A Cost-Effectiveness Analysis for Incineration or Recycling of Dutch Household Plastics

Abstract

The cost-effectiveness of plastic recycling is compared to energy recovery from plastic incineration in a waste-to-energy plant using data for the Netherlands. Both options have specific benefits and costs. The benefits of recycling are the avoidance of both CO2 that otherwise would be emitted during incineration and the production of virgin (new) material. There are significant costs, such as collection costs and recycling costs involved for plastic recycling by municipalities. The benefits of energy recovery from plastic are heat and electricity production leading to fewer emissions in the regular energy production sector, but this requires a waste-to-energy plant with the associated capital investments. Summing all the costs and benefits results in an implicit CO2 abatement price of 172 Euro per tonne of CO2 in case of plastic recycling. In general, this implicit price is much higher than current (or historic) ETS prices, the estimated external costs of CO2 emissions, or alternatives to reduce CO2 emissions (e.g. renewable energy). A sensitivity analysis shows that this conclusion is robust.

A review of the cost and effectiveness of solutions to address plastic pollution

“…Recycled plastics are seen as inferior substitutes for virgin plastics. -2.3 to -0.27 MakeInBusiness ( 2018 ); Gradus et al ( 2016 ); Devasahayam et al ( 2019 ); Civancik-Uslu et al ( 2021 ) Lifecycle cost of recycling (capital and O&M) is typically EUR204/ton Chemical recycling (pyrolysis) USD857,000 USD500–1,000 (in Europe and North America) The distribution of the gas, liquid, or solid fraction depends on process operating conditions applied and catalysts used. -1.5 to -0.1 Devasahayam et al ( 2019 ); Homolka ( 2018 ); Porcu et al ( 2019 ); Tullo ( 2019 ); Klean Industries Inc ( 2015 ); Devasahayam et al ( 2019 ); Jeswani et al ( 2021 ) Case 1 in the USA: • 0.68 m 3 of diesel and naphtha • 0.22 m 3 of industrial wax.…”

“…Consequently, 2.5 tons of plastic waste will give energy equivalent to 1 ton of natural gas 0.4–1.1 Hirn ( 2016 ) Incineration • USD100,000–330,000 in Myanmar • USD10,800–14,000 c in Myanmar Case 1: in the USA (1/3 of the carbon in the solid waste comes from plastics): 0.72 MWh of electricity and 10% ash. 1.8–2.8 JFE Engineering Corporation ( 2018 ); Tullo ( 2018 ); Maxime ( 2018 ); Huisman et al ( 2017 ); Turchet ( 2015 ); Gradus et al ( 2016 ); Planete Energy ( 2014 ); Devasahayam et al ( 2019 ) • EUR455,000-480,000 b in France • EUR40,000 in France (EUR120 to 130 per ton of waste) Case 2: in Myanmar up to 0.40 MWh of electricity (some used internally) Case 3: in France 20–25% solid residues, recycled in road construction; 3% of residues recovered from gas exhausts which must be landfilled. Energy generated: • 1.5 MWh if hot water only • 0.3–0.4 MWh if electricity only • About 0.3–0.5 MWh each of hot water and electricity, in a co-generation mode a Estimated in India.…”

Post Separation of Plastic Waste: Better for the Environment and Lower Collection Costs

“…The costs for curb separation are known. Gradus et al (2016) show that in 2015 the collection cost of home separated plastic are on average 408 euro per tonne plastic. A municipality gets also a compensation fee of 269 euro per tonne plastic waste for the net treatment costs of transporting and making plastic granulate of it.…”

“…Value of virgin plastic minus treatment costs and opportunity costs of separated plastic, see Gradus et al (2016).…”

“…Therefore, a municipality is compensated for this deficit by the packaging industry and in 2015 got a contribution of 677 Euro per tonne of collected household plastic. In Gradus et al (2016) we calculate the implicit price of one tonne of CO2 reduction by means of plastic home separation and recycling (compared with incineration) and showed that it is equal to 178 Euro. This calculation is based on the mass balance of home separated plastic waste from households.…”