BusinessDay 26 Feb 2018

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Monday 26 February 2018 32 BUSINESS DAY C002D5556 FEATURE Investigation: Nigeria’s solar energy revolution stirs toxic battery waste management concern How to manage toxic used lead acid battery waste appears to be a downside to the current momentum solar energy is gathering in Nigeria, unless operators commit to responsible behaviour, writes ISAAC ANYAOGU. Every year, Blue Camel Energy, one of the biggest solar operators in Nigeria generates over 6,000 units of used lead acid batteries (ULABs). Many of these end up in the hands of local recyclers in Apo market, Abuja who break it open to extract lead inglots for exports. There are over a dozen serious solar companies in Nigeria handling big ticket projects including bank ATMs, solar street lights, mini grids in rural areas and solar home systems in major cities. While there are two kinds of batteries: lithium and lead acid batteries, the latter, more toxic, is also the most commonly used by these operators. Over 70 million Nigerians do not have access to grid power; this means that for many living in off-grid communities, renewable energy, mostly solar, would be their only hope for power. Operators are rising to the challenge according to my discovery in recent visit to states in Kaduna, Abuja, Anambra and Ogun states. Thousands of people living in communities where the national grid has not reached are enjoying between five and ten hours of electricity daily mostly through solar solutions including mini grids and solar home systems. Even in major cities of Lagos and Abuja, companies like Lumos and Arnergy Solar Ltd are providing solar home system solution which is helping underserved communities augment grid power. The United Nations Sustainable Development goal 7 ‘Affordable and Clean Energy’ encourages the adoption of renewables mostly solar PVs and mini grids as the quickest route to clean energy access for over 1.2 billion people without access to electricity globally, of which over 600million are from Sub Saharan Africa. Organisations like United States Africa Development Foundation (USADF) and Shellseeded, All On, are providing seed capital and grants for development of mini grids in Nigeria. In Lagos, Asteven has opened an academy to train installers and in Abuja, the distribution company Abuja Electric, is even powering an office in Gwarinpa with solar PVs. True, Nigeria’s solar energy market has not approached the size and sophistication of the East African markets, but it is roaring to go. A viable mobile money solution keeps getting in the way. However, batteries are one of the most important components of this revolution but not many operators consider the end-of-life issues for these batteries, which is regarded as hazardous waste. The quantity of used lead acid batteries currently generated in Nigeria is massive. A 2016 study by Recycling and Economic Development Initiative of Nigeria (REDDIN), a non-governmental organisation (NGO), found that approximately 110,300 tons of used lead acid batteries are generated in Nigeria annually. When the figures for solar operators are included, it comes to over 500,000 tons annually, says Terseer Ugbo, who leads the NGO, citing research by other institutions. Environmental-wise, this is a ticking timebomb unless operators commit to responsible management. This is important because, UL- ABs projected to be generated from solar energy will triple those from the transport sector. Solar energy is the future, and Nigeria’s ambition to generate 30% of its power from renewables by 2030 is projected to further increase the volume of used batteries that would be generated in the country. However, I found serious gaps in the knowledge of responsible management of ULABs by solar operators in Nigeria during a month-long investigation on the issue. The Extended Producer Responsibility (EPR) concept, a guide to sound environmental management of ULABs, has also not caught on. Traditionally, the bulk of ULABs generated in Nigeria largely come from passenger cars, motorcycles and trucks. There is a crude collection system in place that involves auto mechanics, scrap engine dealers paying between N5-N7,000 each for a used lead acid battery in Lagos, Oyo, Anambra, Ogun, Kano, Kaduna and Abuja. These batteries are moved in trucks and containers to Lagos where they are exported to China and India after the used batteries have been drained of acid and the lead extracted in crude recycling processes. Major ULABs dealers collect over 1,200 tons monthly in their respective regions. In Lagos where the market is the most active, itinerant collectors rely on local battery retail outlets who buy from individuals who wish to exchange their old batteries for new ones. They also buy from scrap yards dealers and mechanic villages. Like Ndubuisi Umeh, the managing director of Endy Henry Nigeria Ltd based in a scrap market in Obosi Anambra state, visited during the investigation for this story. Umeh, the biggest operator in the market, has informal networks in mechanic workshops around Enugu, Anambra, Abia and Imo states that bring him condemned batteries. “I have boys who go out and collect these batteries for me from shops that sell new batteries,” he said sitting in a tawdry shop in Obosi scrap market, heavy with the pungent smell of batteries shorn of acid, surrounded by workers stacking batteries in a heap. Though volumes are still low, solar operators in Nigeria dispose of their batteries following this pattern. “We don’t generate much battery because they basically belong to our clients that we have installed for,” says Bolade Soremekun, CEO of Rubitec Solar who just commissioned a N200m solar hybrid mini grid in Ogun state Soremekun further said, “We sell them to people who buy used batteries and we think they sell locally or by export to recyclers. We don’t worry about this much, that is why we sell to these people.” Ernest Akale, CEO of Electric City Energy