WTMK FS Collection IU final

Transcription

Strategic Alliance (PPP) with the Cement Industry and Tyre
Manufacturers and Dealers in Kenya
Concept and Feasibility Study for Collection, Pre-processing
and Marketing of Waste Tyres in Kenya
Prepared by: INFRASTRUKTUR & UMWELT
On Behalf of GIZ
March 2012
Office Darmstadt
Office Potsdam
Partners
Julius-Reiber-Strasse 17
D 64293 Darmstadt / Germany
Fax +49-6151-8130-20
Tel. +49-6151-8130-0
www.iu-info.de
Georg-Mendel-Strasse 9
D 14469 Potsdam / Germany
Tel. +49-331-50581-0
Fax +49-331-50581-20
www.iu-info.de
Dipl.-Ing. Gernod Dilewski
Dipl.-Ing. Hans Jürgen Gräff
Dr. Ing, Peter Heiland
Dr. Ing. Jürgen Neumüller
Strategic Alliance (PPP) Waste Tyre Management, Kenya
Concept and Feasibility of Waste Tyre Collection
Content
1 Introduction .............................................................................................................. 4 1.1 Background ............................................................................................................. 4 1.2 Current Situation and Project Justification .............................................................. 4 2 Estimation of the Amount of Waste Tyres in Kenya ........................................... 10 2.1 Waste Tyre Generation ......................................................................................... 10 2.2 Tyre Imports into Kenya ........................................................................................ 12 3 Options for Utilization of Waste Tyres ................................................................. 15 3.1 Screening of Options of Waste Tyre Utilization ..................................................... 15 3.2 Capacity for RDF Utilization in Cement Kilns in Kenya ......................................... 19 3.3 Pre-Processing of Waste Tyres ............................................................................ 19 3.3.1 Baling of Tyres ................................................................................................... 20 3.3.2 Shredding of Tyres ............................................................................................ 20 3.3.3 Feeding of Waste Tyres into the Cement Kiln ................................................... 21 3.3.4 Options for the Transport of Waste Tyres .......................................................... 22 4 Investigation of Possible Options / Scenarios for the Collection and
Coprocessing of Waste Tyres in Kenya ............................................................... 24 4.1 Scenarios for Coprocessing of Waste Tyres in Cement Kilns ............................... 24 4.2 Integration of the Informal Sector into the Waste Tyre Management
System .................................................................................................................. 24 4.3 Scenarios for the Collection and Transportation of Waste Tyres .......................... 26 4.3.1 Implementation Steps and Amounts of Waste Tyres Collected ......................... 26 4.3.2 Logistics for Collection, Pre-processing and Disposal of Waste Tyres .............. 28 4.4 Costs for the Collection and Transportation of Waste Tyres ................................. 31 4.5 Cost Balance for Collection and Transportation versus Revenues from
Marketing of Waste Tyres ..................................................................................... 34 5 Assessment of the Organisational Setup for WTMK .......................................... 35 6 Conclusions and next steps .................................................................................. 38 I
List of Tables
Table 1 Typical composition of a tyre by weight........................................................... 7 Table 2 Estimated amounts of waste tyres in Kenya in 2009 ..................................... 10 Table 3 Tyre imports into Kenya in 2011 (source: Kenya Revenue
Authority) ....................................................................................................... 13 Table 4 Estimation of imported tyres coming into Kenya with imported
cars (based on newly registered cars in 2009).............................................. 14 Table 5 Density of whole and shredded waste tyres .................................................. 20 Table 6 Cost for shredding/processing of waste tyres ............................................... 21 Table 7 Revenues from selling steel of waste tyres after open burning ..................... 25 Table 8 Collectable quantities of waste tyres ............................................................. 28 Table 9 Cost calculation collection, storage and transport for scenario 1 .................. 32 Table 10 Cost calculation collection, storage and transport for scenario 2 .................. 33 Table 11 Cost balance of the waste tyre management system.................................... 34 List of Figures
Figure 1 Final destinations of waste tyres in Kenya in 2011 ......................................... 5 Figure 2 Steel wire recovery from tyres at Kariobangi outside Nairobi
(photo by Ms. Janet Ruto – Bamburi).............................................................. 6 Figure 3 Footwear made by reusing tyre ....................................................................... 6 Figure 4 Tyres ready for burning (photo by Ms. Janet Ruto – Bamburi ......................... 6 Figure 5 Tyre burning site.............................................................................................. 6 Figure 6 Recovered steel wires from burnt tyres ........................................................... 8 Figure 7 Share of major urban centres in tyre generation ........................................... 11 Figure 8 Forecasted quantities of waste tyres ............................................................. 12 Figure 9 Source of tyres in Kenya ............................................................................... 14 Figure 10 Used tyre recovery in Europe in 2010 (source: European Tyre
and Rubber Manufacturers’ Association) ...................................................... 15 Figure 11 Retreading of a truck tyre - Nairobi ............................................................... 16 Figure 12 Shoes from tyres – in Nairobi ........................................................................ 17 II
Figure 13 Tyre bales...................................................................................................... 20 Figure 14 Feeding of whole tyres .................................................................................. 22 Figure 15 An example mobile shredder for waste tyres ................................................ 23 Figure 16 Current and proposed future tyre streams .................................................... 26 Figure 17 Implementation steps of the formal waste tyre collection .............................. 27 Figure 18 Collection, storage, and transportation of waste tyres in
scenario 1 ...................................................................................................... 29 Figure 19 Collection, storage, pre-processing and transportation of waste
tyres in scenario 2 ......................................................................................... 30 Figure 20 Impact of coal price on the costs of the waste tyre management
system ........................................................................................................... 35 Figure 21 Organisational setup for a waste tyre management system
controlled by the Kenyan government ........................................................... 36 Figure 22 Organisational setup for a waste tyre management system based
on extended producer responsibility.............................................................. 37 III
1
Introduction
1.1
Background
An agreement for a strategic alliance for implementation of a waste tyre management
system in Kenya has been signed by GIZ and the companies Bamburi Cement,
Treadsetters, Multiple Hauliers and Sameer Africa in May 2011. The agreement is based
on the project description, approved by the German Federal Ministry for Economic
Corporation and Development. In this project description the main activities, objectives
and indicators of the project as well as the contributions of the different partners are
defined.
The objective of the partnership is to develop a sustainable waste tyre management
system in Kenya, where the regulatory framework is provided by the Kenyan government
and where the private sector is designing and implementing the system. The programme
is divided into two phases.
The aim of the first phase is the development and adoption of necessary rules and
