techno-economical feasibility study of waste - to …infomesr.org/attachments/w15-p-0057.pdf ·...

International Journal on Power Engineering and Energy (IJPEE) Vol. (7) – No. (1)ISSN Print (2314 – 7318) and Online (2314 – 730X) January 2016

Reference Number: W15-P-0057 622

Techno-Economical Feasibility Study of Waste-to-Energy Using Pyrolysis Technology for Jeddah

Municipal Solid WasteSaid Ali Hassan ElQuliti

Department of Industrial Engineering, King Abdulaziz University (KAU),Jeddah, Saudi [email protected]

Abstract- Solid waste management becomes a majorchallenge for authorized persons especially in maincities in the country with a majority of the population.Traditional methods used for solid waste managementare neither efficient nor friendly to the environment.Moreover, the existing systems (landfills andincinerators) still wasting the valuable resources ofrecyclable material.Based on several scientific researches, municipal solidwaste contains organic material which is useful forproviding energy (fuel) and generating electricity andfertilizers. Pyrolysis is the irreversible thermo-chemicaldecomposition of organic material, this decompositionoccurs at high temperatures in the absence of oxygenor any halogen.This research tries to evaluate the technical andeconomical feasibly of pyrolysis technology based onreal application of the project in Jeddah city, Kingdomof Saudi Arabia. The importance of the research ishighlighted by the fact that there is a serious lack ofresearches studying feasibility of using non-conventional Waste-to-Energy technologies related todifferent areas and countries all over the world.It is important to convince concerned authorities suchas investors, municipalities and environmental agenciesto stop using the traditional methods for wastemanagement and apply the up-to-date technologies ofwaste-to-energy that are friendly to the environment,technologically efficient, cost effective and safe.

Keywords- Pyrolysis Technology; Waste-to-Energy;Municipal Solid Waste; Feasibility Study;Jeddah.

I. INTRODUCTION

Alongside the fast increase in population in theKingdom of Saudi Arabia (KSA), there has been a rapidincrease in the amount of waste being generated in theKingdom. Solid waste management has become a majorchallenge for the country and reports indicate that thewaste generated in the cities of Riyadh, Jeddah andDammam alone exceed 6 million tons per annum.

With a majority of the population living in urban areas,it has become pertinent for the government to quickly putin place scientific waste management and recyclingprograms to address these challenges.

Recently new rules and regulations for Municipal SolidWaste (MSW) management have been approved in allcities and villages of KSA to ensure an integratedframework for the management of municipal solid waste,which includes waste separation, collection, transportation,storage, sorting, recycling and processing.

Saudi Arabia is trying to adopt state-of-the-artmeasures in integrated waste management right fromcleaning to transfer stations in many places in thekingdom. The authorities are considering the option oftendering sorting lines in all places of Jeddah City. Thewaste collected will be sent to the sorting stations and thenthe residual material will go onward to the sanitarylandfill, where they are also looking at the option ofcapturing methane gas in future, thereby reducing adverseenvironmental impact.

The main challenge in KSA, as in many othercountries, is that of scavengers who collect waste materialsuch as cardboard boxes, cans, etc. from the source. It isnot easy to stop these activities, but the problem can bedecreased by using underground containers and certainscientific techniques in the collection process.Jeddah’s domestic solid waste is generated daily with highrates, transported to landfills and incinerators that resultsin environmental serous damages such as gaseousemissions and leach to groundwater.

Based on several scientific researches, it is found thatthe municipal solid waste contains organic material. Thismaterial is useful for providing energy (fuel) andfertilizers, then generating electricity power. Pyrolysis isthe irreversible thermo-chemical decomposition of organicmaterial. This decomposition occurs at high temperaturesin the absence of oxygen or any halogen. It is a type ofthermolysis or thermal decomposition. It occurs atdifferent decomposition temperatures for differentmaterials. Decomposition temperatures are temperatures atwhich material decompose chemically.

Challenges

During the last years, awareness of importance ofecology has increased which led to issuing anti-pollution

mailto:[email protected]



laws, in a trail to solve the pollution problem.Unfortunately traditional measures implemented areneither efficient nor friendly to the environment; on thecontrary, the existing systems (landfills and incinerators)still wasting the valuable resources, besides damaging theenvironment.

The main environmental challenges faced by the wholeKingdom including main cities like Jeddah are associatedwith current practices, a heavy reliance on landfill disposaland the lack of best practice technologies at present. Rapidpopulation growth will result in increased urban andindustrial development which in turn will lead to anincrease in the volume and types of wastes produced thatwould require treatment and will thus introduce furtherchallenges.

Processing, recovery and recycling within the Kingdomis limited and is currently completed by the informal sectoror by some private sector companies directly withcompanies that may purchase recycled materials.The importance of this research is to convince concernedauthorities such as investors, municipalities andenvironmental agencies to apply the up-to-datetechnologies and to build their decision based on scientificbases when dealing with the problem of municipal solidwaste management. They must search for systems that arefriendly to the environment, technologically efficient, costeffective and safe.

The research is organized as follows: Section 2 isdevoted for the literature review including wastegeneration, collection, transfer, segregation, treatment,recycling, disposal and management. Some of thesepublications are concerning waste management in Jeddahcity and other cities in Saudi Arabia and others are relatedto different countries all over the world. Section 3discusses the state of waste management in Jeddahincluding Jeddah Environmental Assessment and SocialMaster Plan, Landfill’s locations in Jeddah andcomposition of the Municipal Solid Waste (MSW).Section 4 deals with the technical feasibility study forapplying the pyrolysis project in Jeddah including thepyrolysis process system, key components and plant layoutand the plant thermal processing and layout. Section 5explains the economic feasibility study including the inputdata, net present value, internal rate of return, profitabilityindex and payback period. Section 6 includes theconclusions and points for future researches.

