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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