Biowaste Management in Europe Results of a Pre-feasibility report for a facility for organic in South Backa District - Serbia

Marco Ricci - Jürgensen Altereko sas on behalf Abt associates

About myself

• 20 years of experience in planning MSW management, designing and up¬grading of collection and transport schemes, assessing recycling facilities (focus on composting), planning comunication and participation initiatives, chairing multi-linguistic, multi-tasking working groups or projects. • 15 year foreign working experience as consulting expert focusing on issues related to solid waste management. Extensive consultancy experience in the Solid Waste Sector – on Strategy and Policy, Fees&Taxes, Separate collection schemes - , both in ´advanced´ and ´low to middle income’ countries in Europe, Latin America and Asia. • 10 years experience cooperating with international organisation/agencies (as ECN-European Network, ACRR, EEA- European Environment Agency, Sweepnet-GIZ, SCOW).

About myself

About myself

CIC Italian Composting and Biogas Association Senior Expert www.compost.it

ISWA International Solid Waste Association Chair of the Working Group on Biological Treatment of Waste www.iswa.org

Ecomondo International Fair Ambassador en.ecomondo.com Activities (outside Italy)

Bulgaria

Czech Republic

Slovak Republic UK

Spain Tunisia/Sweep-Net Brazil Cambodia

Chile Overview

• What is biowaste? • Biological treatment options • From City Assessment to Pre-feasibility investigations • South Backa WMR – scenarios for biowaste recycling • Feasibility assessment – OrganECS • Economical drivers

What is biowaste?

• In Europe, biowaste is strictly defined – Garden & park waste – Food & kitchen waste • Other can also be treated through biological treatment = – Animal manures – Agricultural residues – sludge – Some paper, card and biodegradable plastics Sources of biodegradable waste

Hotels

Street Factories sweepings

Sources Restaurants Markets & cafes

Farms Homes The workplan for SB-WMR

• to elaborate two scenarios for biowaste processing • basic assessment - from the technical and economic point of view - of the suitability of different organic option • actions to promote the off-take of the products resulting from the recycling of organic waste

Ref Activity 3 - Task 1 Treatment approaches

Biodegradable Wastes

Product manufacturing Waste pre- process treatment

Quality products Stabilised biowaste for for sale or

10

What is biological treatment?

Natural processes 3 main techniques • Treating biodegradable wastes – Using micro-organisms

– Natural processes Anaerobic Composting • To create products digestion (AD) • To pre-treat wastes before

disposal • Three main techniques Mechanical Biological – Overlap between them treatment (MBT) Comparison of Composting and AD

Factor Composting AD

Plant capacity Scalable (small, medium, Only Medium to Large large)

Tecnology and process Simple More complex

Need of working surface Higher Lower

Specific investment cost Lower Higher (need of incentives) (i.e. €/t capacity)

Output (recycling) Solid product Liquid product

12 The choice of a specific technology for recycling organic waste

• will depend on the absolute amounts of OFMSW produced in a specific municipality or waste management region, • on the relative availability of the two main “feedstock” of organic waste (i.e. FW and GW and others). Investment cost for different tecnologies Complexity of different recycling technologies for organic waste

Source – Altereko 2018 CCAC

City Assessment

Action Plan

Work Plan

Stakeholder Consultation

Actions & Decisions Feasibility assessment: step by step

Define the Consider n° and prevention size of Decide (HC) facilities how to Quantify the collect amount to be collected Assess the potential production South Backa WMR

decimals are separated Total Distance from Kg/capita Garden waste Food waste Rural by Points population WMC (km) /day MSW (tpa) (tpa) (tpa) population (%) Serbia 7164132 AP Vojvodina 1912095 Novi Sad 346163 0 1.07 135194 18075 40788 15% Becej 36663 41 0.94 12579 2533 4139 37% Beocin 15551 25 0.94 5336 713 1610 52% Backa Palanka 54631 43 0.94 18744 4658 6127 50% Backi Petrovac 13222 24 0.86 4150 838 1144 52% Temerin 28244 13 0.94 9691 1952 3188 10% Zabalj 25873 27 0.86 8122 1641 2239 64% Srbobran 16073 28 0.94 5515 1114 1520 26% Vrbas 41378 39 0.94 14197 2859 4671 42% South Backa Waste Management Region 577798 1.01 213527 34384 65426 26% Transfert St 34% 66% Large producers in Novi Sad

