Module 7: Technical Feasibility & Viability Analysis

Zero-Waste Heroes’ Waste-to-Energy Project

Biomass Gasifier Power Plant (Low-Scale)

Capabilities and Asset Resources

a. Capabilities

The gasification technology is principally well suited for small power plants ranging
from below 10 kW to over 100 kW. Appropriate gasifier systems with internal combustion
engines can produce 1 kWh of electricity from 1.1 – 1.5 kg wood, or 1.8 – 3.6 kg rice
husks. A generator in the range between 10 and 100 kW provides sufficient energy not
only for household lighting, but also for televisions, refrigerators and the operation of
small machinery as well.

The approximate cost of the Biomass Gasification Power Plant will be around $5000
to $9000, which roughly equates to Php 250,000 to Php 450,000. This price could be
higher depending on the machinery and equipment supplier. This price would be for the
initial investment only and does not include succeeding operational costs..

The Biomass power plant will be operated by about 30-40 staff – most will be
employed locally from Barangay Day-as. Staff will include operators – running the plant
via computer controlled systems, mechanical and electrical technicians and fuel handling
and plant maintenance roles.

A2.5MW(e) power generation facility would require the following personnel:

● 1 operator per shift for normal operating and labouring duties.

● 50% utilisation of 1 supervisor per shift to set operating criteria, monitor plant
performance, organise scheduled maintenance, etc.
● 30% utilisation of secretarial services for week days only.
● 10% utilisation of a manager for week days only to oversee the operation and
long term development of the facility.

This assumes that normal maintenance staff and facilities are made available when
required. Depending on the type of site and possibilities of job sharing, it is likely that the
facility will have a full time operator and supervisor on each shift with sufficient shifts to
cover holidays and absence.

In order to develop the needed capabilities, a list of strategies must be implemented:

Area Strategy

Manpower Before employment, employees and

workers must undergo a series of training
and workshops, depending on their job
description. The employees and workers
must also have the set criteria for their
applied positions, such as managerial

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 skills for supervisors and managers.
Workers must have the proper training in
dealing and working with the biomass
gasifier machineries and equipment.

Funding Funding will be done through the

company’s initial investments and through
other investors and non-profit
organizations. Donations and volunteer
work will also be accepted throughout this
waste-to-energy project. The company
will also apply for government grants and
training.

Technology The technology used will be supplied by

overseas biomass gasification companies
such as ​Henan Dianyan New Energy
Technology Co., Ltd and ​Infinite Energy
Private Limited​. The company will contact
the supplier/s during the preparation of
the power plant and negotiate the cost of
the agreement.

b. Asset/Resources Needed

The biomass boiler and turbine are the key elements in making an efficient and
reliable biomass gasifier power plant. Other equipment include an electrostatic
precipitator (used for taking ash out of the gas stream), and cooling towers to cool the
steam after passing through the turbine and so be able to reuse the specially processed
water.

The main gasifier and its associated ancillary equipment will be listed below this
paragraph. The gasifier comprises equipment from the receipt of the waste from the
fuel feeder discharge isolation valves to the point at which the raw gas exits the gas
off-take. The ancillary equipment includes the steam drum, air blast supply, hydraulic
power pack and ash discharge.

● Gasifier ● Ash lock hopper

● Gasifier steam drum ● Ash conveyor
● Air fan ● Hydraulic power pack

. The approximate cost of the Biomass Gasification Power Plant will be around $5000
to $9000, which roughly equates to Php 250,000 to Php 450,000. This price could be
higher depending on the machinery and equipment supplier. This price would be for the
initial investment only and does not include succeeding operational costs.

Most of the main machinery & equipment and other raw materials will be outsourced
from countries such as China and India. This is due to the lack of biomass gasification

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 manufacturers in the Philippines. Other materials such as the air fan and hydraulic power
pack will be supplied locally.

c. Cost Requirement

Costs of the Biomass Gasification Power Plant would include expenses from the
Waste-to-energy equipment (Biomass Gasifier), safety and quality control (to ensure the
quality of the electricity produced, most especially the healthy and safety measures
implemented/installed), collection and transfer trucks/vehicles, personnel salary, garbage
storage area, the location for the Biomass Gasifier Power Plant, and other operational
costs.

