T3: Trash to Treasure Convert Your Waste into Biogas—A Case Study on Ahuja Engineering Services Pvt Ltd (AES)

Abstract

While many of us are talking about Green Energy, there are some who are generating Green Energy. One such venture is run by two sisters, Ms Disha Ahuja and Ms Shruti Ahuja. Who are these two sisters, and how did they turn into saviours of the environment? Well, their venture’s mention in the Prime Minister’s Mann Ki Batt (Annexure A) has raised curiosity among the researchers. To the researchers’ surprise, these sisters live next to their neighbourhood but were still unnoticed. This case is about Ahuja Engineering Services (AES), the pious vision of two sisters and their contribution to society and the environment. These sisters had an option of living a luxurious life in the United States but chose to serve their motherland. Food waste in the form of cooked food and waste generated during the process is quite common. According to the United Nations Environment Programme (UNEP) Food Waste Index 2012, 40% of food in India, which amounts to 92,000/- crore, is wasted every year. Each person in India wastes 55 kg of food every year. Though efforts are made to reduce food waste, there should be some mechanism to treat this food waste. The question in front of the Ahuja sisters is ‘What is best way to treat this food waste?’ Their academic background has given them a possible solution, which was backed by their family members. So, the journey began with a destination of generating biogas out of food waste. The idea sounds simple but the operations challenges in building a biogas plant are numerous. Undeterred by these challenges, the Ahuja sisters have focused on the application of their academic background to solve the food waste menace. Eventually, the idea of ‘Trash to Treasure’ germinated, and finally, their biogas plant could see the sunlight. While treading towards the path of their dreams, they never knew that their step in this direction of food waste management would bring a significant change in the way food waste is handled, and over the past 10 years, they have created a name for themselves in the waste-to-energy industry in India.

This case is an attempt to understand the journey of two sisters who created a niche for themselves in the wet (food) waste management sector and are creating treasure out of trash.

While you are reading this case, the Ahuja sisters would have generated biogas in some part of the country.

Background

Back in the year 2016, Disha Ahuja had it all: a prominent position at Amgen, a luxurious lifestyle and a promising career ahead of her. However, she still had that sense of incompleteness and felt that something was still missing in her life. Her heart ached for a bigger purpose than her comfortable business existence. She aspired to bring a change in the life of others with her benign notion of waste management and arduous passion for environmental sustainability. Equipped with a PhD degree in Chemical Engineering from Rensselaer Polytechnic Institute, Troy, NY, USA, and with an earnest desire and unwavering determination to create a cleaner and greener planet Earth, her vision went way beyond the boundaries of her laboratory. She completed her BTech in Chemical Engineering from Chaitanya Bharati Institute of Technology (CBIT), Hyderabad. She is an expert on ‘Waste to Biogas’ Technology and Technical Director and Operations Head at Ahuja Engineering Services Pvt Ltd (AESPL).

Prior to becoming a full-time entrepreneur, she worked for 11 years as a Senior Scientist at Amgen—a biotechnology company in the United States. After returning to India, she has been selected among the Top 100 Women Entrepreneurs by IIM Bangalore’s Innovation and Entrepreneurship Centre, NSRCEL. She was also selected as one of nine ‘Women in Energy’ entrepreneurs by Shell Foundation, DFID (UK) and DST (India) under the ‘Powered-women in Energy’ programme.

Shruti Ahuja has a Masters in Electrical Engineering from SUNY, Buffalo, USA, and has completed her undergrad from G. Narayanamma Institute of Technology & Science, Hyderabad. She is the Director and execution head at AESPL and founded the renewable energy business at AESPL along with Mr D. K. Ahuja, who is the MD at AESPL.

The team is also joined by Dr Sandeep Karajanagi, PhD, in Chemical Engineering, who also left the United States and returned to India to pursue his passion for contributing to our environment and giving back to our society. He is the Director and R&D Head at AESPL.

