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A Business Model Approach to
Resource Recovery and Reuse (RRR)
Agro-industrial waste - Energy
Wastewater – Water (irrigation,
aquaculture)
MSW, Faecal sludge - Nutrients (ag. production)
Innovative RRR initiatives – to close water
and nutrient cycles
Reuse is not new . . .
• Technical knowledge is largely available.
• But hardly any project can recover costs or
survives its subsidized pilot stage.
• RRR brings a paradigm shift into the
sanitation-agriculture interface by studying
and testing Business Models for RRR.
• Due consideration of safety aspects and
cultural perceptions.
Water for a food-secure world
ResearchPhase
Analysis of empirical RRR Business cases using
Multi-Criteria/Disciplinary Approach
Research Framework
Water for a food-secure world
Business case
identification
and analysis
Criteria for evaluation of selection of promising cases:
• Waste becomes an asset
• Cost recovery or profit
• Income generation for sanitation chain
• Replicability in low-income countries, potential to work at scale
• Overall percentage of cases with agricultural link (>50%)
Water for a food-secure world
ResearchPhase
Analysis of empirical RRR Business cases using
Multi-Criteria/Disciplinary Approach
Research Framework
Water for a food-secure world
Feasibility
studies
Business case
identification
and analysis
Business
model
description
Implemen-
tation
Implementation
Phase
Business modeling framework + Optimization
modeling
Sound economic theory and methods (econometric,
dynamic and linear programming models);
Institutional analysis; Health + Environmental
assessment, etc.
Investment in new RRR businesses and scaling-up
of existing businesses
Analysis of new, emerging and
established RRR business models
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 businesSolid waste Fertilizer Composting, co-coYes. Replication of Not sure
2 BIOGAS SECTOR PARTNERSHIP NEPAL Kathmandu Large-scale??? ReplHuman excretBiogas and compost/ Methanogenic bacMaybe but specificPossible upon r
3 PUNJAB ENERGY DEVELOPMENT AGENCYINDIA Punjab Large-scale Cattle dung Biogas and manure Biologically induced mixing arrangement (BIMA) tec
4 USAID INDIA Uttar Pradesh Pilot Cattle dung Biogas (thermal and eAnaerobic digesti Potential
5 TAMIL NADU ENERGY DEVELOPMENT AGINDIA Tamil Nadu City Wastewater Biogas, Electrical eneHybrid Upward FPotential for replication and given
6 KOYAMBEDU WHOLESALE MARKET COMINDIA Chennai, Tamil NCity Organic wasteElectricity; Biogas (u Biologically inducRepresents a way fPossible
7 M/s HIND AGRO INDUSTRIES, LTD INDIA Aligarh, Uttar PrLow-medium scale Abattoir soildBiogas, biofertilizer Biomethanation (Replicability and suMaybe
8 M/s AL-KABEER EXPORTS PVT, LTD INDIA Andhra Pradesh Medium scale Feed waste, anBiogas, Manure Biogas Induced MReplicability and pMaybe
9 SuSanA GHANA Kumasi Pilot Faecal sludge,Compost FS Dewatering wiPPP which addressYes (IWMI was
10 ECoH Holdings Ltd KENYA Nairobi City Organic wasteCompost Windrow composting Possible to get f
11 Lilongwe City Council MALAWI Lilongwe Community Organic wasteCompost Open-air, static-pAspects of PPP/ CBAnnual turnove
12 NAWACOM KENYA Nakuru Community/City Household or Compost ? Replicability - succ1,500Ksh per ba
13 Waste Enterprisers GHANA Kumasi City Faecal sludge Wastewater 1. Water StabilizaSustainable model Available
14 Water for People BOLIVIA Cuchumuela, CocCity Urine and feceDecomposed urine anUDDTs Sustainability Sale of mushroo
15 ROSA KENYA Nakuru City Organic wasteCo-compost (organic ? Replicable; sustainable model with
16 Karnkata Compost Development LimitedINDIA Bangalore City Organic wasteCompost Windrow composting/ Aerobic decomposition
17 Santiago Composting Project CHILE Santiago Project/ City BiodegradableCompost/ Sale of emi ? Replicable, self-susProcesses 4300