regulations for the collection and recycling of scrap tires. The drafting of the regulations is
closely linked with the development of technical solutions, cost analysis and the
organisational setup of the proposed system. Phase 1 includes the following work
packages:
-
Preparation of a concept and feasibility study for collection, preprocessing and marketing of waste tyres (presented in this report)
-
Preparation of a feasibility study on the co-processing of waste tyres in cement
kilns in Kenya (presented in a separate report, but results considered in this
report)
-
Drafting of waste tyre regulations based on the technical studies
Infrastruktur & Umwelt has been assigned with assisting the implementation of Phase 1 of
the Strategic Alliance. This report is presenting the results of the first work package.
1.2
Current Situation and Project Justification
In 2011, about 1.9 Million scrap tires have been generated in Kenya (see chapter 2).
Scrap tires represent both a disposal problem and a resource opportunity. The current
situation of waste tyre disposal is shown in the figure below.
4
Figure 1
Final destinations of waste tyres in Kenya in 2011
As shown in the diagram the, by far, biggest amount of scrap tyres is burnt in the open to
recover the steel from the tyres. Only a minor amount, most likely well below 10 % is used
for material recycling (i.e. production of shoes, ropes, carpets, etc.).
5
Figure 2
Steel wire recovery from tyres
at Kariobangi outside Nairobi
(photo by Ms. Janet Ruto –
Bamburi)
Figure 3
Footwear made by reusing tyre
The recovery of the steel wire found within the tyres is a common practice all over Kenya.
The steel wires are recovered by burning the tyre and thereafter the recovered metal is
sold to a scrap metal trader. Scavengers collect the tyres and then set fire to them. The
burning usually takes place at night as this practice is illegal. Other than NEMA arresting
the scavengers that are burning tyres, second approach to prevent this practice would be
to make it illegal for steel mills to accept scrap metal from tyres.
Figure 4
Tyres ready for burning (photo by
Ms. Janet Ruto – Bamburi)
Figure 5
Tyre burning site
When tyres are burnt this leads to severe air pollution, this applies both when tyres are set
on fire to recover the steel wires, as well as to dumpsite fires. So any procedure that will
ensure that waste tyres are collected and treated in a responsible manner will greatly
benefit public health and lead to a cleaner environment.
Also, some of the rubber is used in simple furnaces as cheap source of fuel, in order to
replace coal or wood. It is assumed that a small part of the used tyres are stockpiled by
6
consumers, workshops, and tyre sellers, etc. End of 2010, the Bamburi Cement Plant
near Mombasa has started using waste tyres as a fuel in one of their kilns (see Report on
Co-processing).
Furthermore, many tyres are dumped indiscriminately. Such discarded tyres present a
significant health hazard, as they will accumulate stagnant water and can then become
breeding grounds for Aedes mosquitoes, the carrier of dengue fever. Furthermore, if the
tyres are dumped with household waste, the local population may set fire to the waste to
eliminate odours, rodents and vectors. When tyres are burned together with the
household waste, the air pollution will be more acute than otherwise.
There are many companies in Kenya which re-tread worn tyres. In Europe 8 % of the total
amount of worn tyres were re-treaded in 20101. In Kenya, this amount, most likely is much
higher. However, eventually all tyres will reach the end of their service life, and become
waste tyres. Re-treading has already been included in the estimation of lifetime of tyres
and estimation of waste tyre amounts (Table 2).
In Kenya, there are no official statistics on waste tyres (except the statistics on used tyres
in Bamburi Cement Plant); therefore the data presented above are rough estimations.
However, there is no doubt that open burning for steel recovery represents the most
common method for waste tyre disposal. In the table below the main material components
of a tyre are presented:
Table 1
Typical composition of a tyre by weight2
Components
Passenger Tire
Truck Tire
Natural rubber
14%
27%
Synthetic rubber
27%
14%
Carbon black
28%
28%
Steel
14 - 15%
14 - 15%
Fabric, fillers, accelerators, antiozonants, etc.
16 - 17%
16 - 17%
11
10
54
50
Average weight [kg]
new
scrap
1
End of life tyres - A valuable resource with growing potential - 2011 edition. European Tyre and
Rubber Manufacturers’ Association
2
Source: US-Rubber manufacturers association
7
As shown in the table there are app. 1.5 kg steel in a passenger tyre and 7.5 kg in a truck
tyre. According to a market research in Nairobi and Mombasa revenues for selling the
steel from scrap tyres are in a range of 15 – 40 KES per kg steel scrap. There a two
different types of wires which have different market value:
a. thick wires found along the rim of the tyre. They are strong and don’t get corroded
easily.
b. thin wires found elsewhere around the tyre. They are not durable as they rust
easily and are weak.
These two products fetch different prices with the type A going KES 25 to 40 and being
most preferred; type B goes for as low as KES 15.
Figure 6
Recovered steel wires from burnt tyres
Considering average revenues of 20 KES per kg a single truck tyre could earn 150 KES; a
stockpile of 5000 truck tyres would earn 750,000 KES. Thus, burning of tyres in Kenya in
recent years became an interesting business opportunity for the informal sector, and a
system for waste tyre utilization has been developed, which – from the point of costs and
efficiency - is functioning quite well.
Unfortunately, the current practice of open burning of waste tyres is connected to very
negative impact on environment and human health. Quite frequently in the outskirts of
Nairobi the black smoke from open burning of large amounts of tyres is covering the sky
and many residents complain about the harassment.
8
The open burning of tyres has significant impacts on the environment, human beings and
flora and fauna. A wide variety of decomposition products is generated during the open
burning of tyres. For instance, ash (containing carbon, zinc oxide, titanium dioxide, silicon
dioxides, cadmium, lead, and other heavy metals), volatile organic carbons, polynuclear
aromatic hydrocarbons (PAHs), aromatic oils, sulphur compounds, carbon and nitrogen
oxides, and several light-end aromatic hydrocarbons (e.g. toluene, xylene, benzene, etc.)3
are released in an uncontrolled burning of tyres. The type and quantity of the
decomposition products vary depending on several factors, e.g. type of tyre, burn rate,
temperature and humidity. In addition to the air, soil and surface and ground water are
polluted with these materials if they are washed or rained out by rainwater. The pyrolysis
oil, which is also a highly pollutant and flammable decomposition product, hazards the soil
and water sources. The burning of 21,000 tons of tyres produces about 165,000 litre
pyrolysis oil. The remaining solid residues after burning can penetrate the soil through
rainwater or surface water.
Due to the negative impact, NEMA has banned the open burning of tyres and is tracking
unlawful behavior. Unfortunately, it is almost impossible to fully control tyre burning, since
places for storage and burning are always changed. Furthermore, burning often happens
at night, and next morning only moldering ashes are left.
In general, there is a broad consensus that open burning of tyres is very harmful and
should no longer be accepted. However, first of all until today, no environmentally friendly
alternative is available in Kenya. Even if these solutions are available, it will be difficult if
not impossible to hinder waste pickers from open burning of tyres if no competitive
business / income opportunities are provided.
Thus key requirements for the new waste tyre management system are:
1. The new system should avoid negative impact on health and environment (thus
eliminating the negative impact of open tyre burning, which now is the common
practice)
2. Income opportunities of the poor population (currently involved in open burning of
waste tyres) should be at least maintained or if possible improved
3
Revised guidelines on environmentally sound management of used tyres, Basel Convention,
UNEP/CHW, November 2008
9
2
Estimation of the Amount of Waste Tyres in Kenya
In the mission report for establishing a Strategic Alliance on Waste Tyre Management in
Kenya (September 2010), the amount of waste tyres generated in Kenya has been
calculated. The chapters below present a

