Waste to Energy (WtE) Solutions For a Circular Waste Management System

Segregated plastic waste

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Waste to Energy (WtE) Solutions For a Circular Waste Management System
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.
Waste Management
Business Model Description

Invest in B2B models engaged in: > Scaled Waste to Energy (WtE) solutions using Refuse Derived Fuel (RDF) or Municipal Solid Waste (MSW) to produce energy through transformation facilities > Utilizing farm waste or municipal waste to generate electricity

KH09 Waste to Energy in Phnom Penh is a project by Global Green Growth Institute (GGGI) which started in 2019 (with a budget of USD 359,890) and was scheduled to end in 2021. Following a PPP design with a Build-Own-Operate-Transfer (BOOT) contract, its objective is to facilitate investment in a Refuse Derived Fuel (RDF) plant in Phnom Penh and replace coal with RDF for cement manufacturing. (10)

Mizuda Waste Management Co Ltd, founded in 1993, is a China based company that invested in a WtE plant in Siem Reap in 2020. The plant is capable of combusting 210,000 tons of rubbish per year into 12MW of electricity, resulting in generation of ~750,000 kilowatt-hours each year (accounting for ~10% Siem Reap’s current supply). (11)

MH Bio Energy Group Co., Ltd. (MH Bio), founded in 2006, is engaged in production of bio-ethanol. Apart from raising several private placement rounds (total amount raised till 2022 - USD 10 mn), MH Bio raised USD 25.2 mn for 80% of its stake sold to Seo Won Distribution Co., Ltd. (SWDC) in 2014, and currently operates as SWDC's subsidiary (MH Ethanol Co.,Ltd retains ~20% stake). (12)

Expected Impact

Improvement in waste management systems to ensure circular approach to managing waste; improvement in well being and positive environmental outcomes

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).
10% - 15% (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.
USD 100 million - USD 1 billion
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)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Reduced Inequalities (SDG 10) Responsible Consumption and Production (SDG 12)
Sector Sources
  • (1) Hin, P. (2018). Rising Demand for Cheap Housing. https://www.phnompenhpost.com/post-property/rising-demand-cheap-housing (2) World Bank. (2018). Urban Population--Cambodia. https://data.worldbank.org/indicator/SP.URB.TOTL?locations=KH (3) Business and Sustainable Development Commission. (2017). Better Business, Better World. https://sustainabledevelopment.un.org/content/documents/2399BetterBusinessBetterWorld.pdf (4) European Commission. (2020). National Energy and Climate Plans for 2021-2030 under the EU Energy Union. JRC122862/jrc122862_national_energy_and_climate_plans_under_the_eu_energy_union_governance_final.pdf (5) Open Development Cambodia. (2016). Solid Waste. https://opendevelopmentcambodia.net/topics/solid-waste/ (6) Eitel, K. (2018). Veins of Phnom Penh: Urban Waste Pickers as the Best Infrastructure for Recycling Waste. https://kh.boell.org/en/2018/12/17/veins-phnom-penh-urban-waste-pickers-best-infrastructure-recycling-waste (7) Firn, M. (2021). Waste to Energy Projects Offer a Solution to Kingdom's Growign Garbage Problem. https://www.khmertimeskh.com/50976261/waste-to-energy-projects-offer-a-solution-to-kingdoms-growing-garbage-problem/ (8) UNIDO. (2022). Cambodia Empowering Women in Waste Management. https://www.unido.org/green-industry-case-study-cambodia (9) Eitel, K. (2021). Oozing Matters: Infracycles of “Waste Management” and Emergent Naturecultures in Phnom Penh. East Asian Science, Technology and Society: An International Journal, 15:2, 135-152, DOI: 10.1080/18752160.2021.1896123 (10) GGI. (2021). KH09 Waste to Energy in Phnom Penh. https://gggi.org/project/project-reference-profiles-cambodia-kh09-green-growth-government-waste-to-energy-in-phnom-penh/
IOA Sources
  • (11) Cambodia Construction Association. (2020). Chinese Firm to Build 12MW Waste-to-Energy Plant in Siem Reap. https://construction-property.com/chinese-firm-to-build-a-12mw-waste-to-energy-plant-in-siem-reap/ (12) Market Screener. (2014). Seowon Distribution Co., Ltd. Agreed to Acquire 80% Stake in MH Bio Energy Group Co., Ltd. From MH Ethanol Co., Ltd. For KRW 40.3 Billion. https://www.marketscreener.com/quote/stock/MH-ETHANOL-CO-LTD-19180577/news/Seowon-Distribution-Co-Ltd-agreed-to-acquire-80-stake-in-MH-Bio-Energy-Group-Co-Ltd-from-MH-E-38842302/ (13) WTE International. (2015). Cost of Incineration Plant. https://wteinternational.com/news/cost-of-incineration-plant/ (14) Khmer Times. (2020). Waste-to-Energy Project in Phnom Penh Proposed. https://www.khmertimeskh.com/700938/waste-to-energy-project-in-phnom-penh-proposed/ (15) World Bank. (2020). Cambodia: Solid Waste and Plastic Management Improvement Project. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiWlcTbs7j2AhVMQ_UHHWYtAtcQFnoECAoQAQ&url=http%3A%2F%2Fdocuments1.worldbank.org%2Fcurated%2Fen%2F722141586260533194%2Fpdf%2FConcept-Project-Information-Document-PID-Cambodia-Solid-Waste-and-Plastic-Management-Improvement-Project-P170976.pdf&usg=AOvVaw1m-Swq5B6LwEBk1BkYRp8x (16) Market Screener. (2019). MH Ethanol Co.,Ltd. announces an Equity Buyback for 100,000 shares, representing 12.99% for KRW 635 million. https://www.marketscreener.com/quote/stock/MH-ETHANOL-CO-LTD-19180577/news/MH-Ethanol-Co-Ltd-announces-an-Equity-Buyback-for-100-000-shares-representing-12-99-for-KRW-635-34086661/ (17) Ibid. (18) Thou, V. (2020). Chinese Company Eyes Waste-to-Power Plant in Siem Reap. https://www.phnompenhpost.com/business/chinese-company-eyes-waste-power-plant-siem-reap (19) Niem, C. (2021). City Hall Stiftens Waste Rules, But Cites Progress. https://www.phnompenhpost.com/national/city-hall-stiffens-waste-rules-cites-progress (20) Royal Government of Cambodia. (2019). Cambodia's Voluntary National Review 2019 on the Implementation of the 2030 Agenda for Sustainable Development. https://sustainabledevelopment.un.org/content/documents/23603Cambodia_VNR_SDPM_Approved.pdf (21) Royal Government of Cambodia. (2018). Cambodian Sustainable Development Goals (CSDGs) Framework (2016-2030). https://data.opendevelopmentmekong.net/dataset/3aacd312-3b1e-429c-ac1e-33b90949607d/resource/d340c835-e705-40a4-8fb3-66f957670072/download/csdg_framework_2016-2030_english_last_final-1.pdf (22) Royal Government of Cambodia. (2001). Electricity Law. https://cdc.gov.kh/wp-content/uploads/2022/04/LAW-ON-ELECTRICITY_010202-.pdf (23) Ministry of Environment. (1999). Sub-Decree on Solid Waste Management. http://www.wepa-db.net/policies/law/cambodia/03.htm#:~:text=The%20Sub%2DDecree%20regulates%20solid,health%20and%20to%20conserve%20biodiversity. (24) VDB. (2020). How are Power Projects Taxed in Cambodia. http://media.vdb-loi.com/wp-content/uploads/2020/04/How-Are-Power-Projects-Taxed-in-Cambodia_2.pdf