J-OP SUITABILITY SNAPSHOT IN GHANA

November 2019

The Sanitation Technology Platform (STeP) helps transformative solutions reach the 4.5 billion people worldwide who do not have access to safely managed sanitation. STeP provides a full range of services including field testing, market intelligence, and user insights to help inventors and industry develop products and services that address market and consumer needs.

STeP is a collaboration of global experts and organizations that removes risk and streamlines the path to market, fostering greater success for its partners. As a business unit within RTI International, Innovation Advisors is the implementing partner of STeP, a Bill & Melinda Gates Foundation platform.

Disclaimer: This report is a good faith effort by RTI International to accurately represent information available via secondary and primary sources at the time of the information capture. This report is not intended for re-use or publication without the approval of RTI International. All inquiries should be directed to info@stepsforsanitation.org.

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4 Background

8 Sanitation Landscape in Ghana

16 Potential Market Size for J-OP in Ghana

21 Suitability Analysis for J-OP in Kumasi and Sekondi-Takoradi

30 Appendix

About the Sanitation Technology Platform (STeP)

STeP believes in the power of science-based solutions to solve the critical problem of safely managed

sanitation.

STeP is a collaboration of global experts and organizations that help transformative technologies

reach people worldwide who don’t have access to safe and affordable sanitation. We provide a full range of

services—including field testing, market intelligence, and user insights—to de-risk and streamline the path to market and foster greater success for our partners.

Table of Contents

Background

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Project background: Achieving high levels of sanitation coverage requires both the use of improved sanitation facilities and a robust ecosystem that ensures fecal sludge (FS) is contained, collected, treated, and disposed. To this end, the Bill & Melinda Gates Foundation (BMGF) is funding the research and development of innovative FS treatment technologies. The Janicki Bioenergy Omni Processor (J-OP) is one such system that uses a combustion process to convert dewatered solids into useful byproducts: surplus renewable electricity, heat, water, and pathogen-free ash.

Three companies currently hold manufacturing licenses for the J-OP technology: Sedron Technologies (U.S.), Ankur Scientific (India), and CRRC (China). Although the technology is still maturing, a first of kind pilot system supplied by Sedron Technologies (pictured at right) has been operating in Dakar, Senegal, since 2015.

The J-OP is based on patent application no. WO 2016-077241 and the associated family of granted patents and applications. The intellectual property and licensing rights are retained by the BMGF for the licensing, manufacturing, sale, and distribution of the technology in accordance with the Foundation’s Global Access Policy.

About this document: In 2019, STeP conducted research related to the J-OP’s suitability in Ghana. This public-facing report captures some of the insights from STeP research.

Additional resources: To support J-OP business plan development, STeP has developed a number of additional market intelligence reports on the STeP Resource Center that can inform go-to-market considerations for commercial enterprises and early adopters.

The BMGF and local partners are working together to commercialize the J-OP.

Photo Credit: Sedron Technologies

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The J-OP is a community-scale FS treatment technology that destroys pathogens and generates useful byproducts.

Image source: Bill & Melinda Gates Foundation

The sanitation value chain shows steps typical in safely managing

waste from capture to reuse. Although the J-OP is a treatment solution, it requires a functioning

sanitation ecosystem to ensure adequate inputs and opportunities

for reuse.

The J-OP processes waste at a community-scale, including FS, biosolids, and potentially other waste streams (municipal solid waste, agricultural waste, etc.) to generate clean water, electricity, heat, and ash from waste.

The J-OP plays a critical role in the sanitation value chain by providing capacity to treat FS and other waste streams while creating value-added end products that improve business sustainability. The J-OP’s material outputs achieve complete pathogen destruction, while the water meets World Health Organization (WHO) and U.S. Environmental Protection Agency (EPA) drinking water standards. The J-OP is designed on an energy input basis and can therefore serve hundreds of thousands of people, depending on the type and characteristics of waste streams processed.

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Key market factors in the sanitation landscape can be used to inform the suitability of specific sites for deployment of the J-OP. This report provides initial insights into some of these key market factors in two Ghanaian cities, Kumasi and Sekondi-Takoradi. Key factors include sanitation infrastructure and policy, existing commercial actors, financing, technical fit with the J-OP, and the market for J-OP by-products.

Dakar, Senegal, where the J-OP has been piloting since 2015, is referenced in the report to provide context for how key factors compare between these Ghanaian cities and an existing J-OP pilot site.

This report was informed by a combination of secondary and primary research.

This report examines J-OP suitability in two Ghanaian cities.