Key data for biowaste production • 1100 tpa

• 730 commercial activities (Ho.re.Ca)

• 120 Schools (with canteens) Scenarios for recycling organic waste – SBWMR

Min (low) Max (high) • Collection at large • Collection at large producers (HoReCa, producers (HoReCa, Schools, Markets) Schools, Markets) • Focus con GW • Focus on FW and GW • Collection schemes for HH • Collection schemes for HH with low diversion of FW with high diversion of FW from disposal from disposal • Collection schemes for FW • Most HH connected to only for limited collection schemes for FW areas/settlements (HH) and for GW Scenarios for recycling organic waste

Garden waste Food waste Organic Scenarios (tpa) (tpa) waste (tpa) Comments Production 34384 65426 99810 For the whole Region Potential Max 17798 33866 51663 -26% home composting, 70% SS Potential Mid 12713 24190 36902 -26% home composting, 50% SS Potential Min 5085 9676 14761 -26% home composting, 20% SS Scenarios for recycling organic waste

Min (low) Max (high) • A Centralised facility, • A Centralised facility, located at Novi Sad’s landfill located at Novi Sad’s landfill Capacity 12000tpa Capacity 52000tpa

• A Decentralised facility, • A transfer point for Becej, Capacity 1-2000tpa for Backa Palanka, Vrbas Becej, Backa Palanka, Vrbas 1-2 x 20’ container/each

• Home composting in rural • Home composting in rural areas areas

The type of recycling facilities to be assessed

Treatment technologies Min Scenario Max Scenario Composting (small scale) - with passive aeration 1000/2000tpa - Composting (medium scale) - with or whithout forced aeration 12000tpa - Composting (large scale) - with or whithout forced aeration - 50000tpa Dry with post-composting - 50000tpa

Min Scenario Max Scenario Composting (small scale) - with passive aeration 3,2/6,5tpd - Composting (medium scale) - with or whithout forced aeration 39tpd - Composting (large scale) - with or whithout forced aeration - 160tpd Dry Anaerobic Digestion with post-composting - 160tpd Feasibility assessment

• CAPEX and OPEX for each type of facility • Range of Investment costs (Low/High) • OrganECS_Excel tool (CCAC)

• Type of technology: – Composting With Forced Aeration (WFA) Without Forced Aeration (WOFA)

– AD (Dry) / post-Composting

OrganECS

• OrganECS Version 2 • aims to guide local decision-makers in having a first evaluation of different treatment options • does not provides a detailed description and reference to the type of infrastructures included in the facility  needs expert support to be used OrganECS: economic data & assumptions

Labor ( in Current Year) Notes Manager/Engineer - Labor Cost 13.500,00 €/year • 15year life-span Operator - Labor Cost 8.500,00 €/year Facility Operations ( in Current Year)

Process Water Purchase Price 1,10 €/m3 if AD option considered Wastewater Treatment Cost (if AD applies) 0,34 €/m3 if AD option considered Purchased Bulking Agent Cost (e.g., Wood Chips) - €/tonne

Energy Purchases ( in Current Year) • Labor cost Electricity Purchase Price 0,07 €/kWh Diesel Purchase Price 1,31 €/liter

Land ( in Current Year) • Diesel and Electricity cost Purchase or Lease Land select Land - Purchase Price - €/ha Land - Lease Price - €/ha/year

• Cost for reject disposal Facility Operations ( in Current Year) Avoided Landfill Disposal Fee 30,00 €/tonne currently 0 will be 30€/t

Sellable End Products ( in Current Year) Market Price for Digestate Effluent (Liquid Digestate) - €/tonne Market Price for Dewatered Digestate - €/tonne Market Price for Compost 3,50 €/tonne Market Price for Mulch - €/tonne • Revenues for compost of 3,5 €/t Wholesale Electricity Sale Price - €/kWh if AD option considered Government Subsidy - €/kWh if AD option considered Duration of Government Subsidy 3,00 Years if AD option considered Sell Heat? select if AD option considered • Revenues for electricity 0,1 Wholesale Heat Price - €/MMBtu no heat to be used

