DEVELOPMENT MUNICIPAL SOLID WASTE (MSW) INTO WASTE TO ENERGY (WTE) CONSIDERING CARBON CREDIT SCHEME

• Main Author: Adi Setiaji, Danang
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85995
• Institution: Institut Teknologi Bandung

The rapid increase in population, urbanization, and industrialization has significantly escalated municipal solid waste (MSW) generation, presenting a substantial challenge for waste management systems worldwide. Currently, the average daily generation of solid waste per person is 0.74 kg, with a range from 0.11 kg to 4.54 kg, varying according to a country's urban population, income level, economic activity, and living standards. Projections indicate that global waste generation could reach 2.59 billion tons annually by 2030 and 3.40 billion tons by 2050 if effective management strategies are not implemented. Despite comprising only 16% of the global population, high-income countries produced 34% of the world’s waste in 2016, with an average daily per capita waste generation of 1.58 kg, which is four times higher than that of lower-income nations. The improper handling of MSW has severe health and environmental consequences, contributing to 0.4–1 million premature deaths annually due to exposure to hazardous waste and uncontrolled waste burning. In this context, waste-to-energy (WtE) technologies present a viable solution for transforming MSW into renewable energy resources, addressing both waste disposal and energy production needs. WtE processes, including gasification, incineration, refuse-derived fuel, and anaerobic digestion, offer multiple benefits such as reducing landfill usage, mitigating greenhouse gas emissions, and generating economic value through energy recovery. These technologies align with global sustainable development goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities), by promoting energy security and environmental sustainability. This paper focuses on the feasibility of developing WtE projects in Central Java, Indonesia, particularly considering the carbon credit scheme introduced in early 2023. The study involves a comprehensive capital budgeting analysis and a feasibility study to assess the financial and technological viability of WtE investments. The capital budgeting analysis evaluates current renewable energy investments and potential opportunities under two scenarios: without considering the carbon credit scheme and with the scheme as an additional revenue stream. The feasibility study explores the overall business or investment landscape for WtE projects, examining how the carbon credit scheme can enhance project feasibility and profitability. Our findings reveal that the carbon credit scheme has a notable, impact on the financial metrics of WtE projects, improving the internal rate of return (IRR) by +1,8% higher. The study indicates that gasification technology, due to its lower emissions and higher energy efficiency, Page iii emerges as a preferred method for converting waste to energy. The analysis underscores the importance of integrating environmental and economic considerations in the planning and implementation of WtE projects to achieve long-term sustainability. In conclusion, WtE technologies offer a promising approach to managing MSW and generating renewable energy, contributing to the circular economy and the achievement of SDGs. The integration of carbon credit schemes further enhances the financial attractiveness of these projects, supporting broader environmental and economic goals. This research provides valuable insights for policymakers, investors, and stakeholders in the waste management and renewable energy sectors, advocating for the adoption of advanced WtE technologies to address the pressing challenges of waste management and energy security.