J-OP photo from Sedron TechnologiesKumasi photo by Maven Egote, CC BY-SA 4.0: https://commons.wikimedia.org/wiki/File:PSX_20181111_130246.jpgSekondi-Takoradi photo by Mac-Jordan Degadjor, CC BY-SA 4.0: https://commons.wikimedia.org/wiki/File:Sekondi-Takoradi_Shores.jpg

Kumasi, Ghana Pilot J-OP in Dakar, Senegal

Sekondi-Takoradi, Ghana

Sanitation Landscape in Ghana

999

Population: 29.9 million (estimated, 2019), 2.2% annual growth rate

GDP: 59.0 billion USD (2017), averaging 10% year-over-year GDP growth from 2008–2017

Poverty: 23.4% of population living below the national poverty line (2016)

Local Government Structure: Ghana comprises 16 regions subdivided into 260 Metro, Municipal, and District Assemblies (MMDAs). At present, there are a total of 6 metro districts (official population more than 250,000), including Kumasi, Accra, Cape Coast, Tema, Tamale, and Sekondi-Takoradi. MMDAs have autonomy for planning and budgeting based on local priorities and guidelines provided by the National Development Planning Commission (on planning) and the Ministry of Finance (on budgeting and expenditure reporting). The MMDAs are funded primarily by central government transfers sourced from different funds, including Internally Generated Funds (IGFs). The country was redistricted in December 2018, resulting in 37 new MMDAs and 6 new regions.

National Government Structure: There has been a renewed focus on sanitation at the national level following the election of President Nana Akufo-Addo in 2016. Shortly after his election, the Ministry of Sanitation and Water Resources (MSWR) was created, consolidating water and sanitation sectors in Ghana that were previously divided. Structural changes may still be ongoing, with the cabinet discussing the creation of a National Sanitation Authority (NSA) that would coordinate the sector and lead R&D, infrastructure development, regulations setting/monitoring, and other activities.

Population: RTI AnalysisGDP, Poverty: https://data.worldbank.org/country/ghanaLocal government structure: http://www.ghana.gov.ghNational government structure: https://www.wsup.com/content/uploads/2019/01/PBrief_Ghana-NSA-recommended-roles.pdf

Ghana’s urban population over time

*New regions as of December 2018

Regions of Ghana

Ghana is home to a fast-growing economy—its governmental structures continue to adapt to an urbanizing population.

1010

The vast majority of urban Ghanaians (73%) rely on shared sanitation facilities, including community/compound toilets (used by multiple households) and public toilets (usually fee-based and accessible to all). Private shared toilets are typically emptied every 1 to 2 years, whereas publics toilets are emptied every day/week. Most toilet facilities are connected to on-site sanitation systems (OSS), with sewer systems serving only a small fraction of urban residents.

MMDAs have the responsibility to implement local sanitation policy and strategy. Most MMDA’s have Environmental Health Units, and many Metropolitan and Municipal Assemblies (MMAs) have set up Waste Management Departments. Although policy states service provision should be delegated to the private sector, many MMDAs are service providers in the sanitation sector.

Calls from all levels of government for increased private-sector involvement in sanitation have been met with limited success. In the metropolitan districts of Accra and Kumasi, only ~100 privately owned vacuum trucks are registered with local government. Treatment facilities are being renovated or newly constructed, but treatment remains a challenge. In 2015, 72% (Accra) and 43% (Kumasi) of liquid waste remained untreated before discharge into the local environment. In 2019, site visits by our research team to Kumasi’s treatment plant suggested that, due to renovations, a large portion of collected FS still received limited to no treatment before discharge into the environment.

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Overview of sanitation in Ghana (2015)

Urban sanitation trends: https://www.wsup.com/content/uploads/2017/09/Situation-analysis-of-the-urban-sanitation-sector-in-Ghana.pdfNational sanitation trends: STeP Analysis, https://washdata.org/

Most FS produced in Ghana is contained in on-site sanitation systems, but treatment remains a challenge.

National District

Policy Making MSWR MMDA

Planning NDPC MMDA

Implementation LGPCU MMDA

Service Provision Private Operators NGOs and CBOs MMDA

Monitoring and Regulation NDPC EPA MESTI MMDA

Training and TA OHLGS ILGS Universities NGOs and CBOs

11 Sanitation framework in Ghana: https://www.wsup.com/content/uploads/2017/09/Situation-analysis-of-the-urban-sanitation-sector-in-Ghana.pdf

MSWR = Ministry of Water and Sanitation ResourcesNDPC = National Development Planning CommissionLGPCU = Local Government Project Coordinating UnitEPA = Ghana Environmental Protection AgencyMESTI = Ministry of Environment, Science, Technology, and Innovation

OHLGS = Office of the Head of Local Government ServiceILGS = Institute of Local Government StudiesMMDA = Metropolitan, Municipal, and District AssembliesNGOs = nongovernmental organizationsCBOs = community-based organizations

MMDAs are responsible for implementing sanitation policy and strategy in Ghana.

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Zoomlion Zoomlion directly employs 3,000 core staff and manages over 85,000 workers through various PPPs. Their operations span the value chain, with service offerings focused on waste collection and cesspit emptying, but that also include fabrication and container provision. In addition to Ghana, they operate in Togo, Angola, Zambia, Equatorial Guinea, and Liberia.

As of May 2019, the Jospong Group listed 11 waste management subsidiaries on their website. The firms collectively span the waste management value chain, with service offerings such as capital equipment procurement, installation, waste collection, and waste processing at sewage, FS, and solid waste treatment facilities. Treatment facilities are often designed to produce electricity or other valuable by-products as a result of waste treatment.

