New Pyrolysis Project: MSW to Electricity

I’ll soon be updating our list of renewable energy investment opportunities, as I’ve come across a few more that I think are excellent.  One is a municipal solid waste (MSW) to electricity via pyrolysis project in a small, stable, but developing country where the project will bring electrical power to many towns and villages for the first time.  As I’ve discussed often before, such efforts have enormous philanthropic value, but they can also be extremely lucrative.

The project is actually very similar (though not as large) as the $400 million CapX deal that is already up there.

But there’s an issue.  Although there is what I believe to be an extremely straightforward path to a power purchase agreement (PPA), it doesn’t exist at this point.  And, as I’ve learned over the years, there’s a Catch 22: if you don’t have a PPA, investors are nervous; if you have one, investors (generally) are unnecessary; you simply take it to a bank.

Fortunately, there is something else I’ve learned over the years as well: if you throw enough mud against the wall, some of it will stick.  I.e., if you tell your story to enough people, you’ll eventually find the right people – those with an ability and willingness to get on board.  And trust me, I’m tough to beat in the mud department.

On a side note, it strikes me that MSW-to-energy will soon be an integral part of all city governments.  As the world’s population continues its migration from rural to urban living, and as these consumers generate increasing amounts of waste material of all types, the transition away from landfills and the generation of clean, extremely low-cost energy will become increasingly important.  Jesse Berst, internationally known technology and business analyst, founder and chief analyst of Smart Grid News.com, and founder and Chairman of the  Smart Cities Council told our audience  at July’s webinar all about this; readers are welcome to check it out here, and discover what Jesse means when he says that the council’s motto is “Livability, Workability, and Sustainability.”

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8 comments on “New Pyrolysis Project: MSW to Electricity
  1. Ben says:

    how about some real info for example the amount of water in the MSW, or their system of clean burning … etc

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  3. Craig,
    Thanks for the email. There are two problems in your article. 1: You do not list the country and that raises suspicions in my mind as to RoI payments. 2: Emissions. It is all very well to incinerate Municipal Waste to generate power but as Ben above has commented, there is a problem of water content especially if this country is prone to a rainy season. This does have a direct effect on emissions as does the waste content – Who is going to monitor those emissions and enforce a ‘clean burn’ policy? If this is in sub-Sahel Africa, then with the possible exception of south Africa there are political intent problems in almost every country to one extent or another.
    It is an excellent idea but I do not see too many investors going for it as they would have very little reassurance as to receiving a full return on their investment.

    • Thanks, David. Yes, I need to be a bit cagey about what I can make public here. Good point about the rain; I’ll look into that.

    • Craig says:

      Hi David. Emissions are a problem if a open emission system is used for conversion. Syn Tawa Energy uses a closed loop system which has zero emissions during the conversion process. Moisture is definitely a factor as the optimal moisture content is about 25-30%. If wet then it must be dried and, yes, this would affect countries with heavy rainy seasons. Syn Tawa currently has 4 projects in the works, all based in the U.S.

  4. Wade Brown says:

    Craig: We agree with your view on this. We offer a way to make profitable products out of the remaining ash, and at low investment. This last amount of “waste” that remains from pyrolysis can be used 100% in all sorts of building or municipal products. As you know this process was commercialized years ago. We would enjoy being a part of this effort.