Refuse-derived fuel

Refuse-derived fuel

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Refuse-derived fuel
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Infrastructure
Business Model Description

Construct and operate waste management and electricity generation plants to produce refuse-derived fuel to supply electricity to main cities.

Expected Impact

Increase access to energy for the population and mitigate against the negative environmental effects of waste.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Average annual energy consumption per capita of 150 kilowatt hours.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Sustainable Cities and Communities (SDG 11) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Climate Action (SDG 13)
Sector Sources
  • 1) National Planning Commission (2015). National Integrated Infrastructure Master Plan. 2) Federal Republic of Nigeria (2017). Economic Recovery and Growth Plan 2017 - 2020. Abuja: Ministry of Budget and National Planning.
IOA Sources
  • 3) Olurode, L., Isola, W. and Adebisi, D. (2018). 'Urbanisation and Energy Crisis: The Case of Lagos State', Sociology and Anthropology 6(11): 845-853. https://doi.org/10.13189/sa.2018.061105 4) Kaza, Silpa et al. (2018). What a Waste 2.0 : A Global Snapshot of Solid Waste Management to 2050. Washington, D.C.: World Bank Group. https://openknowledge.worldbank.org/handle/10986/30317 5) Srisaeng, N., Tippayawong, N. and Tippayawong, K.Y. (2017). 'Energetic and economic feasibility of RDF to energy plant for a local Thai municipality', Energy Procedia, 110: 115-120. https://linkinghub.elsevier.com/retrieve/pii/S1876610217301455 6) PwC analysis (2020), based on Prof. A. Damodaran data. 7) Rogoff, M. J. and Screve, F. (2011). 'Refuse-derived Fuel'. Waste-to-Energy (Second Edition). https://www.sciencedirect.com/topics/earth-and-planetary-sciences/refuse-derived-fuel 8) Institut für Energie-und Umweltforschung Heidelberg (2008). Renewable Energy Masterplan Nigeria. https://www.ifeu.de/en/project/renewable-energy-masterplan-nigeria/ 9) Ogunmakinde, O. E., Sher, W. and Maund, K. (2019). 'An Assessment of Material Waste Disposal Methods in the Nigerian Construction Industry', Recycling 4(13). https://www.mdpi.com/2313-4321/4/1/13/pdf 10) Benson, E.A. (2018). 'Recycling: How These Small Businesses Make Millions Selling Aluminium Monthly,' Nairametrics. https://nairametrics.com/2018/03/19/waste-management-and-the-business-of-recycling-in-lagos/. 11) Adenaike, F.A. and Omotosho, A.J. (2020). 'An Overview of Solid Waste Resource Recovery Efforts in Lagos,' International Journal of Waste Resources 10(3): 1–5. https://www.longdom.org/open-access/an-overview-of-solid-waste-resource-recovery-efforts-in-lagos-54448.html 12) Atkins and Lagos State Electricity Board (2014). 'Future Proofing Cities: The Lagos energy sector - Risk and Opportunities for Resilient Growth of the Lagos Energy Sector. http://www.asiapacific.atkinsglobal.com/~/media/Files/A/Atkins-Corporate/group/sectors-documents/urban-development/FPC_Lagos_Leaflet_Lowres.pdf 13) Environmental and Public Health Watch (2011). Policy Guidelines On Solid Waste Management 2005. https://tsaftarmuhalli.blogspot.com/2011/12/policy-guidelines-on-solid-waste.html 14) Harmful Waste (Special Criminal Provisions, Etc.) Act. http://extwprlegs1.fao.org/docs/pdf/nig18377.pdf 15) National Environmental Standards And Regulations Enforcement Agency (Establishment) Act 2007. http://extwprlegs1.fao.org/docs/pdf/nig120569.pdf 16) Environmental Impact Assessment Decree No 86 of 1992. https://www.elaw.org/content/nigeria-environmental-impact-assessment-decree-no-86-1992 17) National Environmental Standards and Regulations Enforcement Agency Act of 2007. https://www.nesrea.gov.ng/publications-downloads/laws-regulations/ 18) Adenaike, F.A. and Omotosho, A.J. (2020). 'An Overview of Solid Waste Resource Recovery Efforts in Lagos,' International Journal of Waste Resources 10(3): 1–5. https://www.longdom.org/open-access/an-overview-of-solid-waste-resource-recovery-efforts-in-lagos-54448.html 19) Lagos Waste Management Authority. Cleaner Lagos. https://www.lawma.gov.ng/ 20) The Guardian (2016). Kaduna, Kano governments plan to generate electricity from solid waste. https://guardian.ng/news/kaduna-kano-governments-plan-to-generate-electricity-from-solid-waste/ 21) OECD (2019). Gender Equality and Sustainable Infrastructure. https://www.oecd.org/gov/gender-mainstreaming/gender-equality-and-sustainable-infrastructure-7-march-2019.pdf 22) Federal Republic of Nigeria (2017). Implementation of the SDGs: a national voluntary review. https://sustainabledevelopment.un.org/content/documents/16029Nigeria.pdf 23) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. https://dashboards.sdgindex.org/profiles/NGA 24) Federal Republic of Nigeria (2020). Integration of the SDGs into National Development Planning: A Second Voluntary National Review (2020). https://sustainabledevelopment.un.org/content/documents/26309VNR_2020_Nigeria_Report.pdf