Recycling Business Plan

Topics: Landfill, Waste management, Biodegradable waste Pages: 23 (5393 words) Published: December 3, 2012
Recycling Energy Conversion Business Plan

Executive Summary


Nationwide, many landfills are closing or exhausting their remaining capacity, yet due to environmental restrictions, zoning laws, and other regulatory and bureaucratic delays, pitifully few new landfills are opening to offset the looming space crisis. Meanwhile municipal waste continues to flow in greater volume. Handling the nation's waste stream has become a major problem for most municipalities. With more waste created daily, landfills nationwide are rapidly facing a capacity crisis. Landfills are akin to owning a reverse gold mine. Paryavaran Mitra, Inc. (PM) has been formed to provide a solution for municipal waste problem in the area of Vadodara and capitalize on the lucrative benefits of possessing fully permitted landfills.

The Operation

There are four components in this operation: Purchase two landfills; sort and recycle incoming waste; import an out-of-state waste stream; and convert landfill gas to either electricity or a fuel alternative. PM will purchase the landfills, in near Nandesari where waste transportation and other facilities will be available easily. At landfills, all waste will be sorted and recyclables removed. The remainder will be compacted, baled, and buried in the landfills. Today, only 10% of the landfills nationwide perform these functions, the remainder preferring to dump raw waste into their landfills, thereby ignoring a substantial source of income. PM will accept direct delivery of waste to its landfills; dispatch its own road tractors to bring more distant waste PM a steady waste stream, independent of other sources, to meet its income projections in the first month of operations. Initially, PM expects to accept as much as 1,540 tons to its landfills daily.

Unique Features

At the landfills incoming waste will be dumped into receiving facilities designed to contain waste vapors, control vectors, and house machinery. The waste is moved onto conveyers from which employee-sorters remove all paper, cardboard, glass, plastic, and metals. These will be sold for a substantial profit, and the remainder compressed into two-thirds cubic yard bales. Bales will be stacked in a large, PVC-wrapped cell in the landfill that allows efficient capture of the methane gas. Most landfills do none of this. Removing recyclable materials and baling the remaining organic waste adds considerable value to PM's asset base, the permitted property, by reducing the volume thereby adding to the life of the landfill. Further, recyclable sales add to gross revenues.

Landfill Valuation

Landfills are valued by the volume of waste in cubic yards ("air yards") that can be deposited into the permitted area. By compacting, the deposited volume is increased five-fold. For instance, an area of 42 acres to accept 3,612,000 cubic yards. 2,000 cubic yards of loose waste buried daily without compaction would fill the landfill in 6+ years. By recycling, compacting and baling, 2,000 yards is reduced to 220 cubic yards and the life of the landfill is extended to 32 years. This increases both value and gross income. The current fee per cubic yard of waste is Rs.566 (Rs.1700 per ton) in Vadodara and in near cities. 2,000 cubic yards/day of loose waste for 42 acres generates Rs.1766400000 in 6+ years. By recycling, compacting and baling, the same area can be used for 32 years and generates Rs.8832000000 or daily volume can be increased. Sorting and compacting costs are minor in comparison to the valuation increase, and recyclables offset these expenses.

Company Objectives

Anticipating agreements from waste haulers, PM expects to collect 940 tons daily in the first months of operations. This generates in excess of Rs.275000000 revenues per year. An additional 600 tons/day from near industries and villages, transported to plant, adds Rs.200000000 more. Investors can expect an outstanding...
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