18 Ministry of Agriculture and Rural DeveloVIETNAM ? Pilot/City Human excretBiogas, Bio-slurry/or ? Can be widely repl Costs per house
19 Chinese Academy of Science CHINA ? Pilot project Waste straw "Bread grass", biogas Bacteria infested Self-sustaining, howN/A
20 Unilever/Triple R Project SOUTH AFRIC? City Food grade w Compost * Replicable but maynone
21 Kigali - Biogas RWANDA Kigali City Human feces, Biogas Biogas digester Replicated with othPossibly access
22 Waste Busters PAKISTAN Lahore City Household/ mCompost Windrow composPotential for up-scAvailable
23 VermiGOLD INDIA Mumbai City Wet garbage, Vermicompost Vermiculture Low-level technology, replicability
24 Anamol Krishi Udyog INDIA Nagpur, MaharasCity Vegetable marCompost Biologically inducReplicability, has pCosts of produc
25 TERRA FIRMA BIOTECHNOLOGY LTD INDIA Bangalore City - large-scale Household anOrganic compost Vermiculture Historical financialAvailabel in doc
26 Lakshmi Energy and Foods Limited INDIA Punjab City Rice husk Electricity, Bricks (as* Large-scale; sustain*
27 Cape Flats Treatment Works SOUTH AFRICCape Town City Faecal sludge Biogas, pellets Anaerobic digesti Large-scale; sustain400m3/h of bio
28 Sulabh International Social Service Orga INDIA 25 states Country-wide Human excretCompost, Manure, PisHuman excreta - bCommercially viab2005 profits - $
29 East Kolkata Wetlands INDIA West Bengal City,maybe on a lar Wastewater, sFish Waste stabilizatioLarge-scale; self-su*
30 Ondo State Integrated Wastes Recycling aNIGERIA Ondo State Solid waste Compost Semi-mechanical Large-scale; succes*
31 PRISM BANGLADESHKuhlna City Faecal sludge,Duckweed, Fish Waste stabilizatioSelf-sustaining/ suAvailable in doc
32 Cows to Kilowatts Project NIGERIA Ibadan? City Abattoir wast Biogas Anaerobic digesti Self-sustaining *
33 UN-ESCAP/ Waste Concern SRI LANKA/ VMatale/ Quy NhoCommunity Solid waste Compost Aerated box methSelf-sustaining, proSince 2007, mo
34 Nyongara Biogas Project/ Kenya Industr KENYA Dagoretti/ OutskCity Abattoir wast Biogas High PerformanceReplicable in develPossibly availab
35 IFAD Supported Biogas Projects ASIA / PACIF China/ Vietnam Mainly Rural settingHuman and anBiogas (thermal and eBiogas digester This case was inclu*
36 KORAT WASTE TO ENERGY THAILAND Muang District City Industrial - w Biogas - (biofuel and Anaerobic baffledFinancial viability?*
37 Boeung Cheung Ek Lake CAMBODIA Phnom Penh City? Wastewater Water spinach produ Wastewater usedAgricultural produ100-300kg/hou
38 Supporting the Informal Wastewater Far GHANA Accra - Several cCountry-wide Wastewater Direct reuse of wasteAgricultural use oHigh cost-recoveryAvailable in Cof
Current status:
• Existing Database of 150+ business cases across
Asia, Africa and Latin America
• Selection of 60 cases for in-depth analysis
• Development of 20 business models
Feasibility testing of business models in
different cities
Investment plans
Private sector
Business schools
Public sector,
Donors
Business Options
• Different entities developing businesses
around them:
– Public sector: Cost-recovery for sanitation
sector, potential for revenue/profit generation
– Private sector:
• Cost-savings/revenue generation/profit
maximization
• Social Enterprise
Outputs
• Catalogues of success stories and RRR
business models ready for transfer;
• City specific investment plans supported by
sanitation safety plans for risk mitigation;
• Crop response data based on action
research and safety guidelines;
• Lessons learnt from real-life implementation
of business models.
Monitoring Business Model Implementation:
Commercialization of fortified excreta pellets through
PPP in Ghana (just started).
Already significant request
for replication in Asia !