Verification and detailing of the 2010 calculations

Update to 2011 data and 10 year forecast

Division of results into urban centers (Nairobi, Mombasa) and other areas
2.1
Waste Tyre Generation
In the Statistical Abstract 2011, the Kenya National Bureau of Statistics has published
statistics for the transport sector. The latest data available is from 2009 and accordingly
1.2 million vehicles were registered in that year. Thus the total number of vehicles and
used tyres is much higher than the estimated number in the Mission Report from
September 2010. Based on the statistics for each type of vehicle, the amount of waste
tyres per year has been actualised and presented in the following table.
Table 2
Estimated amounts of waste tyres in Kenya in 2009
Total
number of
vehicles in
Kenya
no
Motor Cars
Utilities, Panel Vans,
Pick-ups, etc.
Lorries, Trucks and
Heavy Vans
Average Average Time period
number of mass of
of use
tires per
tyre
including
vehicle
retreading
no
kg / tyre
years / tyre
Total
mass of
waste
tyres
Total
number of
waste
tyres
tons
no
499,679
4
9
3.5
5,140
571,062
219,901
4
25
2.5
8,796
351,842
91,431
10
50
2.5
18,286
365,724
Buses
26,558
8
50
2.5
4,249
84,986
Mini Buses/Matatu
58,286
6
25
2.5
3,497
139,886
Trailers
27,039
6
50
2.5
3,245
64,894
Wheeled Tractors
25,091
4
60
5
1,204
20,073
239,104
2
5
4
598
119,552
Three Wheelers
13,856
3
6
3
83
13,856
Other motor vehicles
20,138
4
15
3.5
345
23,015
45,443
1,754,889
Motor Cycles
Total
1,221,083
According to the statistical data, the average urbanisation rate in Kenya is about 32%.
However, the vehicles are mainly used in urban centres and it can be assumed that about
10
80% of the waste tyres have been generated in urban centres. If it is presumed that the
tyre generation rate is directly related to the population number, the share of major urban
centres in tyre generation will be as shown in the following figure.
Rural areas
20%
Nairobi
20%
Mombasa
6%
Kiambu
6%
Nakuru
5%
Other urban
centres
34%
Uasin Gishu
2%
Figure 7
Machakos
4%
Kisumu
3%
Share of major urban centres in tyre generation
The figure above shows that about 46% of the waste tyres are generated by the
mentioned seven urban centres. As expected Nairobi, where about 8% of the total
population lives, is the largest generator of waste tyres with about 20% of the total
generated tyres. This figure may even be higher because of more urban style life than
other urban centres, higher number of workshops and tyre dealers and intensive vehicle
trading. However, exact number of registered vehicles in Nairobi or other related statistical
data are not available.
Between 2001 and 2009, the registered number of vehicles in Kenya has doubled and
increased about 9% per year. The annual new registrations have increased rapidly as
well. While in 2001 only 26.000 vehicles were registered, in 2009 this figure was 162.000.
Although the number of passenger cars per 1,000 inhabitants is with about 13 cars
relatively high compared to the Kenya’s neighbouring countries, there is a potential for
growing vehicle numbers compared to e.g. South Africa (99 cars), or countries in North
Africa (Egypt 22 cars, Morocco 47 cars and Tunisia 62 cars). This potential will certainly
11
be exhausted with the growing economy of Kenya and purchasing power of inhabitants4.
Based on these facts and with a conservative approach, it is estimated that the number of
registered vehicles in Kenya will increase by 5% each year. The following figure shows
the forecasted quantities of waste tyres until 2031.
140,000
130,000
120,000
Tons/a
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
Year
Figure 8
Forecasted quantities of waste tyres in Kenya
According to this estimation, the amount of waste tyres will increase from 52,600 tons in
2012 to 81,600 tons 2021 and 132,900 tons in 2031.
2.2
Tyre Imports into Kenya
There is only one company in Kenya actually producing tyres, which is Sameer Africa Ltd.
The major amount of tyres, used in Kenya is imported into the country. Based on statistics
from the KNBS, the imports of tyres (including re-treading material) have been evaluated.
According to the KNBS figures, in the last three years (2009 – 2011) a total of 1,182
different companies imported tyres into Kenya; in 2011 590 companies were registered.
Imported tyre amounts per registered company range from 1 kg to more than 4,000 tons
in 2011 (see table below).
4
International Monetary Fund estimates that the GDP of Kenya will increase annually 6.3% and be
doubled in 2016 compared to the GDP of 2010 which was 32.163 Billion U.S. Dollars.
12
Table 3
Tyre imports into Kenya in 2011 (source: Kenya Revenue Authority)
Imported tyres per
company
[tons in 2011]
No. of
companies
Amount of tyres
[tons in 2011]
Percentage of
total weight
more than 1000
5
13,759
42%
250-1000
21
8,647
27%
100-250
36
5,176
16%
25-100
66
3,572
11%
0.001-25
462
1,390
4%
Total
590
32,544
100%
As shown in the table, in 2011 five companies have imported more than 1,000 tons each.
Looking at the total amount of tyres (in weight) these companies come up for 42% of the
imports. In total 62 companies imported 85% of the tyres in weight.
Overall, these data show that there is a very large number of importers for tyres. However,
besides a few hundred companies importing only small numbers, there are only 62
companies importing more than 100 tons. 26 companies import 69% of tyres (by weight).
It has to be considered that the ranking according to the recorded value (CIF5) differs
considerably from the ranking according to weight.
Furthermore, tyres come into the country with newly registered cars. In the following table
the amount of tyres from imported cars is estimated on the basis of newly registered cars.
5
CIF: The c.i.f. price (i.e. cost, insurance and freight price) is the price of a good delivered at the
frontier of the importing country, including any insurance and freight charges incurred to that point,
or the price of a service delivered to a resident, before the payment of any import duties or other
taxes on imports or trade and transport margins within the country
13
Table 4
Estimation of imported tyres coming into Kenya with imported cars
(based on newly registered cars in 2009)
Newly
registered
vehicles in
Kenya in 2009
Average
number of
tires per
vehicle
Average
mass of tyre
Total
mass of
waste
tyres
no
44,529
0
7,120
no
4
4
4
kg / tyre
9
9
25
tons / year
1,603
0
712
6,037
10
50
3,019
1,734
3,806
2,883
2,526
86,158
4,993
2,027
161,813
8
6
6
4
2
3
4
50
25
50
60
5
6
15
694
571
865
606
862
90
122
9,142
9,599
10,079
Motor Cars
Station Wagons
Utilities, Panel Vans, Pickups, etc.
Lorries, Trucks and Heavy
Vans
Buses
Mini Buses/Matatu
Trailers
Wheeled Tractors
Motor Cycles
Three Wheelers
Other motor vehicles
Total
5% increase 2010
5% increase 2011
Based on these figures tyres from imported cars come up for app. 20% of the tyres in the
country. There, certainly, might be some grey market imports as well, which however
cannot be quantified. The diagram below is presenting an estimation of the different
sources for tyres in Kenya.
Others (tyres produced in Kenya, grey market imports, …
Source of tyres
Tyres imported with cars
20%
Figure 9
Tyre imports
62%
Source of tyres in Kenya
14
3
Options for Utilization of Waste Tyres
3.1
Screening of Options of Waste Tyre Utilization
After the end of their useful life, the tyres can be utilised for various purposes. Extended
research has been undertaken and different solutions have been developed for
processing and utilization of waste tyres. The following figure shows the latest statistics for
waste tyre management in Europe6.
Waste Tyre Recovery in Europe
Landfill
5%
Reuse
4%
Export
Retreading
6%
8%
Civil Engineering
7%
Energy
38%
Recycling
32%
Figure 10 Used tyre recovery in Europe in 2010 (source: European Tyre and
Rubber Manufacturers’ Association)
Energy recovery still is the main purpose for waste tyre utilization in Europe. Also, material
recycling increased in recent years, and new technologies for processing and utilization
have been developed.
However, it has to be taken into account that in Europe considerable funds are spent for
waste tyre management. According to the European Tyre and Rubber Manufacturers’
Association, the annual cost for the management of waste tyres is estimated at € 600
million. Considering an amount 3.3 Mio tons of waste tyres in 2010, average specific costs
amount to 180 Euro per ton (app. 1.80 Euro for a small tyre and 9 Euro for a truck tyre).
In the following available technics are described and their suitability to the conditions in
Kenya is discussed briefly.
6
End of life tyres - A valuable resource with growing potential - 2011 edition. European Tyre and
Rubber Manufacturers’ Association
15
Re-utilisation
Scrap tyres can be reused for different purposes, such as:

As a wharf or pier fender and on vessels

To prevent the fly over of tarpaulins on piles or dung heaps, as well as during landfill
construction or operation

In noise barriers or as supporting structure for erosion control, slope stabilisation

As playground equipment (e.g. swing)

Artificial reefs
However, reuse of old tyres will not be a feasible solution to be applied as a countrywide
system since the possibilities and the number of tyres to be used are limited.
Re-tread
The re-treading is the buffing away of the worn tread and bonding of a new tread to the
suitable worn tyres. If manufactured according to certain standards, like UN/ECE 108/109,
the re-treaded tyres are safe as much as the new tyres. The re-treading process requires
about a quarter of the rubber compound and one fifth of the oil which is needed for the
manufacturing of new tyres. However, the road resistance of the re-treaded tyres is about
3% higher than the new tyres. This cause increased fuel consumption compensating the
cost balance over the entire service lifetime. In Kenya, there are already several
companies which produce re-treaded tyres. However, even with re-treading, life time of a
tyre is limited, and finally (when for example the chassis is damaged) all tyres will become
waste tyres.
Figure 11 Retreading of a truck tyre - Nairobi
16
Material Recycling
The material recycling of used tyres includes the use of reshaped tyres or use of the
granulated material as rubber secondary raw material. The simple form of material
recycling is already in place in Kenya. Several small enterprises produce footwear or
buckets from used tyres.
Figure 12 Shoes from tyres – in Nairobi
The grinding in order to produce granulates or meal can be done either by mechanical
shredding systems or by cooling and following crushing. The standard shredding systems
successively process the tyres down to a size of approximately 0.8 mm. Therefore, it is
very energy intense. By grinding with cooling the tyres must be shredded before cooling
with liquid nitrogen (additional costs). Thus both processes are very cost intensive.
Devulcanization is another form of material recovery. Using different processes, the tyre
rubber is converted into a state in which it can be mixed, processed, and vulcanised
again. The available processes are chemical, ultra-sound, microwave, and biological
processes. They all are very costly technologies which need highly skilled personnel and
experience.
Granulate or meal could be used for several purposes, such as:

Filler material for the rubber industry,

Shock-absorbing floor covering (for sport halls and playgrounds)

Formed/ shaped parts and mats

Thermoplastic elastomers
17

Granulated material/ pellets for horticulture and landscape architecture

Oil absorbent

Granulated material/ pellets as additive for asphalt
As it can be seen in the list above, the further utilisation of granulated material requires
further industrial processes. Taking the high shredding costs and the industrial facilities in
Kenya into consideration, it can be said that the utilisation potential of the granulated
waste tyres is very limited.
Energy Recovery
Both in North America, as well as in many European countries, the energy recovery is
currently the quantitatively most important disposal method for used tires. For energy
recovery four alternatives are available:

Co-combustion in the cement industry

Use of waste tyres as auxiliary fuel in coal-fired power plants

Combustion of waste tyres in power plants exclusively designed for the combustion of
waste tyres