Inflation and Taxes $/kWh, subsidized Inflation Rate - General 3,00% % Tax Paid on Revenues 15,00% % for a recycling facility VAT (Value-Added Tax; same as Goods and Services tax) 20,00% % not applied on compost! Interest Rate - Short-term Debt 8% % Interest Rate - Long-term Debt 3% % Composting facility – 12’000tpa (OrganEcs)

• 12000 tpa of FW+GW Minimum Recycling Scenario • Forced aeration • footprint about 1,2 Ha Composting With Forced Aeration USD (e.g., semi-permeable cover, container/box/tunnel, tower, drum) Low Capex High Capex Initial Capital Investment ($) $2.528.400 $4.132.900 Capex/tonne ($/TPY) $211 $345 • CAPEX: 2,53M - 4,13M USD Total Annual Expenses in YR 1 Operations ($/year) $503.200 $616.400 O&M/tonne in YR 1 Operations ($/tonne of waste processed) $42 $52

Total Land Required (ha) 1,20 1,02

• gatefee (low CAPEX scenario) Total Organic Waste Available in YR 1 (tonnes/year) 12.000 12.000 Total Yard Waste Available in YR 1 (tonnes/year) 3.850 3.850 – GW 18 USD/t Total Food, Manure/Sludge, and Other Organic Waste Available in YR 1 (tonnes/year) 8.150 8.150 Total Bulking Agent Required in YR 1 (tonnes/year) 0 0 – FW 32 €/t (or 37 USD/t), Total Waste Composted in YR 1 (tonnes/year) 12.000 12.000 Compost Produced In YR 1 (tonnes/year) 3.600 3.600 Waste Diverted from Landfill in YR 1 (tonnes/year) 9.480 9.480 Percent of Waste Diverted from Landfill (%) 79% 79% DO NOT ERASE 79% 79% • Current disposal fee at landfill Gate Fee - Yard Waste ($/tonne) $18,00 $18,00 Gate Fee - Food Waste ($/tonne) $37,00 $65,00 15€/t  30 €/t Gate Fee - Manure/Sludge ($/tonne) $0,00 $0,00 Gate Fee - All Waste ($/tonne) $0,00 $0,00 Compost Sale Price ($/tonne) $5,00 $5,00 Composting facility – 12’000tpa (OrganEcs)

Composting With Forced Aeration USD (e.g., semi-permeable cover, container/box/tunnel, tower, drum) Low Capex High Capex Initial Capital Investment ($) $2.528.400 $4.132.900 Capex/tonne ($/TPY) $211 $345 Total Annual Expenses in YR 1 Operations ($/year) $503.200 $616.400 O&M/tonne in YR 1 Operations ($/tonne of waste processed) $42 $52

Total Land Required (ha) 1,20 1,02

Total Organic Waste Available in YR 1 (tonnes/year) 12.000 12.000 Total Yard Waste Available in YR 1 (tonnes/year) 3.850 3.850 Total Food, Manure/Sludge, and Other Organic Waste Available in YR 1 (tonnes/year) 8.150 8.150 Total Bulking Agent Required in YR 1 (tonnes/year) 0 0 Total Waste Composted in YR 1 (tonnes/year) 12.000 12.000 Compost Produced In YR 1 (tonnes/year) 3.600 3.600 Waste Diverted from Landfill in YR 1 (tonnes/year) 9.480 9.480 Percent of Waste Diverted from Landfill (%) 79% 79% DO NOT ERASE 79% 79% Gate Fee - Yard Waste ($/tonne) $18,00 $18,00 Gate Fee - Food Waste ($/tonne) $37,00 $65,00 Gate Fee - Manure/Sludge ($/tonne) $0,00 $0,00 Gate Fee - All Waste ($/tonne) $0,00 $0,00 Compost Sale Price ($/tonne) $5,00 $5,00 Composting facility – 50’000tpa (OrganEcs)

• 50000 tpa of FW (68%)+GW(32%) Maximum recycling Scenario • Forced aeration Composting With Forced Aeration USD (e.g., semi-permeable cover, container/box/tunnel, tower, drum) Low Capex High Capex • footprint up to 5 Ha Initial Capital Investment ($) $7.196.900 $12.490.800 Capex/tonne ($/TPY) $144 $250 Total Annual Expenses in YR 1 Operations ($/year) $1.610.600 $1.984.000 O&M/tonne in YR 1 Operations ($/tonne of waste processed) $33 $40

