Presentation by IWMI researchers on developing business opportunities for resource recovery and reuse (RRR) of domestic and agro-industrial waste. Presented at a waste reuse business stakeholder workshop in Accra, led by IWMI.

1. Developing business opportunities for resource
recovery and reuse (RRR) of domestic and agro-
industrial waste
Dr. Solomie Gebrezgabher
Dr. Avinandan Taron
RRR impact and upscaling project stakeholder workshop
June 11, 2015, Ghana

2. Urbanization and consumption levels
• Increased urbanization coupled with increased consumptions
levels  Significant waste generation
• Cities are becoming vast nutrient sinks while exploiting soils
in farming areas
• Waste generated ends up in open dumps and natural water
bodies  Environmental and health challenges

3. Changing waste challenge into an opportunity
Agriculture
Landscaping/horticulture
Energy: Electricity
Energy: Fuel-briquettes
Faecal
Sludge
Municipal
Solid Waste
Nutrients
(org. fertilizer,
soil
conditioner)
Water
(irrigation)
Agro-waste
EnergyUrine
Wastewater
Waste streams Resource Reuse
Faecal
Sludge
Municipal
Solid Waste
Nutrients (org.
fertilizer, soil
conditioner)
Water
(irrigation)
Agro-waste
Urine
Wastewater

4. Reuse is not new
• Efforts have often been limited in size, hardly going beyond
the pilot scale
– Waste not viewed as a resource
– Lack of business thinking a bottleneck for attracting
private capital and scaling up reuse of waste
• Need for innovative solutions  apply a business perspective

5. Agro-industrial waste - Energy
Wastewater – Water
(irrigation, aquaculture)
MSW, Faecal sludge - Nutrients (ag. production)
Innovative reuse initiatives