Like from the paragraphs above, the approximate cost of the Biomass Gasification
Power Plant will be around $5000 to $9000, which roughly equates to Php 250,000 to
Php 450,000. This price could be higher depending on the machinery and equipment
supplier. This price would be for the initial investment only and does not include
succeeding operational costs. Funding will be sourced from the company’s initial
investments and through other main investors. Donations from volunteers and non-profit
organizations will also be used as additional sources of funding. The company will also
apply for government grants for the funding of the Biomass Gasifier Power Plant.

External Partnership and Linkages

The company will partner with the local government of Barangay Day-as, and other
barangays who face a similar problem of lack of proper waste management. The
company will also partner-up with interested investors who will help with the initial
investment of the project. Partnership with local and international non-profit
organizations who have similar visions and missions and who support the project will
also occur. Some of these non-profit organizations would include the Ramon Aboitiz
Foundation Inc. and Greenpeace Philippines. Partnership with the city government will
also be done if and once the requested grant is approved/accepted.

Processes

Key Activities would include:

● Waste Management
The Waste-to-Energy project will help the residents of the informal sector of
Barangay Day-as lessen the amount of garbage in their area, especially when
not collected by the barangay. Waste management also occurs in the whole
biomass gasification process as the project helps reduce and convert the waste
into electricity and reusable fuels.

● Garbage Collection
The company will collect the garbage during the area’s assigned schedule.
The garbage will be placed in their designated waste area by the residents and
will be collected by the company thereafter.

● Segregation
The residents must segregate their garbage as mandated by the city
government. Segregation will also occur before the biomass gasification process

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 by the workers. The waste will be segregated based on the waste’s usefulness to
the biomass gasification process.

● Technology
The biomass gasification process consists of the use of various high-quality
technology. The use of this technology will highlight sustainability and alternative
means to electricity.

● Research and Development

Prior to the opening of the power plant, sufficient and proper research must
be conducted to appropriately assess the scope and capacity of the project.
Proper research and development is also done to have a successful project
through the correct and efficient use of the machinery and equipment and
through competent employees and workers.

● Safety and Quality Control

This is to ensure the quality of the electricity produced, most especially the
healthy and safety measures implemented/installed.

Steps in the Solution Concept:

1. Collection of trash from the respective areas in the Barangay.

2. Transportation of waste from the Barangay to the biomass gasification plant.
3. Once at the plant, waste will be segregated accordingly. Trash that can be used
for the gasifier will be segregated and will be utilized in the next step.
4. The waste will then be placed into the vessel (Biomass Gasifier).
5. The process of the biomass gasification will now commence.

The materials that can be put into the gasifier are the following:

1. Wood and agricultural products

2. Solid Waste or Household Waste
3. Industrial Waste

The Process (How does waste-to-energy happen?):

After the waste is put into the vessel, they are burned in 4 layers: oxidation layer,
reduction layer, thermal decomposition layer and drying layer. The reduction layer is the
most important part that influences the quality and yield of the gas.

The products of gasification are a mixture of carbon monoxide, carbon dioxide,

methane, hydrogen and various hydrocarbons, which can then be used directly in gas
turbines, and boilers, or used as precursors for synthesizing a wide range of other
chemicals. (The main product of gasification is syngas, which is a mixture of gases
including CO and H2, which can be used to produce fuels and chemicals, or be burned
to generate heat or electricity. Some by-products are ash and tars depending on the
technology used.)

From the turbine, it then goes into the generator. Generators do not actually create
electricity. Instead, they convert mechanical or chemical energy into electrical energy.

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 They do this by capturing the power of motion and turning it into electrical energy by
forcing electrons from the external source through an electrical circuit.

From the Generator, Transmission and Distribution now happens. This is where the
electrical energy is now distributed to the people. In our case, the residents of Barangay
Day-as.

Value Proposition to Users

● Provide reliable waste management system

It’s important to have and provide a reliable waste management system
because this can prevent harmful damages to the environment. This reduces the
number of trash being improperly disposed in the area. It discipline the residents
in a way that they continuously follow the system which then becomes a habit.

