March 2010
SARC
Consulting
BD/PP/WTF2000
Silcasia Energy
Project Proposal
Dhaka Bangladesh
Introduction 3 -4
Mission Statement 19
Action Plan 19
Business Structure 20
Business Relationship 20
Project Schedule 21
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SARC Introduction
Silcasia Energy Limited (SEL) is a registered limited company owned by a group of NRBs
living and working in the United Kingdom. The company is primarily working towards
setting up a waste management and fuel conversion plant (the project) in the City of
Dhaka, Bangladesh.
SEL has engaged SARC Consulting Limited on agreed terms to work on preparation of a
business proposal and to carryout a pre-feasibility study for establishing a waste to fuel
conversion plant in Dhaka Bangladesh.
The companys aim is to establish itself as a major producer of Bio Fuel from municipal,
industrial and agricultural waste. A business module has been conceived within a PPP
framework. More elaborated framework is outlined in this document for further discussions
and consideration by intended project partners.
In this document we provided details about the technology and the company that SEL
have paired with in promoting the project. However, some specific details about the
technology will not be disclosed at this stage for strategic business privacy. All disclosures
will be made to the project partners after the signing of a partnership MOU, and an LOI
agreement with the technology supplier.
Our proposal details the business structure which has been framed in context of the
opportunities that are available in terms of feed source, market demands, production and
investments, and profits possibilities presently prevailing in sustainable and alternative
energy strategy of the governments.
SELs proposal for setting up this project in Dhaka is, on the main, twofold that it wants to
bring alternative energy from raw waste into use as supplement to the main energy
source and to ensure technological migration for national benefit. This will facilitate
generation of new and local employment opportunities and training in technology
development in Bangladesh, whilst ensuring a sustainable energy and cleaner environment
for future generation.
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SARC This document therefore, generally outlines the proposal for a biomass fuel plant in Dhaka
and a PPP modelled business encouraging local and foreign investment to improve power
& energy infrastructure and establish a sustainable source of fuel from available waste. A
detailed feasibility of the proposed business model will be required in the second stage of
the project proposal to assess project viability. This document will enable assessment and
exploration of first expression of interest of all three parties, especially, the government of
Bangladesh, and lead to a constructive business relationship.
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SARC Introducing the Project Proposal
This document is to be read as an outline of the proposed project for discussions and
exploration of a pre-feasibility study to examine whether a WTF2000 waste to fuel
conversion project is likely to be viable in Dhaka, Bangladesh. However, it shall not be
read as a final statement of the proponents or the technology supplier. Further studies
would be required to consider the whole-worthiness of the proposal and to fully integrate
all variants and associated business activities pertaining to waste management in Dhaka
City. This signifies a vital role of the City Corporation as a client or active partner in the
proposed project.
The Project:
SEL Proposed to set up a biomass fuel plant in Dhaka, Bangladesh, using municipal,
industrial and agricultural waste as the feed raw material for production of bio-diesel. The
company wish to establish the project in partnership with the Government of Bangladesh
and the local business community.
Technology:
The process for conversion of waste to fuel used is de-polymerisation which will convert
raw waste to fuel using a catalyst at 270C - 350C. Unlike other biomass process
technology, WTF2000 in its process is carbon neutral and does not produce toxic
emissions that are produced at high temperature application, or emits any toxins to the
environment. Only emission is heat from exhaust whilst cooling by cycle of clean water in
a coolant.
The fuel generated from this process can be used for electricity generation or can be used
as jet fuel. Advantage of this fuel is that the carbon emission from the engines is 60% less
than normal diesel, a massive 10% less than the target for carbon reduction under the
Kyoto protocol. However, at a fraction of the processing cost the emission can be reduced
to a total of 80%.
The technology has other great advantages and can be utilised to benefit local business.
