2022 Annual Meeting
(473a) A Techno-Economic and Life Cycle Analysis of Operating a Standalone Material Recover Facility in the United States.
Authors
This study employs a discounted cash flow rate of return (DCFROR) analysis to estimate the net present value (NPV) of recovering recyclables at an MRF. The NPV is a common metric used in evaluating the profitability of investment by finding the current value of future revenues and expenses. This study employs the ISO 14040 and ISO 14044 life cycle assessment framework to evaluate the environmental impacts of processing one metric ton (MT) of MSW in an MRF. The study uses sensitivity and uncertainty analysis to assess the effects of variability in crucial MRF process parameters, MSW composition, and price variability on the NPV and GHG emissions of the MRF. In particular, the study investigates the impacts of various plastic waste components on the MRF profitability and environmental footprint.
Preliminary analysis shows that the cost of building a 120,000 MT/year MRF is about 23 MM USD. The revenue generated from the MRF depends mainly on the composition of the MSW and the prevailing market prices of each recyclable. The DCFROR shows that the NPV across 20 years can range from 3.57 MM USD to 60 MM USD at a 10% internal rate of return. The LCA analysis shows that the emissions can vary from 5.98 to 8.53 kg CO2 eq emissions depending on the composition of the input MSW. Sensitivity analysis shows that the biggest drivers of the NPV are revenue, operating hours, total fixed capital cost, and MSW tipping fees, while MSW composition, baling wire, and electricity impact the emissions the most. The uncertainty analysis showed a 95% probability of achieving a net positive NPV. Future work will estimate the GHG emissions allocated to each recyclable using various LCA allocation methods.
References:
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