Pyrolysis
In Germany, the cement plants are with about 250,000 tons per year by far the largest
user of end of life tyres. Due to high combustion temperature in the rotary kilns even
whole tyres can be burned safely and environmentally friendly.
Currently there is no coal-fired power plant in Kenya. Kenya is highly dependent on hydro
power plants and in times of dry hydrology emergency thermal power must be used. In
order to prevent this, the Kenyan Government plans to construct a coal-fired power plant
north of Mombasa near a cement plant in Kilif. The 300MW-plant is planned to be in
operation earliest in 2016. Since it is in the planning phase, it might be an option to
consider the use tyre derived fuel in this plant. However, for the purpose of this study it is
not clear, if this option indeed will be considered in the plant design.
The construction of a separate power plant exclusively designed for the combustion of
waste tyres requires huge investments, know-how and a significant planning. The current
small quantities of waste tyres and absence of a well implemented reverse logistic system
and experiences do not allow the justification of the implementation of such a plant.
With pyrolysis the waste tyres are thermally degraded in the absence of oxygen (without
combustion). Although technical feasibility of the pyrolysis has already been proved, it is
18
very complex and economically not viable. For instance, in the United States over 30
plants have been constructed, but all of them failed in terms of economical operation.
Conclusion
The utilisation of rubber from used tyres will remain in a small extent in future, but this
option cannot provide a nationwide solution for the entire waste tyre streams. More
sophisticated material recovery of waste tyres requires high investment costs, know-how
and a following processing industry. Since there is no coal-fired plant in operation and
separate power plants and pyrolysis currently are not economical options, the coprocessing in cement plants is considered as the most relevant solutions for the start of
the waste tyre management system. Certainly, analysis and development of alternative
marketing options should be an integral part of a future waste tyre management system.
3.2
Capacity for RDF Utilization in Cement Kilns in Kenya
In the Feasibility Study for Coprocessing the potential for utilization of waste tyres in
cement kilns in Kenya has been assessed. According to this estimation, the theoretical
potential for co-processing of waste tyres in Kenya is equivalent with the amount of
generated waste tyres. However, this estimation is just a theoretical figure, since it is
based on the assumption that all cement companies, indeed, are interested in buying the
waste tyres. For the cement companies this decision would require considerable
investments and modifications in their kilns and operations (see Feasibility Study Report
on Co-processing). So far, Bamburi is the only cement company in Kenya that clearly
stated its interest to utilise waste tyre. In fact, Bamburi has already adapted its kilns for
pre-processing of waste tyres and has started the collection and utilization of waste tyres.
With the current technical setup the capacity for waste tyre utilization at Bamburi is
possible for up to 6,000 tons per year. With a more sophisticated setup (requiring higher
investment) this amount could be increased to app. 20,000 tons per year.
3.3
Pre-Processing of Waste Tyres
Requirements for pre-processing are mainly defined by the later purpose of waste tyre
utilisation. In cement kilns waste tyres can be supplied in three different forms; as whole
tyres, as chips or as crumb. The different technologies are discussed in detail in the report
concerning co-processing in cement kilns.
Furthermore, transport of whole tyres is not very efficient, since the specific weight of
stapled tyres hardly exceeds 200 kg per m³. With baling, the specific weight for
transportation can be increased to app. 500 kg per m³, whereas crumb rubber would have
a density of more than 1000 kg per m³.
19
Table 5
Density of whole and shredded waste tyres
Tyre Form
Density of Tyres
In bulk (stacked):
175 - 225 kg/m3
Baled:
400 - 500 kg/m3
Shredded (chips):
320 – 640 kg/m3
Shredded (crumb rubber):
3.3.1
1,150 kg/m3
Baling of Tyres
As can be seen from the table, there is considerable benefit in compressing the tyres.
Specific costs for baling are in a range of 6 to 10 US-Dollar per ton of waste tyres. These
costs have to be mirrored against savings in transport.
Figure 13 Tyre bales
3.3.2
Shredding of Tyres
Shredding and processing of waste tyres involves special technologies and based on
particle size and separation efficiency, fairly high costs have to be considered. In the
following table specific costs for different types of shredding are presented.
20
Table 6
Cost for shredding/processing of waste tyres7
Size
Description
Application
Cost
per ton*
(US-Dollar)
2"
(5.08 cm)
2"
(5.08 cm)
minus
1"
(2.54 cm)
normal
1/2 "
(1.27 cm)
minus
Clean cut. Ply &
bead steel remains
Minimal wire, cut
beads removed by
magnets
Same as 2" minus
with extra shredded
pass
Truly wire free,
requires additional
shredding equipment
Cement Kilns, Civil
Engineering
$10
10-12
Industrial utility, pulp
paper mill boilers
$25
7
$10-$30
4-5
$25-$55
2-3
Power utility boilers
(cyclone tspe)
Feed stock for crumb
rubber, playground and
sport field surfaces
Process
Rate
(tons/hour)
*Cost per Ton includes power, labor, equipment and maintenance costs. No overhead profit or transportation included
As shown in the table above, average costs per ton are in a range of 10 to 55 US-Dollar.
Besides cutting the tyres, high effort is required for separation of wires from the rubber.
Certainly, costs for labour would be lower in Kenya compared to the US. However,
considerable part of the costs is for equipment and maintenance, which might even be
more expensive in Kenya.
3.3.3
Feeding of Waste Tyres into the Cement Kiln
The feeding of waste tyres as whole into the cement kilns is very common, since no preprocessing of the tyres is necessary. However, some cement kiln designs are not suitable
for using whole waste tyres and must be modified to accept whole tyres. Furthermore, the
costs for transporting of tyres are higher than the transport of chips or crumps because of
low quantity per transport. The space requirements for the storage and handling of waste
tyres are high as well. Usually the tyres manually loaded on a conveyor connected to an
injection setup that inserts tyres into the kiln. Most of the injection setups insert one or two
tyres per kiln revolution (ca. 90 seconds). In Bamburi Cement Plant in Mombasa, the tyres
are weighed and according to their weight fed into the kiln. On average one tyre is fed
about every 5 minutes.
7
Source: US Rubber Manufacturers‘ Association, 2005: Considerations for Starting a Scrap Tire
Company. A Blueprint for Planning a Business Strategy
21
Figure 14 Feeding of whole tyres
In order to feed the tyres continuously, they can be shredded up to a size of 15x15 cm to
2x2 cm. In addition to continuous feeding, the feed rate can be regulated precisely. Since
the feeding is regulated by automated systems, the investment costs are high, but
operating costs may be lower due to fewer requirements for manual labour. If the tyres are
shredded at the collection point, the transport costs can be minimised considerably.
In the crumb form, the waste tyres are blown in with pulverised coal into the cement kiln.
The pre-processing of waste tyres in order to bring them into the crumb form is very costly
and therefore not considered furthermore.
Currently the cement plant in Mombasa utilises whole waste tyres without any preprocessing. However, the utilisation of tyre chips would bring some benefits to the cement
plant. E.g. the tyres can be fed continuously into the kiln and thus more waste tyres can
be utilised. Furthermore, the feed rate can be regulated precisely.
3.3.4
Options for the Transport of Waste Tyres
The shredded or baled tyres have an average density of 400 – 500 kg per cubic meter,
compared to less than 200 kg for whole tyres. Thus, the same container can transport
app. 2.5 times more tyres compared to transport of whole tyres in the same transportation
vehicle. On the other hand, costs for shredding and baling have to be considered in the
overall cost balance.
22
If the tyre chips are used, one important factor to be considered is the point of shredding.
Shredding could take place at
a) (central) collection point(s)
b) at the cement kiln
Shredding at the collection points at first sight seems to be more reasonable since this
supports transportation as well as co-processing in the kilns. However, since the tyres are
