CASE STUDY BLR

CASE STUDY BANGALORE

NOTES ON WASTE TO ENERGY PROJECT PROPOSAL.

Location of the plant : Bengaluru City

Raw Material : Municipal Solid Waste Unsorted

Process Involved : Gasification

Number of Units : One (Modular) extensions of tonnage

Project Promoters : Overseas Technology Provider /BBMP/PrivateEntrepreneur

Investments : Technology Provider to come in on a BOOT basis

Other Requirements : Establishing a Special Purpose Vehicle/ Consultancy fees, land allocation, pre operative expenses, technical evaluation process costs , travel , and incidental expenses

Consideration for BOOT : Tipping Fee as per prevailing standards internationally, Contract by BBMP committing availability of Unsorted

Municipal Solid Waste on a long term basis i.e., equivalent to the time frame of the BOOT agreement . Most importantly, Power Purchase Agreement with KPTCL, rates fixed with periodical review.

Additional Requirement : Establishing a Refuse Derived Fuel Plant to process

Municipal Solid Waste into processed fuel stock meeting

the calorific standards for production of electricity.

Extent of Electricity

Generation : 1 M.W of energy per 1 Ton of MSW processed (MSW to meet calorific standards)

Advantages

Project comes on a BOOT basis , lowest residue (Non Toxic) adhering to E.U Standards , Modular , consumes all most all of the combustible waste which is generated in day to day life, it could be domestic, industrial, or otherwise, Environment friendly protects the atmosphere from being polluted by the dangerous Methane gas emitted out of the waste dumps , helps in keeping the city absolutely clean, old automobile tires off the road which otherwise would be clogging the drainage system , generates revenue out of the precious metals , and other recyclables recovered out of the MSW Project attracts for Carbon Credit , ( a major profit earning process ) Last but not the least helps in protecting the environment and saving precious land which would be otherwise used for land fill and as dump sites creating health hazards to the general population of the city of Bengaluru

Generates Employment opportunities, generates economic activity by way of transportation equipment sales and service and other coordinated efforts in putting together a city waste recycling process.

Generates much needed electricity internally within the state thus saving the state exchequer/KPTCL millions of rupees in costs in procuring the required shortfall of electricity as required by the city and the state.

This unit can be replicated according to the city size and availability of MSW in each of the centre ‘s . The plant size could be as small as 25 tons per day extended up to 50 tons per day capacity.

To serve the rural area a mobile transport vehicle mounted processing plant of 10 tons capacity could be put in place , this could serve in remote area where proper electrification has not been possible till date due to logistics and terrain.

This technology is a clean technology providing continuous uninterrupted power to its consumers. (This is a CDM project)

ASSUMPTIONS ON REVNUES

Considering the City of Bangalore is generating Municipal Solid Waste to the extent of say 4500 metric tons per day , with a moisture content of 60 % the total volume needs to be reduced to say by 40 percent of the original mass to arrive at a MSW with appropriate calorific values in terms of BTU’s (British Thermal Units) .

It is at this point having a Refuse Derived Fuel Plant helps . This plant can generate the required fuel for generating electricity in the city, and at the same time if there is excess production in excess of the installed capacity the same can be sold to other units which required Refuse Derived Fuel , this process can also add to the revenues of the project.

Having arrived at say 2700 to 3000 tons of refuse derived fuel per day, we can easily assess the revenue generation at a gross level as under

3000 MTS will generate a minimum of 3000 MW of electricity per 24 hours .

3000 MW = 30,00,000 kwh say one unit of energy sold to KPTCL costs Rs. 6 per unit

30,00,000 kwh x Rs 6 = Rs. 180,00,000 per 24 hours of operation of the plant in terms of USD (USD @ Rs 50 ) = 360,000 USD per day X 30 days = 10.8 millions USD per month

Revenue generation per year would be 10.8 X 12 = 129.6 millions USD .

Out of the above if the Technology providers stake is even considered at 40 % per annum towards project costs , maintenance ,and other expenses , BBMP if it is a promoter /stake holder in the project would stand to earn USD 77.76 millions or say in Indian Rupees 388.8 crores per annum .

Please note all of the above workings are assumptions only, actual costing can be worked out only when we have business on the table.

MOST IMPORTANT FACTOR FOR CONSIDERATION

After initial consideration of the project proposal, To start with one needs to have the following documents .

Letter of intent from BBMP /KPTCl/Stake Holders to consider this project and to take it forward .
The letter of intent to be addressed to Float Power Systems & Controls or any other company which may be suggested by FPSC at the time of drawing of the letter.
Letter of intent from KPTCL to purchase power so generated from processing of Municipal Solid Waste , letter addressed to BBMP, copy marked to S.Venkataraman address to follow .
A letter confirming availability of land for citing the project from BBMP, commitment to provide all administrative help, policy back up as well as all the environmental clearances as required for setting up the project
BBMP to issue a letter confirming availability of MSW in terms of tonnage per day as well as calorific value assessment certificate , since the design of the plant would depend on these factors as well.

NOTE

The technology provider is ready to consider the project on a BOOT basis only if State Government Agencies are involved in the project as stake holders with firm commitments of tipping fee payment, gate fee payments, as well as Power Purchase Agreements with utility providers .

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