Two of their largest subsidiaries are Zoomlion and Sewerage Systems Ghana Limited (SSGL), profiled on the right. However, other subsidiaries—including those outside of the sanitation sector—may integrate with these key subsidiaries. The integration, national reach, and political clout of the Jospong Group make them stiff competition for other private-sector sanitation firms.

Along with subsidiaries on their website, the Jospong Group also seems well connected to other firms in the waste management sector. For example, their CEO leads the Environmental Service Providers Association (ESPA), a national waste management advocacy group, that in 2018 petitioned MESTI to waive taxes for the importation of sanitation machinery.

Zoomlion has been involved with public scandals in recent years, including a bribery scandal in Liberia that led to their disbarment by the World Bank, a waste bin scandal related to inflating waste bin pricing in a government contract, and delinquent payments in a starch manufacturing plant.

The Jospong Group provides services spanning the sanitation value chain.

The Jospong Group owns subsidiaries in diverse industries in Ghana and abroad.

Jospong subsidiaries: https://www.jospongroup.com/index.php/our-subsidiariesESPA: https://www.ghanaweb.com/GhanaHomePage/business/Waive-taxes-on-sanitation-machinery-ESPA-518997Bin Scandal 1: https://www.myjoyonline.com/news/2017/August-28th/scandal-waste-bins-contract-to-jospong-inflated-by-about-ghs130m.phpBin Scandal 2: http://www.ghanamatters.com/breaking-government-cancels-74m-zoomlion-contract-following-a-joynews-investigation/

Sewerage Systems Ghana Limited (SSGL) SSGL operates the recently revamped Accra Fecal Sludge Treatment Plants (FSTPs) at Lavender Hill and Kotoku, along with the Mudor Sewage Treatment Plant (STP) at James Town. They are slated to operate the FSTP in Kumasi upon completion, and they plan to expand to other metros.

The Jospong Group is the dominant private-sector actor in Ghana’s sanitation sector.

ICT Quarry & Mining Manufacturing Logistics Waste Management

Oil & Gas Agric & Agro Business Banking & Finance International Business Printing & Publishing

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Kotoku – FSTP

The Kotoku plant was recently renovated—with SSGL stating that renovations were complete in 2018. With a design capacity of 1,000 m3/d, it is significantly smaller than the Lavender Hill site and is co-located with the Accra Compost and Recycling Plant (ACARP) in northern Accra. It is not clear if a waste-to-resource strategy is in place at the facility, which includes an up-flow anaerobic sludge blanket digester (UASB) and biogas flaring per the SSGL website.

Lavender Hill – FSTP

Revamped in 2016, this plant has a design capacity of 2,000 m3/d. On its website, it purports energy production via biogas equivalent to 800k USD/yr. However, during a 2019 site visit, gas was being burned without energy capture, as the generator was not yet operational. Operators stated the technology would soon be operational. The FSTP is co-located with the Mudor STP described below.

Mudor – STP

The STP treats sewage generated in Accra’s central business district and portions of Labone and Osu. It was originally built in the early 2000s but was revamped in recent years, increasing design capacity from 16,000 to 18,000 m3/d. Per SSGL’s website, it appears the waste-to-resource strategy in place is to send gas generated from the UASB to the Lavender Hill facility for on-site conversion to electricity.

Jospong facilities in Accra were recently revamped, although biogas energy generation equipment may not be operational.

Mudor plant UASB by-products sent to Lavender Hill Kotoku plant design

Kotoku FSTP

Lavender Hill FSTP and Mudor STP

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Recycling Plant

The Kumasi Composting and Recycling Plant (KCARP) is being developed by subsidiaries of the Jospong Group. It will be located ~13km from the Kumasi Central Business District and is currently 85% complete. Forecasted for completion in late 2019, it is expected to recycle solid waste and generate compost. It has a design capacity of 600t/d.

Fecal Sludge Treatment Plant

The Kumasi WW/FSTP* will be co-located with KCARP and broke ground in early 2019. It is being developed by the Jospong Group and a Hungarian partner, Pureco Limited. Financing for the nearly 14.5M USD facility was provided by the Hungarian Exim Bank and the Jospong Group. The Asantehene, Otumfo Osei Tutu II released 130 acres of land for the development of the facility. The plant has a design capacity of 1,000 m3/d. It is expected to be completed in the next 24 months and will produce compost and 750 kW of energy which according to the site manager, will be consumed on-site. The site also will serve as a research center for Kwame Nkrumah University of Science and Technology (KNUST).

Based on an interview with WSUP, the plant is considering operating with no tipping fee for delivery of FS.

A Jospong recycling plant in Kumasi is nearing completion, and their co-located FSTP recently broke ground.

*Jospong describes the site being built as a Waste Water Treatment Plant (WWTP), but system specifications released to date suggest it will be designed to (at least) treat FS delivered by vacuum trucks. As such, as we listed the plant as a WW/FSTP.

Existing Oti Dompoase Site(gov’t owned)

New Jospong site to include recycling plant and FSTP

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Jospong recently announced plants to construct treatment facilities in Takoradi and Tamale as well.

