establishment of waste to energy plant in surat · development of waste-to-energy (wte) plant at...

Establishment of Waste to Energy plant in Surat

Urban developmentGovernment of Gujarat

Contents

Project Concept 3Market Potential 4 Growth Drivers 6Gujarat – Competitive Advantage 7Project Information 8- Location/ Size

- Infrastructure Availability/ Connectivity

- Project outline

- Key Players/ Machinery Suppliers

- Potential collaboration opportunities

- Key Considerations

Project Financials 16Approvals & Incentives 17Key Department Contacts 18

Project Concept

Waste-to-Energy plant process

► The residual waste is tipped into a bunker. A crane grabs the waste and places it into the feed hopper. The action of the moving grates turns the waste to allow it to burn fully.

► The burnt out ash passes through the ash discharger onto an ash handling system, which extracts metal for recycling. The remaining bottom ash is recovered and can be used in the construction industry.

► Hot gases produced in the combustion process pass through a boiler where heated water becomes steam

► A turbo-generator uses the steam to produce electricity for export to the local power grid. The heat can also be used for industrial processes or residential district heating near the WtE plant.

► The gases from the boiler go through an extensive flue gas cleaning process. This consists of a scrubber and a bag filter where particulates are filtered out. The cleaned gases are finally released to the atmosphere through the chimney.

What is Waste to Energy plant? ► A waste-to-energy (WtE) plant is a waste management facility that burns wastes to produce

electricity. This type of power plant is sometimes called a trash-to-energy, municipal waste incineration, energy recovery, or resource recovery plant.

► Waste-to-energy plants are similar in their design and equipment with other steam-electric power plants, particularly biomass plants. First, the waste is brought to the facility. Then, the waste is sorted to remove recyclable and hazardous materials. The waste is then stored until it is time for burning. The waste can be added to the boiler continuously or in batches, depending on the design of the plant.

► Most waste-to-energy plants burn municipal solid waste, but some burn industrial waste or hazardous waste.

► Waste-to-energy plants emit less air pollution than coal plants, but more than natural gas plants.

Market Potential -Global

Global energy-from-waste market by volume

► In 2019, the energy-from-waste market is forecast to have a volume of 1294 terawatt-hour (TWh), an increase of 107.4% since 2014.

► The compound annual growth rate of the market in the period 2014-19 is predicted to be 15.7%.

► In 2019, the energy-from-waste market is forecast to have a value of US$236 billion, an increase of 159.9% since 2014.

► The compound annual growth rate of the market in the period 2014-19 is predicted to be 21.05%.

► With increasing urbanization, more waste is being generated globally. On the other hand, the need for energy is rising. WtE plants are on the rise because they solve both these problems effectively.

Global energy-from-waste market by value

Source: Marketline

Source: Marketline

90.9 104.7124.9

152.0188.8

236.3

2014a 2015a 2016e 2017e 2018e 2019e

Global energy-from-waste market by value ( in US$ billions)

624.1 702.1801.9

928.21093.1

1294.2

2014a 2015a 2016e 2017e 2018e 2019e

Global energy-from-waste market by volume ( in TWh)

Market Potential - India

Indian energy-from-waste market by volume

► In 2019, the Indian energy-from-waste market is forecast to have a volume of 1.7 TWh, an increase of 43.5% since 2014.

► The compound annual growth rate of the market in the period 2014–19 is predicted to be 7.5%.

► In 2019, the Indian energy-from-waste market is forecast to have a value of US$0.25 billion, an increase of 104% since 2014.

► The compound annual growth rate of the market in the period 2014–19 is predicted to be 15.3%.

► Accounting for 17% of the world’s population, the amount of waste generated in India is huge. The recent govt. initiatives for renewable energy and proper waste disposal give a huge boost to WtE plants.

Indian energy-from-waste market by value

Source: Marketline

Source: Marketline

0.12 0.140.16

0.180.21

0.25

2014a 2015a 2016e 2017e 2018e 2019e

Indian energy-from-waste market by value ( in US$ billions)

1.2 1.3 1.4 1.5 1.61.7

2014a 2015a 2016e 2017e 2018e 2019e

Indian energy-from-waste market by volume ( in TWh)

1 Guaranteed market for electricity produced

2 Generation of Municipal Solid Waste (MSW)

3 Push to Renewable Energy

4 Rising urban development in India

5 Good urban infrastructure in Gujarat

► In an amendment to Electricity Act 2003, the Ministry of Power has incorporated a provision to buy 100% power generated by WtE plants.

