Resource recovery: Technical and economic risks

Abstract

The planning and implementation of resource recovery from municipal solid waste are often uncertain. Six categories of risk associated with this are identified: (i) the quantity of waste available; (ii) the composition of the waste; (iii) the ability of the equipment to operate to specification; (iv) the ability to meet product specifications; (v) the ability to sell the recovered products; and (vi) the uncertainty of having to meet future (hence unforeseen) environmental regulations. Each of these is defined and possible approaches to manage them described. In addition, the economic risk of resource recovery is discussed in terms of future projected and relative costs of recovery and revenues from the sale of the energy product. Because of differences in inflation rates between operation costs and energy product revenues (at a level rate of amortization), it is,shown that at some future time the cost of recovery is less than alternative disposal.