PILOTING OUTPUT BASED AID: ’S ORGANIC DIVERSION WASTE POLICY

Prepared By Phee Boon Poh & Khor Hung Teik Penang State Government, 12 Aug 2014

1 PENANG, MALAYSIA • was established in 1786 by Capt. Francis Light of the British East India Company •Mainland Penang (Province Wellesley) was occupied in 1790, and placed together under the administration of Straits Settlement. •Independence since 31 Aug 1957 •George Town, a port town, was developed as hub for trading, commerce and culture. .Country : Malaysia •Coordinates: 5o24’N 100o 14’E •Area: 1,048 km2 •Population: 1.6 million (as of 2010) •GDP : RM 49.5 billion (as of 2010) •Human Development Index : 0.773 •Urbanization: 80%

2 Composition of MSW, MPPP and MPSP, 2003 Source: Satang 2003

UNDP SWM Study Report 2007

Item MPSP MPPP Tonnes % Tonnes % Food 605.84 50% 206.23 33% Yard & Garden 148.99 12% 59.86 10% Paper 54.12 5% 176.15 28% Plastics 208.10 17% 89.89 15% Textile/Rubber 38.48 3% 19.02 3% Metal 43.36 4% 29.09 5% Hazardous 2.69 0% 1.92 0% Others 98.42 8% 37.74 6% Total 1,200.00 619.90 Table 4: Estimate of Solid Waste Generation by Source on Penang Island Source: estimated by Study Team, 2005 (UNDP SWM Project) Note: There are high proportions of organic and recyclable waste fractions in this estimate. Source Waste Generation Amount of Waste Organic Waste Recyclable Waste Non-Recyclable rate (kg/c/d) (tonne/day) (tonne/day) (tonne/day) Waste (tonne/day)

Household (HR) 0.91 400.7 143.1 194.5 63.2 Household (LR) 0.91 119.0 42.5 57.7 18.8 Household 0.84 98.3 35.1 47.7 15.5 (Individual) Industrial 1.5 246.4 6.6 234.1 5.7 Wet market (stall) 19.3 40.6 37.5 3.1 0.1 Hawkers stall 8.67 19.7 18.7 0.8 0.2 Hotel (room) 1.35 17.0 15.8 1.1 0.0 School 0.009 2.8 1.7 1.1 0.0 College 0.016 0.3 0.1 0.2 0.0 Hospital (Beds) 0.57 2.3 1.5 0.8 0.0 Hypermarkets (m2) 0.0013 0.9 0.2 0.7 0.0 Universities 0.99 14.9 11.7 11.3

Turf Club (Manure) 10.0

Total 962.9 320.2 541.8 103.2

4 Penang Waste Generation 2005 - 2013

Year Waste Disposed at Landfill Per Recycling Per Year (metric tons) Total Waste Recyclin Year (metric tons) Generation g Rate Per Year (%) MPPP MPSP Total MPPP MPSP Total (metric Tons) A B C=(A+B) B/C 2005 280,489 416,254 696,743 57,178 96,032 153,210 849,953 18.03% 2006 295,498 463,750 759,248 82,210 119,964 202,174 961,422 21.03% 2007 216,490 490,729 707,219 80,351 125,504 205,855 913,074 22.55% 2008 218,440 472,005 690,445 33,775 124,121 157,896 848,341 18.61% 2009 216,456 428,563 645,019 61,307 132,039 193,346 838,365 23.06% 2010 213,591 426,152 639,743 63,756 129,804 193,560 833,304 23.23% 2011 209,701 401,663 611,364 72,341 144,682 217,023 828,387 26.20% 2012 205,972 370,989 576,961 82,405 157,286 239,691 816,652 29.35% 2013 204,798 427,706 632,504 80,229 207,849 288,078 920,582 31.29% Source: Penang Island Municipal Council (MPPP), 2014 Seberang Municipal Council (MPSP), 2014 Targets for Organic Waste Reduction for Penang State

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Organic waste Reduction 5 10 20 30 40 50 60 70 80 100 (%)

Source: PEMANDU SWM Lab, 2011

6 Project objective

Output-based neighbourhood incentive payment program to incentivize household organic waste separation at source. Results-based Financing (RBF) In Penang’s Solid Waste Sector •What •Use an output-based incentive payment program in highrise buildings to encourage household organic waste separation •Goal •Successful source separation that in turn minimizes the quantity of garbage sent to landfills •Expected Benefits • Cost savings to municipality (extended life of landfill) • Re-use of organic waste in the form of organic compost fertilizer • Reduction of methane emissions from the MSW sector Proposed RBF Design Source-Separation of Organic Waste

• Residents separate and deposit organic High Rise Buildings waste on-site facility

