Waste-2-Pellets-2-Stoves

Willi Euler – iLive

City of Johannesburg Garden/Organic Waste Summit

04 July 2018 – Saxonworld

WASTE

-2-

COOKING

Willi Euler – iLive Sustainable Development

City of Johannesburg Garden/Organic Waste Summit

05 July 2018 – Saxonworld

KEY NOTE

A LONG TERM AND LARGESCALE SOLUTION TO GREEN GARDEN REFUSE, IN

SUPPORT TO RENEWABLE ENERGY PRODUCTION AND POVERTY ALLEVIATION.

GOAL

A permanent solution to divert 120,000 tpa green garden waste

from landfill via biomass pelletization, to provide 60MWth

renewable energy as fuel for clean cooking stoves to

250,000 underprivileged homes

iLive is a Level-2 BBBEE company that has been active since 2010 in bio-energy

and waste beneficiation in South Africa.

Project successes includes:

iLive

Fee

ds

toc

k:

Bio

ma

ss R

esid

ue

Se

co

nd

ary

Ma

rke

ts:

Industrial Use Composting Other: BioJet Fuel

(Sasol)

Te

ch

no

log

y:

Pe

lletizin

g P

lant

Pri

ma

ry M

ark

et:

Wood Pellet Cooking Stoves

Scope

Key Opportunity

What is the opportunity?

Strong growing demand for pellets globally

Niche markets opening (EU, Bio-Jet, Stoves)

2 x commercially available pelletizing plants

>150,000 tpa of garden refuse in Joburg

Cheaper, cleaner and safer cooking to

alleviate poverty

Opportunity to lump technologies and

initiatives in one project

Approach:

MULTI-STAKEHOLDER GROUP HAS BEEN INITIATED DUE TO COMPLEX SUPPLY CHAIN *

* stakeholders and interested parties that were historically and currently involved in this project

Markets

Two main markets that have been targeted: a) domestic clean cooking stoves and b) large

scale coal users (steam, electricity, fuels)

Phased approach to guarantee min. pellet throughput to secure finance on project.

1. Base load (utilities in NL), 2. Premium local markets (Stoves, Bio-Jet), 3. Shredded

waste to compost or straight combustion for steam.

8

250,000 underprivileged house

holds to be provided with cleaner,

cheaper, and safer cooking stoves

using biomass pellets

20 MWe and 250,000 tCO2/yr

• RWE – Essent in NL

• Local Elec & Steam producers 30,000 tpa shredded greens to

provide composting plants during

shut-downs or maintenance cycles

Baseload marketNiche market

Supporting market

Supply Chain (1)

Create hub-&-feeder model for 2 - 3 central shredding stations in Joburg

13 sites produce >85% of all the greens in Joburg

Supply Chain (2)

Install ‘combined slow speed and high-speed shredders’ at the central hubs

With throughput capacity of between 50 – 60 tons per hours, and proper size screening

Collection of shredded material into bulk freight to pellet plant

Supply Chain (3)

Send shredded material to existing pellet plant, and backhaul the pellets to Joburg market

Capacity of up to 90,000 tpa input material per plant

* Picture of pellet plant currently available in South Africa.

Supply Chain (4)

How do we reach our clients?

Distribution and sales companies (Supergroup)

Subsidize the cooking stoves

ILIVE PELLET PLANT

DISTRIBUTION

CENTRE 1

SUPER

GROUP

DISTRIBUTION

CENTRE 2DISTRIBUTION

CENTRE 3

SPAZA

1

SPAZA

2

SPAZA

3

SPAZA

4

SPAZA

5

SPAZA

6

SPAZA

X

Social Impacts

Employment

Over 800 jobs to be created across the supply chain

Shredding

Logistics

Pellet plant

Stove manufacturing

Retailing from spaza shops

13

Small Enterprise & Community Development:

Outsourcing logistics to 12 – 20 new (small) BBEEE businesses

Establishing 250 new small enterprises

With biomass pellet retail shops (‘spaza shops’)

250,000 homes are to be reached with biomass pellets.

For each 1,000 homes a retail shop will be opened.

Summary of Opportunity

This project presents:

Technology: Green Waste Pelletization (proven and available technology)

Volumes: 120,000 tons/yr (min 90,000t/yr up to 150,000tons/yr)

Waste Format: Chipped preferred (un-chipped is possible)

Collection: by iLive (SME’s included)

Price: revenue generation possibility under the 10 year tender contract

Revenue and Saving for Pikitup: R44 mill per annum

Jobs & Social Impact: 800 jobs & 250 small enterprises

Project & Financial Readiness: 9 months to start diverting waste, and full capacity at 12 months

Site, Design, Licenses: ready & available

Market: a) 250,000 poor and underprivileged households with fuel (biomass pellets) provide for

cleaner, healthier and cheaper cooking b) large coal users with a biomass feed supply of

120,000 tons per annum, to produce renewable green electricity of about 60MWth14

Project Time Lines

15

Month 1 - 3

Month 3 - 6

Month 1 - 3

Month 0 - 6

Contract

finalization

Final bankability

Start waste diversion

& stock build-up

Re-commissioning of plant

Month 9+

Full scale operations achieved

(120,000tpa waste diversion)Months:

0 6 9 12 18

Project Summary

Safer, cleaner, cheaper cooking

for the dis-advantaged, at half the

cost of paraffinPoverty

Alleviation

Waste

-2-

Cooking

250,000 households

250 SME & Spazas

800+ jobs created

Social Impact

Aligned with national and

local development & climate

goals

Political

Ready built and available pelletizing facility

Technology

Awarded a 10-year tender by Pikitup and

provisional approval by National Treasury

Legal

170,000 tCO2 saving per annum

with a 65 MW_th energy

production capacity

Environmental

Major capital requirements

covered by IDC Funding

Local: Coal users, cooking

stoves

Export: Power plants

Market

Work done to date

Biomass pelletization pilot

Pellet quality and burning tests

Basic engineering designs

Site selection & logistics modelling

Pre-feasibility business plan

Financial modeling (by Sasol ChemCity)

Market development

Over 4 years of work and efforts....

Next Steps

Finalize bankable investment plan

Reactivate the contract with Pikitup

Start operations 6 – 12 months from now.

“We are excited to realize SA’s largest biomass initiative”