II. LITERATURE REVIEW

Different research projects, technical studies andresearches have been performed nationally andinternationally in different parts of the world to investigatethe best methods of solid waste management. Howeverthese studies left a number of options as open ended areas.Generating energy from waste, using a SISMan (SimpleIntegrated System Management) as a decision aid model isreported in many articles.

Williams (2005) [1] demonstrated Waste TreatmentTechnologies: Pyrolysis, Gasification, CombinedPyrolysis–Gasification, Composting and anaerobic

digestion in waste treatment and disposal. Four strategiesfor material recovery have been analyzed in (Connsonni etal., 2005) [2]. Eight different methods of Waste to Energyconversion are analyzed with Energy System Analysisapproach in (Munster and Lund, 2010) [3]. Recycling theFood waste and incinerating the plastic poly ethylene bagsand films, has been presented as a method of material andenergy recovery from municipal solid waste in (Chen andChen, 2013) [4]. Chen et al. (2013) [5] studied thedesorption of methylene blue onto char from pyrolysis ofmunicipal solid waste. A comparative analysis of Pyrolysisof real wastes like MSW and MPW at differenttemperatures using different catalysts is carried out in(Miscolczi et al., 2013) [6]. In a research by (Abu Bakarand Titiloye, 2013) [7] the rice husk, a part of MSW, hasbeen separated from other wastes and bio-oil has beenproduced through catalytic pyrolysis. The calorific valueof the oil thus produced is increased with variations incatalyst, and viscosity and acid content of oil is alsoreduced. An investigation for conversion of waste toenergy was carried out in Novi Sad, Serbia (Miljan andNaunovic, 2013) [8]. The authors have demonstrated thatelectricity generation through MSW incineration is anoption.

There are other topics related to Waste-to-Energywhere plenty of publications are dealing with. Amongthese subjects are waste generation, collection, transfer,segregation, treatment, recycling, disposal andmanagement. Some of these publications are concerningwaste management in Jeddah city and other cities in SaudiArabia and others are related to different countries all overthe world.

For example, Abu Rizaiza et al. (2000) [9] and Al-Ghamdi and Abu-Rizaiza (2003) [10] performed analyticalstudy of the amount and components of solid waste whichis produced in the Two Holy Mosques and in thesurrounding area by pilgrims and visitors during thereligious season (the month of Hajj and the month ofRamadan), Makkah and Al Madinah, Saudi Arabia and inother days of the year. They also reviewed the currentsystem for the collection and transfer of such waste to thepremises for final disposal. They concluded that thetraditional methods of collecting and transporting solidwaste impractical. The results of the study suggest that theair transportation system by pipeline is the best of thepossible alternatives.

Abu Rzizh and Al-Ghamdi (2003) [11] made use of theantenna proposal for the transfer of waste from the bridgeCarbuncles (Al-Jamarat) and methods which include theline biography in the region, without the need to enter thetrucks to the region. And after the presentation of the cityof Euro land Disney and gathered Sports Federation andthe Center for Exhibitions in Lisbon. Melibari (2003) [12]addressed environmental challenges by developing theenvironmental management system( EMS) model formunicipal solid waste in Jeddah city and developed aDecision support system DSS for municipal solid wastemanagement. He highlighted the importance of awarenessprograms while the overall conclusion is to avoid landfillsand to use several waste recycling.



Taylor (2000) [13] has pointed out three basic policyincentives to minimize the generation of MSW. Theseinclude social, psychological and economic incentives.Karak et al. (2012) [14] estimated the average trend ofMSW produced in developing countries. It turned out to be521- 759 Kg/person/year. The authors have also estimatedthe globally generated MSW. It comes out to be 2 billiontons per year.

Chenniti et al., (2013) [15] conducted a study inattempt to find the composition of household wastes. Itwas carried out in Algerian City of Annaba. On a suitablesample of citizens in different city areas for two years, thedata was collected in all seasons. 11 major types ofhousehold wastes were identified. The study showed thevariation in ratios of these waste contents depending on thehabitat.

Stephen (2004) [16] stated that urban pneumatic wastecollection systems are generally superior to conventional(vehicular/manual) waste collection systems in terms oftheir reduced environmental impacts, improved safetyrecord, increased amount of convenience, enhanced levelof aesthetics, improved degree of hygiene, and decreasedlong-term economic costs. Oduro-Kwarteng and Dijk(2013) [17] investigated the effect of increased privatesector involvement in solid waste collection in five citiesin Ghana.

Troschinetz and Mihelcic (2009) [18] focused onrecycling in developing countries as one form ofsustainable municipal solid waste management (MSWM).Twenty-three case studies provided municipal solid waste(MSW) generation and recovery rates and composition forcompilation and assessment. The average MSW generationrate was 0.77 kg/person/day, with recovery rates from 5–40%. The waste streams of 19 of these case studiesconsisted of 0–70% recyclables and 17–80% organics.Velis and Brunner (2013) [19] studied also waste recyclingand resource efficiency and highlighted that it is time for achange from quantity to quality.

Yu et al. (2013) [20] tested the bottom and fly ashes inMSW incineration in china. They found analyzed metalcontents and their physical properties in terms of particlesize and morphology. Also AbdKadir et al. (2013) [21]studied the incineration of municipal solid waste inMalaysia.

Manikpura et al. (2013) [22] carried out a quantitativeassessment of climate co-benefits from landfill gas (LFG)to energy projects was in developing cities of Asia. Theyindicated a growing trend of sanitary landfillsconstructions with gas recovery system. Siddiqui et al.(2013) [23] Reviewed past research and proposed actionplan for landfill gas-to-energy applications in India.

