316 SECTION III: NUTRIENT AND ORGANIC MATTER RECOVERY and sustainability. of opportunitiesforwastevalorization (Figure 117)and demonstratesignificantpotentialforscalability examples ofcasesandbusiness modelsemerging indevelopingcountries. Thesecoverawiderange and sanitationisapublicservice ratherthanabusiness;there are manyinteresting andsuccessful efforts haveoftenbeenlimitedinsizeordurationpartly becausewasteisnotviewedasaresource cost recovery withinthewastesector, andeventocreate viablebusinesses.While,many ofthese There isgreat potential toclosethenutrientrecycling loop,supporta‘circular economy’andattain complement othersupportivefinancingmechanismsforwaste management. from recovered resources tobridgefinancialgaps(operationaland maintenance[O&M]costs)and nutrient recovery enterpriseswillbeessentialforreducing wastequantitiesandgeneratingrevenues management infrastructure andservices,particularlyinlarge urbanareas indevelopingcountries, collectionandtreatment isinsufficient.Withprogressively limitedpublicfundstosupportwaste nutrients accumulateinconsumptioncentres andcontributetopollutionwherever thecoverageof etal.,2015;Otoo etal.,2015;Rao2016).WithincreasingHernando-Sanchez populationgrowth, sludge, extendsbeyonddirect economicbenefitstohealthandenvironmental benefits(ADB,2011; waste, thebiodegradablefractionofhouseholdandmarket waste,domesticurineandfecal Furthermore, nutrientrecovery from organic wastestreams suchasagriculturalandagro-industrial applicationratesanddecreased agriculturalproductivity. inefficient distributionnetwork.Thisresults inexorbitantmarketprices,andinvariablyleadingtolow The latterisevidentinmanyAfricancountriesandattributedtoineffective policies,andlimited that soilsinmanytropical developingcountriesare ofverylowfertilityandfertilizerstooexpensive. there isaconsensusthat the recovery ofphosphorusisanincreasingly important task,especiallygiven and howfarmarketpriceswillregulate phosphorussupply(Edixhovenetal.,2013).Ontheotherhand, at competitivecosts,there isagreat debateonwhentheworldwillreach astate of‘peakphosphorus’ such asphosphorus.Aslarge portionsofglobalphosphaterock depositscannotbeminedefficiently Nutrient recovery isadditionally ofgreat importanceinviewofdiminishingnon-renewable resources, reduction through compostingandagriculturaldemandopenrelated opportunities (Drechsel etal.,2015). and sanitationsectorsare underpressure tocutcostsandshowcostrecovery. Thewastevolume recovery onlyafuture target. However, simultaneousefforts are required andpossible,alsoasthewaste waste managementcontinuestostrugglewithcollectionandsafedisposalmakinge.g.nutrient Otoo etal.,2012;2015).Unfortunately, inmostlow-andmiddle-incomecountries,urban istherefore crucialinpreventing citiesfrom becomingvastnutrientsinks(Drechsel etal.,2015; polarizing effect onfoodflows, thusgeneratingcentres ofconsumptionandwastegeneration.Nutrient population. However, whileacenturyago,foodwastewaslocallyrecycled, urbanizationhascreated a increasing amountsofplant nutrientswillbeneededtoensure thefoodsecurityofanexpandingglobal fertilizer pricesandstricterregulations forsafeguarding theenvironment from .Inthiscontext, under progressing climatechange,diminishingglobal nutrientreserves (peakphosphorus),increasing recovery islargely drivenbytheneedtofeedglobalpopulationwithincreasingly limitedresources urine andfecalsludge,ishighonthedevelopmentagenda.Theincreased momentumaround nutrient Nutrient recovery from organic wastestreams suchasmunicipalsolidwaste,agro-, cases andmodels ofpresentedbusiness An