6. 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 business operationSolid waste Fertilizer Composting, co-compostingYes. Replication of Business model in 10 African citiesNot sure
2 BIOGAS SECTOR PARTNERSHIP NEPAL Kathmandu Large-scale??? Replicable?Human excreta, cattle dung and waterBiogas and compost/fertilizerMethanogenic bacteria on biodegradable waste in anaerobic conditionsMaybe but specific to rural settings and may not be practical for urPossible upon request
3 PUNJAB ENERGY DEVELOPMENT AGENCYINDIA Punjab Large-scale Cattle dung Biogas and manure Biologically induced mixing arrangement (BIMA) technology used for anaerobic dige
4 USAID INDIA Uttar Pradesh Pilot Cattle dung Biogas (thermal and electrical energy) and compostAnaerobic digestionPotential
5 TAMIL NADU ENERGY DEVELOPMENT AGENCYINDIA Tamil Nadu City Wastewater Biogas, Electrical energyHybrid Upward Flow Sludge Media Anaerobic ReactorPotential for replication and given growing demand for sago and st
6 KOYAMBEDU WHOLESALE MARKET COMPLEXINDIA Chennai, Tamil NaduCity Organic waste (market waste)Electricity; Biogas (used as fuel in gas engine and excess power generated is exported to the TNEB grid), MBiologically induced mixing arrangement (BIMA) technology used for anaerobic digeRepresents a way for the public sector to finance other divisions ofPossible
7 M/s HIND AGRO INDUSTRIES, LTD INDIA Aligarh, Uttar PradeshLow-medium scale (individual entrepreneur)Abattoir soild waste (droppings, rumen, fat, agro-wastes, fodder residues and hay)Biogas, biofertilizer Biomethanation (Low Speed Agitator tank Reactor)Replicability and sustainability potential; diverse source of incomeMaybe
8 M/s AL-KABEER EXPORTS PVT, LTD INDIA Andhra Pradesh Medium scale Feed waste, animal wasteBiogas, Manure Biogas Induced Mixing Arrangement (BIMA) technologyReplicability and potential for up-scalingMaybe
9 SuSanA GHANA Kumasi Pilot Faecal sludge, Solid wasteCompost FS Dewatering with unplanted drying beds and Aerobic Windrows co-composting ofPPP which addressses land tenure constraints, third party implemeYes (IWMI was partner)
10 ECoH Holdings Ltd KENYA Nairobi City Organic waste (green waste, market waste, hotels, schools, hospitals, kitchen waste, farmyard manure, crop residues andCompost Windrow composting Possible to get financial data
11 Lilongwe City Council MALAWI Lilongwe Community Organic waste (sugarcanes, mangoes, nsima from hospitals, kitchen and animal manure)Compost Open-air, static-pile compostingAspects of PPP/ CBO model address business constraints (financialAnnual turnover: 40,000Kwacha; Price of produ
12 NAWACOM KENYA Nakuru Community/City Household organic wasteCompost ? Replicability - success factor/ cooperative model1,500Ksh per bag; 336 members; Access to micr
13 Waste Enterprisers GHANA Kumasi City Faecal sludge Wastewater 1. Water Stabilization Pond?Sustainable model but may be limited in terms of replicabilityAvailable
14 Water for People BOLIVIA Cuchumuela, CochabambaCity Urine and fecesDecomposed urine and fecesUDDTs Sustainability Sale of mushrooms; Pine
15 ROSA KENYA Nakuru City Organic waste, feces, urineCo-compost (organic waste with faecal matter collected from UDDTs)? Replicable; sustainable model without external financial support
16 Karnkata Compost Development LimitedINDIA Bangalore City Organic wasteCompost Windrow composting/ Aerobic decomposition
17 Santiago Composting Project CHILE Santiago Project/ City Biodegradable waste and nontoxic wastewater sludgeCompost/ Sale of emissions reductions? Replicable, self-sustainingProcesses 43000mT of waste/year; Sale of 326,0
18 Ministry of Agriculture and Rural Development (MARD)& SNVVIETNAM ? Pilot/City Human excreta, cattle dung and waterBiogas, Bio-slurry/organic fertilizer? Can be widely replicated, however success highly dependent on geoCosts per household: $550
19 Chinese Academy of Science CHINA ? Pilot project Waste straw "Bread grass", biogas Bacteria infested (anaerobic/aerobic)Self-sustaining, however initial financial obstaclesN/A
20 Unilever/Triple R Project SOUTH AFRICA? City Food grade wasteCompost * Replicable but may not be cost-effective for factoriesnone
21 Kigali - Biogas RWANDA Kigali City Human feces, urineBiogas Biogas digester Replicated with other institutions (hospitals, academic institutionsPossibly accessible
22 Waste Busters PAKISTAN Lahore City Household/ market waste (organic and inorganic)Compost Windrow composting methodPotential for up-scalingAvailable
23 VermiGOLD INDIA Mumbai City Wet garbage, organic wasteVermicompost Vermiculture Low-level technology, replicability
24 Anamol Krishi Udyog INDIA Nagpur, MaharashtraCity Vegetable market waste, organic household wasteCompost Biologically induced mixing arrangement (BIMA) technologyReplicability, has potential to be up-scaled; Profitable and sustainabCosts of production available
25 TERRA FIRMA BIOTECHNOLOGY LTD INDIA Bangalore City - large-scale Household and market wasteOrganic compost Vermiculture Historical financial growth; large-scale; Successful producer of orgAvailabel in document: http://www.sswm.info/
26 Lakshmi Energy and Foods Limited INDIA Punjab City Rice husk Electricity, Bricks (ash from burning husks)* Large-scale; sustainable business model*
27 Cape Flats Treatment Works SOUTH AFRICACape Town City Faecal sludge Biogas, pellets Anaerobic digestion for biogas production; Drying with Swiss Combi Drying systeLarge-scale; sustainable business model400m3/h of biogas; wastre volume?
28 Sulabh International Social Service OrganizationINDIA 25 states Country-wide Human excreta, WastewaterCompost, Manure, Pisciculture?Human excreta - biogas digesters; Duckweed-based wastewater treatment; CompostCommercially viable business model - portfolio diversification, sign2005 profits - $5m; 6,000 public toi; lets in 25 st
29 East Kolkata Wetlands INDIA West Bengal City,maybe on a larger scale?Wastewater, solid wasteFish Waste stabilization pondsLarge-scale; self-sustaining/commercially viable system; replicable*
30 Ondo State Integrated Wastes Recycling and Treatment ProjectNIGERIA Ondo State Solid waste Compost Semi-mechanical windrow, curing and milling operationsLarge-scale; successful public entity*
31 PRISM BANGLADESHKuhlna City Faecal sludge, wastewaterDuckweed, Fish Waste stabilization pondsSelf-sustaining/ successful?Available in document
32 Cows to Kilowatts Project NIGERIA Ibadan? City Abattoir wasteBiogas Anaerobic digestion of abattoir waseSelf-sustaining *
33 UN-ESCAP/ Waste Concern SRI LANKA/ VIETNAMMatale/ Quy NhonCommunity Solid waste Compost Aerated box methodSelf-sustaining, profit-making enterpriseSince 2007, model plants operating successfully
34 Nyongara Biogas Project/ Kenya Industrial Research and Development InstituteKENYA Dagoretti/ Outskirts of NairobiCity Abattoir wasteBiogas High Performance Temperature Controlled (HPTC) biogas digester modelReplicable in developing countries (East Africa) where waste fromPossibly available upon request
35 IFAD Supported Biogas Projects ASIA / PACIFICChina/ Vietnam Mainly Rural setting?Human and animal wasteBiogas (thermal and electrical energy) and compostBiogas digester This case was included because it has the potential to be replicated*
36 KORAT WASTE TO ENERGY THAILAND Muang District City Industrial - wastewater from starch industry/ Sanguan Wongse industriesBiogas - (biofuel and electricity)Anaerobic baffled reactorFinancial viability?*
37 Boeung Cheung Ek Lake CAMBODIA Phnom Penh City? Wastewater Water spinach productionWastewater used as a growth medium for water spinachAgricultural production; Financial viability100-300kg/household; $350-700/yr for 5-10to
38 Supporting the Informal Wastewater Farming Business in GhanaGHANA Accra - Several citiesCountry-wide Wastewater Direct reuse of wastewaterAgricultural use of wastewaterHigh cost-recovery potential and model is already flourishingAvailable in Cofie and Murray paper
Identification of 150+ RRR
potential success stories across
Asia, Africa and Latin America
and analyzing 60+ in detail.

