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)

12.70% 13.20%

1.50%

30.80%
Containers and packaging Nondurable goods Durable goods Yard trimmings Food scraps Misc inorganic wastes

23.50% 18.30% Two general disposition for MSW: DISPOSAL and RECYCLING

DISPOSAL

For material that no longer serve useful purpose

INCINERATION

LANDFILL

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

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

LANDFILL ADVANTAGES 1. Easy and not much expensive 2. Use of Methane as fuel DISADVANTAGES 1. Smelly and unattractive "town dump" 2. Less amount of Methane and other gases are captured 3. A lot of toxic gases reach atmosphere: green-house effect 4. Compact landfills and tipping fees INCINERATION DISADVANTAGES 1. Flue gas management 2. Productive heat and gas produced depends on composition of waste

ADVANTAGES 1. 95% of waste material volume reduced 2. Heat produced can be used to generate electricity 3. 10 MW capacity plants at $50 mn 3. High capacity waste-to-energy plants require huge investments 4. 15-20% potential energy converts to electrical energy

RECYCLING

Recycle in original or another application Anaerobic digestion: organic recycling- similar to composting

ADVANTAGES DISADVANTAGES 1. Very little emission of toxic gases that can be controlled 1. Only 2.5% of food waste was recycled 2. Reusability of items increases 3. Less expensive with better results 2. Capacities of such arrangements are low (1 MW) 4. Anaerobic digestion produces 'biogas': a cheap way to produce energy

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

Transfer Station

Material Recovery FacilityClean/Dirty

Material Recovery Facility

Clean MRF

Dirty MRF

Accepted and Sorted Recyclable Material Could Process Single or Dual Stream Recyclables
Single Stream- Comingled recyclable material
Dual Stream- SourceSeparated recyclable material

Accepted Mixed Waste Stream Recyclable Waste

Solid and

Recovered a comparatively smaller portion of incoming waste stream Comparatively Higher Fraction of Recyclables recovered

% Residuals-10% of * MRFs sorted the recyclables into homogeneous material types and weight further sold them to commodity brokers(Paper Brokers, Paper Mills,

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
Market Search

Utility Companies

Supplier Engagement

Local Municipality and Business

Technology Vendors

Business Model
Source of Revenues
Primary
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 Establishment Cost HR Cost Operational Cost Total

Cost ( $per Year) $1.2 Million $130,000 $670,000 12800000

Therefore to Break Even, company has to accept 3200000 Tonne of waste per Year
Assumptions1. Tipping Fee is Aproxx 40 $/Ton 2. Additional Revenue Source are not considered

A potential new site

Pros Disadvantages of Landfill Operations Higher Operating Cost of Landfill Waste Disposal method Increasing Waste (Recyclable Product) Market Cons Huge operating and capital Cost Need 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 Collection Residential collection Commercial Collection Total Collection Processing Transfer MRF Compositing Total Processing Disposal Waste to energy Landfill Operations Total Disposal Total Market 1.14 9.56 $10.70 $33.14 0.68 1.71 $2.39 $9.78 0.99 4.38 $5.37 $12.79 2.81 15.65 $18.46 $55.71 2.45 0.77 0.05 $3.27 0.85 0.5 0.06 $1.41 1.67 0.33 0.05 $2.05 4.97 1.6 0.16 $6.73 11.38 7.79 $19.17 Private 3.56 2.42 $5.98 Municipal 3.2 2.17 $5.37 Total 18.14 12.38 $30.52

Waste Management Industry

Recent trends of Consolidation

o Merger of major players Republic Services and Allied Waste Industries Advantages:
o Cost-effective to operate fewer and larger landfills o Pooling of expensive capital such a garbage trucks o Greater geographical coverage facilitated by optimization of collection routes