Write up on Waste to Energy Project for
Standing committee
Introduction
Within the framework of the “International Climate Initiative” of the Federal Ministry of
Environment, Nature Conservation and Nuclear Safety of Germany, GIZ-ASEM is supporting
Nashik Municipal Corporation in implementing an innovative “Waste to Energy” project in
Nashik. The objective of this project is to produce clean energy by using the energy content
of wastewater/sludge and organic waste in Nashik. The methane generated is utilized for the
production of electricity through a combined heat and power plant which is supplied to NMC
free of cost for the next ten years.
Technology
The idea is to showcase the well-established innovative German practice of combined
treatment of black water and organic solid waste and generate renewable energy in the
growing Indian urban set up through a pilot project. Waste to Energy project is based on
conversion of organic solid waste into energy following the Bio-methanation route. The
proposed innovative technology under HAMBURG WATER Cycle® involves co-fermentation
of the organic degradable part of municipal solid waste and fresh black water from toilets
using a high rate bio-digester. The gas output in this innovative technology is high as
compared to traditional biomethanation used in India.
Salient features of the project
Name of the Project
Waste to Energy Project –Energy production from sewage and
organic waste in Nashik
Implementation
Methodology
GIZ-NMC collaboration under International climate change Initiative
of German Environment Ministry (BMU)
Location of proposed site
for processing and disposal
facility
Khatprakalp, Nashik
Waste handling capacity
10 - 30 Ton/day organic waste
15 - 21 Ton/day Septage
Total area of the facility
100 m x 60 m
Source of waste
Organic waste and food waste from hotels and restaurants and fresh
black water from community toilets.
Transportation
Black water by sludge tankers; Garbage and food- dedicated Ghanta
Gadi operated by PLANT operator
Power generation
Rated power: 200kWe for sale; 60kWe for captive use
3,200 kWh electricity per day (net of self consumption)
Proposed consumer of
electricity
ISWM Plant, Khatprakalp, Nashik
Electricity Tariff
MSEB energy charges for HTP 1 consumer, currently Rs 4.80 /kWh
Advantages of Waste to Energy project
The following are the advantages of the waste to energy plant
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Assured captive power supply of 3200kWe of energy free of cost to NMC for ten
years. The power would be utilized by the MSW plant itself or NMC, thus ensuring a
captive consumer
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Safe treatment and disposal of nearly 10-30 MTD of degradable waste along with
about 15MT-21MTD of septage from community toilets, which are currently not
handled safely
Renewable energy from the combined treatment process
Prevention of ground and surface water pollution
Prevention of uncontrolled methane emissions
Safe pasteurization of sewage and organic waste
Recovery of nutrients and replacement of artificial fertilizers
Enhanced city hygiene
Enhanced public service delivery by NMC incorporating Climate change
Stakeholders and their roles
The waste to energy project has three (3) stake holders
1. NMC
2. GIZ
3. FBOOT Partner / Operator
NMC
NMC is the most important stake holder as well the sole project beneficiary. The following are the
roles of NMC in this project
 Provide land for the project.
 Facilitate input materials into the plant and supply a list of captive sources of segregated
organic waste and list of Community Toilet complex to the plant operator.
 Monitoring the plant’s operation & waste collection activities
 Receive electricity
 Facilitate permission
 Release grant money as per progress
 Pay FBOOT partner a processing fee on monthly basis
GIZ
GIZ takes care of the grant necessary for the project and provides technical support . The roles of GIZ
in his regard are
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Provide grant for the plant establishment
Provide technical support for the plant.
Training and capacity building
Improvements of efficiency
Advise NMC on project management
FBOOT Partner/ Operator
The role of the FBOOT partner / Operator is crucial in this project. FBOOT partner is responsible for
building, operating the plant and bring in gap funding. The roles of FBOOT operator are
• Designing and implementation of project
• Operation and maintenance
• Collection and transportation of waste
• Run the plant as per technical norms
• Record data and feedback
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Bring in gap funding – upto 30% of capital cost
Risks associated with the project
NMC
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No financial risks perceived
GIZ
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Waste of grant in case the project fails
FBOOT Partner
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Operate a pilot project which is not tested in India
Deliver the guaranteed energy to NMC and maximise it
Share in investment risk- nearly 20-30%
Recover the investment and profit over a ten year period
Integrated approach gives no scope for blame passing
The risk for the FBOOT partner is high in case of project failure as the profit and recovery are closely
tied to the successful running of plant. This would ensure that the plant is being operated and
maintained properly.
Financials of the Project
The estimated costing of the project is based on the preliminary project designs and Nashik District
schedule of rates. The idea of bringing in gap funding though the FBOOT operator is chiefly to
reduce the burden of capital cost on NMC as the taxes and other surcharges like VAT,Octroi levied
by various government agencies could not be covered under the grant from GIZ. In addition it
assures a proper commitment from the operator. Further, the tipping fees presented below are
based on the medium performance of the plant based on a net electricity generation of 2200 kWh.
In this case the tipping fees is about Rs.467/-per MT. In case of high optimal performance which
would yield about 3200 kWh the tipping fees would drop to Rs.215/- per MT. In case of the plant
performance being suboptimal and produces only 1200 kWh the tipping fees would be as high as Rs.
815/- per MT. However in any case the tipping fees would not exceed the current solid waste
management charges of Rs.1000/ -MT.
Estimated Project cost
-Rs 8.17 crores
Grant from GIZ
~ Euro 1.01 Million ( Approximately Rs. 6.5 Crores)
or 80% of project cost whichever is less
NMC investment
- Nil
FBoot investment
~ Difference between the actual project cost and grant
or 20% of the actual project cost whichever is high
Concession period
– 10 years
MSW handled
– 20 MTD average
Septage handled
– 15 MTD minimum
Estimated tipping fees payable by NMC
- Rs 25000/day
Value of electricity obtained by NMC
– Rs 10560/day
Net costs of processing for NMC
– Rs 14440/day
Actual costs of transporting, processing and scientific disposal
– Rs 467 / MT