Fortifer business model
Key Partners
• Producer
• Distributor
• MoFA
• FS truck
operators
• City/utility
Key Activities
• Collection of solid
waste and FS
• Treatment of waste to
convert it into Fortifer
• Sale of Fortifer
Value
Propositions
• Farmers obtain
high value and
safe fertilizer
• Improved FS
collection
coverage.
• Better sanitation
service
Customer
Relationships
• Personal help at
direct sales
• MoFA extension
support
• Contracts for bulk
sales & network of
distributor
Customer Segments
• Small scale farmers
• Commercial
plantations
• Outgrowers
• Land rehabilitation
• Housing sector
Key Resources
• Land and usage rights
• Partner expertise and
ability
• Capital
• Partner revenue share
Channels
• GAIDA members
• Extension workers
Cost Structure
• Capital investment;
• O&M – labour, utilities, marketing, packaging,
distribution and sales;
Revenue Streams
• Sales of Fortifer, carbon credits to be explored
• Private partner lease of production facility
• Potentially some tipping fee revenues
Social & environmental costs
• Possible human health hazard from contact with
FS for workers in the plant if safety plan are
violated.
• Elimination of current farmers’ practices and to
re-train them, some after 20 years of raw FS
application
Social & environmental benefits
• Increased portion of faecal sludge being formally
treated.
• Reduction of human health costs due to reduced
discharge of faecal pathogens into public lands,
waterways
• Job creation & improved soil condition, farm
productivity and farmers’ income.
Business Models for RRR
• Applying a business perspective to the recovery
of nutrients, water and energy from domestic
and agro-industrial waste streams.
• Market-driven mechanisms that represent:
 sources of revenue generation or social
benefits for all relevant actors;
 incentives for private sector
participation/investment to ensure
technology dissemination;
 Ensure safety of entities involved.
1. The research targets private sector engagement,
PPP and business schools.
2. A team of economists, business developers,
engineers, agronomists and environmental
scientists works closely together.
3. Analyzing business models and returns on
investment are building blocks of the program.
4. This present great opportunities to move towards
outcome-oriented research to achieve impact at
scale.
Conclusions
Thank you!
For more information contact:
Pay Drechsel (p.drechsel@cgiar.org)
Miriam Otoo (m.otoo@cgiar.org)
Solomie Gebrezgabher (S.Gebrezgabher@cgiar.org)

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A Business Model Approach to Resource Recovery and Reuse

  • 1. A Business Model Approach to Resource Recovery and Reuse (RRR)
  • 2. Agro-industrial waste - Energy Wastewater – Water (irrigation, aquaculture) MSW, Faecal sludge - Nutrients (ag. production) Innovative RRR initiatives – to close water and nutrient cycles
  • 3. Reuse is not new . . . • Technical knowledge is largely available. • But hardly any project can recover costs or survives its subsidized pilot stage. • RRR brings a paradigm shift into the sanitation-agriculture interface by studying and testing Business Models for RRR. • Due consideration of safety aspects and cultural perceptions.
  • 4. Water for a food-secure world ResearchPhase Analysis of empirical RRR Business cases using Multi-Criteria/Disciplinary Approach Research Framework Water for a food-secure world Business case identification and analysis Criteria for evaluation of selection of promising cases: • Waste becomes an asset • Cost recovery or profit • Income generation for sanitation chain • Replicability in low-income countries, potential to work at scale • Overall percentage of cases with agricultural link (>50%)
  • 5. Water for a food-secure world ResearchPhase Analysis of empirical RRR Business cases using Multi-Criteria/Disciplinary Approach Research Framework Water for a food-secure world Feasibility studies Business case identification and analysis Business model description Implemen- tation Implementation Phase Business modeling framework + Optimization modeling Sound economic theory and methods (econometric, dynamic and linear programming models); Institutional analysis; Health + Environmental assessment, etc. Investment in new RRR businesses and scaling-up of existing businesses
