This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/value-chain-analysis-under-competing-municipal-solid-waste-management-models-992 DESCRIPTION This analysis crystallises key energy-from-waste (EfW) value flows into distinct monetisation streams and elaborates the likely economic impact.

1. VALUE CHAIN ANALYSIS UNDER COMPETING MUNICIPAL SOLID
WASTE MANAGEMENT MODELS
INTRODUCTION
Below we propose a governing objective that supports the adoption of an integrated
Energy-from-Waste (EfW) model. We then compare the Value Chain of the prevailing
Municipal Solid Waste (MSW) management model with that of the proposed EfW
model. Finally, we crystallise EfW value flows into distinct monetisation streams and
elaborate the likely economic impact.
GOVERNING OBJECTIVE
It is absolutely essential for the Government of Jamaica (GOJ) to establish a
municipal and industrial waste management policy framework that encourages
the operation of fewer and smaller landfill sites, while promoting the
development of waste-based value added by-products. This can be facilitated
through the adoption of Mass Burn waste incineration technology that obviates the
need for waste screening and pre-treatment (including compaction) and the
considerable capital outlay for this purpose currently being borne by landfills that are
owned and operated by the National Solid Waste Management Authority (NSWMA).
A more integrated approach, however, would require the inauguration of a
commercial EfW project with the potential to underpin a national target to reduce the
amount of solid waste sent to landfills at the end of 2015 by 25% relative to 2010
levels. That said, we now proceed to analyse the value chain of the current Municipal
Solid Waste Management (MSWM) model.
Figure 1. CURRENT VALUE CHAIN
WSA
WSA
Property Tax
Residential and
Business Customers NSWMA Contractors
Private Waste Management
Companies
Tipping Fee (US$6 per truck)
NSWMA Landfill
WCA
Collection
Fee
Notional WCA
Tipping Fee
(US$6 per truck)
Sites
WCA - Waste Collection Agreement
WSA - Waste Supply Agreement
Copyright © 2011 by Philip S. Baker. All rights reserved. 1

2. VALUE CHAIN ANALYSIS UNDER COMPETING MUNICIPAL SOLID
WASTE MANAGEMENT MODELS
Figure 2 reflects a potential increase in revenue flows relative to the current model
that is encapsulated in Figure 1. Indeed, with the adoption of an EfW approach, the
waste is delivered directly to the EfW facility’s bunker, removing the need for landfill
waste storage and compaction. This means that fewer and smaller landfill sites will
ultimately be needed. And in this case, they will serve largely as repositories for the
Bottom Ash Residue (BAR), particulates and ferrous and non-ferrous metal received
from the EfW facility. In addition, both the NSWMA’s contractors and the private
waste management companies earn a tipping fee of US$6 per tonne. However, there
is an additional revenue flow in the form of a tipping fee of US$4 per tonne (lowered
in this case for a pulverized substance that is therefore less bulky). This is expected
to be paid by the EfW facility to the NSWMA for sending screened BAR, Flue Gas
particulates as well as Ferrous and Non-ferrous metal to its landfill sites. These
represent feedstock that the NSWMA would do well to seek to monetise. On this,
more will be said below as we attempt to crystallise the value flows depicted in Figure
2 into concrete monetisation streams, while identifying the likely economic impact.
MSW MANAGEMENT – POSSIBLE MONETISATION STREAMS
o The proposed governing objective that is intended to ensure that fewer and
smaller landfill sites are operated offers the real prospect of saving significant
acreages of diminishing landfill space (hardly anyone wants a landfill in close
proximity to their home) and attenuating the fire hazard risk associated with
methane accumulation.
o A reduction in methane (and other) emissions could be monetised in the form
of valuable carbon credits.
o The MSW that is transported to the EfW facility and tipped into the waste
bunker represents a vital indigenous feedstock that can and should be
monetised. In these circumstances, a Bureau of Standards of Jamaica (BSJ)-
monitored Weightbridge could be set up at the EfW facility for the specific
purpose of calculating the weight of the waste.
o Three (3) non-hazardous Solid Residues derived from the incineration
(combustion) process are identified, namely the Bottom Ash Residue (BAR),
Ferrous and Non-ferrous metal extracted from the BAR and Flue Gas from
the air pollution control process. These too can (and should) be monetised.
Copyright © 2011 by Philip S. Baker. All rights reserved. 4
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els-992

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