Waste To Energy Rapid Assessment Tool

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Waste to EnergyRapid Assessment ToolMarch 2016

AcknowledgementsAbbreviationsThis Waste to Energy Rapid Assessment Tool is prepared bythe Collaborative Working Group on Solid Waste Managementin Low and Middle Income Countries (CWG) www.cwgnet.netADAnaerobic DigestionAISWMAdvanced Integrated Solid WasteCWG is a global community of leading solid wastemanagement professionals and institutions formed in the1990s by four development cooperation organisations as aninformal network of waste management practitioners workingat the forefront of solid waste management and development,primarily in low and middle income countries that are notcurrently OECD members.CWG strives to foster an open and honest exchange ofperspectives, approaches and practices. It provides an openforum for exchange of professional experience, exploration ofchallenges, identification of current and emerging priorities,and dissemination of innovative approaches in the wastemanagement sector.The idea for this Rapid Assessment Tool emerged during ameeting in Cairo in 2014 where CWG experts met in order todiscuss issues and potential synergies between the ‘waste-toenergy’ and ‘circular economy’ paradigms that are dominatingpolicy attention around the world. CWG recognised the needfor easy to read, informative, honest and impartial informationon ‘waste to energy’ offers that could better inform decisionmakers. This is not a scientific tool for the ‘nitty gritty’ of thetechnology itself but offers generic questions to understandthe technology offer, ask critical financial, technical andcontractual questions and the groundwork needed in orderto take an informative decision.This assessment tool has been prepared thanks to voluntarycontributions of CWG members and is supported bothfinancially and in terms of content by the advisory project‘Concepts for Sustainable Waste Management’, implementedby Deutsche Gesellschaft für Internationale Zusammenarbeit(GIZ) GmbH on behalf of the German Federal Ministry forEconomic Cooperation and Development (BMZ).ManagementATTAdvanced Thermal TreatmentAWTAlternative Waste TreatmentCWGCollaborative Working GroupEIAEnvironmental Impact AssessmentEfWEnergy from WasteGIZ GmbHDeutsche Gesellschaft für InternationaleZusammenarbeit GmbHIRSInformal Recycling SectorISWMIntegrated (Sustainable) Solid WasteManagementMBTMechanical Biological TreatmentMHTMechanical Heat TreatmentMSWMunicipal Solid WasteMoUMemorandum of UnderstandingNDANon-Disclosure AgreementRDFRefused Derived FuelSIASocial Impact AssessmentSRFSolid/Specified Recovered FuelSWMSolid Waste ManagementWtEWaste to EnergyThe views expressed within this Rapid Assessment Tool arethose of the authors, and do not represent or necessarilyreflect GIZ policy.GIZ Corporate Design ManualAuthorsVersion August 2012The lead authors of Rapid Assessment Tool are Andrew Whiteman, Sanjay K Gupta,Cosmin Briciu and Stephen Bates.The tool has been reviewed and commented on by: Johannes Frommann, Adam Read,Barbara Oelz, Ellen Gunsilius, Flaviu Pop, Reka Soos, Sonia Dias, Vaughan Levitzkeand Anne Scheinberg, Graphic design and printing is courtesy of EnviroComms(www.envirocomms.com)This Rapid Assessment Tool is open and free for widespread use and dissemination.The authors kindly request that this tool is source referenced as the ‘CWG Rapid AssessmentTool, 2016’ when quoted or reproduced in future reports and publications. CWG or the authors willnot be held liable for any financial loss made as a result of following the guidance contained herein.This tool is designed only as a guide and should not replace professionally provided support.Deutsche Gesellschaftfür InternationaleZusammenarbeit (GIZ) GmbHCONTENTSWho is this Assessment Tool for?4What is Waste to Energy?5Is Waste to Energy right for you?61.COMPANY AND PRODUCT CHECKLIST72.POLICY AND PLANNING CHECKLIST103.TECHNICAL CHECKLIST124.SENSE CHECK145.FINANCIAL CHECKLIST156.CONSIDER EXTERNAL, INDEPENDENT EXPERT SUPPORT177.CONTRACTURAL AND LEGAL DUE DILLIGENCE CHECKLIST188.ENVIRONMENTAL AND SOCIAL CHECKLIST209.FIELD VISIT2210. ENGAGEMENT WITH LOCAL STAKEHOLDERS2411. SUMMARY25Annex A: Glossary of Terms26Annex B: Suggested Further Reading27

