DISCUSSION PURPOSE ONLY

Kanazawa Waste Incineration Plant (Yokohama)Potential Challenges for Proper Waste Management- Comparative study of municipal and industrial solid waste in Thailand-January 2020

JFE Engineering
Net Sales(million JPY)
JFE Holdings, Inc.

485,815
JFE SteelNet Sales(million JPY)
Japan Marine United

2,830,649
JFE Shoji Trade
Net Sales(million JPY)
1,125,861(FY2018)

2

Ring Road Bridge, Bangkok［Location］Bangkok to Samutprakarn, Thailand［Project Owner］Ministry of Transport, Thailand

3

Waste-to-Energy

Biomass Power Plant

JFE’s Technologies to Support Sustainable Cities and Communities

Sewage Treatment

Waste Heat Recovery

4

Photo : Takahashi

5Photo : Takahashi

6PowerGeneration

WTE PlantTo
Landfill
AshCH4

Greenhouse EffectOdor

7

Source : Clean Authority of TOKYO

8

Resource Input
Production

1: Reduce
Consumption

3: Recycle

2: Reuse

DisposalTreatment(recycling, incineration, etc.)

Final disposal

4: Thermal Recovery
5: Proper disposal

9Source : Internet

10Nerima Waste Incineration Plant (Tokyo)

Emission level is lower thanenvironmental standard
Waste Heat Reuse for Local
Community

Close to waste generator and shorttransportation distance11■Proposed Technology (Moving Grate Furnace by JFE)

12 Challenges for implementation of WTEs

Waste
Characteristics

Legal
Aspects

Economic
Aspects

SocialImpactEnvironmental
Aspects

Source : Waste to Energy Considerations for Informed Decision-Making, UNEP-IETC, 201913

Planning(pre-FS)

Design(FS)PQ
TenderBuildOperation/Maintenance

Stop at Planning Stage- Weak policy enforcement, public opposition, no financial source, no supporting regulations, etc.

Stop at Designing Stage- Reject of proposal by a competent authority, opposition from existing stakeholders, lack of budget,
gap between proposal and needs, etc.

Stop at PQ/Tender Stage- Unsuccessful PQ/tender due to conflict of price (tipping fee, etc.), etc.

Stop at Operation Stage- Insufficient performance of facility, critical change of waste management policy,
bankruptcy of operation company, etc.

Source : Created based on “Financing issue for a development of recycling and waste treatment facility”, Nov. 3rd 2016, Shiko Hayashi, IGES

14

 Industrial WTE Projects in Thailand
Company

Capacity-Gross (MW)Capacity-Net (MW)PG & C5714

3.00

2.50

Chonburi Clean Energy (CCE)

8.63

6.90

Sabangyangyuen Pichit

2.00

1.88

Progress Intercame Thailand

4.80

4.00

Eva Grand Energy

4.00

3.00

Recovery House

7.00

5.50

SCGA Cementthai

8.00

7.00

Total

37.43

30.78

Source : DEDE

15 Project development target of WTE in Thailand
Industrial Waste

Municipal Solid Waste
900

MW

1000

500

800
600
400
50

200
0

AEDP 2015
AEDP : Alternative Energy Development Plan
PDP : Power Development Plan75

PDP 2018

16

 Current FIT scheme for WTE in Thailand
FIT-F

8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00

FIT-V

Premium1

Premium2

THB/kwh

0.50
0.70
2.69
3.39

Industrial Waste

0.50
0.70
2.69

0.00
1.85

2.39

1.81

Municipal Solid
Waste (3-10MW)

Municipal SolidWaste (10-50MW)

Period : 20 years
FIT Premium 1 : for year 1-8
FIT Premium 2 : For 3 designated provinces in South Thailand (for whole project period)17 Characteristics of Industrial and Municipal solid waste
Solid Waste from Industries

Solid Waste from Households

Mixed papers, dirty plastic bags, rubbers, etc.

Plastic bags, green wastes, food wastes, etc.

18 Proposed business scheme
Investor A(Thai)

Investor B(Thai)

Investor C(Foreign)

Investor D(Foreign)

Investment

Tipping Fee
Waste
Generators
Waste Treatment
ServiceEPC
JFE
Engineering

Special Purpose
CompanyEPC
Company A(Thai)

Tariff/FITElectricity
Company
Electricity
O&M
Company B(Thai)

19 Potential Risks of WTE ProjectFeed in Tariff(unit price, Period)
Quality of Waste(LHV, components)
Quantity of Waste
Appropriate Tipping Fee

IncomeCost

Electricity

Capex

Land Availability
Ash disposal
Market risk

Tipping
feeOpex

Opposition of local
residents
Change in law

Force Majeure

Political risk /Countryrisk

Appropriate income (FiT, T/F) must be secured

Feasibility
Profitability

20

The prime objective of MSW-WTE should be proper
waste disposal for the people ; waste heat power
generation may be a bonus.

21

Source : Clean Authority of TOKYO

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