Twelve Pathways to a Circular Economy:

Using Waste to Energy to reduce the burden on our Ecosystem.

The Bio Energy Contribution

Steve Peters Senior Energy Specialist (waste to energy), Sustainable Development and Climate Change Department ADB’s Historical Waste to Energy Experience • Landfill – Sanitary with Gas Capture • Introduction of sanitary landfills and capture/use of landfill gas. • Biogas in Agriculture • Rural enterprises undertaking carbon reduction activities. • Community Capacity Building • Included in larger sector loans under sovereign operations. • Developing Incineration Market • Private Sector Investments in emerging incineration providers. • Innovation, Piloting and Knowledge Transfer

• Novel solutions for islands communities and new technologies.

• Flagship events focusing on energy, water and climate change. PRC: Hunan Xiang River Watershed Existing Solid Waste Comprehensive Treatment Project

ADB Financing: $150 million (Total project cost: $300 million) Target: 15 uncontrolled landfill sites (open dump site) Objective: Reduced accumulated environmental pollution from uncontrolled landfill sites in Xiang river basin (Hunan Province- Infrastructure for ecosystem services)

WTE Plant Component

Photo source: S. Ishii THA: Double A Ethanol Wastewater Treatment

ADB Support: Carbon finance by the Future Carbon Fund through the purchase of carbon credits Counterparty: E85 Co. Ltd. Project Location: Prachinburi Province of Thailand

Project Description: • Company produces ethanol from cassava. • The wastewater generated from the ethanol production is treated in internal circulation anaerobic digesters • Biogas produced from digesters is combusted in a boiler of Limekiln for generating heat, useful in the production of calcined lime.

Project Co-benefits:

• Potential to avoid 170,000 tons of CO2e / annum • Employment opportunities for local people. • Land application of the sludge generated from the project replaces the use of chemical fertilizers. • CSR activities for the upliftment and welfare of the local community. PRC and VIE: Municipal Waste-to-Energy Project (Private Sector) ADB Financing: $200 million (PRC) + $100 million (Viet – loan) Borrower: China Everbright Environmental Energy Limited (CEEEL) Coverage: , , Pizhou, , , + Vietnam

Project results: • CEEEL constructed six WTE plants • 6,200 tons of municipal SW processed • Generated 132 megawatts of additional power source • 630 gigawatt-hours of electricity per year

Photo source: ADB Photo Library Current ADB Activities in W2E

Pathway 1. End of Life - Advanced Waste to Energy Plants

Building the infrastructure to deal with waste when it can no longer be recycled, reused or upcycled, its “end of life.”

Pathway 2. Fly Ash Immobilization

Seeking long terms solutions for the end products from advanced waste to energy plants in pathway one.

Pathway 3. Eco Industrial Parks (Centralized)

Clustering recycling, upcycling (value creation) and by-product users around end of life facilities to increase the amount of waste treated and create more value from sorted higher value items – a mix of industrial symbiosis with the circular economy Developing Solutions in W2E

Pathway 4. Promote Innovative Up-cyclers Promoting the recyclers, up-cyclers and re-users at both large centralized facilities and distributed locations closer to the point of waste generation.

Pathway 5. Community Level Waste Treatment (distributed Empowering communities to create value closer to the source of generation taking advantage of emerging technologies and lower transport costs.

Pathway 6. Digitizing Waste Collection and Treatment

“Uberizing” the collection, trading, tracking and treatment of waste by extending second hand trading to waste – Valorizing low value waste.

Pathway 7. Use Digitization to Promote Clean Up Efforts Supporting APPs which can be used to link willing donors for clean up with actual proven clean up activities. Developing Solutions in W2E

Pathway 8. Green Port Transformation (Regionalized)

Linking Green Ports within SIDS as an extension of Pathway 3 (EIP).

Pathway 9. Extended Producer Responsibility Digitization

Costing the impact of products as introduced into an economy, charging EPR fee at manufacture/import & tracking via APP from pathway 6.

Pathway 10. Strengthen Recycling Supply Chains Supporting innovation in post collection to upcycled product supply chain – innovative recyclers, logistics models and technology.

Pathway 11. Consumer Product Redesign (decarbonize) Assisting product manufacturers to understand the impact of pathway 9 and supporting transitions to lower impact products

Pathway 12. Strengthening Enforcement & Governance Supporting the ability of governments to enforce environmental legislation – creation of avoid cost model to support pathway 9. Potential Area for Future Bio Energy Financing

Pathway 1. End of Life - Advanced Waste to Energy Plants

Private sector investment in Gulf Chana Green 10 Mwe Biomass project in Thailand. Possible Investments in PNG and Pacific.

Pathway 3. Eco Industrial Parks (Centralized)

Reviewing mixed solar and biomass power business model. Assessing 6 4 marine methanol proposal. 10 5 2 3 Pathway 4. Promote9 Innovative7 Up-cyclers 1 Reviewing biomass power developer as part of financial intermediation activity in South East Asia. Reviewing multiple Waste to Fuels. 8

Pathway 5. Community Level Waste Treatment (distributed) Stopping POPs and Micro Plastics entering Seas As part of rural revitalization in PRC, reviewing community waste treatment including integrated biomass and dry fermentation.

Pathway 11. Consumer Product Redesign (decarbonize)

Reviewing technology to replace plastic packaging with biomass based materials. Assessing different product delivery models also. Challenges for Bio Energy Financing

Challenges to financing are common across bio energy technologies:

1. Variable product quality and production cycle – increases risk to finance. 2. Obsession with technology over function business model which addresses operational risks. 3. Seasonal availability of feedstock requires innovative business models.

4. Business as usual proposals6 10 without4 innovation to offset risks. Notably use of fossil fuels5 as back up – biomass2 power systems. 5. Counter party risks and regulatory changes. 3 9 7 1 6. Gap between technologists and reputable operators.

Solutions to mitigate risk: 8 a) Linking credibleStopping POPsstable and companiesMicro Plastics enteringwith Seastechnologists. b) Offsetting risks through innovation in business model. c) Use of digitization strategies to change the delivery/payment of service. d) Innovation in the blending of finance to offset and allocate risks. Thank you.