► The Central Electricity Regulatory Commission has recently fixed a tariff of INR 7.04 per unit for power derived from municipal solid waste. Thus, there is a guaranteed market for the plant operators.

► Total MSW generation in India is 62 million tonnes per year. It is estimated to increase to about 165 million tonnes in 2030 and 230 million tonnes in 2041.

► Around 10,200 MT per day municipal solid waste is generated in the state of Gujarat. Thus, there is no shortage for the plant in the state.

► All the municipal authorities are required to arrange for collection, segregation, transportation and suitable disposal of municipal wastes from the municipal towns/ cities according to the MSW (M&H) Rules 2000- a must for Waste to Energy plant.

► Having an organized system for waste collection, segregation and transport is an essential precondition for the continuous and smooth functioning of a WtE plant. Thus, plant operators do not have to go through unnecessary hurdles.

► India is giving a strong push to renewable energy in line with its commitment to cut carbon emissions by 35% and increase the use of renewable energy sources to generate at least 40% of its power needs by 2030.

► Ministry of New & Renewable Energy , Government of India announced the renewable energy target of installing 175 GW capacity by 2022. Moreover, 15 GW of capacity is targeted outside of solar and wind energy.

Market Growth Drivers

► India has the second highest urban population in the world. Population of Indian cities will increase from 340 million in 2008 to 590 million by 2030 –40 percent of total population. This will lead to increased waste production and increased energy needs.

► The investment required for building urban infrastructure in India, over the next 20 years, is estimated at approximately USD 1 trillion

Key industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical, auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc.

► Gujarat has attracted cumulative FDI worth US$13.3bfrom April 2000 to March 2016

► Gujarat contributes around 19.1% to India’s total exports of goods in 2014-15

► More than 10% of the country’s factories are in Gujarat while manufacturing sector contributes 28% to its GSDP

Gujarat, with 42.6% of its population residing in the urban areas, is among the top three urbanized states in the country

Gujarat Government will run a pilot project in 50 cities to generate power, fertilizer and reusable water by setting up solid waste management plants.

Gujarat is well-equipped for skill development with several technical institutions (786 ITI’s and52 Skill upgradation centres) situated in the state

Ease of Doing Business: Gujarat is the only state to have 100% compliance with environmental procedures. The state also fares highly in terms of allotment of land and obtaining a construction permit, obtaining infrastructure related utilities and compliance with labour regulations.

“Gujarat ranked #1 among Indian states

in ease of doing business by World

Bank (2015)

Gujarat - Competitive Advantage

One window clearance: Gujarat government has established iNDEXTb (Industrial Extension Bureau), single window clearance nodal agency to simplify the administrative procedures and accelerate industrial development in Gujarat.

Project Information

Development of Waste-to-Energy (WtE) Plant at Surat in Gujarat.

The project details are as follows:

Surat, Gujarat, IndiaLocations

Site Location

Surat: Out of total 33 districts, there are 16 coastal districts of Gujarat. Surat is one of the major coastal districts in the state

► Surat is a city located on the western part of India in the state of Gujarat. It is the second largest city in Gujarat, after Ahmedabad.

► Located 284 kilometres south of the state capital, Gandhinagar; 265 kilometres south of Ahmedabad; and 289 kilometres north of Mumbai.

► Surat is one of the cleanest cities of India and is also known by several other names like "The Silk City", "The Diamond City", "The Green City", etc.

► Surat has been selected as one of twenty Indian cities to be developed as a smart city under the Smart Cities Mission.

Surat : Key highlights

Population 44,66,826 (2011 census)

Area 326.515 Sq. Km.

TemperatureMaximum temperature (avg.): 36.7°CMinimum temperature (avg.) : 15.2°C

Project Information

Proposed► The Mumbai-Ahmedabad bullet train project

will have Surat as one of the stations.► A joint venture between the Indian Railway

Station Development Corporation, the Gujarat State Road Transport Corporation and the Surat Municipal Corporation has led to the initiation of a Multi Modal Transportation Hub at Surat railway station.