Hood, (2011) [24] has framed the potential of MSW asa biomass feed stock in plant biomass conversion. Hestudied the mechanisms of waste generation, analyzed theinfrastructure for disposal and transfer and discussed thecriterion for classification of MSW. He then identified thecellulosic content of MSW for the biomass feed stock.

Brito et al. (2013) [25] studied the feasibility ofcomposting of waste biomass obtained from MSW. The

physicochemical characteristic of the end product werefound to be suitable for soil improvement. Yousefi et al.(2013) [26] studied co-composting of Municipal SolidWaste with sawdust to improving compost quality.

Chueng et.al, (2006) [27] have pointed out a veryuseful practical implementation of MSW incineration thathas been tested for 10 years in Hong Kong. This MSW toEnergy conversion has led to integrated cement andelectricity production successfully for years. Chakrabortyet al. (2013) [28] also performed an assessment of energygeneration potentials of MSW in Delhi under differenttechnological options.

Chang (2009) [29] studied Municipal Solid Wastemanagement and disposal in environmentally consciousmaterials handling. Sevinç and Tönük (2010) [30]performed a study of litter and waste management policiesat primary eco-schools in Istanbul. Wang and Wang andWang (2012) [31] studied the characteristics andchallenges of municipal solid waste management inBeijing, China.

Motivation

Despite the fact that there are plenty of studies, articlesand projects dealing with different topics concerning wastemanagement including waste generation, collection,transfer, segregation, treatment, recycling and disposal asshown in this sample of literature review, but there is aserious lack of researches studying feasibility of applyingnon-conventional waste-to-energy technologies related todifferent areas and countries all over the world.

III. STATUS OF WASTE MANAGEMENT INJEDDAH

The definition of MSW varies substantially fromcountry to country and from region to region. Thisvariation is influenced by legal definitions andhistorical/current waste collection regimes. The definitionof waste types is generally dependent on the source of thewaste and its composition/characterization.

One of the first comprehensive reports on wastemanagement in Jeddah defines MSW according to theproducer and includes all the sub-categories listedhereunder:- Produced by the residents: Household waste, Bulky

waste and Resident gardens waste.- Produced by the commercial and administrative activities

(waste mixed with household waste in the containers orduring the collection): Commercial waste (from smallshops), Small hotels and restaurants waste, Industrialwaste (out of industrial zones or big factories), Officialand private institutions waste, Vehicles related waste(from small car workshops) and Slaughterhouses waste.

In 2010, the Waste Management Strategy for Jeddahproposed that MSW is defined as: “Waste generated byhouseholds, markets, small businesses and streetcleansing operations and collected by the Municipality’scontractors”.



Jeddah authorities designed a project that developed aJeddah Environmental Assessment (JEA) and a JeddahEnvironmental and Social Master Plan (JESMP) for theGovernorate of Jeddah, Figure 1. The project is beingmanaged by the Presidency of Meteorology andEnvironment (PME) of the Kingdom of Saudi Arabia(KSA) and forms part of a wider program of work of theJeddah Storm water Drainage Program (JSDP). The JEAcomprises an overarching State of the Environment (SoE)Report and supporting technical appendices, which include15 Data Assessment and Analysis (DAA) Reports and theMap Book. The DAA Reports examine the human andnatural environment of Jeddah from the perspective of 15technical areas: Air Quality, Archaeology and CulturalHeritage, Energy and Climate Change, Groundwater, LandUse, Marine and Coastal Environment, Natural Hazards,Noise, Public Health Socioeconomics, Solid Waste,Surface Water, Terrestrial Ecology, Traffic andTransportation and Wastewater.

The SoE is a source for developing EnvironmentalDegradation Report and the Cost of EnvironmentalDegradation (COED). The final management plan willcomprise the Waste Response Plan as a part of the JESMPfor the decision maker, Al-Abbadi (2015) [32].

In 2008, the old landfill in Jeddah was closed and anew sanitary landfill opened (Al-Asla). This landfill hasbeen licensed to receive only commercial and householdwaste, so other material including hazardous and industrialwaste are sent to various other locations for disposal,Figure 2.

Jeddah Municipality already has in place two majorplants on the landfill site and other factories for sortingand recycling in certain specific areas. In order to complywith the new regulations, the Municipality has introducedsource segregation, which is now operational and will beperformed as part of the new 5-year contracts from 2013–2018. Jeddah Governorate and its municipalities areresponsible for waste collection and cleansing, there are notaxes or charges on the residents of Jeddah for municipalwaste collection.

The cost of the collection service contracts is financedthrough the annual municipal budget. The annual cost formunicipal waste collection was about 100 million SAR in2005, 172 million SAR in 2009 and increased to 320million SAR under the current contracts, JeddahMunicipality (2015) [33].

Municipal waste collection in Jeddah is provided byprivate waste contractors appointed on behalf of JeddahMunicipality. The most recent waste collection contractswere awarded in February 2013. Currently, themunicipality is sub-divided into nine waste managementdistricts, and contracts for the collection and management

of cleansing waste in these districts have been awarded tofive private waste management companies. Largebins/skips (4.5 m3) are placed in high density residentialareas, public areas and commercial/industrial areas andnear schools. Smaller bins (1.5 m3) are placed in lowerdensity residential areas.Table 1 presents the contracted companies for cleaningand their sub-districts in Jeddah and

Table 1: Contracted companies for cleaning and their sub-districts in Jeddah.