Local Authority / • Collects waste from highrises and Private Company transports it to composting center

VA • Measure total quantity and quality of separated organic waste (Verification Agent) PIU • Calculates incentive payment (Project Implementation amount based on IVA score Unit) Pilot Projects Sites Penang Island 1. Taman Pelangi Flats, Lebuh Macallum, Penang Island – Medium Cost Apartments 2. River Road Flats, Penang Island – Low Cost Flats

Seberang Perai 1. Taman Tanjung Indah Flats Butterworth. – Low Cost Flats 2. Taman Pandan Apartments, Butterworth. – Medium Cost Apartments 3. Harbour Place, Jalan Chain Ferry , Butterworth – High end Condominiums No Item Block 9, Pelangi River Road Low The Peak Park View Condo, Taman Pandan Taman Tanjung Apartment, Gat Cost Flats Residences, Mt Harbour Place, Butterworth Indah Flats, Lebuh Erskine, Penang Butterworth Butterworth Macallum, Island Penang Island. 1 Total number of blocks 5 2 3 1 3 1 on site:

2 Number of units per 192 Block A: 279 203 1 119 63 block : Block B: 250 316 357 63 Overall total units: 960 529 609

3 Estimated number of 35 50 45/50 240 107 63 participating households :

4 Intended method / Bio-regen Bio-regen Bio-regen Divert food waste Divert food Divert food waste current method to Machine Machine Machine to Waste waste to Waste to Waste treat or divert the processing plant processing processing plant organic waste: plant

5 Estimated number of 5 5 5 / 6 3 4 4 occupants per household:

6 Current waste Residents bring Floor to floor Floor to floor Floor to floor Bring to Bring to common collection approach to Bio-regen collection, then collection, then collection, then common area area every day e.g. floor by floor, Machine bring to bring to common bring to common every day door to door common area area every day area every day collection, bring to every day common area / waste bin, frequency of

11 Current waste Residents bring Floor to floor Floor to floor Floor to floor Bring to Bring to common collection approach e.g. to Bio-regen collection, then collection, then collection, then common area area every day floor by floor, door to Machine bring to bring to common bring to common every day door collection, bring to common area area every day area every day common area / waste every day bin, frequency of collection, estimated amount per day etc.

Estimated amount per (660kg x 3 bins x 500 kg/day 912 kg/day 339 kg/day 500 kg/day 130 kg/day day (kg/day) 80% full) (1.072 Estimated 1.5 kg/household) tonnes

Methodology to Food waste Food waste Food waste Food waste Food waste Food waste document and verify weighed daily weighed daily weighed daily weighed at weighed at weighed at amount of organic before being before being before being collection point collection point collection point waste disposed. processed by processed by processed by Bio- before before before transporting Bio-regen Bio-regen regen Machine. transporting to transporting to to Bagan Ajam Machine. Machine. Water meter Bagan Ajam Bagan Ajam Market Waste Water meter Water meter readings taken by Market Waste Market Waste Processing Plant. readings taken readings taken collector to verify Processing Plant. Processing Plant. Reweighing at by collector to by collector to weight of food Reweighing at Reweighing at Waste Processing verify weight of verify weight of waste deposited Waste Processing Waste Plant food waste food waste Plant Processing Plant deposited. deposited

Waste Collection A centralized A centralized A centralized A centralized A centralized Facility A centralized rubbish rubbish collection rubbish collection rubbish rubbish collection rubbish collection area area for each area for each block collection area area at entrance collection area for each block block with a with a Refuse for each block Refuse Room at Room at each floor each floor

12 10 Number of ROROs/ 3 units of 660l 1 114 (1 x 38 flr x 3 1 3 1 waste bins and capacity bins for 1 unit of blocks) block 11 Daily Average Per 3.26 2.42 2.23 2.77 2.17 Household (kg) – Study Results 12 Average No. of Persons 3.7 5.4 3.3 5 3.2 per Household – Study Results 13 Average Weight per 0.89 0.45 0.68 0.55 0.68 capita / day (kg) – Study Results

13 Penang Island – Highrise Pilot Projects

Taman Pelangi Medium Cost Apartments Separation of Organic waste via food processing machine River road low cost flats Markets

FOOD TO FOOD The BIO-REGEN Process

16 FOOD FROM FOOD

FOOD WASTE Fertilizers / Soil Amenders MACHINE /Conditioners

COMPLETE CYCLE MPPP Chosen technology PROGRAM MAJLIS PERBANDARAN PULAU PINANG “MAKANAN MENJADI BALIK MAKANAN” PUSAT PENJAJA Projek Untuk Menukar Sisa Makanan Kepada Baja Bio-Cecair PENANG ISLAND MUNICIPAL COUNCIL “FOOD TO FOOD” PROGRAMME BAYAN BARU HAWKER CENTRE A Project to Convert Food Waste into Liquid Bio-Fertiliser BIO LIQUID SOIL AMENDERS PROJECT AT HAWKER CENTRE Food Waste Diversion from Aug 2011 till Jul 2014

