Economic Viability Assessment of Municipal Solid Waste Incineration (MSWI) in the Philippines

Author : Villanueva, Von Verlyn Quiatchon
Major Adviser : Bambase, Manolito E. Jr.
Committee Members : Dizon, Lisa Stephanie H.; Gatdula, Kristel M.
Year : 2020
Month : August
Type : Thesis
Degree: BS
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The Philippines, having a great problem related to massive waste generation and has a great dependence on dumping and landfilling for its waste disposal, needs better strategies to deal with these problems. This study aimed to assess the economic viability of MSWI in the Philippines as an alternative to the current MSW disposal, i.e. landfilling and dumping. An MSWI plant was designed to process the estimated generated waste by the second district of Laguna, Philippines. An ideal plant capacity of 750 tons per day (tpd) was determined from the waste generation of the total population of the district. Based from the material and energy balance computation, 283.65 MWh can be generated daily. For an MSWI plant with a feed capacity of 750 tpd, the investment cost was estimated to be PHP 3,670,227,937.01 while the variable costs (operating cost and transportation cost) was estimated to be PHP 1,105,238.94 per day. On the other hand, selling the net electricity produced at PHP 5,701.09 per MWh gave a profit of PHP 1,277,541.94 per day while the total collection from a tipping fee of PHP 756.06 per ton of MSW reached PHP 567,041.63 daily. With these values, a net profit of PHP 294,468.51 per day. Therefore, the designed plant with the 750-tpd feed capacity was already viable based on the positive net profit and its 2.65 % return of investment (ROI). and 37.77-year payback period. However, with a 37.77-year payback period, the plant capacity must be increased to 1,525 tpd to achieve the 15-year typical payback period for large production facilities. At this feed capacity, the plant capacity has an annual return on investment of 6.67% which indicates that the operation became more economically profitable.

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