No. Company Sub-District

1 Al Majal AlArabi Group

Thoual, Dhahban and Al-Janoub

2 SEDER Group Obhur, Jeddah Al-Jedeedahand Corniche

3 Al-YamamahTrading

Al-Matar, Buraiman and Al-Salam

4 Al-Fahad andSons

Al-Azizeyyah and Al-Jameiah

5 Al-Khodari andSons

Al-Balad and Jeddah Al-Tarekhauaa

Figure 3 shows pictures of Jeddah landfills and a mapof municipality cleaning contracts. The Jeddah authoritiesare thinking of ways to put into operation recycling plantsand at the same time considering the option ofremanufacturing products. There are plans to make use ofthe residual waste in manufacturing compost, aiming atmaking this landfill an integrated waste treatment facility.They already have a Tire recycling and shredding factory.Currently, the Al Asla landfill is the only municipalityowned facility within Jeddah for the recovery and/ordisposal of MSW. Information on the volume of MSWmanaged at this facility was provided by the SEDERGroup (2015) [34] appointed in early 2013 to operate thisfacility for 5 years. The reported volumes of MSWreceived in the site are summarized in Table 2.

Table 2: Daily Managed MSW Volumes at Al AslaLandfill.

Waste Type Volume in tons/day

Household waste 4,550Commercial Waste 1,200Bulk/Green waste 250

Total/day: 6,000Total/year: 2,190,000



Figure 1: Jeddah Environmental Assessment and Social Master Plan.



Figure 2: Landfill’s locations in Jeddah



Figure 3: Landfills and cleaning contracts in Jeddah.

The total MSW generation is most likely in the rangeof 3,300,000– 5,000,000 Tons per annum; and the volumeof MSW not managed within the existing formal wastemanagement system is most likely in the range 1,140,000– 2,800,000 tons per annum. The composition of the MSWis shown in Figure 4.

About 38 percent of the MSW is organic materialswhich is fruitful for the pyrolysis process. Other contentslike paper and cardboard, textile, plastics, metals and glassare suitable for recycling process which is proposed toaccompany the pyrolysis process.

IV. TECHNICAL FEASIBILITY STUDY

IV.1 Pyrolysis Process

There are several state of the art technologies for waste-to-energy conversion prevalent in the world today, Chang(2009) [29] like: Anaerobic digestion, Alcohol/ethanolproduction, Bioconversion of biomass to mixed alcoholfuels, Bio-drying, Gasification, Gas Plasma (Gasificationfollowed by syngas plasma polishing), In-vesselcomposting, Mechanical biological treatment, Mechanical



Figure 4: The composition of the MSW in Jeddah.

heat treatment, Plasma arc waste disposal (commercialdemonstration scale), Sewage treatment, Tunnelcomposting, UASB (applied to solid wastes), Wasteautoclave and Pyrolysis.

Pyrolysis is usually the first chemical reaction whichoccurs in the burning or incineration of wood, cloth,plastic and paper that constitute a major part of MunicipalSolid Waste (MSW) collected from cities. So amongstother methods of treatment of these MSW, pyrolysis hasits own importance as shown by recent research literaturereported in this study.

Investigations end up with a conclusion that thepyrolysis process might be divided into two categories:high-temperature pyrolysis, and medium-and lowtemperature pyrolysis. The main difference is that in thelower temperature processes more tar, char and oilproducts are formed, which can be recovered, whereas athigher temperature molten slag is formed. Hightemperature pyrolysis (better known as gasification) isquasi pyrolysis process and differs from the conventionalmass burning process in that the burning of volatile iscarried out in a separate section at such a high temperaturethat the solid products (ashes) can be drawn out as moltenslag and brought together with that of the main reactor.

The Anaerobic Thermal Desorption Unit (ATDU) fromRLC Technologies, Inc. (2015) [35] process has been usedextensively for oil separation and recovery throughout theworld including countries in the Middle East, SoutheastAsia, North America, and the Caribbean.

ATDU is a non-incineration technology designed toseparate hydrocarbons from various matrices includingoilfield waste, soil, sludge, sand, filter-cake, tank andtanker bottoms, organic-based hazardous waste andcontaminated soil in a non-oxidizing atmosphere withoutdestroying the hydrocarbons. It is successfully applied intreatment of different waste streams in particular oilysludge, drill cuttings, organic-based hazardous wasteprocessing and contaminated soil remediation. Detailedprocess description along with major ATDU systemcomponents description and function are discussed. TheATDU process offers a unique opportunity where the oilywaste material can be processed while not only separating

the hydrocarbons and generating a clean reusable solid butit also recovers hydrocarbons for beneficial recycling. Therecovered oil can be recycled back into the refiningprocess, back to drilling mud formulation, or cleaned andused to fire the ATDU burners or sold as fuel.

IV. 2 System Key Components and Plant Layout

Figure 5 illustrates the typical equipment layout of themain components:- A.T.D.U., includes:

ATDU Drum, Furnace, Main Drive, Feed Conveyorand Discharge Hood.

- Vapor Recovery Skid, includes:Interceptor, Process Blower, Tube and Shell HeatExchanger, Chiller, and Diaphragm Pumps.

- Cooling Tower Skid: includes:Two Cooling Towers, Cooling Water Pump, and Plateand Frame Heat Exchanger.

- Oil Water Separator.- Material Feed Hopper, includes:

Feed Hopper, Grizzly, Discharge Screws, Drives andReducers.

- Control Room, includes:Main Control Panel, PLC, Motor Control Center, andthe Operators Computer.The plant layout determines the place of production

processes, place of management, area for each departmentand section, means of communication betweendepartments and administrative facilities like: library,health care, fire protection, parking space, coffee andbreak room and storage room, etc.The buildings include: the main factory or plant buildings;ancillary facilities, for production, preparation; buildingsfor maintenance and repair, testing, research anddevelopment; storage and warehouses for stocks of MSWor products.