Main advantage of this technology is to manage waste in responsible manner and produce
energy as by-product to minimise the costs of waste management to local authorities. It
further reduces the need to use landfill sites for dumping waste causing hazard to the
local environment and depletion of the ozone. Thereby, this process is reducing the
factors for climate change and bringing about major improvements to the effective use of
our limited resources.
regulations and must comply with national and international law relating to protection of
SARC the environment and the inter governmental treaties on carbon reduction. This aspect of
the compliance requirement will be fully considered in the pre-feasibility study to be
undertaken in Dhaka as part of the initial discussions with the Bangladesh Government
and local partners.
Licensing:
The WTF2000 technology will be licensed, site specific, by the supplier to local company
under a ten year technology non-proliferation guarantee. Thus, the local company cannot
disclose the technology to a third part or try to replicate the process without further
license from the supplier. After ten years the technology will be fully transferred by the
supplier to the local company without further charge.
The Market:
Energy shortage in Bangladesh is a historical fact and the demand for energy is
continuously growing. Need for cleaner fuel is growing and the generation of electricity
and rural irrigation energy requirements are very large in demand. Part of the fuel supply
can be provided to Biman for use as jet fuel for their aircrafts. It is not at present
considered to provide this fuel for road transport. However, supply and efficiency of the
target market will later determine whether to supply of this fuel to be extended to road
transport services.
Price:
The price determining factor is Control, and in the energy market it is now in two basic
forms. First, the natural resource energy are becoming limited in supply and controlled by
few countries. The second and increasing form of energy source is technologies and these
are controlled by few multi-nationals, mainly energy companies. As the price of energy like
any other commodities are dependent on supply & demand the price are therefore
determined by these two factors. All sensible businesses would like to ensure price
stability for their products, services and supply and as such will put plan in place to ensure
it is achieved.
We strongly believe that the demand for a stable source of fuel and price stability for
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project will make to total energy need of Bangladesh and the price stability will be
SARC determined by what factor. And the markets demand for clean fuel is unlikely to be met
by this company alone.
However, as the raw material will be sourced locally through the Municipality, the fuel
price for local consumption of the companys produce will remain stable even at market
volatile periods.
The site:
We recommend that the project site is located within the City of Dhaka on or near the
location of present waste collection/dumping ground. This will meet the overall objective
of the project is to reduce carbon emission and minimise transport journey and costs.
The site will be designed to engineering specification of the technology supplier and
constructed by local contractors using local building materials and labour.
It is highly recommended to locate the site close to clean water reservoir for access to
water for cooling exhaust.
The site will be noise pollution free, and consisting a one storey building and lots of trees
planted around the complex maintaining a total green aspect in line with the projects
vision.
Plant:
The plants mechanical and electronic components will be made in Germany and
transported by ship to Bangladesh and assembled under the supervision of German
technicians.
The suppliers technology specification details a low system maintenance requirement and
short maintenance interval. The system is relatively easy to maintain and, local people will
be trained to operate and maintain the plant under a service agreement with the
technology supplier. Cost of this agreement will be kept to a minimum.
Partnership:
A PPP business model is highly recommended for this project. A tri-party business
partnership is being proposed between Silcasia Energy, the Government of Bangladesh
and the local business community, each holding one third of the equity share in the
project. Such a model will create a genuine sense of partnership and encourage more
investments by NRBs in national projects that are of immense importance for national
growth and prosperity.
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SARC It is also anticipated that under such arrangement a continuous technological
advancement can be achieved in future and a wider tech-partnership will develop between
the EU Community and Bangladesh.
Based on this assessment, it is projected that the companys total investment, in this
sector and power generation projects in Dhaka and Chittagong Cities, can be achieved
within five years is about 600 million Euros. The total fuel output result will be a massive
150 million litre of diesel produced annually. However, the company will be advised in this
period to limit itself to a 300mw of electricity generation activities adjacent to the fuel
sites.
Site security:
The site/s will be secured by perimeter fencing and monitored from the central office by
closed circuit television cameras with 24 hour recording technology.
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SARC Introduction of Waste to Fuel Process
WTF enables municipal and commercial bodies alike to mitigate the ever-growing costs
involved in conventional waste handling procedures. It converts a loss making activity into
a profit orientated and environmentally friendly production process.
