THE GOVERNMENT OF BARBADOS proposes to enter a public/private partnership (PPP) agreement to establish a waste to energy plant based on plasma gasification technology. I feel compelled to contribute to the current debate and to assist in identifying some issues to be addressed in a national conversation as part of the project planning process.
Notices around Barbados draw the attention of the public to three Rs (reduce, reuse and recycle). Some progress is being made in the re-cycling industries as items of value are being diverted from the waste stream. Barbados now seeks to embark on the fourth R, that is, recovery of energy from waste.
The adoption of the plasma gasification technology has the potential to displace some enterprises currently involved with the first three Rs. However, recovery by this method, once technically feasible, would be more effective than partial recovery associated with the potential recovery of methane gas from the landfill. However, there will always be need for some landfilling capability to allow for risks associated with the plasma gasification plant’s downtime and to provide capacity for the plant’s waste and items of low calorific value.
There are four critical elements in a waste to energy plant project: guarantee of appropriate quantity and quality of waste, acceptable calorific value (measurement of heating power) of the waste, favourable power purchasing agreement, technology appropriateness and efficiency of operations. These must be guaranteed in order for the plant to be viable. The historical data related to waste composition, generation and disposal can form the basis for projected quantities of waste and its calorific value. If for some reason the waste quantities and composition vary such that the calorific values are not achieved, then additional measures would have to be taken to guarantee availability of waste to feed the plant.
A favourable power purchasing agreement would also be critical to the success of the plant. If the Barbados Light and Power Company Limited (BL&P) is required to purchase the energy produced by the waste to energy plant then it would be important to consider the impact on BL&P’s operations and finances and to determine its overall viability based on the proposed PPP arrangement and probable variations of key variables such as fuel prices and reduction in the sales of its own power generation. BL&P is a mature utility with a good track record of reliability of supply. As renewable energy and energy efficiency projects continue to be implemented in Barbados there can be an impact on BL&P’s operating and financial model based on reduced electricity generation, distribution and sales.
The successful operation of the plant will be determined by its commercial, financial and technical feasibility and the management of its operating, legal, environmental and social risks. Who are the stakeholders? Everyone generates waste so everyone resident in Barbados is a stakeholder in solid waste management. In addition there are also local industrial, commercial and institutional stakeholders. Therefore, any major solid waste management project would require an appropriate public participation plan which could facilitate the wider conversation with the residents and commercial and institutional representatives, civil society, labour unions, scientific and professional societies and Government (and public officials).
All solid waste management projects require a full environmental impact assessment (EIA) which includes or is accompanied by a social impact assessment. The public would have to be appropriately informed about the project, its technical processes and options. They need to know about the environment, social and operating risks. Given the ongoing concern about public debt, they will also need to know about the financing arrangements (the associated credit risk), and the level of grant element of the proposed terms of the PPP. The grant element is defined as the difference between a loan’s nominal value (face value) and the sum of the discounted future debt service payments to be made by the borrower (present value), expressed as a percentage of the loan’s face value.
Once the public participation process is concluded and the agreed project issues and risks are summarised, the project would normally have to be adjusted to include the redesigned features. The residents of Arch Hall and surrounding districts will be paying close attention based more on their experiences with Mount Stinkeroo. They will be concerned about the extent to which dust particles and harmful compounds could escape from the plant. Even if the plant treats its emissions to acceptable levels, the question will be who will do the ongoing monitoring? In addition, against whose standards would the plant emissions be judged and regulated? The EIA should identify any potentially harmful emissions and clearly indicate how they will be addressed and monitored. Technical persons may still wish to discuss how we got to the stage of choosing a plasma gasification plant as the best project option.
Clairvair Squires is a resource economist with specific experience and post-graduate qualification in solid waste management and coastal zone management. He is a former chief of the Environment Unit of the Caribbean Development Bank and a former member of The International Panel of Experts on Solid Waste Management. The final part will be published next week.