collected at different places, shredding would be required at each place. There are (semi-)
mobile shredders on the market, which could for example service different collections
points in the Nairobi area. Otherwise, using the same mobile shredder at the collection
point in Mombasa might not be very efficient due to the large distance between Mombasa
and Nairobi and the short transportation distance between the Mombasa collection point
and the Bamburi cement kiln.
Figure 15 An example mobile shredder for waste tyres
Furthermore, if Bamburi is responsible for shredding at their plant, they can exactly define
the processing according to the needs in the kiln. Thus, it might be preferable to use
baling for long distance transport of large amounts of waste tyres, whereas the shredding
(if required) should be done at the cement kiln.
23
4
Investigation of Possible Options / Scenarios for the Collection and
Coprocessing of Waste Tyres in Kenya
4.1
Scenarios for Coprocessing of Waste Tyres in Cement Kilns
As already mentioned, currently only Bamburi has stated interest in utilization of waste
tyres in its cement kilns. Thus, calculations are based on the possibilities at the Bamburi
kilns in Mombasa. Two different scenarios will be considered for
the further investigations which are both based on the capacities of the Bamburi kilns for
co-processing.
Scenario 1. 6,000 tons of waste tyres per year are delivered to the Bamburi cement
kilns in Mombasa
Scenario 2. 20,000 tons of waste tyres per year are delivered to the Bamburi cement
kilns in Mombasa
However, these are just theoretical scenarios, which are defined in order to analyse and
compare different options. In reality, assuming a successful implementation of the new
system, waste tyre amounts for scenario 1 will most likely be exceeded in a few years
(requiring additional solutions for waste tyre utilization). On the other hand it will take
several years to build up a system for collection of 20,000 tons of waste tyres per year
(scenario 2).
4.2
Integration of the Informal Sector into the Waste Tyre Management
System
As already stated burning of tyres for recovering and selling the steel in recent years
became an interesting business opportunity for the informal sector. A system for waste
tyre collection and utilization has been developed, which – from the point of costs and
efficiency - is functioning quite well.
The existing informal collection system can be used as well for the planned waste tyre
management system. The critical point is that payment for waste tyres should be
competitive to what people at the moment can earn from burning of waste tyres.
For the calculation below an average revenue of 20 KES per kg steel from waste tyres is
considered, paid to the primary collectors. Furthermore, in most cases, middlemen will be
involved, for example for collection of the tyres from the waste pickers and transportation
to the collection point. Thus, additional 10 KES per kg are considered for this purpose,
24
summing up to 30 KES per kg of scrap steel. As shown in the table below, currently a
small tyre will generate a revenue of app 45 KES, if the tyre is burned and sold to the
scrap dealer. In order to attract the informal sector and small enterprises to deliver the
tyres to the new waste tyre scheme, at least equal prices should be paid.
Table 7
Revenues from waste tyres, if steel is sold to scrap dealers after open
burning
#
Item
1
Weight of tyre
Kg
2
Percentage of steel
Weight of steel
per tyre
%
3
Calculation
Unit
Tyre for
passenger
car
Van, Minibus Tyre
Truck
tyre
10
25
50
15%
15%
15%
= #1 x #2
Kg /tyre
1.5
3.75
7.5
4
Payment to waste
picker for one tyre
= 20 KES x #3
KES / tyre
30
75
150
5
Payment to middle
man for one tyre
= 10 KES x #3
KES / tyre
15
37.5
75
6
Revenue per tyre =
Cost for tyre
acquisition
= #4 + #5
KES / Tyre
45
112.5
225
The table above only gives an indication about the price range – since scrap prices are
fluctuating, the actual price might change over time. Indeed, Bamburi is already
successfully cooperating with the informal sector in the Mombasa region in order to
acquire waste tyres for the Mombasa cement kilns.
In this way, the present collection system can also be integrated into the new formal
system, provided that sufficient funding for paying a competitive price to the informal
sector can be secured. The following diagram shows the existing and the proposed waste
streams. In both systems the informal sector plays a major role.
25
Figure 16 Current and proposed future (waste) tyre streams
4.3
Scenarios for the Collection and Transportation of Waste Tyres
4.3.1
Implementation Steps and Amounts of Waste Tyres Collected
The formal collection of waste tyres will face several obstacles regarding technical,
financial and institutional issues. The stepwise implementation will help to see the
problems in time and to develop suitable solutions. In this way, the future investments and
institutional setup can be planned much better. For this purpose following stepwise
implementation of formal waste tyre collection is proposed.
26
Figure 17 Implementation steps of the formal waste tyre collection
In 2009 about 1.2 million vehicles were registered in Kenya, with an expected average
increase of 5 % per year. It is assumed that 80% of the vehicles are utilised in urban
areas which means that 80% of the waste tyres are generated in urban areas. Therefore
the proposed collection system focuses on urban areas. Nairobi and Mombasa are the
only cities with completely urban structure. In both cities waste tyre collection takes
already place. Nairobi because of its size and Mombasa because of existing cement
factories are selected for the first implementation locations. The collection system shall be
tested here for three years. After that the counties with higher urbanisation rates around
Nairobi, Kiambu and Machakos, and around Mombasa; Kilifi and Kwale, shall be
connected to the system. Since most of the waste tyres will be transported from Nairobi to
Mombasa and another large city Makueni is on this route, it shall also be connected to the
system. Again after three years of operation, the urban areas in the northwest of Nairobi,
particularly Nakuru and Kisumu, are included into the system. As already happens, it is
expected that from Nakuru waste tyres will be delivered to the cement plants by existing
tyre collectors before the formal collection is implemented. From 2021 on, in all urban
areas of the country, the waste tyres shall be collected separately.
27
Parallel to the stepwise extension of the collection system, the collection rate of waste
tyres will be increased. At the beginning of the implementation, the collection rate will be
low and expected to be 60% (of the generated quantity in the respective urban area). This
rate will progressively be increased to 80% until 2021 and 90% until 2030. Since there is
no data on the registered vehicle number in each county or city, it is assumed that the
number of vehicles is proportional to the population number (only for urban areas).
Following tables shows the estimated quantities of collectable waste tyre amounts until
2031.
Table 8
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Collectable quantities of waste tyres
Total tyre
generated
tons/a
52,606
55,237
57,999
60,899
63,943
67,141
70,498
74,023
77,724
81,610
85,690
89,975
94,474
99,197
104,157
109,365
114,833
120,575
126,604
132,934
Total tyres
from urban
areas
tons/a
42,085
44,189
46,399
48,719
51,155
53,712
56,398
59,218
62,179
65,288
68,552
71,980
75,579
79,358
83,326
87,492
91,867
96,460
101,283
106,347
Collection rate
in connected
urban areas
%
60%
60%
65%
65%
70%
70%
75%
75%
75%
80%
80%
80%
85%
85%
85%
85%
85%
85%
90%
90%
Total collected in
connected urban areas
tons/a
8,246
8,658
9,848
15,657
17,704
18,590
30,910
32,455
34,078
52,230
54,842
57,584
64,242
67,454
70,827
74,368
78,087
81,991
91,155
95,712
%
16%
16%
17%
26%
28%
28%
44%
44%
44%
64%
64%
64%
68%
68%
68%
68%
68%
68%
72%
72%
It should be stated here again that the formal collection of waste tyres will not be
implemented in all urban areas from the beginning. The implementation will be stepwise,
and first in 2021 all urban areas will be connected to the collection system. The collection
rate compared to the total generated waste tyres will be 16% in 2012 and increase to 72%
in 2030.
4.3.2
Logistics for Collection, Pre-processing and Disposal of Waste Tyres
The logistical concept, presented below is looking at the first implementation step with
collection of waste tyres in Mombasa and Nairobi. Furthermore, the concept will be
developed for the scenarios defined in chapter 4.1 with utilisation of 6,000 tons per year
28
(scenario 1) respectively 20,000 tons per year (scenario 2) in the Bamburi cement kilns in
Mombasa.
