Business concept case study in the context of a Northern German city : DECISIVE Deliverable D7.8 : a decentralised management scheme for innovative valorisation of urban biowaste
This report gives a business outlook on the implementation of the DECISIVE technical concept with the case study of Lübeck, Germany. The concept implementation is sub-divided into three scenarios which include building blocks from household food waste sorting over collection until treatment. The three scenarios comprise the following sub-concepts: 1.Sub-concept 1: Simplified food waste separation for residents 2.Sub-concept 2: Proximity food waste collection by alternative transportation means 3.Sub-concept 3: Food waste treatment by micro-anaerobic digestion technology While scenario 1 is only the implementation of sub-concept 1, scenario two comprises sub-concept 1 and sub-concept 2 and scenario 3 comprises all sub-concepts. The deliverable begins with a definition of the case study including the drivers, limitations and potential success factors for a transition towards decentralised elements in biowaste management. It continues with a detailed description of each sub-concept including its specific goals and a description of current related issues that are aimed at being solved by the respective concept. The following stakeholder analysis includes a description of the main ones to be involved in each sub-concept and their business opportunities. Furthermore, their influence on each sub-concept is analysed by means of a power-interest grid. PESTLE and SWOT analysis were conducted to determine external and internal factors influencing the business concept. The market analysis identified potential markets, its competitors and customers. With regard to the previous analysis, the implementation strategy was described following. First, a business model canvas gives an overview of the key elements of the overall business model. A description of the chosen scenarios for which the business model was developed is presented in order to describe the following financial indicators, which is the core of the business model. The financial indicators include a description of such, the overall costing of each scenario and the results for the chosen financial indicators. The overall costing is based on CAPEX, OPEX, revenues and additional funding necessary to run the concept economically viable. The financial indicators are net present value, return on investment and payback time. It was concluded that scenario one and two can be economically viable a short time after their implementation. However, scenario 2 needs some compensation since the revenue stream of waste fees reduced due to better sorting by inhabitants. It was generally assumed that the waste fee system remains as usual. Scenario 3 can be economically viable in the last quarter of its project lifetime. However, besides the compensation for decreased waste fees, additional funding would be necessary to achieve this net benefit. It was found that, in addition to the financial revenue generated in the case study described, external financial benefits can also be achieved if the scenarios are used as an educational tool to promote better sorting throughout the region. Furthermore, a strong social and environmental impact, which so far can only be monetised indirectly, is an important aspect for the implementation of the whole DECISIVE concept.
