Sri Lankaâ€™s Fairway waste energy firm gets power purchase deal
ECONOMYNEXT – Sri Lanka’s Fairway Waste Management Pvt Ltd has resumed work on a project to generate power from waste after signing a deal to sell electricity to the state power utility that had been delayed for over a year.
Commercial operation of the plant is scheduled to start in December 2020.
“The company has remobilized the suppliers and contractors from Europe, India and China to recommence the work soon after financial closure,” a statement said.
The Karadiyana Waste Management Project was held up for nearly a year due to delays in signing the Standardized Power Purchase Agreement (SPPA).
Prasad Kulathunga, Chief Technical Officer of Fairway Waste Management, told economynext.com they would sell electricity at 36.20 rupees, the standard rate at which the government would buy power from other similar projects.
The Ceylon Electricity Board would be paying 23.10 rupees, with the balance by other government agencies, given the complicated nature of the project, converting waste to energy, unlike standard renewable energy power plants.
The company said it moved fast to restart construction given the critical state of the current waste disposal situation at Karadiyana, where the waste is land filled. It has already completed the land preparation and piling on schedule.
“The delay in the project is of grave consequences to the community around the waste site at Karadiyana,” it said.
“It is presently operating overcapacity and is in danger of slope failure according to a report by the National Building Research Organization (NBRO).”
The NBRO has recommended relocating 14 families.
“The project was vetted and approved by international funding agencies, and it is still the only project under execution that has met strict World Bank guidelines on environmental, social and health impacts for a project of this nature,” the statement said.
The cost of initial project work; technology consultancy, site preparation, piling and engineering design of the plant was borne by Fairway Holdings.
The statement said the Karadiyana Waste Management project that was competitively bid and won by Fairway Holdings is a hybrid scheme designed for the waste that is specific to the site.
“It integrates two technologies, an ‘Anaerobic Digester’ for high moisture biological waste and a ‘Mass Burn Incinerator’ for the mixed waste,” it said.
“Both technologies are well established and commercially proven. The technology mix is considered the most environmentally friendly and sustainable for end of the pipe waste treatment.”
The anaerobic digestion system will accept 140 tons a day of ‘Source Separated Organic’ (SSO) waste and generate as much as 16 million kWh of electricity per year with the plant having a maximum rated output of 2 megawatts.
It will also produce about 10,000 tons of solid fertilizer and 50,000 tons of liquid fertilizer a year.
The incinerator has an installed capacity of 12 MW of power, and is expected to generate as much as 65 million kWh/year.
(COLOMBO 03 June 2019)
Economic Intelligence Unit of the Ceylon Chamber of Commerce
Jehan Perera - Executive Director National Peace Council