HARVEST: ORGANIC WASTE RECYCLING with ENERGY RECOVERY

Aanchal Kochar (063001)

Abhilash Dubey (063003)

Anish Gulati (063006)

Harsh Rakesh (063016)

Sunny Kadian (063055)

Jeet Ankit Singh Nanda ()

MUNICIPAL SOLID WASTE (MSW): Facts

Total and per capita MSW generation has increased steadily

2008: 250 mn tons of MSW generated (US)

30.80%

23.50%

18.30%

13.20%

12.70% 1.50%

Containers and packag-ingNondurable goodsDurable goodsYard trimmingsFood scrapsMisc inorganic wastes

• Two general disposition for MSW: DISPOSAL and RECYCLING

DISPOSALFor material that no longer serve

useful purpose

INC

INER

ATIO

N

• Reduces volume of waste material by 95%

• Flue gas issue: to be settled by use of filters and scrubbers

• Use of heat for productive purposes

• Minimum feasible capacity: 10 MW

LA

ND

FIL

L

• Large hole in ground “filled” by waste

• RCRA norms made landfilling expensive by raising capital and operating costs of landfill (EX-4)

• Resulted in compact landfills with higher tipping fees

• Produces toxic gases

DISPOSAL: ADVANTAGES and DISADVANTAGES

ADVANTAGES DISADVANTAGES

3. 10 MW capacity plants at $50 mn4. 15-20% potential energy converts to electrical energy

1. Flue gas management2. Productive heat and gas produced depends on composition of waste

3. High capacity waste-to-energy plants require huge investments

3. A lot of toxic gases reach atmosphere: green-house effect4. Compact landfills and tipping fees

2. Use of Methane as fuel

INCINERATION

1. 95% of waste material volume reduced2. Heat produced can be used to generate electricity

LANDFILLDISADVANTAGESADVANTAGES

1. Easy and not much expensive 1. Smelly and unattractive "town dump"2. Less amount of Methane and other gases are captured

RECYCLINGRecycle in original or another applicationAnaerobic digestion: organic recycling- similar to

composting

3. Less expensive with better results4. Anaerobic digestion produces 'biogas': a cheap way to produce energy

2. Capacities of such arrangements are low (1 MW)

ADVANTAGES DISADVANTAGES1. Very little emission of toxic gases that can be controlled 1. Only 2.5% of food waste was recycled2. Reusability of items increases

The Waste Management Process

Waste (Recyclables and Non-Recyclables) Dumped in Trash Can

Items in the can collected and aggregated in a “dumpster” (Collection Point). Recyclables collected separately.

Waste/Recyclables in the Dumpster collected by the “Hauler”

Hauler scheduled “Garbage Trucks/Recycling Trucks” (capacity 5-10 tons)

Disposal Destination

TransferStation

Material Recovery Facility-“Clean/Dirty”

“Clean” MRF “Dirty” MRF

Accepted and Sorted Recyclable Material

Could Process “Single” or “Dual” Stream Recyclables◦ “Single” Stream-

Comingled recyclable material

◦ “Dual” Stream- Source-Separated recyclable material

% Residuals-10% of weight

Accepted Mixed Solid Waste Stream and Recyclable Waste

Recovered a comparatively smaller portion of incoming waste stream

Comparatively Higher Fraction of Recyclables recovered

Material Recovery Facility

* MRF’s sorted the recyclables into homogeneous material types and further sold them to commodity brokers(Paper Brokers, Paper Mills, etc.

Harvest Company Overview

Founded in 2008 (Paul Sellew and Nathan Gilliland)

Funding from Kleiner Perkins Caufield and Munich Venture Partners)

Mission – A new path for organic wast- extracting societal waste through the production of renewable energy ad nutrient rich combustible product that create healthy soils

Operations

MarketSearch

Supplier Engagem

ent

Technology

Vendors

Local Municipal

ity and Business

Utility Compani

es

Business Model

Source of RevenuesPrimary

Tipping Fee

Secondary Electricity ($0.06-$0.11 per KWH)

and Compost Sale ($20-$22 per Ton) Penewable Energy Credit Premium

($0.02 per KWH)

Capital Cost

$10 Million for Processing Equipment

$2 Million for Engine Generator

Two Operators @ $40000 Per Year

Maintenance, Utilities and Administration Charges - $670000

Per Year

Heads Cost ( $per Year)Establishment Cost $1.2 Million

HR Cost $130,000 Operational Cost $670,000

Total 12800000

Therefore to Break Even, company has to accept 3200000 Tonne of waste per Year

Assumptions- 1. Tipping Fee is Aproxx 40 $/Ton2. Additional Revenue Source are not considered

A potential new siteProsDisadvantages of Landfill OperationsHigher Operating Cost of Landfill Waste

Disposal methodIncreasing Waste (Recyclable Product) MarketConsHuge operating and capital CostNeed for demand generation of additional

products (Electricity and Compost)

Waste Management Industry• In 2008, industry generated $56 billion in

revenues from collection, processing and disposal services. CAGR – 3.84%  Public Companies  Private Municipal TotalCollection        

Residential collection 11.38 3.56 3.2 18.14Commercial Collection 7.79 2.42 2.17 12.38

Total Collection $19.17 $5.98 $5.37 $30.52         Processing         

Transfer 2.45 0.85 1.67 4.97MRF 0.77 0.5 0.33 1.6

Compositing 0.05 0.06 0.05 0.16Total Processing $3.27 $1.41 $2.05 $6.73         Disposal         

Waste to energy 1.14 0.68 0.99 2.81Landfill Operations 9.56 1.71 4.38 15.65

Total Disposal $10.70 $2.39 $5.37 $18.46         Total Market $33.14 $9.78 $12.79 $55.71

Waste Management IndustryRecent trends of Consolidationo Merger of major players Republic

Services and Allied Waste Industries

Advantages: oCost-effective to operate fewer and larger

landfillsoPooling of expensive capital such a

garbage trucksoGreater geographical coverage facilitated

by optimization of collection routes