► In 2016, the Gujarat government assigned Delhi Metro Rail Corporation as a consultant for the proposed metro connectivity in Surat.

► Rail connectivity was proposed for Hazira and Nargol ports in the 2016 rail budget.

Proposed► The government plans to construct an

INR900 billion tunnel road between Mumbai and Surat.

► Proposed four-lane highways which are expected to improve connectivity in Surat include – Dakor-Savli, Vadodara-Dabhoi & Surat-Olpad-Bardoli.

Proposed► In January 2015, Airports Authority of India

gave an in-principle approval for cargo terminal at Surat airport worth INR70 million. The terminal is expected to be operational in 2017.

► In February 2016, Surat Airport Action Committee filed an online petition for an international airport at Surat.

► The nearest port is Hazira which is 25 km from Surat, built with a protected harbour design and additional waterfront for development of non-LNG cargo handling terminals.

Proposed► Letter of intent for development of Nargol

port worth INR40 billion has been handed over to Cargo Motors Pvt. Ltd.

► Surat domestic airport is well connected to various parts of the country. The city is located ~275 kms from the international airport at Ahmedabad.

► Surat is connected with other districts of the state such as Rajkot, Vadodara and Ahmedabad by rail.

► Hazira port in Surat is ~16 kms away from the Surat railway station. In August 2015, Container Corporation of India started operating a regular train service connecting the port with Pithampur.

► The city is connected to Delhi Mumbai Industrial Corridor (DMIC) which links Ahmedabad, Vadodara and Surat.

► Proximity to NH-8 and NH-6 further enhances connectivity to the city.

► Surat also has very good connectivity with other cities of the state such as Vadodara (154 km) and Ahmedabad (265 km).

Surat is well-connected with other districts and cities in Gujarat and India

Proposed► The Mumbai-Ahmedabad bullet train project

will have Surat as one of the stations.► In 2016, the Gujarat government assigned

Delhi Metro Rail Corporation as a consultant for the proposed metro connectivity in Surat.

Proposed► Proposed four-lane highways which are

expected to improve connectivity in Surat include – Dakor-Savli, Vadodara-Dabhoi & Surat-Olpad-Bardoli.

Proposed► In January 2015, Airports Authority of India

gave an in-principle approval for cargo terminal at Surat airport worth INR70 million. The terminal is expected to be operational in 2017.

► In February 2016, Surat Airport Action Committee filed an online petition for an international airport at Surat.

► The nearest port is Hazira which is 25 km from Surat.

► Additionally, Hazira port is well connected to Mundra port and Jawaharlal Nehru Port Trust (JNPT) – India’s largest container port

► Thus, it provides a convenient textiles-related trade gateway to International (Europe, Africa, America and the Middle East) and domestic markets.

► Surat domestic airport is well connected to various parts of the country. The city is located ~275 kms from the international airport at Ahmedabad.

► Surat is connected with other districts of the state such as Rajkot, Vadodara and Ahmedabad by rail.

► The proposed site in South West Zone of Surat is ~15 kms away from the Surat railway station.

► The city is connected to Delhi Mumbai Industrial Corridor (DMIC) which links Ahmedabad, Vadodara and Surat.

► Proximity to NH-8 and NH-6 further enhances connectivity in the city.

► Surat also has very good connectivity with other cities of the state such as Vadodara (154 km) and Ahmedabad (265 km).

Infrastructure availability/ connectivity

► Water for industrial purposes can be obtained from four sources viz. Gujarat Water Supply and Sewerage Board (GWSSB), an irrigation canal, dams, and surface reservoirs.

► The main source for the power supply is Torrent Power Limited in Surat

Power

Rail Road

Air Port

Water

Project Information

Utilities

Project Information

Waste-to-Energy Plant technology options

Thermal Conversion

► The process involves thermal degradation of waste under high temperature. In this complete oxidation of the waste occurs under high temperature.

► The major technological option under this category is incineration. ► Incineration comes with a number of benefits in specific areas like medical wastes and

other life risking waste. In this process, toxins are destroyed when waste is treated with high temperature.

1

Thermo-chemical conversion

► This process entails high temperature driven decomposition of organic matter to produce either heat energy or fuel oil or gas. They are useful for wastes containing high percentage of organic non-biodegradable matter and low moisture content.

