Egypt’s Online Gateway to Climate Resilient and Environmentally Sound Investments - Production of Solid Recovered Fuel (SRF) from Municipal Solid Waste (MSW)

FULL-FLEDGED PRE-FEASIBILITY ANALYSIS

Targeted market	Solid Recovered Fuel (SRF) for local cement factories. Local cement plants currently use RDF/SRF as partial replacement for conventional fossil fuel.
Project description	A new Mechanical Biological Treatment (MBT) facility to produce Solid Recovered Fuel (SRF) from mixed Municipal Solid Waste (MSW) collected from the Greater Cairo Region. The facility is supposed to be located in 10th of Ramadan.
Competitive edge	Compared to traditional composting of MSW to produce Refused-Derived Fuel (RDF) and compost), this facility has 3 main advantages: Production of larger amount of alternative fuel Reducing the ‘dirty’ compost produced from traditional MBT facilities. This compost is called Compost-Like Output (CLO) and it negatively influences the soil microbial processes and plant growth This project may be eligible for carbon credits
Market features	Size 4.9 billion USD globally in 2022 - Growth 5.4% (between 2022 and 2028)

Calorific Value (CV)	Scenario 1 10 MJ/kg	Scenario 2 10 MJ/kg	Scenario 3 10 MJ/kg	Scenario 4 12 MJ/kg	Scenario 5 12 MJ/kg	Scenario 6 12 MJ/kg
Selling price	1100 EGP/ton	1100 EGP/ton	1100 EGP/ton	1400 EGP/ton	1400 EGP/ton	1400 EGP/ton
Gate fees	100 EGP/ton	200 EGP/ton	300 EGP/ton	100 EGP/ton	200 EGP/ton	300 EGP/ton
Investment	365.4 million EGP	365.4 million EGP	365.4 million EGP	365.4 million EGP	365.4 million EGP	365.4 million EGP
IRR	-	14%	31%	24%	35%	41%
Simple payback	5 years	4.3 years	3.9 years	4.1 years	3.7 years	3.4 years

Required Input	320 ton/day of mixed MSW. Suitable site with good access to main roads for raw material and product transport. Availability of water, electricity and diesel.
Process/Technology	Mechanical Biological Treatment (MBT) with bio-drying, as follows: Reception and Pretreatment Area, Bio-drying stage, and Final treatment stage.
Equipment	Stationary equipment: bag opener shredder, belt conveyors, trommel screen, feeding hopper with de-compactor, magnet-separator, bio-drying membranes, SRF shredder, wind shifter, aeration system, truck scale Mobile equipment: loaders, excavators, tractors, cover winding machine
Human Resources	Technicians, Machines operators, and Drivers

Risks and Mitigation Measures

The supply of raw material (MSW) is not continuous or less than 320 ton/day. This could be mitigated with the payment of penalties to the SRF facility by the government for supplying MSW less than the contracted amount
Difficulties in marketing the SRF to the cement factories. This could be mitigated by long-term contracts with the nearby cement factories.
Risk of producing SRF with an unaccepted quality that will be rejected by the cement factories. This could be mitigated by applying quality control measurements and the recommended operation procedures in the SRF facility. A quality lab in the facility is recommended.

Environmental impact

Reducing greenhouse gases (GHG) emissions commensurate with the reduced use of conventional fossil fuels, and reducing depletion of non-renewable resources.
Providing a safe alternative to conventional disposal of waste in landfills.
Offering a safer product from the MSW compared to the CLO which may include heavy metals that will harm the land and plants.

Location of Supply

Greater Cairo Region

* The above photo used is credited to Pro House Demolitions Brisbane. Source: https://www.prohousedemolitionsbrisbane.com

* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Serial	File name	Download
1	SRF- Fact Sheet- Eng- Arb