Location Grand Total (kg) Bukit Jawi Golf Course 93,068.00 Girl Guides .A 1,780.00 B.B Market 118,984.50 Market 13,982.00 Campbell Street 20,818.00 Heng Ee High School 43,640.00 Union High School 3,700.00 Convent Greenlane 4,635.00 BM Sains School 12,740.00 Convent Light Street 4,960.00 Methodist B. School 1,100.00 Taman Pelangi 20,800.00 Jln Sungai Low Cost Flats 600.00 Total 340,807.50

21 – Highrise Pilot Projects

Taman Pandan , Butterworth Park View Condo, Harbour Place, Butterworth

Separation of Recyclables & Food Waste BAGAN AJAM WET MARKET WASTE COMPOSTING PLANT

23 Food Waste Diversion since 2011 - June 2014

No. Location Amount (kg) Factories (Intel, Phillips, Motorola, Agilent, IBT, 1 185,390.00 Sony) 2 Hotels 9,633.00 3 Schools 5,989.00 4 Residential areas 11,512.50 TOTAL 212,524.50

24 Results of Highrise Residential Waste Composition Survey

Daily %

Food

Glass

Paper

waste

Plastic

-

Others

Garden

Ferrous Ferrous

E

-

Hazardous

Site

per per Household

Household Household (kg)

Non

capita / day (kg) day / capita

Daily Average Per Per DailyAverage

Textile/ Rubber Textile/

Average Weight per per Weight Average Average No. of Persons ofNo.Persons Average

Taman 33.87 15.73 7.66 4.94 17.98 2.00 4.33 13.49 3.26 3.7 0.89 Pelangi River Road 42.09 10.06 8.39 5.36 7.31 0.26 5.56 20.97 2.42 5.4 0.45 Flats Park View 35.08 13.79 10.58 5.08 11.45 1.07 3.95 18.99 2.23 3.3 0.68

Taman 34.28 11.99 8.51 9.74 11.85 3.36 20.28 2.77 5.0 0.55 Pandan Taman Tj 37.68 10.75 7.21 4.12 12.27 1.04 7.47 19.47 2.17 3.2 0.68 Indah Overall 36.0 12.5 8.5 5.8 12.2 1.5 5.3 18.6 2.57 4.12 0.65 Average 25 Incentive Calculator

INCENTIVE CALCULATOR - SUMMARY TABLE

Instructions: 1. [Please populate the yellow boxes with data collected for each cycle] 2. [The Incentive Payment calculation is based on the assumptions made in the following detailed spreadsheets] 3. [Please review carefully the cycle lengh (box E4) and the minimum QTF Score (box E5) in the following detailed spreadsheets]

MPPP MPSP Taman River Park Tamam Tamam Pelangi Road View Pandan Tanjung Indah

FOOD WASTE ACTUALLY SEPARATED PER 40.0 17.0 15.0 12.0 6.0 CYCLE (TONS/CYCLE)

INCENTIVE PAYMENT (MYR/CYCLE) 4248 1805.4 431.31 904.60 327.63 26 Main Assumptions MPSP PHI and Incentive Calculator Length of a Cycle (Months) 3 Minimum Quantity of Separated Food Waste (QTF) Score 30 Ton of CO2 per ton of organic waste 1.7 Price of CO2 (MYR/ton of CO2) 24

Tamam Tanjung Savings Waste Characterization / Unit Park View Tamam Pandan Indah Cash Savings 193.26 Number of Households 316 357 63 Tipping fees (MYR/Metric ton) 20.26 Average Number of person per Households 3.3 5 3.2 Transportation costs (MYR/Metric ton)* 173 Average Daily total waste per Households (kg) 2.23 2.77 2.17 Non Cash Savings 46.8 Average portion of Organic Waste 0.35 0.34 0.38 CO2 Emissions (MYR/Metric ton) 40.8

Landfill lifespan extension (MYR/Metric ton) 6 Total residential organic waste generated per cycle Total Savings (MYR/metric ton) 240.06 (tons/cycle) 22.57 30.76 4.75

Food waste actually separated and collected per cycle Costs for the State (Tons/cycle) 15.00 12.00 6.00 Transport costs (MYR/Metric ton) ** 150 Operating costs - Salary of the operator (MYR/Metric ton) 0 Quantity of Separated Food Waste (QTF) Score (per Total Costs for the state (MYR/metric ton) 150 cycle) 66.47 39.01 126.23