● Manage and reduce waste from collection to disposal while recovering

valuable resources and creating clean renewable energy
By managing the collection of waste to dispose in creating a clean
renewable source of energy, this ensures that the environment has less
emissions and provides an improved quality of air for the users to breathe. This
prevents them from catching harmful diseases such as heart disease, lung
disease, and respiratory conditions. Since the cost of generating electricity is low,
this can help stabilize and decrease the prices for the residents.

● Renewable Energy Provider

It gives the users the opportunity to purchase renewable energy through
power suppliers or green certificates. Residents who can’t afford to buy clean
electricity from their power supplier have the option to choose “green certificates”
also known as “renewable energy certificates” which allows them to contribute to
the generation of electricity. Since we are using biomass to produce electricity as
the renewable source of energy to the residents in their area, it benefits them to
produce and generate electricity because the waste will be used for energy
production.

● Give communities an extra source of electricity

Having all of the disposed trash collected, it can be converted to give and
provide an extra source of electricity for their residence. This benefits the users to
have access to reliable and sustainable electricity to have an easier way of living
since they can use it for several reasons such as food, street lights,
enhancement of productivity, technology, and reduces carbon dioxide (CO2)
emissions.

● Sustainability
The users must be able to adapt in order for them to manage the
improper wastes responsibly in valuable ways that positively impacts a healthier
environment. This gives better outcomes to the area such as cleaner air, water,
and the reduction of greenhouse gases. Since the residents are willing to commit
to having a sustainable environment, it gives them a role to be more responsible
and cooperative to lessen all the negative impacts affecting their area.

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 ● Provide an opportunity for employment
It provides opportunities for employment since we would need to hire
people who have the required skills to take necessary steps to create an
environment that is sanitary and sustainable. This also gives the users to earn
income to provide the needed resources for their families. Furthermore, it would
benefit the residents' living standard.

● Educate and raise awareness

It is a need to educate the residents by providing programs since this
would benefit the community to be more aware of the proper practices of
disposing trash. This gives them more knowledge on how it should be handled
and reduces large amounts of waste that was produced to effectively build a
safer environment. Furthermore, it gives the users to build social awareness by
also educating them about training services to improve and expand their way of
taking action.

Value Proposition to Other Stakeholders

● Environmental Benefit
Turning the waste collected into electricity is a great way to recycle and
reuse our trash. ​Recycling is very important as waste has a huge negative
impact on the natural environment. ​Huge amounts of energy are used when
making products from raw materials. Recycling requires much less energy and
therefore helps to preserve natural resources. ​Harmful chemicals and
greenhouse gasses are released from rubbish in landfill sites. Recycling
helps to reduce the pollution caused by waste.

● Competitive Prices
Prices of electricity will be lesser than the commercial-grade since raw
material in the form of waste given by the community is low-cost/free. This allows
the target area and population to be able to afford the product and service more
than the commercial-grade and will ensure a market for the electricity to be sold
to.

● Degree of Innovation
This innovation is purpose-induced since the slight changes that will be
applied towards implementation will be caused by how the market will need it to
perform. This kind of innovation found in Hauschildt's model directs a change that
is done because of a different purpose than that which is originally bestowed
upon the device (​Emprechtinger​, 2018).

● Raising the Awareness of the Society to have a Sustainable Lifestyle

The project allows the society affected to have awareness towards a
greener and more sustainable lifestyle in the sense that as waste is provided, so
does fruit from it. It allows the population to be aware of waste that is not properly
disposed of since the project benefits those who are able to provide more raw
material for the device. The programs and seminars also provide a good view
towards living a sustainable life for the society.

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 ● Increase Access to Electrical Services
On application of the project, electrical services would be available and
more affordable towards the population intended. Currently, the informal sector of
Barangay Day-as does not have readily available electrical sources and if there
was to be an installation, would be a pricey ordeal. This project allows for not
only sustainable electricity but also would open new possibilities towards the
electrical industry and be more affordable to those who do not have the service
available.

Price and Payment Structure

Pricing Method
For the enterprise’s pricing method, ​we will be using the ​Cost plus pricing
method. This method involves adding a markup to the cost of goods and services to
arrive at a selling price. Under this approach, the enterprise will add together the
direct material cost, direct labor cost, and overhead cost needed for our
waste-to-energy project, and add to it a markup percentage in order to derive the
price of the product.

Payment Method
The payment method for this enterprise will be done through over-the-counter
bank payments, online banking payments, and credit/debit card payments.