Scenario 1 (6,000 tpa)
In Scenario 1 one collection point in Nairobi and one collection point in Mombasa shall be
implemented. From the collection points the tyres will be delivered to the Bamburi plant
via road transportation. The possibility of rail transportation has been analysed but was
found to be more expensive.
Figure 18 Collection, storage, and transportation of waste tyres in scenario 1
Scenario 2 (20,000 tpa)
For this purpose four collection points in Nairobi and one collection point in Mombasa
shall be implemented. One of the collection points in Nairobi shall be a central facility
where the whole tyres will be delivered from other collection points. From this collection
point the tyres will be baled and delivered to the Bamburi plant via road transportation. In
scenario 2 at this central point, the collected waste tyres will be baled and transported to
the cement plants.
29
In Mombasa one collection point will be established, from where the tyres will be
transported to the Bamburi kiln by road transportation as well. It is assumed that the waste
tyres from the Mombasa area will be transported to the cement kilns as whole tyres
without baling or shredding in both Scenarios.
Figure 19 Collection, storage, pre-processing and transportation of waste tyres in
scenario 2
Storage of waste tyres
The required infrastructure is a ring fence, a gate, a management building including
sanitary facilities, appropriate fire protection equipment, a parking area for deliverer, and a
sufficient area for the baling of tyres. For the normal operation, one person will sufficient to
operate the facility. Taking the availability into consideration, two employees are
considered for the cost calculations.
The central facility to collect and bale the waste tyres (in scenario 2) in Nairobi must be
sufficient to store the waste tyres at least for one month.
The rules for the proper storage of waste tyres which are obligatory in a number of
countries are drawn up by the International Association of Fire Chiefs and the Scrap Tyre
Management Council (USA). These rules are also adopted by Basel Convention
Technical Guidelines on the Identification and Management of Used Tyres (2008).
30
Accordingly the piles should be limited to 6 m height with a maximum perimeter of 76 m
by 13 m. the edges of the pile should be at least 15 m from the perimeter fence. Since
tyres tend to slide down from the sides of the pile and close off the fire breaks, all interior
fire breaks should be at least 18 m wide. An area extending 60 m from the outside
perimeter of the piles should be totally void of trees, plants or vegetation. All exposures,
including buildings, vehicles or flammable materials should be at least 60 m away from the
tyre stockpiles. Piles or storage racks should not be located near or below power lines.
The area should be clear of debris and vegetation.
4.4
Costs for the Collection and Transportation of Waste Tyres
Based on the logistical concept in chapter 4.3.2 the costs for collection and transportation
have been calculated for the two scenarios. Costs are calculated as annual costs,
assuming that own trucks for transportation are used and no synergies (i.e. utilization of
places for storage and collection for different purposes) are considered. Actual cost might,
indeed, be somewhat lower, if for example opportunities for backhaul are utilized or if
storage places can be combined with other uses.
As stated in chapter 4.2 it is assumed that most of the tyres will be delivered by the
informal sector. In order to motivate the informal sector to collect and deliver the tyre, a
price needs to be paid, which is competitive to revenues from open burning and marketing
of steel. Thus, it is assumed that for tyre acquisition a price will be paid, which is
equivalent to potential revenues from selling steel scrap after open burning of tyres.
As shown in the calculation in table 8 (chapter 4.2), costs of KES 45 for a small tyre (10
kg) are considered, resulting in a price of KES 4,500 per ton. In practise cost reductions
might be possible, if companies from the tyre, auto, or transportation sector deliver their
waste tyres free of costs.
In the following tables, costs for the two scenarios are summarized.
31
Table 9
Cost calculation collection, storage and transport for scenario 1
Position
1
1.1
1.2
1.3
2
2.1
2.2
2.3
3
3.1
3.2
3.3
4
Collection points
Lease of land
Construction costs
Workers
Transportation costs
Nairobi
Truck (40 m³)
Driver
Fuel
Transportation costs
Mombasa
Truck (20 m³)
Driver
Fuel
Costs for purchase of
waste tyres
Unit
annual lease
annual cost
annual salary
Quantity
2
2
4
Unit Cost
(KES)
330,000
770,000
198,000
Amount
(KES/a)
2,992,000
660,000
1,540,000
792,000
20,179,500
annual cost incl.
maintenance
and repair
annual salary
liter
2
3
125000
2,200,000
264,000
120
4,400,000
792,000
14,987,500
2,447,500
annual cost incl.
maintenance
and repair
annual salary
liter
1
2
5000
1,320,000
264,000
120
1,320,000
528,000
599,500
27,000,000
5
6,000 tons of waste
tyres delivered
Administration and
others
5.1
Administration (15% of
subtotal 1-4)
annual cost
lump sum
7,892,850
5.2
Contingencies (10% of
subtotal 1-4)
annual cost
lump sum
5,261,900
4.1
annual cost
6,000
4,500
27,000,000
13,154,750
Total cost per year
Cost per ton
KES per ton
65,773,750
10,962
Cost per small tyre
(10kg)
KES per tyre
110
Cost per large tyre
(50 kg)
KES per tyre
548
According to this calculation costs for collection, storage, and transportation amount to
app. 11,000 KES per ton of waste tyres respectively 110 KES for a small tyre (10 kg) and
548 KES for a truck tyre (50 kg).
32
Table 10
Cost calculation collection, storage and transport for scenario 2
Position
Unit
1
1.1
1.2
1.3
Collection points
Lease of land
Construction costs
Workers
2
2.1
2.2
Central collection point Nairobi
Lease of land
lease
Construction costs
annual cost
lease
annual cost
annual salary
annual cost incl.
maintenance
and repair
annual cost incl.
maintenance
and repair
annual salary
2.3
Baler
2.4
2.5
Forklifter
Workers
3
Transportation costs Nairobi
annual cost incl.
maintenance
and repair
annual salary
liter
annual cost incl.
maintenance
and repair
annual salary
liter
3.1
3.2
3.3
Truck (40 m³)
Driver
Fuel
3.4
3.5
3.6
Truck (20 m³)
Driver
Fuel
4
Transportation costs Mombasa
annual cost incl.
maintenance
and repair
annual salary
liter
4.1
4.2
4.3
Truck (20 m³)
Driver
Fuel
5
Costs for purchase of waste tyres
20,000 tons of waste
tyres delivered
annual cost
5.1
6
6.1
6.2
Administration and others
Administration (15% of
subtotal 1-5)
annual cost
Contingencies (10% of
subtotal 1-5)
annual cost
Total cost per year
Cost per ton
Cost per small tyre
(10kg)
Cost per large tyre
(50 kg)
Quantity
Unit Cost
(KES)
Amount
(KES/a)
330,000
770,000
198,000
5,588,000
1,320,000
3,080,000
1,188,000
1
1
660,000
1,540,000
10,890,000
660,000
1,540,000
1
5,500,000
5,500,000
1
5
2,200,000
198,000
2,200,000
990,000
4
4
6
38,329,500
3
5
200,000
2,200,000
264,000
120
6,600,000
1,320,000
23,980,000
2
3
25,000
1,320,000
264,000
120
2,640,000
792,000
2,997,500
4,631,000
2
3
10,000
1,320,000
264,000
120
2,640,000
792,000
1,199,000
90,000,000
20,000
4,500
90,000,000
37,359,625
lump sum
22,415,775
lump sum
14,943,850
KES per ton
186,798,125
9,340
KES per tyre
93
KES per tyre
467
33
In the second scenario, costs for collection, storage, and transportation amount to app.
9,300 KES per ton of waste tyres respectively 93 KES for a small tyre (10 kg) and 467
KES for a truck tyre (50 kg).
4.5
Cost Balance for Collection and Transportation versus Revenues from
Marketing of Waste Tyres
The costs for the acquisition of tyres, temporary storage, and transport, are presented in
the chapter above. The utilisation of waste tyres in the cement kilns most likely will result
in savings (respectively revenues from selling the waste tyres to the cement industry),
mainly due to the fact that coal can be replaced by tyre derived fuel (TDF - see report on
co-processing). In the table below costs and savings are summed up.
Table 11
Cost balance of the waste tyre management system (revenues from
selling waste tyres to the cement industry are shown as negative costs)
Unit
Scenario 1
Scenario 2
Cost
collection
Cost coprocessing
Cost
balance
Cost
collection
Cost coprocessing
Cost
balance
Cost per ton
KES per
ton
10,962
-7,158
3,804
9,340
-7,542
1,798
Cost per small
tyre (10kg)
KES per
tyre
110
-72
38
93
-75
18
Cost per large
tyre (50 kg)
KES per
tyre
548
-358
190
467
-377
90
As shown in the table, in both scenarios there is a deficit, which amounts to 3,800 KES
per ton of waste tyres in Scenario 1 and 1,800 KES / ton in scenario 2.
Most likely, this deficit can be reduced or possibly even brought to zero if for example
tyres are delivered for free, or transportation costs can be substantially reduced through
