Techno-Economic Assessment of a 1,200 Liter Rotary KilnBatch Reactor for the Production of Oil from Plastic Waste

Agus Kismanto, Rizqon Fajar, Nina K. Supriatna, Aminuddin, Fahruddin J. Ermada, Samdi Yarsono, Riardi P. Dewa, Lan M.T. Nainggolan, Rizal Alamsyah, Adi Surjosatyo

Research output: Contribution to journalArticlepeer-review

Abstract

Converting plastic waste into plastic oil is a promising solution to reduce municipal waste and create alternative fuels in developing countries.. The construction of a medium-scale plastic oil factory holds potential as a solution. Unfortunately, this idea is rarely implemented due to the lack of studies assessing its economic feasibility. This study explores two scenarios that could make this business feasible. The investment costs in this study are based on bill of quantity of the detail design of a 1,200 L capacity rotary kiln batch reactor. The evaluation methodology employed in this study involves comparing the payback period, Internal Rate of Return (IRR), and Net Present Value (NPV) of two ownership scenarios: one with the local government as the owner and the other with private companies as the owners. The optimal scenario is for the local government to own the plastic oil plant, utilizing land that is already available for the plant site. This arrangement would ensure a steady supply of plastic waste since the local government can regulate household waste segregation. The plastic oil plant in this analysis utilizes combustible non-plastic waste as the heat source for oil conversion. With an investment of 88,000 USD, the cash flow analysis shows a payback period of 1.95 years, NPV of 380,000 USD, and IRR of 57.5%. Thus, this business model is considered stable against external conditions. A sensitivity analysis shows that even with a 20% increase in plastic waste price, labor costs, and investment costs, and a 20% decrease in plastic oil price, the payback period remains attractive at 3.94 years. In order to effectively reduce plastic waste, plastic oil plants must be established everywhere. Therefore, the study also discusses a plan for ensuring the smooth expansion of plastic oil plant construction.

Original languageEnglish
Pages (from-to)1877-1888
Number of pages12
JournalEvergreen
Volume10
Issue number3
DOIs
Publication statusPublished - Sept 2023

Keywords

  • alternative fuel
  • new energy
  • plastic waste
  • pyrolysis
  • waste management

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