Announcement: http://thechronicle.com.gh/index.php/2019/10/23/e20-2-million-waste-treatment-plants-for-takoradi-tamale/

Plans in Takoradi and Tamale

Announced in October 2019, Jospong will again partner with Pureco to erect wastewater treatment plants in Tamale and Takoradi. A €20.2 million Euro contract was recently signed in support of the project.

In both cities, the plants are planned to have a treatment capacity of 1,000 m3/d. Jospong subsidiary SSGL is the planned manager of the plants.

Tamale

Takoradi

Kumasi (Jospong sites here shown on previous slides)

Accra (Jospong sites here shown on previous slides)

Potential Market Size for the J-OP in Ghana

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Assumptions for the population served estimates are Ghana specific and explained in the appendix. Key assumptions include: 0.00021 m3/person/day accumulation rate, 100% FS collection rate, a total solids content of 2.1% (see appendix), a solids capture rate at the FSTP of 100%, a calorific value of FS solids of 13.7 MJ/kg (equivalent to that observed in Dakar, Senegal), and a calorific value of alternative feedstock equivalent to that of FS. TPD = Metric ton per day

Ghana-Specific Population Required

Feed

stoc

k

2-engine J-OPrequiring 14.9 TPD

1-engine J-OPrequiring 7.5 TPD

Theoretical Alternative OP requiring 1.0 TPD

100% FS

3.3M people 1.7M people 220k people

50% FS + 50% Other

1.7M people 840k people 110k people

Market sizing requires an understanding of the population served by the J-OP.

Use-Case 2-engine J-OPrequiring 14.9 TPD

1-engine J-OPrequiring 7.5 TPD

Theoretical Alternative OP requiring 1.0 TPD

J-OP integrated with FSTP, only FS as feedstock

No market in Ghana as no city produces the 14.9

TPD of FS

Small market (2 units)

Moderate market (12 units)

J-OP integrated with FSTP, FS + alternative feedstocks

Small market(2 units)

Small market (2 to 4 units)

Large market (>100 units)

STeP research suggests that a biosolids-only use-case is not feasible in Ghana due to the small size of existing STPs. The opportunity for a bio-solids use-case for a 1 TPD OP was not examined. Cities with a notable number of sewerage connections in Ghana include Tema, Accra, Kumasi, and Akosombo (a small town co-located with the Volta Dam that is 100% sewered). Of these cities, only Kumasi was studied in detail for this report.

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There is a small market for existing J-OP designs, and there is a moderate to large market for a smaller-sized OP.

Accra and Kumasi can likely be served by existing J-OP configurations, whereas other cities in Ghana would require a significantly smaller OP. In total, the OP market opportunity for the evaluated systems in Ghana is approximately ~100 units, with existing J-OP designs only feasible in large Ghanaian metros. Note that values in table are not additive; each box represents the total market size in Ghana by system and use case.

191919

14% of the population could be served by deploying

J-OPs, as currently designed. Use of a 2-engine J-OP would

require a 50% FS use-case. Districts are Kumasi and

Accra.

Deploying smaller 1 TPD OPs outside of Kumasi and Accra could expand the total population served from 14% to 67% of the population (assuming

OPs are able to process 50% alternative feedstock).

Existing J-OP designs could serve 14% of the population, and an added 53% could be covered by deploying 1 TPD systems.

Suitability Analysis for the J-OP in Kumasi and Sekondi-Takoradi

Key Factors Kumasi Metropolitan District Sekondi-Takoradi Metropolitan District

Population in 2019* 2,114,672 738,826

Responsible for waste management Kumasi Metropolitan Assembly (KMA) Sekondi Takoradi Metropolitan Assembly (STMA)

Relevant wastewater/fecal sludge management (FSM) infrastructure

Treatment plant (Oti Dompoase site, stabilization ponds) with 450 m3/day of designed capacity. Currently under renovation to add drying beds.

Treatment plant (Sofokrom site, stabilization ponds) with 500 m3/day of designed capacity.

Current FS collection estimate 40 to 50 vacuum truck loads of sludge delivered to site daily. Estimated to be ~340 m3 or ~7.7 dry tons per day.

10 to 12 vacuum truck loads of sludge delivered to site daily. Estimated to be ~85 m3 or 3.0 dry tons per day.

Pending activities Zoomlion constructing WW/FSTP with 1000 m3/d design capacity (Adagya site). Targeting 2020 completion.

Zoomlion recently announced plants to build a 1000 m3/d WW/FSTP here; timeline unclear.

Potential J-OP use-cases J-OP integrated with FSTP, FS only or mixed feedstocks J-OP integrated with FSTP, mixed feedstocks

21 Population: RTI Analysis

Oti Dompoase Site in Kumasi Sofokrom Site in Sekondi-Takoradi

Site profiles of existing FSTPs at Kumasi and Sekondi-Takoradi informed this analysis.

*Estimates made by extrapolating 2016 population data to 2019 using a 2.2% growth rate. An analysis was completed on a district map from 2016; changes since 2016, including the creation of Effia-Kwesimintsim Municipal Assembly (EKMA) using land from STMA in 2018, are not accounted for here.