The ancillary construction include: Requirements forconstructions, structures, pipelines for utilities, waterstorage; electricity substation; approach and internal roads,ventilation, air-conditioning, and sewage lines andplumbing, etc.

IV. .3 Plant Thermal Processing

Thermal technologies encompass a variety of processesthat use or produce heat, under controlled conditions, toconvert MSW to usable products. The organic fraction ofMSW is converted to energy, and the inorganic fraction isrecovered as products (e.g., metal).

Thermal technologies can potentially convert allorganic components of MSW into energy (i.e., all carbonand hydrogen-based materials, including plastic, rubber,textiles, and other organic materials that are not convertedin biological processes). Distinctions between the differentthermal technologies center around the processingtemperature, the means of maintaining the elevatedtemperatures, and the degree of decomposition of theorganic fraction of the MSW.



Figure 5: Typical equipment layout.

Some thermal technologies, such as pyrolysis, crackingand depolymerization, produce a gas that also consists ofvarious low molecular weight organic compounds. Forthese technologies, the gas is sometimes called a fuel gasrather than a synthesis gas. Thermal technologiessometimes introduce a supplemental fuel (e.g., natural 4-4gas, coke, etc.) to improve the quality and consistency ofthe synthesis gas.

In summary, the following 14 companies, categorizedby technology type, were identified as candidates forparticipation in the City's new and emerging conversiontechnologies, Table 3.

V. ECONOMICAL FEASIBILITY STUDY

V.1 Economical Data

The cost for utilities including electricity and fuel is asfollows:Electricity: Starting from SR. 0.12 (US$ = 3.75 SR)to SR.0.26 per Kwh for industrial use.

Table 3: Candidate companies for providing the waste-to-energy technology.

AnaerobicDigestion

Thermal Hydrolysis

Arrow Ecology& Engineering

Ebara Masada Oxynol

CanadaComposting

GEM America Biofine

Orgaworld Global EnergySolutions (GES)

Organic WasteSystems

Interstate WasteTechnologies

Waste RecoverySystems

Rigel ResourceRecovery andConversion

Solena Group StartechEnvironmental



Fuel and Gas:- Diesel: SR.0.36 per liter.- Industrial Fuel Oil: SR.0.125 [US$0.033] per liter.- Liquid Gas: SR.2.81 MMBTU.

Water (Ministry of Water):- First group: SR. 0.10 per cubic meter from 1 to 50

cubic meters- Second group: SR. 0.15 per cubic meter from 51 to

100 cubic meters- Third group: SR. 2.00 per cubic meter from 101 to

200 cubic meters- Fourth group: SR. 4.00 per cubic meter from 201 to

300 cubic meters- Fifth group: SR. 6.00 per cubic meter from 301

cubic meters onwards.

Employee costs: 18% General Organization for SocialInsurance (GOSI) contribution for annuities is payable(9% by the employer and 9% by the employee) for Saudisemployed and 2% for occupational hazards: healthinsurance, transportation or compensation in lieu of carsfor more senior personnel, return tickets to the country oforigin and an end of service bonus payment.

Costs of Services: The costs of services are shown inTable 4.

Table 4: Costs of services for industrial organizations.

Service Cost of Service

Approval ofGeneral Plan

1 SR/square meter.Minimum SR. 5,000 and maximumSR.25,000

License forPrivate IndustrialCity

1 SR/square meter

License forTechnology Zone

1 SR/square meter

Modification ofthe activity orfacility name forthe same owner

SR. 5,000

Transfer ofownership of thesame license

SR. 5,000

License fees forcommercialentities

SR. 200 annually for each squaremeter of entities’ billboard area.

Project financing is available from specialized creditinstitutions in the Kingdom that have been set up toprovide long-term loans to vital sectors of the economy.These specialized credit institutions and their relatedfinancing areas are shown in Table 5. The charging cost ofobtaining industrial loan is 2.5%, the maturity period 5 to10 years starting after two years of production, Alasmry,M. A. M. (2014) [36].

Table 5: Credit institutions and related financing areas.

Institution Area of Financing and Assistance

SaudiIndustrialDevelopmentFund

Low-cost medium and long-termcapital for industrial projectsMarketing, technical, and financialadvice to all SIDF-financed projects toenhance their chances of success

PublicInvestmentFund

Medium and long-term loans to thelarge-scale government and privateindustrial projects not covered bycommercial banks

Real EstateDevelopmentFund

Medium or long-term loans toindividuals or organizations for privateor commercial housing projects

Saudi ArabianAgriculturalBank

Loans and credit facilities to farmersand agricultural projects

IslamicDevelopmentBank

Equity capital and loans for projectsthat foster the economic developmentand social progress of membercountries and Muslim communities.

The requested fund for implementing the project iscalculated using all the mentioned rates and costs as shownin the Table 6. The total annual operating costs are shownin Table 7, while the total income per year is shown inTable 8.

The following sections represent the calculation ofbasic parameters to measure the economic feasibility of aninvestment project based on theoretical calculations,ElQuliti (2013) [37].

V.2 Net Present Value

The difference between the present value of cashinflows and the present value of cash outflows. NPV isused in capital budgeting to analyze the profitability of aninvestment or project. It measures the excess or shortfall ofcash flows, in present value terms, once financing chargesare met.NPV = -28,522,600 + 4,450,322 (P/A, 5%, 15) =Using NPV Calculator (2015) [38]:NPV = + $17,670,220.52Since NPV > 0, the project is accepted and worth the risk.