Who is this Assessment Tool for?Good decision-making is of central importance in supporting sustainableWaste to Energy is a family of technologies used for, or prior to, the thermal orimprovement to waste management practices. Decisions taken in this sectornon-thermal treatment of waste and material by-products from waste processing.impact on the ability to provide essential public services, improve the healthWtE technology comes in different forms and names such as mass burn incineration,and living conditions of citizens, protect the environment, limit emissionsfluidised bed incineration, co-incineration, anaerobic digestion or bio methanisation orof greenhouse gases, and maintain the financial health of local, regionalbio-gas, refuse derived fuel/specified or solid recovered fuel, gasification, plasma gasificationor national Government.and pyrolysis. Variations and combinations of these terms are often also used.The past few years have seen PublicAdministrations worldwide being floodedwith unsolicited offers from waste treatmenttechnology suppliers and manufacturers ofwaste to energy plants and each promotingtheir own particular system or approach asbetter than the rest, claiming to offer seeminglymagical/utopian solutions to municipal,regional and national waste managementproblems. These offers may promise to notonly solve the waste management problem butalso other pressing concerns.Assessment of the functionality of a certaintechnology or approach depends on thewaste generation and also compositionand characterisation, but also on policy,legal, financial, social and cultural context.Availability of sufficient local know-how andskills to operate the technology are also ofcritical importance. Too many times, wellmeaning technology projects have become‘white-elephants’ or failed as a result of a lackof due diligence in planning and procurementof these projects.There is a tendency to think that all Wasteto Energy (WtE) technologies are thermaland burns waste for energy recovery, butthere are also non thermal WtE technologieslike anaerobic digestion. Amongst theseincreasingly numerous offers, many are fake,some even bordering on the fraudulent. Thatis not to say that all technology offers aredubious. Many remain genuine and credibleand have the potential to deliver compellingoutcomes which are worthy of seriousconsideration.This Rapid Assessment Tool provides a seriesof simple checklists to help decision makersask the right questions and includes somesimple guidance on how to uncover theauthenticity and credibility of the companiesbehind the offer including questions onthe technical, financial and contractualconditionalities and on the compatibility ofthe technology offer with the policy, legal,financial, environmental and social context.It offers guidance on how to screentechnology offers for mixed or segregatedmunicipal solid waste, and to be able todetermine quickly which offers to discardand which ones to pay serious attentionto and progress into a proper professionalFeasibility Study.Technology is an essential part of any wastemanagement system. Selecting betweendifferent technological options can be a veryconfusing task at the best of times and it hasbecome increasingly difficult for MunicipalCommissioners, Mayors and other nationallevel decision makers to take a good decisionand one which is right for their specificmunicipality. This tool has been created tohelp those responsible for the commissioningof waste management solutions to navigatethe offers before them, enabling them to askthe right questions and carry out the researchneeded in choosing a technology solution.PAGE4What is Waste to Energy?WtE technologies recover energy that can bein the form of heat or electricity or alternativefuel like biogas. Steam generated from thermaltreatment can be fed into a generator orturbine to produce electricity, which can thenbe either used on site or fed into the electricitynetwork. Steam can also be used to generatehot water that can be utilised in nearbyindustry or fed into a district-heating networkto heat homes, greenhouses, hospitals andoffices. Resulted biogas can be processed andfed into the natural gas grid, bottled or used topower a gas turbine; and SRF/RDF can be usedto partialy replace fossil fuels.Fundamentally WtE is a method of treatingwaste to recover energy from its components,can significantly reduce the volume ofmaterials that require landfill disposal.The efficiency of energy conversion greatlydepends on the composition of the inputfeedstock, and the specific type of WtEtechnology employed. In general this energyconversion efficiency is lower than for typicalfacilities generating energy from fossil fuels.WtE processes invariably generate byproducts, including fly ash (from gas cleaning),bottom ash, char and slag, digested materialsfrom bio-gas in different quantities dependingon the type of technology and feedstock.By products from WtE Bio-gas plants can beused as manure after proper testing. Someby-products from thermal treatment of WtEare hazardous in nature, such as dioxins,heavy metals, concentrated and contaminatedash that may require specialised disposal inhazardous waste landfill, or stabilisation anddisposal in deep impermeable mines or othersecure facilities.New technology can often displace the livelihoods of localpeople, something that needs to be given due consideration.See section 8 (Environmental and Social Checklists) on page 19.The tool also provides a glossary of termsat the end to help you understand theterminology commonly used, and additionalsources of reading that will help youexplore more.PAGE5

