Electrical Energy (MW) from Municipal Solid Wastes by Indian States Source: TERI and MNRE.0 2. which shows that hardly any attention is given to scientific disposal of waste.0 98. In spite of such a heavy expenditure.0 39. The potential is likely to increase further with economic development. 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. transfer and transport. 115000 tons of solid waste is generated per day in the country.0 4.eai. but less than 5% of the total amount is spent on final disposal of waste.0 53.in 8 . As per estimates. 1.5 1.0 32. For example. The state-wise break-up of MSW generation and potential for power production is presented in the following table: State/ Union Territory Andhra Pradesh Assam Bihar Chandigarh Chhattisgarh Delhi Gujarat Haryana Himachal Pradesh Jharkhand Karnataka Kerala Madhya Pradesh Recovery Potential (MW) 107.0 19.0 111.4 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.0 137.0 1. Municipal agencies spend about 5-25% of their budget on MSW management.0 126.0 22.0 18.0 1. which is almost the same as the waste generation of the entire state of Tripura (which generates 100 tons per day).0 68.3 Municipal Solid Waste Management Scenario in India Management of MSW continues to remain one of the most neglected areas of urban development in India.generation of waste. a slum in Dharavi in Mumbai generates about 80 tons of MSW per day.0 1. MSW management in India involves interplay of six functional elements .0 State/ Union Territory Maharashtra Manipur Meghalaya Mizoram Orissa Pondicherry Punjab Rajasthan Tamil Nadu Tripura Uttar Pradesh Uttaranchal West Bengal Recovery Potential (MW) 250. collection. storage. MT – Million Tonnes www.0 8.5 1. Most of the MSW generated is dumped into land or on the outskirts of the city without any treatment.0 67. Even small regions within cities could be the source of large amounts of MSW.1. processing and recovery and disposal.0 6.0 5.

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Transformation of organic mass similar to pyrolysis but under limited supply of oxygen Biochemical Conversion Biomethanation . Power The pathways illustrating the major MSW to energy technologies are highlighted below: www. Pyrolysis . 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.eai.Elevated temperature driven decomposition of organic mass fraction in wastes in the absence of air or oxygen B. Compost.Microbial digestion of complex organics in moisture rich wastes to methane under anaerobic conditions End Products Steam. Electricity.1. Purified flue gas. Heat . Methane (Biogas). Heat.biodegradable) through thermal.in 10 . Gasification . Pyrolytic oil. Heat and electricity Pyrolytic gas.5 Technological Routes and Potential End Products from MSW Energy can be recovered from the organic fraction of waste (biodegradable as well as non. Electricity Syngas. Synfuel and Hydrocarbons via FT synthesis. Ash. Technology Thermal Conversion Incineration – Complete oxidation of waste matter under high temperature and oxygenated conditions Thermochemical Conversion A.

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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.6 Key Drivers and Challenges Enhancing Solid Waste Management and Solid Waste to Energy 1. which can consequently be used for heat and power  production. pyrolysis or anaerobic digestion. which is produced as a co-product. which commands a very low value in the  market. Some of the key drivers for enhancing solid waste management in India are represented below: www.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.eai. it has two disadvantages – it is relatively more polluting than gasification.       1. Biomethanation (anaerobic digestion) produces methane gas as a major end product. and it also produces lesser overall value. While incineration is the simplest and currently the least costly method. as the only by-product is ash. Charcoal.in 12 . The left over activated sludge serves as excellent compost.  commands a high value in the market.6.

Legal The laws and regulations in India at the municipal and city levels are becoming stricter than they were earlier.in 13 . This appears to be particularly important in India where competition for foreign information technology investment is strong.6. www. Technological The ability of technology to support SWM is still limited.eai. Environmental The increasing awareness and concern among public and government for protection of environment is one of the key drivers for SWM. 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. high feed in tariffs and other fiscal incentives such as tax holidays can accelerate adoption of waste to energy 1. Very poor waste depot sites for secondary storage of waste. Developmental and Competitive Where there is an absence of strong legislation.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 No storage and segregation of waste at source Operational inefficiencies in primary collection of waste at the doorstep Irregular street sweeping and garbage collection Inappropriate system of secondary storage of waste Details Source storage and segregation of waste based on degradability and hazards and recyclables separation is rarely done in India. The consequent threat of penalties could act as an important driver for solid waste management Socio Economic The poorer sections of the society get affected most by the harmful consequences of unmanaged waste. in order to attract (often foreign) investment can be a key driver. capital subsidies. With Indian cities comprising large populations under poverty level. this results in significant health problems and societal trauma. competition between cities to provide a „clean city‟ with good municipal environmental infrastructure. No proper planning and specific benchmarks for street sweeping. Incentives A number of current and emerging incentives – CDM/carbon credits. Collection of waste only from street collection points and poor door-to-door collection.