• CAPEX: 7,2M – 12,5M USD Total Land Required (ha) 5,00 4,25

Total Organic Waste Available in YR 1 (tonnes/year) 50.000 50.000 Total Yard Waste Available in YR 1 (tonnes/year) 16.000 16.000 Total Food, Manure/Sludge, and Other Organic Waste Available in YR 1 (tonnes/year) 34.000 34.000 • gatefee (highCAPEX scenario) Total Bulking Agent Required in YR 1 (tonnes/year) 0 0 Total Waste Composted in YR 1 (tonnes/year) 50.000 50.000 – GW 18 USD/t Compost Produced In YR 1 (tonnes/year) 15.000 15.000 Waste Diverted from Landfill in YR 1 (tonnes/year) 39.500 39.500 – FW 31 €/t (or 36 USD/t), Percent of Waste Diverted from Landfill (%) 79% 79% DO NOT ERASE 79% 79% Gate Fee - Yard Waste ($/tonne) $18,00 $18,00 Gate Fee - Food Waste ($/tonne) $13,00 $36,00 Gate Fee - Manure/Sludge ($/tonne) $0,00 $0,00 • Current disposal fee at landfill Gate Fee - All Waste ($/tonne) $0,00 $0,00 15€/t  30 €/t Compost Sale Price ($/tonne) $5,00 $5,00 Composting facility – 50’000tpa (OrganEcs)

Composting With Forced Aeration USD (e.g., semi-permeable cover, container/box/tunnel, tower, drum) Low Capex High Capex Initial Capital Investment ($) $7.196.900 $12.490.800 Capex/tonne ($/TPY) $144 $250 Total Annual Expenses in YR 1 Operations ($/year) $1.610.600 $1.984.000 O&M/tonne in YR 1 Operations ($/tonne of waste processed) $33 $40

Total Land Required (ha) 5,00 4,25

Total Organic Waste Available in YR 1 (tonnes/year) 50.000 50.000 Total Yard Waste Available in YR 1 (tonnes/year) 16.000 16.000 Total Food, Manure/Sludge, and Other Organic Waste Available in YR 1 (tonnes/year) 34.000 34.000 Total Bulking Agent Required in YR 1 (tonnes/year) 0 0 Total Waste Composted in YR 1 (tonnes/year) 50.000 50.000 Compost Produced In YR 1 (tonnes/year) 15.000 15.000 Waste Diverted from Landfill in YR 1 (tonnes/year) 39.500 39.500 Percent of Waste Diverted from Landfill (%) 79% 79% DO NOT ERASE 79% 79% Gate Fee - Yard Waste ($/tonne) $18,00 $18,00 Gate Fee - Food Waste ($/tonne) $13,00 $36,00 Gate Fee - Manure/Sludge ($/tonne) $0,00 $0,00 Gate Fee - All Waste ($/tonne) $0,00 $0,00 Compost Sale Price ($/tonne) $5,00 $5,00 AD&Composting facility – 50’000tpa (OrganEcs)

• Dry-AD & C-aerated static piles Maximum recycling Scenario

• 50000 tpa of FW (68%)+GW(32%) High-Tech Dry Anaerobic Digestion USD Low Capex High Capex Initial Capital Investment - AD ($) $8.645.200 $15.640.300 Capex/tonne ($/TPY) $255 $461 Initial Capital Investment - Composting ($) $5.495.800 $9.480.000 Capex/tonne ($/TPY) $128 $220 • footprint up to 5 Ha Total Annual Expenses in YR 1 Operations ($/year) $1.852.200 $2.842.300 O&M/tonne in YR 1 Operations ($/tonne of waste processed) $38 $57

Total Land Required (ha) 1,93 1,93 Soil Product Produced Compost

• CAPEX: 14,2M – 25,1M USD Total Organic Waste Available in YR 1 (tonnes/year) 50.000 50.000 Total Waste to AD in YR 1 (tonnes/year) 34.000 34.000 Digestate Produced in YR 1 (tonnes/year) 27.200 27.200 Digestate to Composting in YR 1 (tonnes/year) 27.200 27.200 Yard Waste to Composting in YR 1 (tonnes/year) 16.000 16.000 Bulking Agent to Composting in YR 1 (tonnes/year) 0 0 • gatefee (highCAPEX scenario) Total Waste Composted in YR 1 (tonnes/year) 43.200 43.200 Total Compost Produced in YR 1 (tonnes/year) 12.960 12.960 Waste Diverted from Landfill in YR 1 (tonnes/year) 45.304 45.304 – GW 18 USD/t Percent of Waste Diverted from Landfill (%) 91% 91% DO NOT ERASE 0,91 0,91 – FW 40€/t (or 46 USD/t), Net Electricity Produced by AD System in YR 1 (kWh/year) 7.018.434 7.018.434 Electricity Sold in YR 1 (kWh/year) 5.713.794 5.713.794