1Is Waste to Energy right for you?Before assessing proposals, you must first ask if a Waste to Energy solutionis the right choice for your municipality or area. Sometimes this emergesas you proceed through the assessment stages but a lot of time, effort andmoney can be saved by considering first, the following three points:COMPANY AND PRODUCTCHECKLISTPreliminary Screening tocheck the general credibilityof the company and what isbeing offeredA priority action is to assessAIf the municipal solid waste composition in your city has in excess of 50% oforganic waste (i.e. food, vegetation, or other putrescible), and greater than15% of inert waste (construction waste, debris, sand, silt, etc.), then thermalwaste treatment will probably not be the right choice. Ask the companymaking the offer to pay for an independent analysis of waste generationand composition, and request your local technical University orreputable Consultant to do this work under your supervision.the viability of the company (orconsortium of companies) andundertake an initial assessment of theviability of what is being proposed.Time spent here will save precioustime and money and ensure thatas you progress, you are engagingCheck whether your municipality has sufficient financial resourcesfor this project. Even if the project applicant is promising tofinance the capital costs of the project, there will be operating,maintenance and capital re-payment costs to be covered.In 99% of cases, waste to energy facilities require a gatefee to be paid by the municipality to the operator inorder for these facilities to operate.Cwith credible companies focusing onBappropriate solutions.Below you will find two checklists. The first is to assess the corporate credentials of the proposingcompany or consortium and gain confidence that they are genuine. The second focuses uponcorporate capabilities and is designed to provide confidence that what is being proposed isdeliverable in the broadest sense.Corporate CredentialsDoes such a solution fit within national and local policy?If you are confident that these conditions are met, next consider the following questions:Actions and QuestionsTo consider1Websearch: CompanyRun the company or consortium througha search engine (i.e. Google) and checkthat a) they exist, b) what their ownershipstructure is, c) what their managementstructure is as well as their size, locationsand look for any published references.Credible companies will also be registeredwith the incorporation body of the countryin which they are primarily based. Look forthe existence of Company Numbers andVAT Numbers or local equivalents.2Websearch: PersonnelFind out the names of the company orconsortium directors and undertakea search on their credentials andbackground. Social media is particularlyuseful for this and your search shouldinclude LinkedIn, Facebook and Twitter.Assessing the capabilities, experiences andcredentials of those involved can provideinsight on this in the absence of corporatecredentials or bolster confidence if thatinformation does exist.l Are you looking for a technological solution to your waste management problems?l Have you received a waste to energy technology offer?l Are you unsure of the credibility of the companies making the offer?l Are you unsure whether the offer is technically, socially, economically andfinancially sound?If so – we invite you to use the following checklists that canhelp you understand the offered technology and aspectsof this to be looked at in detail.PAGE6PAGE7