Technical

Financing

Commercial

Infrastructure

Policy

Weak sanitation infrastructure Moderate sanitation infrastructure Strong sanitation infrastructure

Poorly sanitation policy Moderate sanitation policy Strong sanitation policy

Encumbered path to deployment Moderately encumbered path Unencumbered path to deployment

Low access to capital Moderate access to capital High access to capital

Poor technical fit Moderate technical fit Strong technical fit

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Kumasi, Ghana

Sekondi-Takoradi, Ghana

Dakar, Senegal

Dakar is referenced as a point of comparison, as the first commercial deployment of the J-OP will take place in Dakar, Senegal in 2020

Kumasi is a stronger candidate for J-OP deployment than Sekondi-Takoradi, but both lag behind Dakar in key areas.

K D

ST K D

ST

K DST

KST D

K DST

K

D

ST

Collection and delivery rates to the FSTP are high, with 75% of FS produced in the municipality delivered to the Oti Dompoase site by 40 to 50 private, vacuum trucks daily. Truck operators are registered with the KMA and receive a fee of 50-100 USD for desludging and pay 2-4 USD for discharge at Oti Dompoase. The site’s waste stabilization ponds (WSPs) were designed for 300m3 of FS and 300m3 of landfill leachate, with a redesign expected to expand capacity to 450m3 FS. The high amount of FS received per day (~330m3/d) has led to operational challenges in the past, as have troubles with entrance roads during rainy seasons. KMA has addressed these problems, recently fortifying the entrance road and working to complete drying beds (shown above – projected to be operational in 2019).

Infrastructure

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Kumasi

Private vacuum truck operators registered with the STMA collect FS although delivery rates are comparatively low, with an estimated 52% of FS produced in the municipality delivered to the site for treatment. Trucks receive 50-90 USD for desludging and pay 2-4 USD for discharge at the Sofokrom site. The site’s WSPs are designed for a capacity of 500m3/d and according to the site manager, receives 300m3/d. However, the fact that only 10 to 12 vacuum trucks deliver daily suggests this claim may overestimate FS deliveries. We estimate FS volumes closer to 83 m3/d. Because of the low intake, the site manager does not see desludging of the ponds as a major problem, but rather a minor inconvenience. When the ponds are desludged (typically twice a year) the excavator pushes sludge to a designated area (shown above) where its seeded. As there are not issues with capacity, there are no plans to renovate the ponds/add drying beds.

Sekondi-Takoradi

FS collection rates are high in Kumasi, and the KMA has been responsive to challenges at the FSTP.

K DST

Weak sanitation infrastructure Moderate sanitation infrastructure Strong sanitation infrastructure

Poorly sanitation policy Moderate sanitation policy Strong sanitation policy

Policy

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Kumasi is a national and regional pioneer in sanitation, having made substantial improvements to its services in the past 10 years. For example, 50% of public toilets are privately operated and the open defecation rate is low. KMA is in charge of implementing sanitation policy in its district. Their Waste Management Department (WMD) interfaces with the local FS and solid waste collectors and the sanitary site management team. Historically, a private company – the J. Stanley Owusu (JSO) group – had managed the site. This arrangement ended when JSO abandoned the site claiming they were owed fees by KMA. The WMD would be a likely interface point for a waste-to-resource (WTR) company, although they do not officially regulate any today. The KMA’s Environmental Health and Sanitation Department (EHSD) oversees the latrine artisans association, public toilet operators, and Clean Team Ghana Limited (linked to WSUP). These are important actors in the local sanitation environment, but they would be less-direct interface points for a WTR firm. The solid waste recycling sector is informal and not well developed, driven primarily by pickers at the local landfill.

Kumasi

Sekondi-Takoradi has a similar governance structure to Kumasi, with the STMA overseeing the WMD and an EHSD that play an analogous role. Compared to Kumasi, a significantly lower portion of the FS produced in STMA appears to be delivered to the FSTP for treatment. It is unclear to what extent desludging rates at households and FS delivery rates are contributing to this result. The landfill is currently operated by the STMA WMD, although it was previously operated by ZEAL Environmental Technologies. In STMA, middlemen from Accra purchase municipal solid waste at the landfill and transport it to Accra for processing. STMA hopes to transition to a source separation program in the future.

Sekondi-Takoradi

KMA and STMA have similar governance structures- privatized desludging operators and municipality-operated treatment sites.

ST K D

OP Inputs: Future competition for feedstock will be a concern, as recycling (85% complete) and WW/FSTP facilities (less than 10% complete) are under development by Jospong Group. Kumasi’s WMD is already installing drying beds at the Oti Dompoase landfill site. Land for an OP is available at the Oti Dompoase site, and while there is no clear procurement pathway for land through KMA or the traditional authorities, there is a precedent for land to be granted by the traditional authorities for treatment facilities. Oti-Dompoase is co-located with an MSW landfill and is also close to wood manufacturing facilities and a Guinness brewery. These alternative feedstocks may be available at no or little cost to an OP operator, and the high prevalence of Tuk Tuk drivers in Kumasi (over 100 delivering to Oti Dompoase daily) could help transport alternative feedstocks at a low cost.