Ltd, who recently handled a solar street project for the Federal Road Safety Commission (FRSC) said, “What we generated on a monthly rate of 10-15 pieces of UL- ABs, sometimes we have some recycling companies who pick them up and sometimes our engineers sell to local vendors for between N12,000 and N15,000. In terms of what they do with it, I don’t know.” This is the current, standard practice for many operators in the sector. The danger Lead-acid batteries contain sulphuric acid and large amounts of lead. The acid is extremely corrosive, and a good carrier for soluble lead and lead particulate. Lead is a highly toxic metal that produces a range of adverse health effects particularly in young children, including cardiovascular, neurological and gastrointestinal diseases like anaemia, and mental retardation. Experts say long term exposure can result in cancer, brain and kidney damage in human. Further dangers include hearing impairment and it can affect children’s cognitive development. I cannot be sure if that is why I had practically scream at battery dealers in Onitsha before they can hear me – but then again it could easily have been the result of the organised chaos in the rowdy market. The danger this time is not solely from poorly equipped primary battery recycling sites, as a clampdown by the Lagos state government is sending many out of the business of crude recycling, it is from collectors draining acid into the ground which can contaminate water sources, endangering human health. The market is moving towards collection of used battery rather than recycling and the growth of the solar energy industry means that operators will generate more ULABs, which would constitute more environmental challenges. ULABs from the bourgeoning solar industry are projected to eclipse the automobile sector. For every 6 kW solar PV installations about 8 units of batteries (400 Amp, 48 V) are needed. For urban apartments about 24 batteries are needed, for rural households about 1-4, depending on the energy consumption
Monday 26 February 2018 C002D5556 BUSINESS DAY 33 FEATURE needs, according to solar operators. Nigeria’s solar PV target of 30,000 MW according to the Nationally Determined Contributions (NDCs), would require a dizzying amount of lead-acid batteries. Currently, for every 6 kilowatts of installed solar PV about 8 units of batteries (400 Amp, 48 V) are needed. A quick calculation indicates that to generate the 30,000 megawatts (MW) about 40 million batteries will need to be installed initially. The typical lifetime of a battery is only about three years, compared to 20-25 years average lifespan of the PV panels. For 30,000 MW solar PV capacity this would mean over the lifetime about 280 million batteries will have to be installed, replaced, recovered and then recycled. Over 80 percent of the batteries used in solar energy generation are imported from China and there was no operator who confirmed that they were not using lead acid batteries. The alternative, lithium batteries is yet to gain a foothold in the Nigerian off-grid market because it cost twice as much to purchase. Margins are low and many projects are financed by debt which can’t be recouped in 5 years, hence operators prefer lead acid battery to meet their bottom-line. Lithium batteries deliver longer life cycles, shorter recharge period, but it has very low economic viability of recycling hence disposal in landfills which also results in environmental hazards. “The environmental impact of batteries as the off grid energy sector scales in Nigeria is a big concern to All On and something we consider in our investment decisions,” says Wiebe Boer, CEO of All On, who recently signed a funding agreement with some operators. Poor knowledge of EPR Many of the solar operators interviewed for this story have not heard of the EPR hence asking them about their level of compliance is the equivalent of asking a man born blind to describe a rainbow. The EPR shifts the responsibility for waste management from government to private industry, obliging producers, importers and/or sellers to internalise waste management costs in their product prices and ensuring the safe handling of their products. According to the National Environmental Standards and Regulations Enforcement Agency (NESREA), a government agency that regulates hazardous waste, a properly implemented EPR is a driving force in waste avoidance and effective pollution prevention and reduction in many industrial sectors towards the promotion of green economy. It offers a framework for a partnership approach between Government, business, and the community to work towards zero waste. The EPR is the gold standard for managing ULABs in Germany, China, United States, Netherlands and South Africa among others. Understandably, recyclers and collectors bear the primary responsibility in the EPR. Recyclers are required to mandatorily subscribe to the concept, ensure safe management of waste, design and implement appropriate EPR programme and administer recovery and recycling programmes, register with a Producer Responsibility Organisation (PRO), who monitors design of EPR, renew registration annually and keep proper inventory of products. Collectors on the other hand, are required to register with a collection Centre, work closely with operators of collection centres and consumers, use approved transportation system/carts, ensure the use of appropriate PPE, receive compensation from major collectors or operators of collection centres, provide Astevens Renewable Energy and Energy Efficiency Academy trains installers Batteries used to power an off grid house in Abuja by Blue Carmel Energy Ltd compensation or payment for consumers; and promote any other actions towards the successful implementation of the EPR Programme. Solar energy operators as importers/ consumers of lead acid battery are required to dispose them through legal or appropriate means and promote any other actions towards the successful implementation of the