1 COMPANY AND PRODUCT CHECKLIST3CONTINUEDActions and QuestionsTo considerWebsearch: PremisesEnter the company address into GoogleMaps (or similar) to see if the addressdoes physically exist. You can obtainadded surety by checking the addresson Google Streetview.It is easy for anybody to secure animpressive sounding address usingserviced offices or PO Boxes; don’t assumethat simply because the address existsand that it’s an impressive location, thecompany is permanently located there.A good way to double check both thepremises and provide further confidenceis to call the head office and note howthe phone is answered, if indeed it isanswered or goes to a voice mail. Is thenumber a landline or cell phone?You can also check the local paper oron-line telephone directory for thecompany landline and also the businessregistration offices where the company islocated to see if this is registered.Company websiteCheck if the the company has a website.45Websearch: ConsortiumsWhere offers are made from consortiums,apply the same searches listed above(1,2 and 3) to each member companyof the consortium.6Company stationeryCheck the quality of the business cardand business stationery. Also check theemail addresses.Credible companies are highly unlikelyto use email addresses ending in@hotmail.com, yahoo.com or @gmail.com The company (or member companies of a consortium) exist and are properly incorporatedin their country of origin Key personnel are appropriately qualified and/or experienced.Having established the above, the next priority is to consider the capabilities of thecompany or consortium:87Actions and QuestionsTo considerReferencesAsk the company or consortium for alist of references (if not provided earlier)including its facilities and clients.Don’t rely only upon references providedby the company; contact others directlyidentified on the company website orother sales literature.Seek references and follow these up. Speakto clients in other municipalities wherethe technology has been applied and askhow long it is working and what were theirexperiences of working with the company.Did they delivered what they promised?Manufacture or supplyFind out if the company is offering tosupply equipment that they manufacturethemselves or if they’re proposing tosource equipment from other companies.If they are manufacturing, considerwhether they own the design orwhether they manufacture underlicense from others. Try to find out ifthey will also operate the equipmentand on what basis.9Company financialsObtain the financial records of the companyor companies within the consortium toassess their financial capacity and origin offinancing. Ask if the company is privatelyowned, listed on a stock exchange orfunded through venture capital and if theyhave sufficient line of credit with suppliers.It is also worth checking the company’scredit ranking.It is important to ensure that a companyhas sufficient financial backing to remainin existence through the duration of aproject. Remember though, that start-upcompanies still may not yet have amassedsound financial backing or good creditscores yet still offer a viable solution.10Corruptive practicesIt is important to check that the companies,consortium and the personnel in each havenot been charged with bribery or othercorruptive practices elsewhere.In some countries, it is illegal for peopleto act as company Directors if theyhave broken local laws. Check via thelocal embassy of the country where thecompany is located.Verify the company’s environmental,health, safety and labour past records.Check out for any past incidentsrecorded and measures taken throughgoogle search.Have a look and consider if this is welldesigned, all pages contain relevantcontent and if it’s original. Check this bycopying random sections in to a searchengine to see if it appears elsewhereon the web.The above should take no longer than half a day and following the checks and searches made,you should have established the following key information.PAGECompany Capabilities811Following completion of the above, you should have amassed sufficient background informationabout the company to determine the following: The proposed offer uses a valid and demonstrable approach, evidenced fromexperiences elsewhere The supply chain is solid The company or consortium is sufficiently strong to oversee all aspects of projectdevelopment through its duration.PAGE9

2POLICY AND PLANNINGCHECKLISTA checklist to determine if your municipality is ready for theproposal being madeRequirement for improved waste management may have emerged through carefullyconsidered need analysis, studies and consultations with various stakeholders.This need analysis requires that it is set out in a properly managed and well-definedtender process which aligns with the national policies.5However, there are occasions when proposed solutions arrive unsolicited or open solutionproposals sought on a ‘blank-canvas’ basis.This checklist is designed to enable consideration of the policy factors that exists that willdetermine whether such proposals are suitable and where not, and whether policy can or shouldbe adapted to accommodate them.1234PAGE10Actions and QuestionsTo considerPolicy AlignmentIs WtE catered for within national policy,if not WtE specifically; Renewable Energy?Are there financial or economic incentivesin place to support such technology suchas capital grants, preferential feed-intariffs, etc?Check if the proposal fits into existingpolicies surrounding planning consentand other related regulations. Thereexists the need to make sure that themunicipality has enough financialresources and cash flow to operate aWtE plant for the promised period.City Development PlansHas provision been made for WtE withincity development plans? Have landfillfacilities been secured as a mandatoryrequirement?It is mandatory that a secured landfillis planned or under operation as aWtE plant of thermal technology willgenerate some by products which maybe hazardous in nature and requiresafe and secure landfilling.Appropriate to needIs the municipality ready for it? Do youhave the required financial resources forthe long term to operate and maintainthe WtE plant?AlternativesIs WtE the only option on the table or haveother options been considered?Critical analysis of need is required toensure that the proposal is appropriateto the local requirements in terms ofwaste composition, quantities, coverageand efficiency of collection services andavailability of alternative facilities such assanitary landfill sites.Even if a WtE proposal appears a credibleand workable solution, alternativesshould a

Cosmin Briciu and Stephen Bates. The tool has been reviewed and commented on by: Johannes Frommann, Adam Read, Barbara Oelz, Ellen Gunsilius, Flaviu Pop, Reka Soos, Sonia Dias, Vaughan Levitzke . and Anne Scheinber

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