OP outputs: Retail prices for coolant ($1.30-$1.45 USD per liter) are slightly higher than prices in Senegal, suggesting coolant production in water-optimized mode may be a viable commercial strategy for an OP operator. Importantly, these figures represent potential revenues, not profits, that could be generated by the sale of bottled coolant. This study did not estimate the potential profit margin for coolant sales, which would require research into the cost of producing, bottling, marketing and distributing coolant. Commercial electricity prices are ~0.22 USD/kWh, and non-potable water is sold by the water utility to tankers for 0.0029 USD/liter.

Commercial

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KumasiOP inputs: Like Oti Dompoase in Kumasi, the Sofokrom treatment site is also co-located with an MSW landfill. Alternative feedstock may be more critical in STMA than in Kumasi, as the amount of available FS will be significantly lower than that required by commercially available OPs. Further research should be undertaken to determine future MSW availability. Although it is presently available, reference was made by site operators to a more formalized MSW recycling process in the future. Land is available at Sofokrom for an OP, with the current facilities occupying only 28 of the 48 acres available on the site. Like in Kumasi, the procurement pathway for land is unclear. The Jospong Group recently announced plans to enter the STMA market with the construction of a 1000 m3/d wastewater treatment plant.

OP outputs: Retail prices for electricity, water, and coolant are equivalent to those in Kumasi.

Sekondi-Takoradi

Feedstock supply and FSM infrastructure are better in Kumasi, but competition for feedstock may be greater in the short term.

K DST

Encumbered path to deployment Moderately encumbered path Unencumbered path to deployment

Financing

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Although the interest rate in Ghana has decreased of late (from 25% in 2017 to 15% in May 2019), commercial financing rates are still high. Securing innovative financing will be significantly impactful on the net present value (NPV) for an OP investment. There is some history of international funding for sanitation in Kumasi. In 2004, a World Bank loan helped finance the construction of the Oti Dompoase site, and in 2015 the road network around Oti Dompoase was reconstructed with a 38k USD grant from the Bill & Melinda Gates Foundation through WSUP. It is not known if these organizations or other local commercial entities, such as Coca Cola or Guinness, would be interested in future sanitation infrastructure financing in Kumasi.

Kumasi Sekondi-TakoradiHistorically, Sekondi-Takoradi has received less international funding than Kumasi. However, this may not remain the trend. USAID’s 2018 WASH activities included STMA and not KMA.

Financing rates are high in Ghana, making innovative financing mechanisms critical for an OP developer.

KST D

Low access to capital Moderate access to capital High access to capital

Technical

27Total solids content in Sekondi-Takoradi: ugspace.ug.edu.gh/handle/123456789/5213

Calorific value in Kumasi: https://www.researchgate.net/publication/263788858_Fuel_potential_of_faecal_sludge_Calorific_value_results_from_Uganda_Ghana_and_Senegal

Significant research into FS in Kumasi provides a rich picture of the technical fit of the OP. Public toilets are heavily utilized in Kumasi. An unusually high percentage of delivered FS for treatment (about 40%) comes from public toilets, and this waste has a high solids content ranging from 1.9% to 4.7% depending on the OSS technology (septic tanks: 27%; pits: 13%). Private toilets account for 60% of FS delivered for treatment (septic tanks: 45%; pits: 15%). Of the 25% of FS produced in Kumasi that is not delivered for treatment, a significant percentage is contained in pits. These pits represent a valuable potential OP input because of their high solids content. Future improvements in collection processes by KMA and their partners (including WSUP and Clean Team) may make this FS available to OP operators. However, it should be noted that future improvements to FSM may also include a reduction in the percentage of the population utilizing pits. Currently, FS delivered for treatment is has a total solids content of 2.3%. Some studies suggest that the calorific value of FS in Kumasi may be up to 15% greater than that in Dakar. However, further research needs be conducted to confirm this finding. Interviews with staff of the Oti Dompoase site and other sources suggest the site currently receives about 338 m3/d of FS in 45 to 50 truckloads per day. This represents about 75% of the total FS produced in Kumasi, which we estimate to be about 452 m3/d in total.

Kumasi Sekondi-TakoradiComparatively limited information is available about Sekondi-Takoradi. However, one valuable study sampled FS delivered to the Sofokrom site and reported a total solids content of 1.9%. Data estimating the breakdown in utilization of different OSS technologies, such as septic tanks and pits, was not identified for STMA. Based on interviews with staff of the Sofokrom site, STeP estimated that approximately 83m3/d are delivered to the site in 10 to 12 truckloads per day. This represents about 52% of the total FS produced in Sekondi-Takoradi, which we estimate to be about 158 m3/d.

With suitable pretreatment, the OP is a reasonable technical fit for the Ghanaian market.

K DST

Poor technical fit Moderate technical fit Strong technical fit

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*Ghana Market Insights for J-OP By-Products

Coolant Retail coolant pricing is slightly higher than the Senegalese market at about 1.45 USD/L.Coolant retailers in Kumasi and Sekondi-Takoradi stated engine coolants on the market are primarily imported and come in two colors, red and green. The lower-cost red version is more popular in the Ghanaian retail environment. Prices for a 4-liter container range from GH¢27-GH¢30 (5.2-5.8 USD), establishing a per liter price of 1.30-1.45 USD/L. Our analysis did not include surveys of commercial consumers of coolant, which would include substantial mining, oil, and gas industries in Ghana.