The following commentary is based on the research and design of the WTF core unit
designed specifically for integrated waste management and biomass conversion projects.
It complies and aligns with criteria stated by initiating governments. These criteria require
that the plant exemplifies the very latest technology in waste management activity that
it complies with the most advanced and rigorous control regulations current in European
legislation with regards to the environment that it functions independently of the local
infrastructure Eg. that it does not draw or require power to operate from outside
sources. The WTF integrated process fulfils these requirements in full measure.
Fuels from residual substances and biologically regenerating raw materials represent the
future of energy development. With technologies now becoming available, these synthetic
fuels will increasingly replace declining oil reserves in the future. Synthetic fuel production
is possible because sufficient quantities of raw materials exist to develop deliverable
quantities to replace fossil fuel production. These materials include wood and plants, the
bio-waste products of our civilization like plastics, animal and plant wastes, waste oils and
other organic residual substances all of which are usable because of their intrinsic
energy content.
Unsatisfactory results from present-day recycling efforts result from the essential structure
of existing processing methods. Transforming residual substances with each of the well-
known recycling procedures requires temperatures of 450oC and higher, a temperature at
which coke crystals begins to form from residual substances. Such high temperature
procedures decompose the hydrocarbons in the plant nearly completely into coke crystals
and methane. Thus, relocated hydrogen atoms convert the existing hydrocarbons, CH2,
into methane, CH4, and coke crystals, C. In other words, solid coke and methane gas,
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Other technologies, which are based on alternative sources of energy that are complex
and limited, such as platinum, are still in the early stages of development.
A new recycling formulation was necessary that would convert existing hydrocarbons not
into methane, CH4, and coke crystals, C, but into CH2 and only then in molecule lengths
that reduce and bind in a manner that separates unusable pollutants, in essence, the new
formulation returns to the natural processes used for hundreds of millions of years where
fossilized by-products from the seas settled into suspended clay minerals and ultimately
formed fossil fuels, such as oil hydrocarbons.
These elements result in a final product of high-quality synthetic lightweight oil similar to
diesel fuel.
The formulation produces lightweight oil similar to diesel fuel through catalyst reduction at
a fraction of the costs associated with existing recycling processes and uses materials to
initiate the catalyzing reduction that are available at realistic prices.
In the plants closed-process cycle, the input waste materials are mixed with the catalyst,
which initiates a catalytic reaction characterized by the following results:
All preparation technology required in waste processing depends on the attributes of the
input materials. It generally involves a separation, shredding and drying process.
Working with waste containing metal, stone and glass, a densimetric separation system
has to be installed in the first step to separate the stone and glass fractions. The metals
are separated in the second step. After this two-step process the material will be treated
in a mazerator and after a production buffer, the minimum grain size will be secured by a
cuffing mill. The maximum grain size of the remaining input is 3mm. In case the humidity
is over 15% the material is dried in a rotary furnace. From another production buffer the
WTF 2000 is fed using a belt conveyor.
Using oils as input material, the preparation consists of systems to unload and store the
liquids as well as some pumping equipment to feed the WTF 2000 core unit. According to
statutory provisions, safety installations such as oil retention pans and oil separators have
to be added.
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SARC Working with bitumen, there have to be installations to unload and store the input
material adapted to its attributes. A High Sheer Mixer assures controlled crushing of the
bitumen. The material crushed is stored in a heated tank and fed by special pumps to the
WTF 2000 core unit
Using rubber and plastics the preparation is very similar to the handling of car fluff. It has
to be checked that metal separation may not be necessary. In general cuffing mills have
to be provided with appropriate cartridges to ensure minimum changing time e.g. in case
of maintenance or breakdown.
The WTF 2000 is an aggregate built to transform input materials containing hydrocarbons
such as oils, plastics, animal waste or biomass etc. - into mineral light oil.
The core of the unit is a liquid circuit working with temperatures below 400C. The
application of a specialised catalyst causes a shortening of the hydrocarbon molecular
chains.