Gate Fee - Yard Waste ($/tonne) $18,00 $18,00 Gate Fee - Food Waste ($/tonne) $0,00 $46,00 Gate Fee - Manure/Sludge ($/tonne) $0,00 $48,00 • Current disposal fee at landfill Gate Fee - All Waste ($/tonne) $0,00 $0,00 Electricity Sale Price ($/kWh) $0,10 $0,10 15€/t  30 €/t AD&Composting facility – 50’000tpa (OrganEcs)

High-Tech Dry Anaerobic Digestion USD Low Capex High Capex Initial Capital Investment - AD ($) $8.645.200 $15.640.300 Capex/tonne ($/TPY) $255 $461 Initial Capital Investment - Composting ($) $5.495.800 $9.480.000 Capex/tonne ($/TPY) $128 $220 Total Annual Expenses in YR 1 Operations ($/year) $1.852.200 $2.842.300 O&M/tonne in YR 1 Operations ($/tonne of waste processed) $38 $57

Total Land Required (ha) 1,93 1,93 Soil Product Produced Compost

Total Organic Waste Available in YR 1 (tonnes/year) 50.000 50.000 Total Waste to AD in YR 1 (tonnes/year) 34.000 34.000 Digestate Produced in YR 1 (tonnes/year) 27.200 27.200 Digestate to Composting in YR 1 (tonnes/year) 27.200 27.200 Yard Waste to Composting in YR 1 (tonnes/year) 16.000 16.000 Bulking Agent to Composting in YR 1 (tonnes/year) 0 0 Total Waste Composted in YR 1 (tonnes/year) 43.200 43.200 Total Compost Produced in YR 1 (tonnes/year) 12.960 12.960 Waste Diverted from Landfill in YR 1 (tonnes/year) 45.304 45.304 Percent of Waste Diverted from Landfill (%) 91% 91% DO NOT ERASE 0,91 0,91 Net Electricity Produced by AD System in YR 1 (kWh/year) 7.018.434 7.018.434 Electricity Sold in YR 1 (kWh/year) 5.713.794 5.713.794

Gate Fee - Yard Waste ($/tonne) $18,00 $18,00 Gate Fee - Food Waste ($/tonne) $0,00 $46,00 Gate Fee - Manure/Sludge ($/tonne) $0,00 $48,00 Gate Fee - All Waste ($/tonne) $0,00 $0,00 Electricity Sale Price ($/kWh) $0,10 $0,10 How to make the facilities economically competitive with current disposal cost?

• Rise cost of MSW disposal (landfill taxes and bans) • Realize minimal infrastructures for treating exhausted airs from processing • CAPEX partially covered by structural funds (E.U.) • Longer amortization (15  20 years) • Subsidies for renewable energy production (electricity, heat, biomethane) • QAS for better market for compost Summary outcomes

• CAPEX cost in USD per ton

CAPEX Composting WOFA 2'000tpa Composting WFA 12'000tpa Composting WFA 50'000tpa Dry AD + composting 50'000tpa tpa 2000 12000 50000 50000 Low 422.000,00 2.736.000,00 7.200.000,00 13.800.000,00 High 690.000,00 3.552.000,00 12.500.000,00 25.300.000,00 Average 556.000,00 3.144.000,00 9.850.000,00 19.550.000,00 • OPEX cost (including amortization) in USD per ton • Range of costs • To be compared with current cost for MSW disposal and forecast with a new, centralized sanitary landfill South Backa Waste Management Region (Serbia) South Backa Waste Management Region (Serbia) Final remarks

• Current MSW disposal cost are low, lack of landfill- taxes • A recycling facility for organic waste gets most revenues from the gate-fee

• Protecting the environment costs more than dumping waste

Thank you

Marco Ricci – Jürgensen www.altereko.it