overview Nutrient andorganicmatterrecovery: Copyright Material – Provided NUTRIENT ANDORGANICMATTER RECOVERY by Taylor & Francis sustainability of thenutrientrecovery enterprise hasbeenobserved. Thepresented casestudy from labor), andmodelsthatattribute ownershiptocommunitiesare encouraged(e.g.cooperatives),high In instanceswhere technologicalprocesses adoptedcapitalizeonabundant localresources (e.g. canallocateland government self-sustaining, particularlyfor secondarycitiesandsmalltowns,evenlarge citieswhere the local some advantagesovercentralized large-scale systemsandare increasingly observedtobefinancially to improve theirproduction efficienciesandrevenues. Decentralizedcompostingenterprisesoffer plantsreach theendoftheirlifecycleorindire needofupgradeandmaintenance,especially In viewofincreasingly shrinkingbudgetallocationsforwastemanagement,anotable percentage of options ofpublic-privatepartnerships. we present three suchcasesfrom district level).Inthisnutrientrecovery sectionofthisResource RecoveryandReuse(RRR)catalogue, of financialsupporttothecompostplants( benefits from composting(typicallymunicipalsolidwaste(MSW)andfecalsludge)outweigh thecosts Pandyaswargo andPremakumara, 2014).Thisisbecausethenetenvironmental andsocio-economic rebates tobridgethefinancialgapandensure sustainabilityofthecompostplants(Kazaetal.,2016; to providegrants,subsidies,taxcredits, financialsupport intheformofgovernment waiversand cover theO&Mcosts,talklessofrecouping capitalinvestments.Municipalitieshowevercontinue towards fullcost-recovery, manyoftheseinitiativesare unable togeneratesufficientrevenues to and mechanizedequipmentsused,high-levelskillhighenergy requirements. Althoughgeared require substantialcapitalinvestments,andoperationalmaintenancecostsgiventheadvanced large-scale centralizedfacilitiesthatare abletoprocess hugevolumesofwasteatatime,but observed throughout the developingworld(Kazaetal.,2016).Thesecompostplantsare typically Significant investments,mainlypublicfunding,fortheset-upandoperationofcompostfacilitiesis OVERVIEW FROM EXCRETA, AGRO-INDUSTRIAL/AGRO-WASTE ANDMUNICIPAL SOLIDWASTE STREAMS LADDEROFVALUE PROPOSITIONSFORNUTRIENTANDCARBONRECOVERY FIGURE 117. SAFE DISPOSAL (LANDFILLING) PROPOSITION TREATMENT Public health soil quality Water and VALUE Copyright LIVESTOCK MANURE RECOVERY VALUE PROPOSITIONSFROMMUNICIPAL ANDAGRO-INDUSTRIALORGANICWASTE APPLICATION OF FECAL SLUDGE, DIRECT USE/ High nutrient low financial recovery at Material cost (Business model11:Subsidy-free community-based composting). Sri Lanka – Business model10:Partiallysubsidizedcompostingat Provided (SANITIZATION) COMPOSTING and amelioration Carbon and recovery nutrient Soil Uganda, representing different wastestreams and by Taylor CO-COMPOSTING AND BLENDING ENRICHMENT) Carbon and (PRODUCT recovery increase nutrient & Yield Francis CREDITS -GHG emissions CARBON SAVINGS TRADED offset GHG 317 SECTION III: NUTRIENT AND ORGANIC MATTER RECOVERY 318 SECTION III: NUTRIENT AND ORGANIC MATTER RECOVERY presented casesfrom and businesseffectiveness andensure valueformoneyofpublicinterventionsasdemonstratedby private sectorparticipationviapublic-privatepartnerships(PPP)canimprove production efficiencies waste segregation efficiency andprivatesectorentitiesformitigatingfiscalconstraints.Mainstreaming institutes forproduct and technologyinnovation,informalworkersforincreased accesstoslumsand market share toincludemunicipal authoritiesforexclusiverights/accesstowastestreams, research based cleandevelopmentmechanisms(CDM)projects, compostmarketersanddealersforincreased