V.3 Internal Rate of Return

The Internal Rate of Return (IRR) is defined as thediscount rate that makes the net present value of the cashflows (both positive and negative) equal to zero. In morespecific terms, the IRR is the interest rate at which the netpresent value of costs (negative cash flows) equals the netpresent value of the benefits (positive cash flows). Aninvestment is considered acceptable if its IRR is greaterthan an established minimum acceptable rate of return orcost of capital.Using Excel software (2015) [39], IRR = 13 %.



Table 6: Estimates of capital budget.

Job total(US$)

Total

(US$)

Unite Price(US$)QtyDescriptionItem

m2Site and PreparationA3,500,00014025,000Total Land1

70,0001,000Receiving & Sorting area2175,0002,500Waste shredding area3140,0002,000Preparation of recycle material4301,0004,300Facility area (concrete slap)5294,000

70

4,200Project internal roads680,000204,000Green area7

4,560,0004,560,000 Total:EquipmentBWaste receiving sorting and shreddingB1

50,00050,0001Truck scale ,80 Ton8120,00060,0002Conveyors, 200 ton /day9300,000300,0001300,000300,0001

Shredders: Coarse Shredder 50 mm andFine Shredder 50 mm

10

350,000350,0001Trommel11200,000100,0002Loaders , 5 Ton1260,00030,0002Tipper truck, 5 Ton capacity138,00020040Storage containers, 1 m314

5,948,0001,388,000 Total:16,000,0001,500,000

11

Thermal pyrolysis unitPyro- oil cleaning and Waste dryingequipment

B215

23,448,00017,500,000 Total:Miscellaneous equipmentB3

300,000300,0001Water treatment facility16490,000490,00011MW Electric generating set17500,00050,00010Crude oil storage tank, 100 Ton18200,000200,0001Sludge storage containers1975,00075, 0001Air compressor2075,00075,0001Nitrogen generating unit + tank21

25,088,0001,640,000 Total:Project related costsC

500,000Sea freight22250,000Local freight, and charges23250,000Management & commissioning24100,000Unforeseen costs25

1,500,000Operating capital2625,090,6002,600.000 Total:

Collecting solid waste equipment for 400 TPDD

300Collecting Manual Pins26800Mobile containers, 0.5 Ton27225 ton trucks283Trucks with hydraulic press, 20 Tons292Street sweepers30

Equipment of recyclable preparationE1Glass-grinding machine311Hydraulic press32

40Containers33

28,522,6003,432,000 Total:



Table 7: Total income per year.

Item Description Quantity UnitUnit price

(US$)Total

(US$)

1 Selling Recycled materials 1,750,0002 Pyro-oil 28,000 Ton/year 220 6,160,0003 Fertilizer 18,400 Ton/year 40 736,0004 Income from carbon credit Assuming no Carbon Credits 0

Total: 8,646,000

Table 8: Total annual operating costs.

Item Description Cost

1 Labor 636,0002 Energy 95,0003 Maintenance 408,0004 Miscellaneous 201,0005 Depreciation 2,000,0006 Operating capital interest (3%) 855,678

Total: 4,195,678

V.4 Profitability Index

Profitability index (PI), also known as ProfitInvestment Ratio (PIR), Value Investment Ratio (VIR),Benefit-Cost ratio (BCR) or Excess Present Value Index(EPVI) is an index that attempts to identify the relationshipbetween thecosts and benefits of a proposed project. It is the ratio ofinvestment to payoff of a proposed project.For a single project, a profitability index of 1 indicatesbreakeven, greater profitability index value is acceptable.If a project has profitability index (>1), then a companyshould perform the project. However if a project hasprofitability index (<1), a company should reject theproject. Any value lower than one, indicates that theproject's PV is less than the initial investment.

The ratio PI is calculated as follows:Profitability Index = Present Value of all Future CashFlows / Initial Cash Investment.Present Value of all Future Cash Flows = 4,450,322 ×(P/A,5%,15) =Using Present Value of Annuity Calculator (2015) [40],the Present Value of all Future Cash Flows = 46,192,821PI = 46,192,821 / 28,522,600 = 1.62Since PI > 1, then accept the project.

V. 5 Payback Period

The Payback Period represents the amount of time thatit takes for a Capital Budgeting project to recover its initialcost. In capital budgeting, payback period refers to theperiod of time required for the return on an investment to"repay" the sum of the original investment. The straight

payback period method is the simplest way of determiningthe investment potential of a major project.

The use of the Payback Period as a Capital Budgetingdecision rule specifies that projects with a Payback Periodless than a specified number of years should be accepted.Longer paybacks can be affected by such factors as marketchanges, changes in interest rates, and economic shifts.Shorter cash paybacks also enable companies to recoup aninvestment sooner and put it to work elsewhere.

The typical procedure to calculate the payback periodreduces to the calculation of cumulative cash flow till themoment in which it turns to positive from negative. It iseasily applied in spreadsheets.When the net annual cash inflow is the same every year,the following formula can be used to calculate the paybackperiod.

Payback period (without discounting) = Investmentrequired / Net annual cash inflow.The payback period (without discounting) == 28,522,600 / 4,450,322 = 5.05 years + 1 year (forproject installment)≈ 6 years, which is considered a very good economicindicator.

A better measure to use instead of regular paybackperiod is Discounted Payback Period. Discounted paybackperiod allows using discounted cash flow technique to findthe time period in which present value of future cash flowsequals the initial cash outlay.

Accordingly, present value tables must be used, andthe annual cash flows have to be discounted by theapplicable interest rate as in Table 9. From the table, theDiscounted Payback Period ≈ 9 Years.