Many sources of waste such as those generated in slums are inaccessible www.in 14 . Access to waste Open trucks for transportation and manual loading. 1. Waste composition 2. No proper engineered landfills for waste disposal. High moisture content and a large proportion of inerts make the waste dense and cause transportation and treatment problems 2.Irregular transport of waste in open vehicles Inappropriate disposal of waste at open dumping grounds Other Deficiencies 1.eai.

reuse.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. Source Storage and Segregation Collection and Transportation Dump Sites Waste Transportation Disposal to Landfills Recyclable Materials Separated Processing for Energy Recovery MSW Collection to Energy Value Chain 2. processing and disposal is carried out by the respective municipal corporations and the state governments enforce regulatory policies. segregation. 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. This section comprises the largest opportunity by value.in 15 .2.1.eai. and recycling at the household level Street sweeping and cleaning of public places   Primary waste collection and transport to a transfer station or community bin  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  www. transportation. In most of the Indian cities. the MSW collection.1 Waste Handling – Logistics and Transportation This section of the value chain represents the stage from the doorstep until the landfill. What are the Opportunities in MSW to Energy for Your Business? 2.

each of the three main stages of the value chain – 2. Depending on the technology/route used for energy recovery.)   Waste post-treatment (residue treatment. In practice however. with all the subcomponents within each of the three being handled by a single business entity. the waste is transported to the energy recovery plant.eai. eco-friendly and “green” co-products such as charcoal. the   government incentives for this sector is only set to increase in future.1. 2. When government incentives are   factored in.3 Waste to Energy Conversion Facilities Where the waste is not diverted to the landfill.2.2 Strategic and Financial Benefits from Waste to Energy Business  Profitability .1.comes across as a single business opportunity. With concerns on climate change.The government of India already provides significant incentives for waste to energy projects. waste to energy could a profitable business. boiler/gas engine design. This is usually done at landfills. compost or nutrient rich  digestate (a fertilizer) are produced. Landfill management comprises two steps:     Operations and maintenance to ensure that the appropriate environmental and  safety guidelines are followed for the landfill Where applicable.in 16 . the key role is to ensure that the waste is managed and handled in an optimal manner.Success in municipal solid waste management could lead to opportunities in other waste such as sewage waste and industrial and hazardous waste.1.  2.    Related Opportunities . the attractiveness of the business increases even further. These co-product opportunities will thus www. flue gas cleaning etc.   Government Incentives . coordinate the collection of landfill gas. Here.1.1 through 2.If the right technology is employed and with optimal processes. 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. energy recovery. waste management and sanitation on the increase (a result of this increasing concern is the newly formed ministry exclusively for Drinking Water and Sanitation).3 .2 Owing and Operating Solid Waste Management Facilities Once the solid waste has reached its destination. land-filling of selected residues)  Business opportunities are present in each and every component mentioned above.

enable the business to expand into these related products. the project‟s attractiveness to could be at risk. Technological Barriers   Some of the emerging technology options – large scale gasification for instance   – are not yet fully proven.in 17 .   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. www. 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. appraise and put  in place a structured viable financial model for these projects. resulting in uncertainties  with regard to optimal designs and processes. Other Barriers        Long time taken for completing all the formalities/ documentation and getting all the  approvals to get the project started.   India does not have indigenously developed technology and manpower for  emerging options such as megawatt-scale gasification and pyrolysis. The Indian investors‟ lack expertise /capacity to understand.eai. Shifting priorities of the urban local bodies –  from waste-to energy to other issues resulting in diversion of funds and other support. opportunities are available for companies  to become turnkey solution providers 2.With distributed waste management and waste to energy becoming important priorities. develop.  Emerging Opportunities . If these conditions do not continue owing to the poor financial standing of the state utilities or owing  policy changes by the government.   The characteristics of waste could be different for different regions and for different sources even within the same region. demand for which are increasing all the time. Raising significant capital for a  sector that is not fully proven will not be easy in India.3 Potential Risks and Barriers in the MSW to Energy Business Financial Barriers  Most solid waste to energy projects are capital intensive.

especially regulators and society Special emphasis on following environmentally sound practices along the entire operational value chain www.3. wind.eai. Engineering.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.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.in 18 . Is Waste to Energy the Right Opportunity for Your Business? 3. 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. biomass etc.