Water Water sales are unlikely to be a significant driver of revenues for an OP in Ghana. Nonpotable water tariffs range from GH¢2.7-4.6 (0.50-0.86 USD) per 1000 liters. Potable water is sold by the water utility to trucks at GH¢15 (2.9 USD) for 1,000L, and truck drivers then sell to buyers at GH¢15 (9.44 USD) for 1,000L when selling 5,000L allotments.

Electricity Grid electricity costs about 0.17 USD/kWh; there is some precedent for selling to the grid.Residential electricity tariffs range from GH¢0.27-1.13 (0.05-0.21 USD) per kWh and commercial rates are similar, ranging from GH¢0.68-1.14 (0.13-0.21 USD) per kWh. Waste-to-energy company Safisana secured a Power Purchase Agreement with the Electricity Company of Ghana (ECG) for their Ashaiman plant to sell electricity to the grid. With installed capacity of only 100kWh, Safisana is a promising example of a small electricity producer selling to the grid. However, an interview with a power-sector expert suggests political connections may be required to secure a Power Purchase Agreement quickly, and the recent transfer of management of ECG to a consortium led by Philippines’ Manila Electricity Company may make contracting with the grid challenging in the short term.

Ash Demand will be strong for effective soil amendments, although subsidies can impact price.Pathogen-free ash produced from combusted FS can be sold as fertilizer to farmers, and Ghana’s strong agricultural sector has high demand for fertilizer. Fertilizer price is not purely market driven. National government intervention has and likely will continue to play a role in subsidizing fertilizer to assist farmers. As of 2019, pricing for fertilizers set by the Ministry of Agriculture ranged from 0.08-0.34 USD/kg. Further research is required to determine obtainable prices for soil amendments produced by an OP in this market.

Electric company restructuring: “African Energy Newsletter”, Issue 384. Published 17 January 2019.Safisana power purchase agreement: https://www.ruaf.org/sites/default/files/RUAF-UAM%2032_WEB-1_26-28.pdfAsh pricing: https://www.ghanaweb.com/GhanaHomePage/business/1-million-farmers-to-benefit-from-fertilizer-subsidies-in-2019-717753

A market exists for J-OP by-products in Ghana, although developing sales channels will present challenges.

Readers interested in water market analysis outside of Ghana may want to review the linked STeP reports on water markets in India and Senegal.

*This table provides initial insights into price points for potential OP by-products in Ghana. STeP did not estimate the potential profit margins for by-product sales, which would necessarily require research into the cost of production and distribution.

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Appendix

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Official Liquid Waste Fees

Category of truck

Volume (m3)

Desludging fee at source (Gh¢)

Desludging fee at source (USD)

Tipping fee at site (Gh¢)

Tipping fee at site (USD)

Small 5-7 200 38.0 10 1.9

Medium 8-10 225 42.7 15 2.8

Large >10 250 47.5 20 3.8

Official Solid Waste Fees

Category of truck Tipping fee at site (Gh¢) Tipping fee at site (USD)

Skip truck 40 7.6

Compactor truck, small 60 11.4

Compactor truck, medium 70 13.3

Compactor truck, large 80 15.2

Tuk tuk 15 2.8

Interviews with desludging truck operators in Kumasi reveal they actually charge between Gh¢250 (48USD) and Gh¢500 (96 USD) based on the location of the customer.

We estimate the typical cost of diesel in Kumasi to be Gh¢5.5/L (or 1.04 USD/L). If a vacuum truck’s fuel economy is 4.25 km/L, the round-trip fuel cost of reaching the Oti Dompoase site from the city-center (~10 km away) is approximately Gh¢25.9 (4.9 USD). This both illustrates the importance of strong policy enforcement (to prevent illegal dumping) and has implications when considering feedstock competition at a site offering dumping for no tipping fee. For example, Jospong’s KCARP plant is about 13km away from city center, so it would cost an estimated Gh¢33.6 (6.3USD) to reach. As the tipping fee at Oti Dompoase is Gh¢10-20 (1.9-3.8USD), KCARP may feel pressure to eliminate their tipping fee in order to compete for FS.

Sanitation tipping fees in Kumasi Metropolitan Assembly and Sekondi-Takoradi Metropolitan Assembly.

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Assumptions informing the country-level estimation of market size for the OP.

Estimation of Fecal Sludge Produced and Delivered for Treatment in Kumasi

Model Input Data Source Rationale/Extrapolation

Total solids content of FS 2.1% SFDs and primary research

STeP combined primary research observations, population projections, and the Kumasi SFD to arrive at the 2.1% estimate. Primary research suggested 337.5 m3/d of FS is received daily at Oti Dompoase, and the Kumasi SFD from 2015 suggests this is 75% of the FS produced in Kumasi. From these numbers, STeP estimated Kumasi produces 452 m3/d of FS. Dividing this figure by the project 2019 population of Kumasi (2,114,672) led to an estimate of 0.00021 m3/d/p of FS. STeP assumed this FS generation rate for the entire population of Ghana.