Revenue
The business will be applying the ​Cost plus pricing method for the
waste-to-energy project. The revenue in this enterprise will be accumulated from the
garbage collection services and electricity (which is the end product from our
biomass gasification service). Since a financial plan on our proposed project is not
included in this paper, we are not able to show as of the moment the complete ​direct
material cost, direct labor cost, and overhead cost for us to compute the exact prices
which will be charging for our product/services. However, we have provided below a
possible estimate of our charges based on the current garbage collection service fee
observed in Cebu City and the electricity fees charged by the ​U.S.  Department  of 
Energy  ​Federal  Energy  Management  Program  (FEMP​) from their biomass gasification
services​.

● Garbage Collection
According to a news article written by Jose Bunachita entitled “Review sought on
Garbage Collection Fees,” he wrote that currently, the city of Cebu pays a tipping fee of
Php 700 per ton of garbage​ at a private landfill in Consolacion.

● Electricity
According to the ​U.S.  Department  of Energy ​Federal Energy Management Program 
(FEMP​)​, ​for a power-only (not combined heat and power) steam system in the 5 to 25
MW range, costs generally between $3,000 and $5,000 per kilowatt of electricity.
Levelized cost of energy for this system would be ​$0.08 to $0.15 per kWh​, but this could
increase significantly with fuel costs.

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 $0.08 to $0.15 converted to Philippine peso would amount to ​Php 3.89 to Php
7.29​. This price range is much cheaper compared to the effective rate for a residential
customer provided by VECO which is Php 11.0490/kWh.

Distribution Channels

According to ​William G. Zikmund and William J. Stanton​, ​The recycling of solid

wastes involves a backward channel of distribution also known as reverse channel of
distribution. That is because it involves reversing the flow of materials in the channels of
distribution. With the waste-to-energy project, we will be collecting raw materials
(garbage) from our customers first. This will then be recycled by the enterprise by
processing the trash using a biomass gasifier in order to create electricity which will be
distributed back to the customers.

In order to experience our service/product, the customers first apply for a

garbage collection service and electric service connection at the enterprise’s service
center. It depends on the customer whether he/she will apply for the garbage collection
service only or apply for both the garbage collection service and electric service
connection. Once approved, the enterprise will provide the customer with information
regarding the schedule and area for garbage pick-up near them. For those who have
availed for electricity as well, they will have the electric meter/wirings installed for them.

For the actual delivery of the service/product, the customers will have their waste
picked up by the enterprise’s garbage collector, these will then be delivered and
segregated at the plant. The trashes will undergo the biomass gasification process.
Lastly, from the plant, the electricity will be distributed through the electric transmission
lines to the customers.
The potential channels involved to deliver the solution to the customers:

Services/goods provided by the Producer (Waste-to-energy Enterprise):

● Collection of waste
● Waste Transportation
● Waste Conversion & Electricity Production (Biomass Gasification)
● Electricity (which will be distributed through the transmission lines)

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Promotion

● Endorsement from local governments

Since the company will be collaborating with the local government of
Barangay Day-as, the Barangay will help promote the company and its project to
their residents. The project is centered around the residents of the informal sector
of Barangay Day-as, so a notice or announcement must be made by the
council/officials of the Barangay in regards to the company’ goal and purpose
and their scheduled garbage collection.

● Newspaper Endorsement
The company’s project will be included in daily newspapers. Articles of the
project in local newspapers will boost public awareness and will highlight its
environmental and societal benefits. Information about the company like its
website and contact number will also be included in the articles, in order for
interested investors or environmental organizations to contact the company if
they have any donations, inquiries, or proposed partnerships.

● Social Media Publicity

Social media accounts and an official website will be made for the company.
Sites such as Facebook, Instagram and Twitter will be used to further promote
the business and to expand its user reach. Information about the company will be
made available in each social media account such as the company’s vision,
mission, and goals. Pictures and videos of the on-going project will also be
posted. Additionally, contact information such as the contact number and email
will also be made available in the social media accounts.
● Email
Communicating with the right customers positively impacts and gives this form
of promotion a likelihood of success. With the website in place together with the
information, the company’s email will be available to communicate and interact
with customers and potential customers. Thus giving detailed information, it is an
effective method to reach out to customers.

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