VI. CONCUSIONS AND POINTS FOR FUTURERESEARCHES

A strategy based on applying the available state-of-arttechnology for the “waste-to-energy process” is a reliable,high quality, clean, cost efficient and safe solution for thetreatment of the MSW. Although plenty of publications arestudying waste management systems, waste recyclingand disposal, waste components and various methods ofwaste to energy, but few are concerning with pyrolysis



Table 9: Discounted payback period calculations.

YearCash Flows

($)PV ofCash

Flows ($)

CumulativeCash Flows

($)

0 - 28,522,600 -28522600 -285226001 4,450,322 4238402 -242841982 4,450,322 4036573 -202476253 4,450,322 3844355 -164032694 4,450,322 3661291 -127419785 4,450,322 3012153 -97298256 4,450,322 3320899 -64089277 4,450,322 3162761 -32461668 4,450,322 3012153 -2340139 4,450,322 2868717 2634705

10 4,450,322 -28522600 -28522600

technology from the theoretical process aspects. There is alack in studying the feasibility of real application of thetechnology as case studies.

This article represents a techno-economical investmentfeasibility study for the opportunity of applying thepyrolysis technology in Jeddah, Saudi Arabia. Thetechnical and economic studies reveal the feasibility of theproject for application as a management method forgetting rid of the MSW. The implemented case study inJeddah is a general one that can be repeated in other citiesin Saudi Arabia and other countries.Points for future researches can be summarized as:- To complete the legal, environmental and marketing

feasibility study for Jeddah city.- To repeat the feasibility study for other cities in Saudi

Arabia.- To apply the feasibility study in other countries.- To perform in reality the proposed project.- To compare the proposed pyrolysis technology with

others proposed for dealing with MSW.

REFERENCES

[1] P. T. Williams, (2005). Other Waste TreatmentTechnologies: Pyrolysis, Gasification, CombinedPyrolysis–Gasification, Composting, Anaerobic Digestion,in Waste Treatment and Disposal, Second Edition, JohnWiley & Sons, Ltd, Chichester, UK.doi: 10.1002/0470012668.[2] S. Consonni, M. Giugliano and M. Grosso (2205).Alternative strategies for energy recovery from municipalsolid waste: Part B: Emission and cost estimates, WasteManagement, 25 (2 SPEC. ISS.), pp. 137-148.[3] M. Munster, and H. Lund (2010). Comparing Waste-to-Energy technologies by applying energy systemanalysis, Waste Management, 30 (7), pp. 1251-1263.[4] C.C. Chen, and Y.T. Chen, (2013). Energy recovery ormaterial recovery for MSW treatments, Resources,Conservation and Recycling, 74, pp. 37-44.[5] H. Chen, C.H. Zhang, and T. Wang, (2013).Adsorption of methylene blue onto char from pyrolysis of

municipal solid waste, Applied Mechanics and Materials,345, pp. 163-166.[6] Miskolczi N., Ates F. and N. Borsodi, (2013).Comparison of real waste (MSW and MPW) pyrolysis inbatch reactor over different catalysts. Part II:Contaminants, char and pyrolysis oil properties, Bio-resource Technology, 144, pp. 370-379.[7] M.S. Abu Bakar, and J. O. Titiloye (2013). Catalyticpyrolysis of rice husk for bio-oil production, Journal ofAnalytical and Applied Pyrolysis, 103 , pp. 362-368.[8] M. Miljan, and Z. Naunovic, (2013). A sustainabilityanalysis of an incineration project in Serbia, WasteManagement & Research, November, 2013; vol.31,11:pp.1102-1109.[9] A. S. Abu Rizaiza, S. J Omar, and A. M. S. Al-Ghamdi, (2000), Alternative systems for transferring wasteform the area of the two Holy Mosques and thesurrounding squares (Transport by Pipeline), theCustodian of the Two Holy Mosques Institute of HajjResearch.[10] A. S. Al-Ghamdi, and A.S. Abu-Rizaiza, (2003).Pipeline transport of solid waste in the Grand HolyMosque in Makkah. Waste Manag. Res. 21.[11] A. S. Abu-Rizaiza, and A. S. Al-Ghamdi (2003). TheUse of the Antenna for the Transfer of Waste from theBridge Carbuncles, Hajj 1421 H, Saudi Arabia, TheCustodian of the Two Holy Mosques Institute of HajjResearch.[12] M.O. Melibari, (2003). Environmental managementsystem (EMS) of Jeddah Municipal solid wastemanagement, Ph.D. thesis, King Abdulaziz University,Jeddah, Saudi Arabia.[13] D.C. Taylor, (2000). Policy incentives to minimizegeneration of municipal solid waste, Waste Management& Research, vol. 18, 5: pp. 406-419.[14] T. Karak, R. M.Bhagat and P. Bhattacharyya (2012).Municipal solid waste generation, composition, andmanagement: The world scenario, Critical Reviews inEnvironmental Science and Technology, 42 (15), pp.1509-1630.[15] H. Cheniti, T. Serradj, K. Brahamia, A.Makhlouf, and S. Guerraiche, (2013). Physical knowledgeof household waste in Algeria: Generation andcomposition in the town of Annaba, Waste Management &Research, November 2013; vol. 31, 11: pp. 1180-1186., first published on September 11, 2013.[16] B. J. Stephen, (2004). In-depth Report on theDevelopment, Advancement, and Implementation ofPneumatic Waste Collection System, IndependentResearch Project, pp. 29-30.[17] S. Oduro-Kwarteng, and M. P. Dijk, (2013). Theeffect of increased private sector involvement in solidwaste collection in five cities in Ghana, Management &Research, October 2013; vol. 31, 10 suppl: pp. 81-92., firstpublished on July 15, 2013.[18] A. M. Troschinetz, and J. R. Mihelcic, (2009).Sustainable recycling of municipal solid waste indeveloping countries, Waste Management 29 . 915–923.[19] C. A. Velis, and P. H. Brunner, (2013). WasteRecycling and resource efficiency: it is time for a change



