Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb
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Establishment of Waste to Energy plant in Surat Urban development Government of Gujarat
Contents
Project Concept 3
Market Potential 4
Growth Drivers 6
Gujarat – Competitive Advantage 7
Project Information 8
- Location/ Size
- Infrastructure Availability/ Connectivity
- Project outline
- Key Players/ Machinery Suppliers
- Potential collaboration opportunities
- Key Considerations
Project Financials 16
Approvals & Incentives 17
Key Department Contacts 18
Page 2
Project Concept
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.
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.
Page 3
Market Potential -
Global
Global energy-from-waste market by value
► In 2019, the energy-from-waste market is forecast to have a value of US$236 billion, an
increase of 159.9% since 2014.
► The compound annual growth rate of the market in the period 2014-19 is predicted to be
21.05%.
► With increasing urbanization, more waste is being generated globally. On the other hand, the
need for energy is rising. WtE plants are on the rise because they solve both these problems
effectively.
Global energy-from-waste market by value ( in US$ billions)
236.3
188.8
152.0
124.9
90.9 104.7
2014a 2015a 2016e 2017e 2018e 2019e
Source: Marketline
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%.
Global energy-from-waste market by volume ( in TWh)
1294.2
1093.1
928.2
801.9
624.1 702.1
Source: Marketline 2014a 2015a 2016e 2017e 2018e 2019e
Page 4
Market Potential - India
Indian energy-from-waste market by value
► In 2019, the Indian energy-from-waste market is forecast to have a value of US$0.25 billion, an
increase of 104% since 2014.
► The compound annual growth rate of the market in the period 2014–19 is predicted to be
15.3%.
► Accounting for 17% of the world’s population, the amount of waste generated in India is huge.
The recent govt. initiatives for renewable energy and proper waste disposal give a huge boost
to WtE plants.
Indian energy-from-waste market by value ( in US$ billions)
0.25
0.21
0.18
0.16
0.12 0.14
2014a 2015a 2016e 2017e 2018e 2019e
Source: Marketline
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%.
Indian energy-from-waste market by volume ( in TWh)
1.7
1.6
1.5
1.3 1.4
1.2
Source: Marketline 2014a 2015a 2016e 2017e 2018e 2019e
Page 5
Market Growth Drivers
► In an amendment to Electricity Act 2003, the Ministry of Power
has incorporated a provision to buy 100% power generated by
1 WtE plants.
Guaranteed market
for electricity ► The Central Electricity Regulatory Commission has recently
produced 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
Generation of estimated to increase to about 165 million tonnes in 2030 and
2 230 million tonnes in 2041.
Municipal Solid
Waste (MSW) ► 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.
► 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
3 Push to power needs by 2030.
Renewable Energy ► 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.
► India has the second highest urban population in the world.
Population of Indian cities will increase from 340 million in 2008
Rising urban to 590 million by 2030 –40 percent of total population. This will
4 development in lead to increased waste production and increased energy needs.
India ► The investment required for building urban infrastructure in
India, over the next 20 years, is estimated at approximately USD
1 trillion
► 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
Good urban the MSW (M&H) Rules 2000- a must for Waste to Energy plant.
5 infrastructure in
► Having an organized system for waste collection, segregation
Gujarat
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.
Page 6Gujarat - Competitive
Advantage
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 “Gujarat ranked #1
obtaining a construction permit, obtaining infrastructure among Indian states
related utilities and compliance with labour regulations. in ease of doing
business by World
Bank (2015)
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.
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$13.3b
from 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 and
52 Skill upgradation centres) situated in the state
Page 7Project Information
Site Location
Development of Waste-to-Energy (WtE) Plant at Surat in Gujarat.
The project details are as follows:
Locations Surat, Gujarat, India
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.
Maximum temperature (avg.): 36.7°C
Temperature
Minimum temperature (avg.) : 15.2°C
Page 8Project Information
Surat is well-connected with other districts and cities in Gujarat and India
► Surat is connected with other districts of the ► The city is connected to Delhi Mumbai
state such as Rajkot, Vadodara and Industrial Corridor (DMIC) which links
Ahmedabad by rail. Ahmedabad, Vadodara and Surat.
► Hazira port in Surat is ~16 kms away from ► Proximity to NH-8 and NH-6 further
the Surat railway station. In August 2015, enhances connectivity to the city.
Container Corporation of India started ► Surat also has very good connectivity with
operating a regular train service connecting other cities of the state such as Vadodara
the port with Pithampur. (154 km) and Ahmedabad (265 km).
Proposed Proposed
► The Mumbai-Ahmedabad bullet train project ► The government plans to construct an
will have Surat as one of the stations. INR900 billion tunnel road between Mumbai
► A joint venture between the Indian Railway and Surat.
Station Development Corporation, the ► Proposed four-lane highways which are
Gujarat State Road Transport Corporation expected to improve connectivity in Surat
and the Surat Municipal Corporation has led include – Dakor-Savli, Vadodara-Dabhoi &
to the initiation of a Multi Modal Surat-Olpad-Bardoli.
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.
► Surat domestic airport is well connected to ► The nearest port is Hazira which is 25 km
various parts of the country. The city is from Surat, built with a protected harbour
located ~275 kms from the international design and additional waterfront for
airport at Ahmedabad. development of non-LNG cargo handling
terminals.
Proposed Proposed
► In January 2015, Airports Authority of India ► Letter of intent for development of Nargol
gave an in-principle approval for cargo port worth INR40 billion has been handed
terminal at Surat airport worth INR70 million. over to Cargo Motors Pvt. Ltd.
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.
Page 9Project Information
Infrastructure availability/ connectivity
Rail Road
► The city is connected to Delhi Mumbai
► Surat is connected with other districts of the Industrial Corridor (DMIC) which links
state such as Rajkot, Vadodara and Ahmedabad, Vadodara and Surat.