► The main technological options under this category include Pyrolysis and Gasification.► The products of these processes (producer gas, exhaust gases etc) can be used purely

as heat energy or further processed chemically, to produce a range of end products.

2

Bio-chemical conversion

► This process is based on enzymatic decomposition of organic matter by microbial action to produce methane gas, and alcohol etc. This process, on the other hand, is preferred for wastes having high percentage of organic, bio-degradable (putrescible) matter and high level of moisture/ water content, which aids microbial activity.

► The major technological options under this category are anaerobic digestion (bio-methanation) and fermentation.

► Of the two, anaerobic digestion is the most frequently used method for waste to energy, and fermentation is emerging.

3

Electrochemical conversion

► Electrochemical conversion in the context of waste to energy refers typically to microbial fuel cells (MFC). These systems are developed to trap the energy from wastes, where the reduction-oxidation machinery of immobilized microbial cells is catalytically exploited, for the accelerated transfer of electrons from organic wastes, to generate electricity and bio-hydrogen gas.

► However this methodology needs extensive evaluation studies on bulk scale liquid waste treatments and stands at a nascent level in India as well as worldwide.

4

Project Information

Particulars SkilledLabour

Unskilled Labour

Supervisors Total

Construction Phase

7 60 5 72

Operational Phase 58 19 6 83

Manpower Requirement

Key Components

► Bunker► Waste crane► Hopper/feed chute► Feeder ram► Grate► Bottom ash discharger► Furnace► Afterburning chamber► Radiation part► Convection part► Flue gas cleaning residue

transport system

► Economiser► Condenser► Turbine► Generator► Reactor for acid gas absorption► Bag house filter► ID fan► Stack► Boiler ash conveying system► Ash/residue silo

Project Information

It is estimated that it takes 6-7 months for the implementation of the project. The

implementation model includes below nine steps –

Implementation schedule

Selection of site

Implementation schedule

Preparation of project profile

One month

Two weeks

Registration of the unit with Directorate of Industries

NOC from Pollution Control Board

Two days

One week

Calling quotation and preparation of detailed project report

Approach to commercial bank

One month

One month

Installation and electrification of machinery and equipment One month

1

2

3

4

5

6

7

Recruitment of staff8

Arrangement with municipal corporation and third-party buyers9

One month

One month

India Leading Players

Company Corporate office Highlight

A2Z Group of Companies Gurgaon RDF based combustion technology with scope for

cogeneration of heat and power.

SELCO International Limited Hyderabad

SELCO setup the first commercial Municipal Solid Waste-processing unit in India in 1999. Have installed 6.6 MW using RDF pellets as energy source.

East Delhi Waste Processing Company Pvt Ltd

New Delhi Implementing 10 MW incineration power plant with MSW derived RDF pellets as fuel.

Mailhem Engineers Pvt Ltd. Pune Has adopted modified UASB technology. Has installed

about 250 waste-to-energy plants.

Ramky Enviro Engineers Ltd Hyderabad

Undertaking comprehensive biomethanation projects coupled to secure composting and landfills. Also involved in incineration and presently operating India's largest waste incinerator at Taloja, Maharashtra.

Project Information

Project Information

► Waste to Energy (WtE) includes a number of different technologies for waste treatment with energy recovery, like incineration, gasification and pyrolysis. The different choices of the components in the plant should be chosen with help from experts from WtE project managing companies.

► Capital costs vary significantly as a function of the selected processes for the treatment of flue gases and other produced residues. Operation and maintenance costs have a lower impact on the total expenses of the facility.

► To ensure a complete combustion of the waste, the plant must follow regulations concerning operating conditions.

► The temperature inside the incinerators should be constantly maintained at 800 or more to limit the generation of dioxins.

► MSW has to be checked with respect to its calorific value and suitability. Seasonal changes shall also be taken into consideration as well as religious traditions which may have implications to the calorific value of the waste.

► A change in government policy can impact the project finances negatively if the plant is over-dependent on government subsidies.

► Considerations regarding the organisational setup must be made in early stages as it affects location, ownership, financing, design/construction and operation.

► Considerations such as existing transportation possibilities, point of waste generation and energy consumers are key factors when defining the location of the facility.

► A survey should be done among the waste producers to determine their capability to pay increased disposal fees as compared to the “tipping fee” charged by landfills.