from quantity to quality, Management & Research, June2013; vol. 31, 6: pp. 539-540.[20] J. Yu, L.Sun, J. Xiang, L. Jin, S. Hu, S. Su, and J.Qiu, (2013). Physical and chemical characterization ofashes from a municipal solid waste incinerator in China,Waste Management & Research , July 2013; vol.31, 7, pp.663-673, first published on April 25, 2013.[21] S. A. S. AbdKadir, C. Y. Yin, M. R. Sulaiman, X.Chen and E. M. Harbawi, (2013). Incineration ofmunicipal solid waste in Malaysia: Salient issues, policiesand waste-to-energy initiatives. Renewable andSustainable Energy Reviews, 24, pp. 181-186.[22] S. N. M. Menikpura, J. Sang-Arun, and M.Bengtsson, (2013). Climate co-benefits of energy recoveryfrom landfill gas in developing Asian cities: a case studyin Bangkok, Waste Management & Research, October2013; vol. 31, 10: pp. 1002-1011.[23] F. Z. Siddiqui, S. Zaidi, S. Pandey, and S. Khan,(2013). Review of past research and proposed action planfor landfill gas-to-energy applications in India,Waste Management & Research, January, 2013; vol. 31,1:pp. 3-22.[24] E. E. Hood, P. Nelson, and R. Powell, (2011).Municipal Solid Waste as a Biomass Feedstock, JohnWiley & Sons, Inc., Hoboken, NJ, USA. Published Online:16 MAR 2011. DOI: 10.1002/9780470959138.[25] L. Brito, I. Mourão, J. Coutinho, and S. Smith,(2013). Composting for management and resourcerecovery of invasive Acacias pecies, Waste Management& Research, November 2013; vol. 31, 11: pp. 1125-1132., first published on September 11, 2013.[26] J. Yousefi, H. Younesi, and S. M. Ghasempoury,(2013). Co-composting of Municipal Solid Waste withSawdust: Improving Compost Quality. Clean Soil AirWater, 41: 185–194. doi: 10.1002/clen.201100315[27] W. H. Cheung, K. K. H. Choy, D. C. W. Hui, J. F.Porter and G. Mckay, (2006). Use of Municipal SolidWaste for Integrated Cement Production. Dev. Chem.Eng. Mineral Process, 14: 193–202.doi: 10.1002/apj.5500140117.[28] M. Chakraborty, C. Sharma, J. Pandey and P. K.Gupta (2013). Assessment of energy generation potentialsof MSW in Delhi under different technological options,Energy Conversion and Management, 75 , pp. 249-255.[29] S. Y. Chang, (2009). Municipal Solid WasteManagement and Disposal, in Environmentally Conscious

Materials Handling (ed M. Kutz), John Wiley & Sons,Inc., Hoboken, NJ, USA.doi: 10.1002/9780470432730.ch5[30] K. K. Sevinç, and S. Tönük, (2010). A study of litterand waste management policies at (primary) eco-schoolsin Istanbul, originally published online 15 December 2010,DOI: 10.1177/0734242X10389106,The online version ofthis article can be found at:http://wmr.sagepub.com/content/30/1/80[31] H. Wang, and C. Wang, (2012). Municipal solidwaste in Beijing: characteristics and challenges, WasteManagement & Research, January 2013, vol. 31, 1: pp. 67-72, first published on November 27, 2012.[32] T. Al-Abbadi, (2015). Status of solid wastemanagement in Saudi Arabia, Waste & Recycling MiddleEast, Issue # 5, Vol: 3. Accessed on 10 July 2015.http://www.waste-recyclingme.ae/article-details.php?ArticleID=1234601[33] Jeddah Municipality (2015). Website:https://www.jeddah.gov.sa/english/[34] SEDER Group (2015). Website:https://plus.google.com/116367576474618725741/about?gl=sa&hl=en[35] RLC Technologies, Inc., (2015). Washington, USA,website: http://www.rlctechnologies.com/[36] M. A. M. Alasmry, (2014). Technical FeasibilityStudy of Pyrolysis Technology for Jeddah Municipal SolidWaste Management, M.Sc. Project, Department ofIndustrial Engineering, King Abdulaziz University,Jeddah, Saudi Arabia.[37] S. A. H. El-Quliti, (2013). Feasibility Study with casestudies, 2nd edition, Department of Industrial Engineering,King Abdulaziz University, Saudi Arabia.[38] NPV Calculator (2015). Website, accessed in 17 July2015:http://www.free-online-calculator-use.com/npv-calculator.html[39] Excel software (2015). Website accessed on 17 July2015:http://www.investopedia.com/ask/answers/022615/what-formula-calculating-internal-rate-return-irr-excel.asp[40] Present Value of Annuity Calculator (2015). Website,accessed on 17 July 2015:http://financialmentor.com/calculator/present-value-of-annuity-calculator.

http://wmr.sagepub.com/content/30/1/80

http://www.waste-recyclingme.ae/article-

www.jeddah.gov.sa/english/

http://www.rlctechnologies.com/

http://www.free-online-calculator-use.com/npv-

http://www.investopedia.com/ask/answers/022615/what-

http://financialmentor.com/calculator/present-value-of-

techno-economical feasibility study of waste - to …infomesr.org/attachments/w15-p-0057.pdf ·...

Documents