The needforstrategicpartnershipsextendsbeyondthosewithNGOsdevelopmentofwaste- cases where small-scale enterprises formconglomeratestoincrease accessibilityintothesemarkets. from suchastheenergy andcarboncredit markets.Although,itisimportanttonotethatthere are element ofthemodeloffers accessintomarketsthatsmaller-scale enterprisesare oftenexcluded the greatest economicbenefits willpartlydependonscaleandstrategicpartnerships.The viable. Theabilityforbusinessestosuccessfullyimplementtheabovevaluepropositions andcapture energy (electricity)represent additionalavenuesfornutrientrecovery enterprisestobecomefinancially and marketproliferation. Multiplerevenue generation streams beyondcompostsalestoincludesaleof operations offer greater opportunitiesforcapturing economiesofscalebenefits,revenue generation revenue generation).Whilethecompostingconceptisapplicableacross scale,larger composting financial returnsoninvestmentsare expected(Businessmodel12:Large-scalecompostingfor Looking beyondcostrecovery andaimingforprofit-making modelsisimperativeifsustainable mobilize thecommunities. wasteintowealthbutrequiressolution forturning investmentsinsocialcapitaltoorganize and Kenya nutrient-rich compost product forfarmers. Thelatterisanimportant driver forthebusinessmodel as provides sanitationbusinesseswithanadditionalrevenue stream; andc)itprovides asanitizedand for septagecollection,treatment anddisposal,ensuring asustainablesanitationservicechain;b)it enriched compost)foragricultural production are three-fold: a)itsignificantlyreduces theburden services. Benefitsfrom nutrientrecovery from fecalsludgeintovalue-addedproducts (e.g.urine- this gap,howeverlimitedseptage collectionandtreatment canunderminethesustainabilityofthese services. Anincreasing numberofprivatebusinesses are settinguppublictoilet facilitiestoclose migratory populationsandsluminhabitantsstillonlyhave marginal accesstosanitationproducts and facilities) atthehouseholdlevelindevelopingcountries is notablealthoughsomegroups suchas and urinereuse foragriculturalproduction. Globalmandatestoimprove accesstosanitation(toilets another setofinteresting businessmodelsconsidered inthissectionfocusmainlyonfecalsludge In additiontonutrientrecovery from municipalsolidwasteandagro-industrial wastestreams, Chapter 10presents severalvariantsofthismodelviaempiricalcasesfrom dollars inannualrevenue (Businessmodel13:Nutrientrecovery from ownagro-industrial waste). significant duetotheirlarge operationalscale,resulting inpotentiallossesofuptoseveralmillion waste intonutrientsisimperative,particularlygiventhatthe implicitcostofnon-compliancecanbe arm totheirmainbusinessforconvertingwasteintoorganic .Conversionoftheir legislative mandates,manyagro-processing enterprisesare increasingly implementinganadditional waste (vegetativeandlivestock)streams. To ensure businesssustainability, largely forcompliancewith another setofinteresting business modelsfocusesonnutrientrecovery from agro-industrial andagro- While thefirstthree business modelslargely centre onfoodwasteandmunicipalsolidstream, distortions, forexample,inthefertilizermarket. to enhancecompetitiveadvantageinproduct marketsoftenallowenterprisestomitigatemarket nutrient-fortified composttailored forspecificcrops andsoils)basedoninnovativetechnologies in Chapter8showsthatsubsidy-free communitybasedcompostingoffers asustainable Copyright India and Bangladesh inChapter9. Material – Provided NUTRIENT ANDORGANICMATTER RECOVERY Development ofhighvalueproducts (e.g. by Taylor & Kenya, India