Ahmedabad by rail. ► Proximity to NH-8 and NH-6 further enhances
► The proposed site in South West Zone of connectivity in the city.
Surat is ~15 kms away from the Surat railway ► Surat also has very good connectivity with
station. other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km).
Proposed Proposed
► The Mumbai-Ahmedabad bullet train project ► Proposed four-lane highways which are
will have Surat as one of the stations. expected to improve connectivity in Surat
► In 2016, the Gujarat government assigned include – Dakor-Savli, Vadodara-Dabhoi &
Delhi Metro Rail Corporation as a consultant Surat-Olpad-Bardoli.
for the proposed metro connectivity in Surat.
Air Port
► Surat domestic airport is well connected to ► The nearest port is Hazira which is 25 km
various parts of the country. The city is from Surat.
located ~275 kms from the international ► Additionally, Hazira port is well connected to
airport at Ahmedabad. Mundra port and Jawaharlal Nehru Port Trust
(JNPT) – India’s largest container port
Proposed ► Thus, it provides a convenient textiles-related
► In January 2015, Airports Authority of India trade gateway to International (Europe,
gave an in-principle approval for cargo Africa, America and the Middle East) and
terminal at Surat airport worth INR70 million. domestic markets.
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.
Utilities
Water Power
► Water for industrial purposes can be obtained
► The main source for the power supply is
from four sources viz. Gujarat Water Supply
and Sewerage Board (GWSSB), an irrigation Torrent Power Limited in Surat
canal, dams, and surface reservoirs.
Page 10Project Information
Waste-to-Energy Plant technology options
1 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.
2 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.
3 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.
4 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.
Page 11Project Information
Key Components
► Bunker ► Economiser
► Waste crane ► Condenser
► Hopper/feed chute ► Turbine
► Feeder ram ► Generator
► Grate ► Reactor for acid gas absorption
► Bottom ash discharger ► Bag house filter
► Furnace ► ID fan
► Afterburning chamber ► Stack
► Radiation part ► Boiler ash conveying system
► Convection part ► Ash/residue silo
► Flue gas cleaning residue
transport system
Manpower Requirement
Particulars Skilled Unskilled Supervisors Total
Labour Labour
Construction 7 60 5 72
Phase
Operational Phase 58 19 6 83
Page 12Project Information
Implementation schedule
It is estimated that it takes 6-7 months for the implementation of the project. The
implementation model includes below nine steps –
Implementation schedule
1 Selection of site One month
2 Preparation of project profile Two weeks
Registration of the unit with
3 Two days
Directorate of Industries
4 NOC from Pollution Control Board One week
Calling quotation and preparation
5 of detailed project report
One month
6 Approach to commercial bank One month
Installation and electrification of
7 One month
machinery and equipment
8 Recruitment of staff One month
Arrangement with municipal One month
9 corporation and third-party buyers
Page 13Project Information
India Leading Players
Corporate
Company Highlight
office
A2Z Group of RDF based combustion technology with scope for
Gurgaon
Companies cogeneration of heat and power.
SELCO setup the first commercial Municipal Solid Waste-
SELCO International
Hyderabad processing unit in India in 1999. Have installed 6.6 MW
Limited
using RDF pellets as energy source.
East Delhi Waste
Implementing 10 MW incineration power plant with MSW
Processing Company New Delhi
derived RDF pellets as fuel.
Pvt Ltd
Mailhem Engineers Has adopted modified UASB technology. Has installed
Pune
Pvt Ltd. about 250 waste-to-energy plants.
Undertaking comprehensive biomethanation projects
Ramky Enviro coupled to secure composting and landfills. Also involved
Hyderabad
Engineers Ltd in incineration and presently operating India's largest
waste incinerator at Taloja, Maharashtra.
Page 14Project Information
Key Considerations
► 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 800Ԩ 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.
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).
Page 15Project Information
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.
Waste-to-Energy Plant – Capacity 700 TPD
Equipment/Components Units Total Price (INR)
Screw Conveyor 2
Blender System 2
Recycle Pump 4
Approximate cost for all the
Vacuum Pump 4
equipment/ study is
Feed Pump 3 estimated to be around INR
710 million
Biogas Flare 1
Disposal Pump 2
Screw Press 2
Rotary Screen 1
Hot Air Blower 6
Poly Dosing Pumps 2
Shredder 1
Total Capital Investment
Description Total Price (INR)
Equipment Cost/ Engineering cost 71,00,00,000
Land lease rent & development 28,00,00,000
(242811 sq.m x 36.00x100)
Total 99,00,00,000
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.
Page 16Approvals & 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.
Incentives by Government of Gujarat
► 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.
Page 17Gujarat Pollution Control Board (GPCB)
http://gpcb.gov.in
Energy and Petrochemicals Department
http://guj-epd.gov.in/
Gujarat Energy Development Agency
http://geda.gujarat.gov.in/
Urban Development & Urban Housing Department
https://www.udd.gujarat.gov.in
Gujarat Urban Development Company Ltd (GUDC )
http://www.gudcltd.com
Gujarat Urban Development Mission (GUDM )
http://www.gudm.org/
Industries and Mines Department, Gujarat
www.imd-gujarat.gov.in/
iNDEXTb - Industrial Extension Bureau
www.indextb.com
Surat Municipal Corporation
https://www.suratmunicipal.gov.in/
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.
Block No.6, 5th Floor,
Udhyog Bhavan, Sector No. - 11,
Gandhinagar - 382 017.
CIN : U75140GJ1999SGC036051
Telefax : +91 - 079 - 23246127 / 128, 23241865 / 66
Fax Exten. : 231
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