The integration of a new waste-to-energy plant: Waste flows modelling and pricing strategies for financial sustainability

journal article in Web of Science

en

The imperative to transform waste management and reduce reliance on landfills stands at the forefront of the EU’s ambitious objectives. While achieving complete material utilization of all waste is technically unattainable, the integration of Waste-to-Energy facilities into existing infrastructures emerges as a viable and environmentally conscious alternative. However, the economic sustainability of such facilities in developed countries is contingent upon navigating market dynamics. Evaluating the financial viability of a project often requires access to information that is highly confidential within the competitive environment. This article presents a novel modelling tool designed to estimate key parameters crucial for economic assessments of the construction of a new facility, using a limited set of publicly available data. The main feature of the approach is the modelling of the current collection areas within the existing network and the identification of the potential waste suitable for redirection to a new facility. Based on this information, a comprehensive pricing model has been developed, serving as a foundational framework for negotiations with individual waste producers and collection companies, contributing to the overall economic balance sheet. The approach is presented as a step-by-step guide with recommendations with partial examples from the case study in the Czech Republic. The paper highlights the significance of strategic partnership in economic sustainability and provides valuable insights for investing in waste management under real-world conditions. By securing stable input streams and long-term contracts, the volatility of revenue can be reduced and can also support establishment of a more environmentally and socially responsible system.

The imperative to transform waste management and reduce reliance on landfills stands at the forefront of the EU’s ambitious objectives. While achieving complete material utilization of all waste is technically unattainable, the integration of Waste-to-Energy facilities into existing infrastructures emerges as a viable and environmentally conscious alternative. However, the economic sustainability of such facilities in developed countries is contingent upon navigating market dynamics. Evaluating the financial viability of a project often requires access to information that is highly confidential within the competitive environment. This article presents a novel modelling tool designed to estimate key parameters crucial for economic assessments of the construction of a new facility, using a limited set of publicly available data. The main feature of the approach is the modelling of the current collection areas within the existing network and the identification of the potential waste suitable for redirection to a new facility. Based on this information, a comprehensive pricing model has been developed, serving as a foundational framework for negotiations with individual waste producers and collection companies, contributing to the overall economic balance sheet. The approach is presented as a step-by-step guide with recommendations with partial examples from the case study in the Czech Republic. The paper highlights the significance of strategic partnership in economic sustainability and provides valuable insights for investing in waste management under real-world conditions. By securing stable input streams and long-term contracts, the volatility of revenue can be reduced and can also support establishment of a more environmentally and socially responsible system.

Optimization; Network flow problem; Waste-to-energy; Economic balance sheet

06.05.2025

Elsevier

2590-1745

26

1

1–23

23