7. RRR-impact and upscaling project
Two components:
1. Assess the business environment
(investment climate) for RRR sector
2. Assess the economic impact of RRR
businesses

8. BUSINESS ENVIRONMENT FOR RRR

9. Business environment for RRR
• Waste management strategies shift focus from a disposal-oriented
approach to a business-oriented approach that emphasizes value
creation and revenue generation
• To achieve success in RRR sector, there is a need for private sector
involvement
• Need for understanding of the business/investment climate under which
the RRR businesses are operating to foster entrepreneurship in RRR

10. Defining business environment
• Business/investment climate comprise all factors external to firms (policy,
legal and regulatory frameworks; macroeconomic policy; financial access
etc).
• A good investment climate (IC) is central to private sector led growth and
investment
Employment generation, income growth, poverty
reduction

11. Need for IC assessment
• Assists Governments/policymakers to identify which
dimensions of the IC need improving.
• Inform Investors/businesses the business environment they
are operating in.
• Assist Donor community to identify specific issues and
develop targeted private sector development programmes.

12. Framework for assessing IC for RRR
RRR Entrepreneurship determinants
Regulatory framework
& Infrastructure
•Cost to start a business
•Tax incentives
•Access to infrastructure
Markets
•Market size
•Domestic sales
Support service
•RRR Network
associations
•RRR incubators
Finance
•Access to debt
•Amount of bank
loans to RRR
•Interest rate
RRR entrepreneurship performance
•Number of RRR firms (birth, death and survival rates)
•RRR firm growth rate
Impact
Job creation, amount of waste reduced, Ecosystem services, gender etc.