  • 6. Analysis of new, emerging and established RRR business models 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 businesSolid waste Fertilizer Composting, co-coYes. Replication of Not sure 2 BIOGAS SECTOR PARTNERSHIP NEPAL Kathmandu Large-scale??? ReplHuman excretBiogas and compost/ Methanogenic bacMaybe but specificPossible upon r 3 PUNJAB ENERGY DEVELOPMENT AGENCYINDIA Punjab Large-scale Cattle dung Biogas and manure Biologically induced mixing arrangement (BIMA) tec 4 USAID INDIA Uttar Pradesh Pilot Cattle dung Biogas (thermal and eAnaerobic digesti Potential 5 TAMIL NADU ENERGY DEVELOPMENT AGINDIA Tamil Nadu City Wastewater Biogas, Electrical eneHybrid Upward FPotential for replication and given 6 KOYAMBEDU WHOLESALE MARKET COMINDIA Chennai, Tamil NCity Organic wasteElectricity; Biogas (u Biologically inducRepresents a way fPossible 7 M/s HIND AGRO INDUSTRIES, LTD INDIA Aligarh, Uttar PrLow-medium scale Abattoir soildBiogas, biofertilizer Biomethanation (Replicability and suMaybe 8 M/s AL-KABEER EXPORTS PVT, LTD INDIA Andhra Pradesh Medium scale Feed waste, anBiogas, Manure Biogas Induced MReplicability and pMaybe 9 SuSanA GHANA Kumasi Pilot Faecal sludge,Compost FS Dewatering wiPPP which addressYes (IWMI was 10 ECoH Holdings Ltd KENYA Nairobi City Organic wasteCompost Windrow composting Possible to get f 11 Lilongwe City Council MALAWI Lilongwe Community Organic wasteCompost Open-air, static-pAspects of PPP/ CBAnnual turnove 12 NAWACOM KENYA Nakuru Community/City Household or Compost ? Replicability - succ1,500Ksh per ba 13 Waste Enterprisers GHANA Kumasi City Faecal sludge Wastewater 1. Water StabilizaSustainable model Available 14 Water for People BOLIVIA Cuchumuela, CocCity Urine and feceDecomposed urine anUDDTs Sustainability Sale of mushroo 15 ROSA KENYA Nakuru City Organic wasteCo-compost (organic ? Replicable; sustainable model with 16 Karnkata Compost Development LimitedINDIA Bangalore City Organic wasteCompost Windrow composting/ Aerobic decomposition 17 Santiago Composting Project CHILE Santiago Project/ City BiodegradableCompost/ Sale of emi ? Replicable, self-susProcesses 4300 18 Ministry of Agriculture and Rural DeveloVIETNAM ? Pilot/City Human excretBiogas, Bio-slurry/or ? Can be widely repl Costs per house 19 Chinese Academy of Science CHINA ? Pilot project Waste straw "Bread grass", biogas Bacteria infested Self-sustaining, howN/A 20 Unilever/Triple R Project SOUTH AFRIC? City Food grade w Compost * Replicable but maynone 21 Kigali - Biogas RWANDA Kigali City Human feces, Biogas Biogas digester Replicated with othPossibly access 22 Waste Busters PAKISTAN Lahore City Household/ mCompost Windrow composPotential for up-scAvailable 23 VermiGOLD INDIA Mumbai City Wet garbage, Vermicompost Vermiculture Low-level technology, replicability 24 Anamol Krishi Udyog INDIA Nagpur, MaharasCity Vegetable marCompost Biologically inducReplicability, has pCosts of produc 25 TERRA FIRMA BIOTECHNOLOGY LTD INDIA Bangalore City - large-scale Household anOrganic compost Vermiculture Historical financialAvailabel in doc 26 Lakshmi Energy and Foods Limited INDIA Punjab City Rice husk Electricity, Bricks (as* Large-scale; sustain* 27 Cape Flats Treatment Works SOUTH AFRICCape Town City Faecal sludge Biogas, pellets Anaerobic digesti Large-scale; sustain400m3/h of bio 28 Sulabh International Social Service Orga INDIA 25 states Country-wide Human excretCompost, Manure, PisHuman excreta - bCommercially viab2005 profits - $ 29 East Kolkata Wetlands INDIA West Bengal City,maybe on a lar Wastewater, sFish Waste stabilizatioLarge-scale; self-su* 30 Ondo State Integrated Wastes Recycling aNIGERIA Ondo State Solid waste Compost Semi-mechanical Large-scale; succes* 31 PRISM BANGLADESHKuhlna City Faecal sludge,Duckweed, Fish Waste stabilizatioSelf-sustaining/ suAvailable in doc 32 Cows to Kilowatts Project NIGERIA Ibadan? City Abattoir wast Biogas Anaerobic digesti Self-sustaining * 33 UN-ESCAP/ Waste Concern SRI LANKA/ VMatale/ Quy NhoCommunity Solid waste Compost Aerated box methSelf-sustaining, proSince 2007, mo 34 Nyongara Biogas Project/ Kenya Industr KENYA Dagoretti/ OutskCity Abattoir wast Biogas High PerformanceReplicable in develPossibly availab 35 IFAD Supported Biogas Projects ASIA / PACIF China/ Vietnam Mainly Rural settingHuman and anBiogas (thermal and eBiogas digester This case was inclu* 36 KORAT WASTE TO ENERGY THAILAND Muang District City Industrial - w Biogas - (biofuel and Anaerobic baffledFinancial viability?