AES is a family-run company that has been in turnkey electrical works for over 30+ years, but, in the last 10+ years, it has diversified into renewable energy via its 100% Made in India product, that is, ‘biogas plant’, for converting wet waste to energy. The idea started with the problem of poultry waste, where the waste is difficult to dispose of and causes problems of odour, contamination of water tables and hazards for both poultry birds and people handling the same. Though AES started with the problem of solving poultry waste, very quickly they started testing and treating food waste in their self-funded 1 tonne per day (TPD) digester that they set up as a proof of concept (PoC). The idea quickly gained traction and was shown to the Akshaya Patra Foundation, which gave AES its first order to set up a turnkey biogas plant at the Akshaya Patra Foundation kitchen in Bellary in 2015 for treating their food waste, and the biogas produced was used back in their kitchen to save liquefied petroleum gas (LPG). Since then, there has been no looking back, and the Akshaya Patra Foundation has bought AES plants for 11 of their locations and plans to install biogas plants in any new kitchen that they construct. They have the right mindset, wherein they are planning for their wet waste disposal while they construct new kitchens, like the concept of planning effluent treatment plants (ETPs) and sewage treatment plants (STPs). However, very few organizations have this mindset, due to which a lot of organizations have the challenge of finding the budget for this kind of activity once they are fully established. Lack of enforcement of Solid Waste Management (SWM) 2016 rules is a key issue, due to which bulk waste generators are getting away with their waste without much penalty. However, this scenario is fast changing, and the cost for wet waste collection is already close to ₹2–2.9 per kg, and this is likely to keep increasing. Hence, adopting a biogas plant for processing wet waste in-house is a sustainable long-term option that also provides a good return of investment of <3 years by saving LPG or piped natural gas (PNG) for cooking.

The company sustained itself in the initial years by their own family funding, but now after having installed 30+ plants all over India, they are profitable and, in the coming years, envisages a faster growth owing to the years of development work, process optimization and experience of having run their plants for 8+ years.

Through this case, the researchers have made an attempt to bring forth the entrepreneurial saga of the Ahuja sisters and their tireless journey in setting up the biogas units.

Dilemma

Even though the concept is novel and gaining acceptance in the market, the Ahuja sisters still have to burn the midnight oil and run from pillar to post to get patrons to do their role in building a healthy society. Will the Ahuja sisters get the requisite support to further her brainchild of installing biogas plants at every community?

The crux is, ‘Can we bring an end to food waste?’ In some cases, it is inevitable. There comes the advent of technology. But using technology to solve the problem is only an aid; the real challenge is the behavioural change in the minds of the people. Even after repeated efforts by authorities, many people still are not controlling food waste, and even if food waste is generated, they are not segregating it. Segregation of food waste will minimize the collection mechanism and simplify the biogas generation process. Now, the question is, ‘Who is responsible for segregating the waste?’

Will the Ahuja sisters, through their venture, contribute to the Sustainable Developmental Goals, SDG 7—Affordable and Clean Energy and SGD 13—Climate Action?

Diversity, equity and inclusion (DEI) is more vocal. Is DEI applicable to entrepreneurs? Will these sisters benefit from DEI or become victims of DEI?

Many more dilemmas emerge in the process, as the journey of the Ahuja sisters is not a bed of roses.

Theoretical Framework

The significant increase in population and shifts in lifestyle patterns have led to a higher rate of solid waste generation. Factors such as rapid urbanization, high population density, swift commercialization, unequal living standards and industrial expansion have compounded issues related to both biodegradable and non-biodegradable waste. The volume of solid waste is not only growing but also becoming more diverse in composition. Previously, waste was predominantly organic and could be easily disposed of in low-lying areas without harming the environment. Today, the proportion of organic waste has decreased significantly, while inorganic waste has surged. Additionally, waste from industries, hospitals, construction sites, households and other sources poses severe environmental and public health risks. Improper disposal of waste chemicals contaminates air, soil and water, leading to hazardous outcomes, especially in countries where policy frameworks are not strictly enforced. Food waste, rich in carbohydrates, is a valuable resource for butanol fermentation, with substrates like potato peels, whey and apple pomace being particularly suitable due to their high carbohydrate content.

Proper SWM solutions are scarce. Key obstacles include the lack of land for decentralized waste treatment facilities or landfills, insufficient financial support for staff and disposal infrastructure and a reluctance among individuals to segregate waste at the source. Industry professionals are introducing innovative decentralized technologies such as composting, pellet production and waste-to-energy plants to reduce landfill waste. To identify the most suitable and cost-effective technologies, it is essential to consider factors such as the daily waste production rate and the availability of land for constructing these facilities.