NET SAVINGS PER METRIC TONS (MYR) PHI - POTENTIAL SAVINGS (MYR/CYCLE)

Cash & Non Cash 90.06 PHI - Cash & Non Cash 1,350.9 2,880.7 540.4 Cash Only 43.26 PHI - Cash Only 648.9 2,319.1 259.6

INCENTIVE PAYMENT (MYR/CYCLE) Cash & Non Cash 897.91 1123.66 682.07 Cash Only 431.31 904.60 327.63

* MPSP has fully internalized the collection/transportation of its waste since 1 July 2014. ** MPSP is collecting/transporting the waste to Shence facilities instead of Pulau Burung so the cost of transportation are a little 27 lower for MPSP PROGRAM TIMELINE AND EVALUATION PERIOD

1 cycle = 3 months

JAN MAR APR JUN JUL SEP OCT DEC

1st Cycle 2nd Cycle 3rd Cycle 4th Cycle

1/1/2015 -31/3/2015 1/4/2015 -30/6/2015 1/7/2015 -30/9/2015 1/10/2015 -31/12/2015

Incentive Payment : 1st cycle: 2nd cycle: 3rd cycle: 4th cycle: APRIL 2015 JULY 2015 OCTOBER 2015 JANUARY 2016 Best Practices documentation –on going

Schools Markets • True Light Elementary School • Bagan Ajam Market • Tun Syed Sheh Shahabundin Science • Campbell street Market School Commercial area Residential Area (by Citizens) • Auto City (Golden highway Auto-City • Permatang Nibong Resource Center SD BHD)

Residential Area (by NGO) • Environnent Resource Center Taman Desa Damai

Residential Areas (by CCAC Pilot sites) • Taman Pelangi • Taman Pandan

Hospital • Hospital Lam Wah Ee 29 Brochures

30 Composting Manual

31 Posters

32 Other on-going Organic Waste Diversion Projects

• Food to Food Programme Residential area composting / Individual household composting • Green Waste Composting

33 Green Waste Treatment Utiilisng Methane-free fermentation technologies Ampang Jajar Waste Transfer Station

Windrow Composting of Municipal Green Waste THE GROUNDSWELL™ PROCESS GREEN WASTE Groundswell Static Fermentation Process Waste to top soil

4-6 weeks 8-12 weeks

Inoculating Picking Stage Stage With Stage Turning & Stage Incoming Curing Starter & Respraying 1 Waste 2 3 4 Seeder In the Pipeline • Waste Separation at Source By-laws • Waste Generator’s Pays Principle for Industrial & Commercial Sector • Hotels • Institutions • Other organic waste – Animal Carcasses – Municipal Food waste – Bio-mass – Waste to energy via bio gas • Other technologies • Formulation of local laws and regulations 38 REVIEWING THE PENANG ORGANIC WASTE POLICY • The Penang Organic Waste Policy seeks to encourage the separation and treatment of organic waste at source in order to divert such away from the landfill prolonging its lifespan and reducing municipal cost. This is part of Penang’s local action towards a global commitment to mitigate the effects of global warming and climate change. • In any natural system the organic outputs of any natural process become the inputs for another natural process. In this regard, Penang’s Organic Waste Policy will seek to emulate nature and return all organic outputs to food production, parks and gardens

39 In the Pipeline Tackling Organics and Methane Generation at theLandfill • Possibility of landfill gas extraction in the closed Phase 1 and Phase 2 of the landfill. • Turning the 300 acres of Oil Palm waste into a resource at the new Phase 3 of the Landfill. • Establishing an MRF to separate the daily incoming mixed waste and dealing with the organic waste faction (400-600 tons/day) using a bio-digestion technology in Phase 3. • Regional Workshop March 2015

40 PROPOSED PENANG’S VOLUNTARY CARBON OFFSET SCHEME

Original Photo: churchofnobody.blogspot.com OBJECTIVES

• To divert the amount of organic waste (putrescibles) from the Pulau Burong Sanitary Landfill and moving towards a total ban in the long 1 term.

• To reduce the costs of collection, transfer and treatment of organic 2 waste for the local authorities by treating organic waste at source.

• To incentivise organic waste treatment by private and community efforts 3 through costs savings by local authorities.

• To emulate nature and return all organic outputs to food production, parks and gardens and energy production thereby completing the 4 nutrient cycle to ensure a sustainable food supply and security.

42 CONCLUSION

• Generate a beneficial by-products = use reduction and conversion of organic waste to earn carbon offsets? • Reducing the amount of organic waste sent to landfill = reducing greenhouse gas emissions • Diverting green waste and organics divert up to 40 to 50% of the waste from landfill = cost savings • Continuous awareness campaigns needed for participation

43 44