back hauling opportunities. These arrangements could for example be negotiated
between Bamburi and companies from the tyre sector (which actually already is the case).
Thus, scenario 1, most likely can be implemented, without additional funding and by
utilizing cost saving opportunities.
A national waste tyre management system, which in a stepwise extension process would
collect 20,000 tons of waste tyres per year (scenario 2) and more, however, could not fully
rely on such opportunities. Although the financing gap based on specific costs in
scenario 2 is smaller, financial sustainability has to be secured before implementation. For
example, Bamburi, would not do the required investments into the kilns, if the delivery of
20,000 tons of waste tyres cannot be guaranteed.
Another factor, which has an important impact on the costs of the waste tyre management
system, is the price of coal. If coal prices go up, waste tyre utilisation becomes more
34
attractive, if prices go down, savings from fuel switch are reduced as well (see figure
below).
Impact of Coal Price
Cost of Waste Tyre Management System [KES/ ton of waste tyres]
15000
10000
5000
Cost balance scenario 1
[KES/ton of waste tyres]
0
0
5,000
10,000
15,000
20,000
‐5000
Cost balance scenario 2
[KES/ton of waste tyres]
‐10000
‐15000
Cost of Coal [KES/ton]
Figure 20 Impact of coal price on the costs of the waste tyre management system
5
Assessment of the Organisational Setup for WTMK
In general there are two different approaches for the organisational setup of the future
(national) waste tyre management system in Kenya:
-
the system could either be implemented with shared responsibilities of the
private sector and the Kenyan government, and financed by a tax
or, the system could be exclusively based and implemented on the principle of
(extended) producer responsibility
Advantages and disadvantages of both options have already intensively been discussed
with the different stakeholders in the scope of the Strategic Alliance. The National
Environment Management Authority (NEMA) is favoring “extended producer
responsibility” where tyre producers and traders design and implement the system. The
companies from the tyre sector, which are partners in the Strategic Alliance, have
especially stated the importance that with regard to waste tyre management there should
be equal responsibilities and duties for all companies in the sector.
The possible organisational setup for both options is presented in the figures below.
35
Figure 21 Organisational setup for a waste tyre management system with shared
responsibilities of the private sector and the Kenyan government
In this option the National Environmental Management Authority would have a central
role. Based on an amended legal framework NEMA would establish a fund for financing
the system. Financing is based on a levy for imported tyres (including tyres on imported
vehicles) collected by the Kenya Revenue Authority (KRA) and transferred to NEMA.
Furthermore, there would be an equivalent tax for tyres produced in the country. Then,
NEMA will contract a company for implementation of waste tyre collection, storage, preprocessing and marketing. Contracting has to follow the Kenyan legal requirements and
will be based on tenders.
Similar schemes already have been developed in Kenya for other purposes - but still the
establishment of the legal basis for a government controlled waste tyre system might be
complicated and time consuming.
Alternatively, the tyre sector could organise the waste tyre management system
independently and exclusively financed by the companies in the sector.
36
Figure 22 Organisational setup for a waste tyre management system exclusively
organized and financed by the companies in the tyre sector
In this option the Kenyan tyre sector would establish a company for collection and
marketing of tyres. NEMA would issue waste tyres regulations and license companies
based on defined criteria.
The tyre sector then would also be responsible for financing of the waste tyre
management scheme. As shown in the cost balance in Chapter 4.5, the costs for the
waste tyre collection system most likely cannot be fully financed from revenues from
marketing waste tyre products. Thus, the tyre sector would have to contribute to the
funding of the system.
However, most of the tyres being used in Kenya are not produced in the country but are
imported either as tyre or vehicle. As shown in chapter 2.2 of this report, in the last three
years, 1,182 different companies imported tyres to Kenya. Once the tyres are in the
country it seems to be very difficult if not impossible to address these companies with
regard to financial contributions for the waste tyre management system.
Most likely, new and used cars are imported by a large number of different companies
(and individuals) as well – thus the same challenges as with the import of tyres have to be
addressed.
37
Unfortunately, as discussed in December 2011, KRA cannot collect levies / taxis on behalf
of a private entity. Thus, within the option of extended producer responsibility revenue
collection via KRA does not seem to be possible.
Certainly, the future Kenyan Waste Tyre Regulations could request all tyre importers and
tyre producers to participate in approved waste tyre mechanism. However, control and
enforcement of such regulations in the Kenyan context seems to be very difficult.
Thus, an organizational setup for a waste tyre management system with shared
responsibilities of the private sector and the Kenyan government seems to be the most
promising option.
6
Conclusions and next steps
In 2011 app. 50,000 tons of waste tyres were generated in Kenya; a future average
increase of 5% per year is expected (see chapter 2). Presently, the majority of waste tyres
are collected and burnt in an open space, for example in dumps or other selected
areas, to recover steel strap which is then sold off to metal dealers and industrial
manufacturers for a fee.
Burning of tyres is done discreetly as it is outlawed and perpetrators are sometimes
arrested and arraigned in court. Open air burning of these tyres results in emission of
hazardous gases like dioxins, mercury, hydrogen chloride, sulphuric acid, flourides and
particulates that can damage human health.
In chapter 3 different options for waste tyre utilization are briefly presented and assessed.
Advanced material recycling solutions are fairly expensive and don’t offer a realistic
solution for Kenya at the moment. Presently, the coprocessing of waste tyres in cement
kilns is recommended as the most economical solution in Kenya.
The Costs / revenues have been analysed for 2 scenarios (6,000 tons/a and 20,000
tons/a of waste tyres). Implementation of WMTK will start with scenario 1, whereas
scenario 2 requires a well-developed collection system, which might take several years to
be implemented. In both scenarios the costs of the system cannot be financed from
revenues; thus additional funding sources are needed.
Since most of the tyres in Kenya are imported, the best option to collect a levy on tyres
would be the involvement of Kenya Revenue Authority (KRA). Revenue collection by
KRA, however, requires amendment of existing laws and a key role of the National
Environmental Management Authority (NEMA). Based on an amended legal framework
NEMA would establish a fund for financing the system. Financing is based on a levy for
38
imported tyres (including tyres on imported vehicles) collected by the Kenya Revenue
Authority (KRA) and transferred to NEMA. Furthermore, there would be an equivalent tax
for tyres produced in the country. Then, NEMA will contract a company for implementation
of waste tyre collection, storage, pre-processing and marketing.
Based on the cost calculations presented in chapter 5 the following levies to cover the
financial gap are proposed:

5 KES per kg tyre or tyre material, resulting in

KES 50 for a small tyre

KES 250 for a truck tyre
Assuming a selling price between KES 10,000 for a small tyre and KES 50,000 for a truck
tyre the proposed levy would make up 0.5% of the selling price.
The next working steps to achieve the objective of phase 1 of the Strategic Alliance
(technical concept and regulatory framework for WTMK available) comprise:
-
Detailing of the technical concept and modalities of contracting
-
Securing backing of the proposed solution from Ministry of Environment and
Ministry of Finance
-
Raising public awareness on waste tyres issues (especially negative impact of
open burning)
-
Drafting of waste tyre regulations
Darmstadt, 25 March 2012
INFRASTRUKTUR & UMWELT
Professor Böhm und Partner
Dipl.-Ing. Gernod Dilewski
39

WTMK FS Collection IU final

Transcription

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