Biogas Ventures in India

Vayu Mitra, a start-up in Pune, is set up by Priyadarshan Sahasrabuddhe, an Indian Institute of Technology Bombay (IIT-B) alumni. They promote green fuel and are helping households to install biofuel plants. Carbon Loops, a venture by Kern Agrawal and Ranjani Prabhakaran, is working in a similar field and is trying to educate corporates and educational institutions regarding biofuel. Yellow Haze in Rajasthan collects and provides food waste to biogas solutions. These three ventures are working on different verticals. But, AES has integrated all the verticals. AES has its own food waste collection mechanism, they install units at the client’s place to reduce transportation and storage of waste. Their designs are tailor-made to suit all levels of clients.

Waste Management and Energy Production in India

The effective handling of waste and the generation of energy from it represent two vital and closely linked components of India’s efforts to promote sustainability and achieve its environmental objectives.

India is grappling with substantial waste management challenges due to its expansive and expanding population. The swift urbanization and industrialization taking place have resulted in a surge in waste generation, encompassing municipal solid waste (MSW), industrial refuse and electronic detritus.

In the realm of MSW, India confronts significant issues. Numerous Indian cities contend with ineffective waste collection, inadequate disposal facilities and a deficiency in recycling and waste-to-energy infrastructure.

Efforts have been exerted to advocate for waste segregation at its origin, with the objective of curbing landfill reliance and enabling more efficient recycling and waste processing.

India has been actively investigating waste-to-energy solutions to tackle the conundrum of excessive landfilling and to exploit the energy potential within waste. Waste-to-energy plants have been conceived to transmute non-recyclable waste into electricity or heat, thereby mitigating the environmental repercussions of waste disposal.

In the sphere of energy generation from waste, India has been channelling investments into waste-to-energy facilities across various cities. These facilities incinerate solid waste to generate electricity. Prominent examples include the Okhla Waste-to-Energy Plant in Delhi and the Timarpur–Okhla Integrated Waste Processing Facility.

Parallelly, India has been directing its attention toward the production of biogas from organic waste, such as agricultural residues and municipal organic refuse. Biogas serves as a valuable resource for electricity generation and heat replacement, that is, for replacing LPG or PNG or boiler fuel.

The Indian government has instituted policies and incentives to bolster waste-to-energy ventures and the adoption of renewable energy sources. These measures encompass subsidies and tax incentives.

However, challenges persist and the future trajectory entails addressing the following facets:

Environmental apprehensions surround waste-to-energy initiatives, notably concerning air emissions and the ecological ramifications of incineration. Consequently, stringent pollution control measures are imperative.

Ongoing investment in waste management infrastructure and technology remains crucial for India to effectively manage its mounting waste predicament.

The advocacy for waste reduction, source separation and recycling at the grassroots level is indispensable for fostering sustainable waste management practices.

The seamless integration of waste-to-energy and biogas generation into India’s broader renewable energy landscape stands to contribute significantly to a more sustainable and diversified energy portfolio.

Process of Conversion of Waste into Fertilizers at AES

AES is committed to sustainable waste management and uses an integrated approach for the conversion of waste into biogas and fertilizer. It offers turnkey solutions for solid waste-to-energy systems. AES’s anaerobic Gas Lift Reactor technology has an edge over the conventional biogas digester designs for biogas and bio-manure production. It uses unique pre- and post-processing technologies required for the biomethanation of organic solid waste based on its characteristics. The procedure for waste-to-biogas conversion entails collecting agricultural waste and other garbage, which is then separated into organic and inorganic waste materials. The segregated waste is then shredded with shredders to reduce its size, so as to ensure that it becomes manageable. The shredded trash is then pre-processed in a buffer tank, where it is mixed to make it of uniform consistency. The pulp is then fed into an anaerobic digester, where microorganisms break down organic matter in the absence of oxygen, producing biogas (methane and carbon dioxide) and compost. The technology used by AES is intended to increase the rate of biogas production by incorporating the best features of high-rate biomethanation, such as mixing, retention of high active biomass, buffering capacity, food-to-microorganism ratio, feed slurry concentration, microbial culture inhibition mechanisms, delinking of hydraulic retention time (HRT) and solids retention time (SRT) and so on. The modern anaerobic digesters at AES ensure maximum breakdown of organics, resulting in significant biogas yield.