EPR Programme which includes ensuring that informal collectors adhere to best practices. They have the obligation too to find reputable, formal operators to sell their used batteries. “We are currently discussing with Union Autoparts and are in the process of reaching a formal agreement with them on disposal of our batteries,” says Femi Adeyemo, a co-founder of Arnergy Solar Ltd, whose operation will start generating thousands of ULABs in three years. However, Union Autoparts Manufacturing Company, based in Nnewi has a weird problem. The company has Africa’s biggest recycling plant, equipped with topnotch recycling facilities installed at a cost of over N3billion but the company’s workers are seen milling around during my visit to the plant due to an inability to secure used batteries for recycling. However, some operators say their charges are not competitive. Meanwhile, in Nigeria, the Federal Government has developed a National Environmental Regulations with provision for the EPR. The NESREA developed operational guidelines that explore the use of economic instrument to ramp up compliance but enforcement as regards ULABs has not received the kind of attention e-waste has received. The battery producer is tasked with monitoring of their products from cradle to cradle and administer recovery and recycling programmes through the PRO. On the other hand, the government would monitor compliance, ban designated hazardous materials from use in products and/or disposal, establish relevant environmental standards, register and accredit recyclers as Authorised Treatment Facilities (ATF), and issue permits. But this is yet to have desired impact. “The Agency (NESREA) is awaiting the sector players to organise themselves and bring up a plan for EPR implementation and submit to NESREA for review and approval,” Miranda Amachree, director, Inspection and Enforcement Department of NESREA said in a presentation at a workshop on the subject last year. Not much progress seems to have been made on this front. Lawrence Anukam, director general of the NESREA in an interview on February 21, in his office in Abuja, said the sector players have now nominated a PRO and his parastatal was ramping up enforcement, calling on states to partner with the organisation. But the next day, when the NESREA met with the group, it was discovered that operators are yet to fully agree on the modalities for setting up the PRO. Operators agree reforms are necessary, “There is need for a formal regulation of the sector, because it is growing beyond the volume anticipated,” says Yusuf Sulaiman, MD/ Key stakeholders in Nigeria’s EPR programme Source: NESREA CEO of Blue Carmel Energy in a presentation at a workshop on ULABs last year. His ULABs annual generation of 6,000 units is worth over N600million. Boer thinks so too, “The industry needs to establish strict industry standards and enforce them. We are interested in investing in companies with a recycling solution as well as in supporting efforts to set to set the standards. We have to get this right now that the industry is still nascent.” A model that works For solar energy operators, the example of Mobisol provides a teaching lesson for proper management of ULABs. Mobisol, a leading provider of decentralized solar solutions, has joined hands with e-waste and battery recyclers in all operational countries. The company is partnering with Phenix Recycling in Tanzania, Enviroserve in Rwanda, and Associated Battery Manufacturers (ABM) in Kenya. All three recycling partners have demonstrated a strong commitment to establishing a comprehensive recycling network for off-grid solar components, such as waste from solar products, consumer electronics and leadbased batteries. This milestone comes at a time where the off-grid solar industry increasingly acknowledges the importance of finding end-of-life solutions for its products. In order to steer this urgent issue with clarity and transparency, Mobisol positions itself as one of the first market players to openly communicate its recycling infrastructure. E-waste recycling was one of the emerging topics of discussion at the Off-Grid Solar Forum in Hong Kong last month. At the event, attended by over 600 sector representatives, the importance of collaboration and exchange in order to improve existing methods for safe disposal of e-waste and batteries was strongly emphasized. Facing the immense challenge of the informal recycling sector that uses practices which do not meet acceptable, sustainable standards, Mobisol is pushing for recyclers and off-grid companies to work together to focus on so- cial and environmental standards and create awareness for sound waste management in countries they work in. “ABM is very content to have found an ambitious, environmentally conscious partner in Mobisol. The decentralized solar industry is one that will face further challenges with regards to recycling in the future; experienced, long-standing recyclers like ABM have the responsibility to provide clear and transparent end-of-life solutions to those who are willing to tackle the challenge of informal and inappropriate practices sustainably,” says Guy Jack, managing director of ABM. The solar energy industry in Nigeria is only beginning to take off and operators are still reporting minimal volumes of ULABs, but this will grow over time, making this the best time to begin to put in place strategies to manage the toxic waste. As they say in Zambia, it is too late to fatten the cow on a market day, therefore it seems wise to bale this water now, that it is only ankle deep. According to the communiqué released at Heinrich Boll Stiftung Nigeria workshop on ULABs management last year, stakeholders resolved that renewable energy companies must be encouraged to deliver ULABs to recognised and authorised ULABs collectors and recyclers. Many say they would commit to this but it remains to be seen how much commitment they would give.
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