Francis and Mexico. their sustainability andscalability. finance, technologyandconsumers’ acceptancewillplayanimportantrole infacilitatingorhindering the viabilityofenterprise(see Chapter19).Particularlyfornutrientrecovery enterprises,accessto and environmental risksappropriately, althoughthesemaynotnecessarily besufficientinguaranteeing settings andregulations are importanttosupportthebusinessesandcontrol thewell-knownhealth and privatesectorparticipation where theenablingenvironment isinplace.Supportive institutional the presented casesandmodelsshowatremendous potentialforresource recovery andreuse, avenue forensuringsustainabledeliveryofwastemanagement services.Althoughnotexhaustive, cost recovery tofullprofitability businessmodelsforentitiesconsideringnutrientrecovery asan In summary, mostoftheexamplespresented inthissectiondemonstrate thepotentialrangeof is applicablebothatacommunityandlarge-scale level. from sewagetreatment usingtheapproach ofOstarain fertilizer (typicallyoccurringatcommunity-scale);andthe otherisbasedonphosphorusextraction from unsewered householdsin two casesrepresenting thetwoendsofopportunityspectrum.Oneiswhere urineiscollected technologies andapproaches are possibleforPrecovery from humanexcreta, thischapterpresents prices higherthanthoseofphosphaterock, unlessnichemarketsare targeted. Althoughdifferent sludge disposalcostsare considered, asuntilrecently phosphaterecovery costsstillresult in for agriculturalproduction andsignificantprospects forcostrecovery if savings intreatment and an opportunityforincreased accessibilitytophosphorus(inviewofdiminishingglobalPresources) Phosphorus recovery from wastewateratscale Finally, there is alsothepotentialfor sludge-based compostwithrock-phosphate, urea/struvite orNPK,amongothers(seeRaoetal.,2016). to increase thesafetyand usabilityoffecalsludgeviacomposting,pelletizationandblending consumer riskreduction measures are criticallyneeded.There are emerging modelsandcasesthataim the cityoffers apartialwaste managementsolution,howeverbetteroversightandoccupational would havetopayatippingfeefordesludgingintotreatment system.Disposaltofarmlandsoutside cash flowasfarmerspaythecesspitdriversforfarm–gatedelivery, whereas normallythetransporter a casefrom Drechsel etal.,2011;Evans etal.,2013).Thebusinessmodelpresented inChapter12,supportedby fields. Thispracticeisincreasingly observedinSub-SaharanAfricaandSouthAsia(Cofieetal.,2009; sanitation process inthe formofcompostingfordirect disposalofrawfecalsludgeontheirfarm is largely drivenbyfarmers’highdemandfornutrient-richseptage,therefore bypassingamore formal more common( households tofarmers’fieldsinsteadofdesignatedorunofficialdumpingsites–withthelatterbeing in developingcountries,iswhere cesspittruckoperatorsdelivernutrient–richseptagecollectedfrom Beyond theformalavenuesofseptagetreatment vianutrientrecovery, aninteresting modelobserved scales andrecovered resources, seeRaoetal.,2016. the agriculturalsector;foramore extensivereview on fecalsludgereuse casesandmodelsatdifferent of thisbusinessmodel.Thecasepresented here only showsamedium-scaleoperationandlinksto ensure asustainablesanitationchain,publictoiletfeesremain thekeydriverforfinancialsustainability production forsustainablesanitationservicedelivery nutrient recovery toensure sustainabledeliveryof sanitation services( a casefrom chemical fertilizer)compared totheoftenlow-nutrientMSW-basedcompost. farmers haveagreat demandforthenutrient-richfecalsludge-basedcompost(oftenasubstitute OVERVIEW India, essentiallyrelegates septage treatment tothefarmandimportantlyreverses the Rwanda Copyright Business model15:Outsourcing fecalsludgetreatment tothefarm where privateentitiesare capturingthecommercial valueinfecalsludgevia Material Burkina Fasoandsanitizedinstorageunitsforprocessing intoliquid