AES: Projects and Footprint

With a humble beginning in 2015, AES has installed 29 biogas plants as of date and still has many more to accomplish. Some of the Successfully running bio-gas plants installed by AES include: Akshaya Patra Foundation (Bellary, Ahmedabad, Hubli, Surat, Vadodara, Bhavnagar, Rourkela, Vrindavan, Bhuj, Chennai and Puducherry), The Indian Institute of Chemical Technology (CSIR-IICT), GOI, Bowenpally Vegetable Market Yard, Hyderabad; Hyderabad Integrated MSW Limited (HIMSWL), Jawaharnagar, Hyderabad; Agriculture Market Yard, Kurnool, AP, CVR College of Engineering, Hyderabad; Capgemini Campus, Hyderabad; Osmania University Campus, Hyderabad; Erragadda Rythu Bazaar, Hyderabad; CSIR—Institute of Himalayan Bioresource Technology at Baijnath, Himachal Pradesh; CSIR—Institute of Himalayan Bioresource Technology at Geyzing, Sikkim; HMDA Truck Dock Logistics Park, Batasingaram Fruit Market, AMC, Gaddiannaram, Hyderabad; South Central Railways, Vijayawada, A.P., WASH Institute—Bhadrachalam Temple, TS under ITC ‘Mission Sunehra Kal’ and Kukatpally Rythu Bazaar, Hyderabad.

AES is a recipient of the Indo–US PACEsetter Award and FTAPCCI Excellence Award. Exhibit 1 gives a brief description of the unique selling proposition (USP) of AES. Exhibit 2 gives details of key focus areas. Exhibit 3 gives details of products and key features are explained in Exhibit 4.

AES: USP

• Designing and building biogas plants and gas flare units.

• Decentralized organic waste management.

• Engineering, procurement and construction (EPC) for waste-to-energy turnkey plants.

• Processing of all organic waste, including urban, industrial and agricultural waste, to produce energy and biofertilizer operation and maintenance (O&M) and annual maintenance contract (AMC).

• Strong after-sales support.

Ahuja sisters are themselves involved in the designing and implementation of the biogas plants. They have nailed the technological aspects and customize according to the requirements of the clients. Operational training is given to the client for hassle-free operation of the unit. Further, annual maintenance and after-sales support services are also provided by AES, which make it client friendly (Annexure B).

AES: Key Focus Areas

• Food waste/kitchen wet waste: Typical waste processed 100 kg/day—3 tonnes/day.

• Urban waste: All scales, typical range—3 tonnes/day and above.

• MSW, vegetable waste, waste leachate and temple waste 10 TPD.

• Agro/industrial waste: Typical range: 10 tonnes/day and above.

• Poultry waste, slaughterhouse waste, fish waste, agricultural waste, bagasse, spent wash, press mud, industrial waste water and so on.

• Biogas to replace LPG/PNG and generate power.

• Biogas to bio-compressed natural gas (CNG)/PNG; biogas will generate power for electric vehicle (EV) charging.

AES has designed tailor-made units to cater to both small and large volumes of food waste. They have the ability to customize their units for urban waste, MSW, vegetable waste, agro/industrial waste and poultry waste. According to the client’s requirement, they will design the unit and install it. Their aim is to replace LPG/PNG with biogas. Attempts are being made to use biogas for EV charging (Annexure C).

AES: Products

• Decentralized onsite waste management: Eliminates waste storage, waste transportation and disposal costs.

• Green sustainable technology: No transport to landfills, no greenhouse emissions, plant generates biogas (high calorific valve) and biofertilizer.

• Direct economic benefits: Biogas is piped back into the kitchen to directly replace LPG/PNG; revenue is generated from the sale of biofertilizer.

• Ease of operation: Easy to operate, odourless and noiseless, existing staff can be trained to operate it.

• Regulatory compliance: Complies with SWM Rules 2016 and biogas standard International Organization for Standardization (ISO) 9478:2023.

• Green building compliance: Enhances green image.

• Customers: Hotels, central kitchens, canteens of hospitals, industries and institutions, temples and gurdwaras, waste management companies, municipalities and others.