SELCO setup the first commercial Municipal Solid Waste-processing unit in India in 1999. Mumbai SELCO Limited International Hyderabad East Delhi Waste New Delhi Processing Company Pvt Ltd www.8 MW plant at Mumbai with technology from Ericsons.1 MW Lucknow MSW to energy project Upflow Anaerobic Sludge Blanket (UASB) technology and activated sludge process are followed in installations Completed 11 MW biogas plant in Mumbai using WABIO process. They have currently installed 6. Maharashtra.eai.in 19 .6 MW grid connected power plant in Mahboob Nagar. Also involved in incineration and presently operating India's largest waste incinerator at Taloja. Implementing 10 MW incineration power plant with MSW derived RDF pellets as fuel.3. Developing 15 MW combustion power plant in Surat District with MSW based RDF pellets as fuel. Undertaking comprehensive biomethanation projects coupled to secure composting and landfills. Installing 12. Cicon Environment Bhopal Technologies Bermaco/WM Ltd Power Navi Mumbai Mumbai Sound craft Industries Hydroair Limited Tectonics Navi Mumbai Ramky Enviro Engineers Ltd Hyderabad Combustion /Incineration A2Z Group of Companies Hanjer Biotech Energies Gurgaon RDF based combustion technology with scope for cogeneration of heat and power.3 Key Indian players in the MSW to Energy Sector * Companies Biomethanation M/S Asia BioPvt Ltd (ABIL) Headquarters Highlights energy Chennai Follows “Biogas induced mixing arrangement-(BIMA)” technology for a 5. USA Adopting aerated and UASB technologies for the treatment of waste sludges and biogas generation respectively. AP with RDF pellets as energy source.

The complexity of navigating through these challenges calls for a clear understanding of the business models and technologies behind the diverse waste-toenergy solutions. 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. Early movers who have identified the right technologies are already poised to grow in this promising industry.9% and emissions well below thresholds. We have worked with prestigious clients such as Bill & Melinda Gates Foundation and Pepsi Co. high capital requirements and an evolving regulatory environment present significant industry challenges. Given the need for critical knowledge on the viability of waste to energy projects before venturing into this niche sector. and can offer actionable market intelligence and support for those keen on exploring this sector.in 20 . the „yet to be commercialized‟ technologies. At the same time.Gasification Zanders Limited Engineers Mohali Has a collaborative gasification technology to process multiple feedstocks including MSW for power Advanced gasification technology with destruction efficiency of 99. for waste to energy projects. UPL Environmental Engineers Pvt Ltd Vadodara *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. www. assistance from an advisory and research firm is imperative. There are unanswered questions with respect to the viability of waste to energy projects. 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.eai.

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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. EAI has undertaken Waste to Energy research projects for many clients including global clients such as Pepsico and Bill and Melinda Gates Foundation. The fact that a major percentage of our business comes from client referrals bears ample testimony to the quality of our research and consulting. Some of our other esteemed consulting clients include  Reliance Industries  Vedanta Resources  World Bank  Minda Group  iPLON GmbH  Bhavik India Group  Green Concretex Global  Agarwal Group  Jivanlal and Sons Group  Indo-ItalianChamberof Commerce www.Waste to Energy Support from EAI If you are looking for business and technology support for waste to energy look no further than EAI.in 22 .eai.

www.eai.  Identification of technology Development of    transfer / joint venture differentiated waste to partners for implementation energy business models with highest value to all the stakeholders and  Financial modeling techno economic valuations Inputs on all the Investment structuring and to assess the viability of government regulations / financing support for waste different waste to energy incentives and approvals to energy projects technologies relating to waste management and waste to Leveraging CDM.in 23 . Intelligence on all the current and emerging technology / process routes for waste to energy  Feasibility analysis for Development of unique different process/technology business plans to attract routes sources of finance. REC and energy projects other benefits to increase the attractiveness of waste Intelligence on current to energy projects 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.EAI Services for the Waste Management Sector Market Intelligence Techno Commercial Consulting Feasibility Financial and Business Advisory Services  Market and region specific potential analysis and forecasting for waste to energy sector in India.

the .art. and our current   insights on all the key challenges and bottlenecks in the entire value chain.in 24 . Bill & Melinda Gates Foundation etc..  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. blue prints and business models are powerful and state of.  Our multi-disciplinary team with chemical and biochemical technology   professionals ensures that our recommendations will always come with a seal of   scientific approval. We have an exceptional understanding of the technology options and process Our past work on diverse assignments in waste to energy for global companies  assignments in this field has provided our team with unique perspectives and  such as Pepsi Co. technology and business aspects of waste to energy industry across its   entire value chain. contact Badri Narayanan Mob: +91 9042329344 Email: badri@eai.  Our management team comprising professionals from IIT‟s and IIM‟s ensure that our   recommendations.eai.Why EAI for Waste to Energy?  EAI is one of the few companies in India who have in depth knowledge of the   market.in www.    routes for waste management for diverse types and scale of waste. To know more on how EAI can assist you..

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