a business model approach to resource recovery and reuse
TRANSCRIPT
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
Research Phase
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
Research Phase
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
Implem
entation 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 LocationScale (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 busines Solid waste Fertilizer Composting, co-coYes. Replication of Not sure2 BIOGAS SECTOR PARTNERSHIP NEPAL Kathmandu Large-scale??? ReplHuman excret Biogas and compost/ Methanogenic bac Maybe but specific Possible upon r3 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 e Anaerobic digesti Potential5 TAMIL NADU ENERGY DEVELOPMENT AGINDIA Tamil Nadu City Wastewater Biogas, Electrical eneHybrid Upward F Potential for replication and given 6 KOYAMBEDU WHOLESALE MARKET COMINDIA Chennai, Tamil NCity Organic waste Electricity; Biogas (u Biologically induc Represents a way f Possible7 M/s HIND AGRO INDUSTRIES, LTD INDIA Aligarh, Uttar PrLow-medium scale Abattoir soild Biogas, biofertilizer Biomethanation ( Replicability and su Maybe8 M/s AL-KABEER EXPORTS PVT, LTD INDIA Andhra Pradesh Medium scale Feed waste, an Biogas, Manure Biogas Induced M Replicability and p Maybe9 SuSanA GHANA Kumasi Pilot Faecal sludge, Compost FS Dewatering wi PPP which address Yes (IWMI was
10 ECoH Holdings Ltd KENYA Nairobi City Organic waste Compost Windrow composting Possible to get f 11 Lilongwe City Council MALAWI Lilongwe Community Organic waste Compost Open-air, static-p Aspects of PPP/ CB Annual turnove 12 NAWACOM KENYA Nakuru Community/City Household or Compost ? Replicability - succ 1,500Ksh per ba 13 Waste Enterprisers GHANA Kumasi City Faecal sludge Wastewater 1. Water Stabiliza Sustainable model Available14 Water for People BOLIVIA Cuchumuela, CocCity Urine and feceDecomposed urine an UDDTs Sustainability Sale of mushroo 15 ROSA KENYA Nakuru City Organic waste Co-compost (organic ? Replicable; sustainable model with 16 Karnkata Compost Development LimitedINDIA Bangalore City Organic wasteCompost Windrow composting/ Aerobic decomposition17 Santiago Composting Project CHILE Santiago Project/ City Biodegradable Compost/ Sale of emi ? Replicable, self-susProcesses 4300 18 Ministry of Agriculture and Rural Develo VIETNAM ? Pilot/City Human excret Biogas, 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, how N/A20 Unilever/Triple R Project SOUTH AFRIC? City Food grade w Compost * Replicable but may none21 Kigali - Biogas RWANDA Kigali City Human feces, Biogas Biogas digester Replicated with oth Possibly access22 Waste Busters PAKISTAN Lahore City Household/ m Compost Windrow compos Potential for up-scAvailable23 VermiGOLD INDIA Mumbai City Wet garbage, Vermicompost Vermiculture Low-level technology, replicability24 Anamol Krishi Udyog INDIA Nagpur, MaharasCity Vegetable mar Compost Biologically induc Replicability, has p Costs of produc 25 TERRA FIRMA BIOTECHNOLOGY LTD INDIA Bangalore City - large-scale Household an Organic compost Vermiculture Historical financial Availabel 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; sustain 400m3/h of bio 28 Sulabh International Social Service Orga INDIA 25 states Country-wide Human excret Compost, Manure, PisHuman excreta - b Commercially viab 2005 profits - $ 29 East Kolkata Wetlands INDIA West Bengal City,maybe on a lar Wastewater, s Fish Waste stabilizatio Large-scale; self-su *30 Ondo State Integrated Wastes Recycling a NIGERIA Ondo State Solid waste Compost Semi-mechanical Large-scale; succes *31 PRISM BANGLADESHKuhlna City Faecal sludge, Duckweed, Fish Waste stabilizatio Self-sustaining/ su Available in doc32 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, pro Since 2007, mo 34 Nyongara Biogas Project/ Kenya Industr KENYA Dagoretti/ Outsk City Abattoir wast Biogas High Performance Replicable in devel Possibly availab 35 IFAD Supported Biogas Projects ASIA / PACIF China/ Vietnam Mainly Rural setting Human and an Biogas (thermal and e Biogas digester This case was inclu *36 KORAT WASTE TO ENERGY THAILAND Muang District City Industrial - w Biogas - (biofuel and Anaerobic baffled Financial viability?*37 Boeung Cheung Ek Lake CAMBODIA Phnom Penh City? Wastewater Water spinach produ Wastewater used Agricultural produ 100-300kg/hou 38 Supporting the Informal Wastewater Far GHANA Accra - Several cCountry-wide Wastewater Direct reuse of waste Agricultural use o High cost-recovery Available 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 ([email protected])
Miriam Otoo ([email protected]) Solomie Gebrezgabher ([email protected])