To eliminate waste storage, waste transport and disposal cost, AES has adopted decentralized onsite waste management. There are no landfills and no green emissions, resulting in a green, sustainable technology. There is also an economic benefit, as biogas can replace LPG/PNG. The ease of operation is a unique feature of this unit. AES adheres to all the norms of SWM rules and ISO standards. These biogas units can be customized for hotels, central kitchens, canteens and any other place where food waste is generated.

AES: Key Features

• Containerized, modular, compact, skid-mounted.

• Plug and play—quick installation and easy plant set up.

• Modern anaerobic digester design. Odourless and noiseless performance. A special culture is seeded in the digester for increased efficiency.

• Designed to handle mixed organic waste substrates (co-digestion).

• Biogas stoves are designed for superior flame performance for cooking.

• Simple operation and ease of maintenance.

• Safety built-in engineering design.

• App-based remote process monitoring built-in sensors for process control.

AES: Leadership Team

Started the journey in 2014. They have licensed the Digester Technology from CSIR-IICT, GOI. A true spirit of desi product, which is 100% Made in India. AES has done the complete scale-up, design and engineering of the turnkey biogas plant and has incorporated the CSIR-IICT’s digester technology in their engineered final product.

AES is led by a team of scientists who have a cause to work for and want to give a safe planet to the next generation. Mr D. K. Ahuja, from BITS Pilani, is the guiding force behind the team. Joined by Ms Shruti Ahuja, MS Electrical Engineering USA, Dr Disha Ahuja, PhD, Chemical Engineering, USA and Dr Sandeep Karajanagi, PhD, Chemical Engineering, USA, who is the senior management team of AES. The tireless efforts of the team have helped AES to visualize their vision and finally made their presence felt, contributing towards a clean and safe planet.

Potential Future Challenges and Probable Strategies for AES

AES uses a dedicated procedure for converting waste into fertilizer, but rapid technological advancements may render the process redundant. In addition, the significant expenditures associated with research and development of new technologies may prove detrimental to the expansion of a micro, small and medium enterprises (MSME) like AES. In addition to this, the high operational costs of maintaining biogas conversion plants might be a major burden for the company.

The market is still in its nascent stage, and the entry of new players and increased competition may pose a significant threat to the survival of the company. There are also substantial changes in agricultural practices, which may result in changed needs for fertilizer and biogas. Although converting garbage into biogas and fertilizer is one of the most sustainable alternatives, the company has to be cautious regarding people’s reservations regarding the efficacy and safety of waste-derived fertilizers, as well as the possible health concerns connected with handling waste during the process.

To address these potential issues, AES should implement a multidimensional strategy. Potential partnerships with information technology (IT) companies and research institutions will keep them on the cutting edge of technological breakthroughs. Diversifying their product offerings and undertaking frequent market research can help to manage the dangers of market rivalry and demand variations. AES should seek a variety of financing sources and prioritize cost-effective solutions. Public outreach and acquiring quality certifications can help to increase customer trust and reduce a lack of confidence. Finally, strong environmental and health procedures, as well as regular audits, will assure the activities’ safety and long-term viability.

AES has a proven commercial product already working in 29 locations for waste handling, scaling up to 15 tonnes/day; however, this number is still low when compared to the amount of waste generated and the market potential of setting up biogas plants for wet waste. Their focus is on increasing awareness that scientific solutions such as biogas plants are sustainable and available for urban locations. Finding the right decision-maker is often a challenge in any organization. Ample funds are available in the name of corporate social responsibility amongst the good Samaritans, but knocking on the right door is once again a major issue to deploy these funds. Even though they are able to step into organizations, pitching to the decision-maker is complex due to the hierarchical barriers that are causing a delay in decision-making. Lack of a collaborative model between the funding agencies and the social entrepreneurs for bridging the gaps in acquiring funds and ensuring successful implementation is indeed a hard nut to crack.

Call to Action

1. Suggest a model for installing biogas plants at community levels with people’s partnerships.

2. What strategies should Ahuja sisters adopt to make their venture successful?

3. If you were in Ahuja sisters’ shoes, how would you sensitize people towards environmental consciousness and sustainability?

4. Do you think the Social Franchise Model needs to be adopted by AES? Why?