* 37 Boeung Cheung Ek Lake CAMBODIA Phnom Penh City? Wastewater Water spinach produ Wastewater usedAgricultural produ100-300kg/hou 38 Supporting the Informal Wastewater Far GHANA Accra - Several cCountry-wide Wastewater Direct reuse of wasteAgricultural use oHigh cost-recoveryAvailable in Cof Current status: • Existing Database of 150+ business cases across Asia, Africa and Latin America • Selection of 60 cases for in-depth analysis • Development of 20 business models
  • 7. Feasibility testing of business models in different cities Investment plans Private sector Business schools Public sector, Donors
  • 8. Business Options • Different entities developing businesses around them: – Public sector: Cost-recovery for sanitation sector, potential for revenue/profit generation – Private sector: • Cost-savings/revenue generation/profit maximization • Social Enterprise
  • 9. Outputs • Catalogues of success stories and RRR business models ready for transfer; • City specific investment plans supported by sanitation safety plans for risk mitigation; • Crop response data based on action research and safety guidelines; • Lessons learnt from real-life implementation of business models.
  • 10. Monitoring Business Model Implementation: Commercialization of fortified excreta pellets through PPP in Ghana (just started). Already significant request for replication in Asia !
  • 11. Fortifer business model Key Partners • Producer • Distributor • MoFA • FS truck operators • City/utility Key Activities • Collection of solid waste and FS • Treatment of waste to convert it into Fortifer • Sale of Fortifer Value Propositions • Farmers obtain high value and safe fertilizer • Improved FS collection coverage. • Better sanitation service Customer Relationships • Personal help at direct sales • MoFA extension support • Contracts for bulk sales & network of distributor Customer Segments • Small scale farmers • Commercial plantations • Outgrowers • Land rehabilitation • Housing sector Key Resources • Land and usage rights • Partner expertise and ability • Capital • Partner revenue share Channels • GAIDA members • Extension workers Cost Structure • Capital investment; • O&M – labour, utilities, marketing, packaging, distribution and sales; Revenue Streams • Sales of Fortifer, carbon credits to be explored • Private partner lease of production facility • Potentially some tipping fee revenues Social & environmental costs • Possible human health hazard from contact with FS for workers in the plant if safety plan are violated. • Elimination of current farmers’ practices and to re-train them, some after 20 years of raw FS application Social & environmental benefits • Increased portion of faecal sludge being formally treated. • Reduction of human health costs due to reduced discharge of faecal pathogens into public lands, waterways • Job creation & improved soil condition, farm productivity and farmers’ income.
  • 12. Business Models for RRR • Applying a business perspective to the recovery of nutrients, water and energy from domestic and agro-industrial waste streams. • Market-driven mechanisms that represent:  sources of revenue generation or social benefits for all relevant actors;  incentives for private sector participation/investment to ensure technology dissemination;  Ensure safety of entities involved.
  • 13. 1. The research targets private sector engagement, PPP and business schools. 2. A team of economists, business developers, engineers, agronomists and environmental scientists works closely together. 3. Analyzing business models and returns on investment are building blocks of the program. 4. This present great opportunities to move towards outcome-oriented research to achieve impact at scale. Conclusions
  • 15. For more information contact: Pay Drechsel (p.drechsel@cgiar.org) Miriam Otoo (m.otoo@cgiar.org) Solomie Gebrezgabher (S.Gebrezgabher@cgiar.org)