Central main elements of the aggregate are the reaction unit, in which the input materials
are transformed applying a catalytic process, a separator where steam and liquids are split
and the distillation column, where the oil steam is condensed after passing through,
caught and led to a product storage tank.
The reaction unit is electrically powered with approximately 200 kW. All parts of the
aggregate running with process-temperature are isolated.
Input material is applied to the process either in solid or in liquid condition. Solids are
applied by an input-spiral as an anhydrous mass with minimum grain size. The input of
liquids is designed as a special combined pump- and tank-system. Catalyst and other
surcharge materials (neutralizers) are put into the system using automatic dosing units.
All material that cannot be transformed into light oil as well as used catalyst is discharged
by a sedimentation system using a particular discharging spiral. These high concentrated
residuals are evacuated using a sluice system. They are to be disposed by the customer.
All apparatus, tanks and piping is made of stainless steel. All connections are flanged or
screwed. To clean the aggregate a flushing system is installed.
For safety reasons the WTF 2000 core unit is to be erected in oil retention pan made of
concrete and covered with an oil proof coating matching all statutory provisions.
The aggregate is designed to be connected to a combined heat and power unit (CHRU)
that runs with light oil produced by the WTF 2000.The CHRU provides the required
electrical and thermal energy for the WTF 2000 core system. To secure continuous
operation when the CHRU unit fails, there has to be a separate power feed installation
(300 kW/400 V).
Input materials
Waste oils, waxes and fats of all types (including hydraulic oils).
The light oil produced in the WTF 2000 is stored in double wall tanks. These are fitted with
safety features and equipment to prevent overflow and leakage. According to local
requirements and statutory provisions e.g. oil retention pans and oil separators will be
added. This is valid also for all road tanker filling systems.
Site Conditions
Ambient temperature:
Valve, electronic
Cooling water
Hardness 50 dh
Carbonate hardness
Without stabilizers 8 12 dh
Chlorides
Flange connections:
Input material
Humidity < 5%
Fluid input, with catalyst loaded input material, partly transferred to synthetic light oil,
preheated (up to 200 C), can contain hydrocarbons
Dimensions
1. To promote the WTF2000 process as a means of reducing the need for land fill sites
legislation.
2. To gain the co-operation of local authorities and other regulators in regard to:
Site identification
4. To ensure the research and development of the technology enables the WTF2000
and processes.
9. To develop viable products resulting from the proving of the WTF2000 process,
including:
intellectual property
technology licenses
Supply contracts
etc.
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SARC 10. To promote the WTF2000 process as a means of extending the life of existing and
to the use of extractive resources, e.g. Coal, wood and all aggregate fossil fuel.
Mission Statement
The following mission statement has been adopted by the company.
ACTION PLANS
As a result of the formulation of Strategic Objectives, the following Action Plans have been
developed by the company for adoption:
Action Scheduled Start (when the Action should, or is due to, commence).
Action).
overview of those Actions which are critical to the implementation of the Project,
and / or those Actions most likely to cause a delay in implementing the Project).
the Project. This will ensure that the Project is kept "on-track".
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SARC Proposed Business Structure
It is proposed that a three way partnership is developed for this project between the
Government of Bangladesh holding a 33% share in the project and a maximum of 20%
equity share would be invited to be held by the local business community whilst the
remaining shares will be held by Silcasia Energy Limited as a foreign company.
The diagram below illustrates the structure and its relationship:
Business relationships
The company will establish new relationship with other companies in the similar field of
work and maintain relationship with the existing network of service providers to the
municipality, especially the waste collection network. Efforts will be made to work closely
with the local communities in promoting social and economic welfare and improvement of
life aspects in the companys locality. The company will time to time decide the form and
method of a relationship what it wish to establish with a group or an individual entity.
Phase 1.
March 2010 Invite potential companies for prospective partnership and undertake
April 2010 Agree terms of partnership and put private sector partnership in place
End.
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