► The most important economic difference between WtE technologies and other combustion-based energy generation units is related to the nature of the input fuel. Waste has a negative price, which is regulated by prefixed gate-fees, and is usually considered as the main source of income for the WtE plant owners.

Key Considerations

Potential Collaboration

► Indian players can collaborate with international players (such as Zurich-headquartered Hitachi Zosen Inova (HZI), providing technology solutions globally for waste-to-energy projects).

► Potential collaboration can also be done with major equipment players with established operations in India (such as Siemens Energy in India, that produces world-class equipment for Waste-to-Energy plants).

Project Information

Waste-to-Energy Plant – Capacity 700 TPD

Equipment/Components Units Total Price (INR)Screw Conveyor 2

Approximate cost for all the equipment/ study is

estimated to be around INR 710 million

Blender System 2

Recycle Pump 4

Vacuum Pump 4

Feed Pump 3

Biogas Flare 1

Disposal Pump 2

Screw Press 2

Rotary Screen 1

Hot Air Blower 6

Poly Dosing Pumps 2

Shredder 1

Description Total Price (INR)Equipment Cost/ Engineering cost 71,00,00,000

Land lease rent & development(242811 sq.m x 36.00x100)

28,00,00,000

Total 99,00,00,000

Total Capital Investment

The above estimates are derived from similar projects executed in India. The total price can vary based on plant size and need of additional equipment.

Cost structure of Waste-to-Energy Plant in Surat, Gujarat The project cost for the proposed WtE plant of capacity 700 TPD based on the estimated unit cost which includes all machineries, erection charges, civil works etc.

Approvals & Incentives

Approvals Required► Industrial approval: Secretariat For Industrial Assistance (SIA), New Delhi, District Industries

Centre (DIC) of the district, where the facility is to be located.

► Land for project: Allotment of plot/shed in the industrial estate from GIDC or any other state controlled organization.

► Environment clearance: “No Objection Certificate” from the Gujarat Pollution Control Board, Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF), Consent and Authorization from GPCB on meeting requirement for effluent disposal of by products wastes etc.

► Construction of building: Surat Municipal Corporation and GIDC to provide plan approval for industrial estate.

► Emissions and Ash Disposal: Authorization and approval for the same from Surat Municipal Corporation for proper treatment and discharge of waste.

► Fire and Health License: A fire license is required by local governing body like Surat Municipal Corporation to prove that plant will not cause any damage or loss to life. Health license is provided by both state and central government agencies.

► To support the waste-to-energy production, the Government of Gujarat has introduced Waste to Energy Policy – 2016 (valid until 2021) that aims to provide a boost this sector. Under this policy:

► Urban Local Bodies (ULBs) and Municipal Corporations will provide land at a token rent of Re. 1 per annum for the project.

► ULBs/ Municipal Corporations will not charge any tax, cess, royalty, levies, stamp duty, land allotment charges to the Project Developer.

► The end use of the electricity produced is guaranteed by the government. The electricity will be either for captive use or for sale to power obligated entities/ third party.

► The electricity produced will be duty exempted and there will also be exemption from demand cut.

Incentives by Government of Gujarat

Block No.6, 5th Floor, Udhyog Bhavan, Sector No. - 11, Gandhinagar - 382 017.CIN : U75140GJ1999SGC036051Telefax : +91 - 079 - 23246127 / 128, 23241865 / 66Fax Exten. : 231Email : [email protected]

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before

taking a final investment decision.

iNDEXTb - Industrial Extension Bureau

Industries and Mines Department, Gujarat

www.indextb.com

www.imd-gujarat.gov.in/

Urban Development & Urban Housing Department

https://www.udd.gujarat.gov.in

http://www.gudcltd.com

Gujarat Urban Development Company Ltd (GUDC )

Gujarat Urban Development Mission (GUDM )http://www.gudm.org/

Gujarat Energy Development Agency

http://geda.gujarat.gov.in/

Gujarat Pollution Control Board (GPCB)

http://gpcb.gov.in

Energy and Petrochemicals Department

http://guj-epd.gov.in/

Surat Municipal Corporationhttps://www.suratmunicipal.gov.in/

establishment of waste to energy plant in surat · development of waste-to-energy (wte) plant at...

Documents