13. ECOSYSTEM APPROACH TOWARDS
ECONOMIC ASSESSMENT OF DIFFERENT
RRR BUSINESS MODELS

14. Benefits Costs
Socio-Economic  Estimated number of direct and
indirect jobs created
 Increase in yield/productivity
 Labor hours saved
 Revenue or cost saving to
municipality/society/business
 Generation of electricity
 Improved sanitation
 Gender implications
 Estimated number of jobs lost
 Increased exposure to bad odor
Health  Reduced exposure to wastes
 Health care costs savings
 Productivity gains due to improved
health
 Time savings
 Increased exposure to products
recovered from wastes
 Increased health risks due to
possible pathogen survival
Environmental  Estimated GHG emissions
reduction
 Improved soil quality
 Reduced water pollution
 Groundwater recharge
 Benefits derived from
recovered land
 Estimated GHG
emission from process
 Observed
eutrophication

15. Economic Assessment – An example
Business Model Baseline Scenario
(Key Inputs)
Alternate Scenario
(key Inputs)
Impact indicators
Environmental Financial/Economic Social
Nutrient Models
Large Scale
composting
MSW is collected
and landfilled (open
or in engineered)
and also open-
dumped based on
the collection
efficiency.
Utilizing the
organic fraction of
MSW for
composting.
GHG emissions –
(i) from
transportation (ii)
emissions from the
MSW - methane
(landfill)
Reduction in the
landfill life
Reduction in
leachate treatment
cost
Increase in soil
fertility
Capital costs –
investments made to
start-up the business
O&M costs specific
to the business
Revenue streams –
(i) Sale of compost,
(ii) Tipping fees, (iii)
sale of recyclables
(iv) carbon credit
(VER)
Employment
creation
Costs for additional
MSW collection &
transportation;
investments made
for land
procurement;
charging user fees
from the households
Reduction in
externalities

16. • Why do we need ecosystem services approach?
– Primarily to meet the needs of sustainable production and consumption
• What are ecosystem services?
– Benefits people obtain from nature – it comprises of the dynamic
interactions between the living and the nonliving environment
• Inclusion of both natural and human-modified ecosystems
• “Services” encompass both tangible and intangible benefits
• How can we classify ecosystem services?
– The Millennium Ecosystem Assessment (MA)
– The Economics of Ecosystems and Biodiversity (TEEB),
– The Common International Classification of Ecosystem Services
(CICES)
The Ecosystem services approach

17. Defining Ecosystem Services
Provisioning services –
• Food , raw materials, fresh
water and medicinal
resources
Cultural services –
• Recreation
• Tourism
• Aesthetic appreciation
• Spiritual experience
Habitat or supporting services –
• Habitat for species &
maintenance of genetic
biodiversity
Regulating services –
• Local climate and air quality
• Carbon sequestration and storage
• Moderation of extreme events
• Wastewater treatment
• Erosion prevention and maintenance of
soil fertility

18. Framework
Physical Flows and natural inputs, products and residuals (Source: SEEA, 2012)

19. Framework continued…
Human Interactions Changes in
ecosystem services
Production
Reuse
Studying
impacts of
RRR business
models
Valuation
of ESS

20. Methodology
Quantify the impacts of
policy options
Approaches in the
Impact Assessment
(i) Environmental Impact Assessment,(EIA);
(ii) Strategic Environment Assessment, (SEA);
(iii)Life-Cycle Analysis (LCA);
(iv) Risk Assessment;
(v) Cost-Effectiveness Analysis;
(vi) Multi-Criteria Analysis (MCA) and
(vii) Cost-Benefit Analysis (CBA)
Assess the effects on
welfare
Establish Environmental
baseline
Qualitative
Assessment
Valuation of
ESS
• The preliminary activity
involves Scoping
followed by Screening
of the environmental
impacts
• Use of a ranking
methodology, expert
opinion, secondary
review for each of the
services

21. Qualitative Assessment frameworkCategory Baseline / Do
Nothing
(Option 1)
Use MSW for
generating
Briquettes
(Option 2)
Use MSW for
generating
electricity
(Option 3)
Use MSW for
producing
Compost
(Option 4)
Use MSW with
faecal Sludge for
producing fortifier
(Option 5)
Provisioning Services
Food ? ?
Fiber & Fuel +++ +++
Fresh Water
Regulating Services
Air Quality regulation - - - - - +
Water regulation
Climate regulation
Natural hazard regulation
Pest regulation - - - ++ ++ ++ ++
Disease regulation - - - ++ ++ ++ ++
Erosion regulation 0 0
Water purification and waste treatment - -
Cultural Services
Cultural heritage
Recreation and tourism
Aesthetic value - - - ++ ++ ++ ++
Supporting Service
Soil formation
Nutrient cycling +++ +++
Water cycling
Photosynthesis ++ ++

22. Thank you!