phosphorus (P)recovery from humanexcreta ( – Provided ). Themodelpresented in Chapter13demonstrates by Canada asanexample.Thelatterapproach ). Itisimportanttonotethatwhilereuse can Taylor & Business model14:Compost Francis Chapter 11describes Business model16: ). This model 319 SECTION III: NUTRIENT AND ORGANIC MATTER RECOVERY 320 SECTION III: NUTRIENT AND ORGANIC MATTER RECOVERY Rao, K.C., Kvarnström, E.,DiMario, L.andDrechsel,Rao, K.C.,Kvarnström, P. 2016.Businessmodelsforfecalsludge Otoo, M.,RyanJ.andDrechsel, P. 2012. Where there ismuck,there ismoney. Handshake–IFC Otoo, M.,Drechsel, P. andHanjra,M.A.2015. Businessmodelsandeconomicapproaches fornutrient Pandyaswargo, A.H.andPremakumara,composting: D.G.J.2014.Financialsustainabilityofmodern Kinobe, J.R.,Niwagaba,C.B.,Gebresenbet, G.,Komakech,A.J.andVinnerås, B.2015.Mapping Kaza, S.,Yao, L.andStowell,A.2016.Sustainablefinancingpolicy:Modelsformunicipal F.,Hernandez-Sancho, Lamizana-Diallo,B.andMateo-Sagasta,J.2015.Economicvaluationof Edixhoven, J.D.,Gupta,J.andSavenije,H.H.G.2013.Recentrevisions ofphosphaterock reserves Evans, A.,Otoo,M.andDrechsel, P. 2013.Developingbusinessmodeltypologiesforresource recovery Drechsel, P., Qadir, M.andD.Wichelns(eds).2015.Wastewater: Aneconomicassetinanurbanizing Drechsel, P., Cofie,O.O.,Keraita,B.,Amoah,P., Evans,A.andAmerasinghe,P. 2011.Recoveryand Cofie, O.O.,Drechsel, P., Agbottah,S.andvanVeenhuizen, R.2009. from urban Benson, T., Lubega,P., Bayite-Kasule,S.,Mogues,T. andNyachwo,J.2012.Thesupplyofinorganic Asian DevelopmentBank(ADB).2011.Toward sustainablemunicipalorganic wastemanagementin References andfurtherreadings Research Program on Water, LandandEcosystems(WLE).80p. Watermanagement. Colombo,SriLanka:International ManagementInstitute(IWMI).CGIAR publicationonpublic privatepartnerships,WorldQuarterly journal Bank.1,May2012. Wastewater: Economicassetinanurbanizingworld. Springer, Chapter 13,pp.247–270. recovery from wastewaterandfecalsludge.In:Drechsel, P., Qadir, M.,Wichelns,D.(eds) ofRecyclingOrganic Journal WasteInternational inAgriculture 2014 (3):66. The economicallyoptimalscaleformunicipalwastecomposting plantindevelopingAsia. Manage. Assoc.65(2):197–205. out thesolidwastegenerationandcollectionmodels:ThecaseofKampalaCity. J.AirWaste Group. composting. UrbandevelopmentseriesKnowledgePapers24.Washington, D.C.:World Bank Environment Programme (UNEP).72p. wastewater: Thecostofactionandthenoaction.Nairobi, Kenya:UnitedNations phosphate rock reserves andresources. EarthSystemDynamicsDiscussions4(2):1005–1034. and resources: Reassuringormisleading?Anin-depthliterature review ofglobalestimates and -based businesses. UrbanAgriculture Magazine26:24–30. world. Springer. 282p. Magazine 25(September2011):66–69. reuse ofresources: Enhancingurbanresilience inlow-incomecountries.UrbanAgriculture Desalination 248(2009):256–261. waste: OptionsandchallengesforcommunitybasedcompostinginSub-SaharanAfrica. Discussion Paper1228.Washington, FoodPolicyResearch D.C.:International Institute(IFPRI). fertilizers tosmallholderfarmersinUganda:EvidenceforFertilizerPolicyDevelopment.IFPRI Asian DevelopmentBank. South Asia:Aguidebookforpolicymakersandpractitioners.MandaluyongCity, Philippines: Copyright Material – Provided NUTRIENT ANDORGANICMATTER RECOVERY by Taylor & Francis