Calorific value of FS 13.7 MJ/kg DELVIC Sanitation

While peer-reviewed literature includes higher estimates of the calorific value of FS in Ghana (up to 19.1 MJ/kg in one study), the 13.7 MJ/kg figure has been used by DELVIC, the firm piloting the J-OP in Senegal, to support J-OP development. With only one source suggesting a higher value in Ghana, the more conservative number was chosen for this analysis.

Calorific value of alternative feedstock

13.7 MJ/kg STeP Assumption

Same value as used for FS was used for simplicity. This assumption should be validated to inform market entry strategy planning.

Shared of population reliant on FSM

100% STeP Assumption

The sewerage coverage in Ghana is relatively low, with only ~4% coverage on a national level according to JMP data. STeP did not have access to district-level information related to sewerage coverage, so a flat estimate was made for simplicity (for the estimation of the national coverage levels). SFDs for Accra and Kumasi suggesting sewerage coverages of 7% and 4% respectively suggest that the 100% FSM-reliant assumption is not significantly impacting the market sizing estimate in these key cities.

Collection rate of FS 100% STeP Assumption

Assumption made to estimate total potential market (not the addressable market) for the OP

Solids capture of FS at FSTP 100% STeP Assumption

Assumption made to estimate total potential market (not the addressable market) for the OP

33 Kumasi toilet usage, emptying, and truck volume: http://www.susana.org/_resources/documents/default/3-2361-7-1447766816.pdfTotal solids content in Kumasi: https://pdfs.semanticscholar.org/bd90/da27392a521c21262b6b04bf0763709e8a9f.pdf

Estimation of Fecal Sludge Produced and Delivered for Treatment in Kumasi

Source Source Data Extrapolation Extrapolated Data

Site Manager Interview 330 m3/d delivered N/A 330 m3/d

Site Manager Interview 45 trucks per day deliver sludge Average truck volume is 7.5 m3 337.5 m3/d

Published study on toilet usage and sludge delivery in Kumasi

For various toilet types, prevalence of use and % of FS delivered for treatment is listed: OD (3%, 0%), Sewer (4%, 0%*), Septic with outlet (47%, 95%), Septic sealed (28%, 95%), Pit lined (5%, 50%), Pit unlined (2%, 50%), Abandoned in soil (11%, 0%).

Back calculated the toilet share of sludge delivered for treatment to Oti Dompoase. Used this to extrapolate the total amount of collectible FS in Kumasi.

0.00021351 m3/d/person of FS is produced in Kumasi.

452 m3/d is produced in Kumasi.

75% of FS produced in Kumasi is delivered for treatment at Oti Dompoase.

Published study on total solids content

Public toilet septage (1.9% TS), Public toilet pit waste (4.7% TS), Private toilet septage (1% TS), Private toilet pit waste (4.7% TS)

Assumed breakdown of prevalence of these four categories for sludge delivered to Oti Dompoase is as follows: Public toilet septage (27%), Public toilet pit waste (13%), Private toilet septage (45%), Private toilet pit waste (15%)

Average solids content of sludge delivered to Oti Dompoase site of 2.28%.

*0% assumed by STeP as sewerage is not delivered to Oti Dompoase

STeP assumes 337.5 m3/d of FS are delivered with total solids content of 2.28%. The dry tonnage of FS solids available is therefore ~7.7 dry TPD.

Calculation of available fecal sludge available in Kumasi.

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Estimation of Fecal Sludge Produced and Delivered for Treatment in Sekondi-Takoradi

Source Source Data Extrapolation Extrapolated Data

Site Manager Interview 300 m3/d delivered N/A 300 m3/d

Site Manager Interview 11 trucks per day deliver sludge Average truck volume is *7.5 m3 82.5 m3/d

Secondary research In 2008, a study was undertaken with STMA to quantify sludge delivered to the Sofokrom site. 28,390 m3 was delivered that year.

365 days per year. 78 m3/d in 2008

Secondary research A graduate researcher worked with STMA to characterize the total solids content of sludge delivered to the Sofokrom site. Average totals solids content was 1.9%.

N/A 1.9% TS

STeP Analysis Above Using the 82.5 m3/d estimated for FS delivery, the population of KMA and STMA, and a KMA-specific FS production rate (0.0021 m3/d/p), we can estimate the FS delivery rate and total FS production in STMA. This assumes population and delivered sludge change linearly with % of FS delivered).

~52% of total FS produced in Sekondi-Takoradi is delivered for treatment at Sofokrom.

158 m3/d is produced in Sekondi-Takoradi.

Calculation of available fecal sludge available in Sekondi-Takoradi.

STeP assumes 82.5 m3/d of FS are delivered with total solids content of 1.9%. The dry tonnage of FS solids available is therefore ~1.6 dry TPD.

*This average truck volume is based on Kumasi-specific data. However, even if the trucks averaged 10 m3/d, total sludge delivered would be only 110 m3/d. Trucks would require an average volume of ~28m3 to deliver 300 m3/d.

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Electricity tariffs in Ghana, effective October 2018

36

Water tariffs in Ghana, effective September 2018