Economic viability analysis of a construction and demolition waste recycling plant in Portugal – part II: economic sensitivity analysis (original) (raw)
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Journal of Cleaner Production, 2013
The few construction and demolition waste (CDW) recycling plants that there are in Portugal sepa-rate the materials and then crush and sieve them prior to final delivery. These plants have limited overall capacity and the quality of the output material is not good enough for higher grade applica-tions such as concrete and brick production. This study aims to better understand the economic im-plications of implementing and operating a large-scale high-end CDW recycling plant to serve a densely populated urban area in Portugal (Lisbon and its outskirts). This first part deals with the location of the plant, its design and the material entering and leaving it. There follows an economic analysis which leads to the sensitivity analysis presented in part two, providing important conclu-sions for the economic viability of full-scale CDW recycling plants. The methodology used can be applied to other locations and resulted, within the regional data frame of the Lisbon Metropolitan area, on a return of the investment period of around 2 years, considering a plant capacity of 350 tonne/h, collection of 21.8 million €/year in gate fees and given the need to pay around €11.9 million €/year in running costs. Hence, there is a high profit potential in this venture, even though con-sidering the high initial investment needs. Moreover, the venture seems economically viable even in the absence of specific regulatory government policy intervention for recycling CDW, which may indicate a clear alignment between economic viability and environmental benefits, arising from this CDW recycling plant operation.
Revista AIDIS de Ingeniería y Ciencias Ambientales. Investigación, desarrollo y práctica, 2021
The construction activities generate representative amount of Construction and Demolition Waste (CDW) around the world. Brazilian City Halls collected about 45 million tons/year. CDW recycling plants needs to be economically viable. The characteristics of recycling plants and future expectations vary around the world. Thus, the cost analysis needs to be adapted to the local reality and future scenarios should be evaluated. In this context, the objective of this paper is to evaluate the CDW recycling plant costs in Brazil. Two scenarios are tested, actual Scenario (1) and future Scenario (2), with air jig. Four steps are performed: literature review, inventory of the inputs, economic indicators analysis, and sensitivity analysis of alternative solutions. The results suggest that both scenarios do not reach positive economic indicators (IRR, NPV and Payback). The Fixed Costs are the main influence on the results, mainly due to the acquisition of Equipment. The Variable Costs represent, in Scenario 1 and 2, 18% and 10% of their Total Fixed Costs, respectively. Scenario 1, however, has possible conversion into positive IRR easier than for Scenario 2, once the Air Jig influence significantly in the increment of costs. A Government subsidy tested would not make the CDW Recycling Scenarios economically attractive. Only Scenario 1 can achieve positive results, however without the acquisition costs of Land, Equipment and Vehicles. Counterparts with the City Hall, in exchange for the supply of these inputs, would not influence the positive results. The use of new technologies maybe will be possible after the recycled aggregate market is consolidated in Brazil.
Waste Management, 2013
Part I of this study deals with the primary energy consumption and CO2eq emissions of a 350 tonne/h construction and demolition waste (CDW) recycling facility, taking into account incorporated, operation and transportation impacts. It concludes that the gener-ated impacts are mostly concentrated in operation and transportation, and that the im-pacts prevented through material recycling can be up to one order of magnitude greater than those generated. However, the conditions considered for the plant's operation and related transportation system may, and very likely will, vary in the near future, which will affect its environ-mental performance. This performance is particularly affected by the plant’s installed capacity, transportation fuel and input CDW mass. In spite of the variations in overall primary energy and CO2eq balances, the prevented impacts are always higher than the generated impacts, at least by a factor of three and maybe even as high as 16 times in particular conditions. The analysis indicates environmental performance for variations in single parameters, except for the plant’s capacity, which was considered to vary si-multaneously with all the others. Extreme best and worst scenarios were also generated to fit the results into extreme limits.
Waste Management, 2013
This work is a part of a wider study involving the economic and environmental implica-tions of managing construction and demolition waste (CDW), focused on the operation of a large scale CDW recycling plant. This plant, to be operated in the Lisbon Metro-politan Area (including the Setúbal peninsula), is analysed for a 60 year period, using primary energy consumption and CO2eq emission impact factors as environmental im-pact performance indicators. Simplified estimation methods are used to calculate industrial equipment incorporated, and the operation and transport related impacts. Material recycling - sorted materials sent to other industries, to act as input - is taken into account by discounting the impacts related to industrial processes no longer needed. This first part focuses on calculating the selected impact factors for a base case scenario (with a 350 tonnes/h installed capacity), while a sensitivity analysis is provided in part two. Overall, a 60 year global primary energy consumption of 71.4 thousand toe (tonne of oil equivalent) and a total CO2eq emission of 135.4 thousand tonnes are expected. Under this operating regime, around 563 thousand toe and 1465 thousand tonnes CO2eq could be prevented by replacing raw materials in several construction materials indus-tries (e.g.: ferrous and non-ferrous metals, plastics, paper and cardboard).
Financial viability for the implementation of construction and demolition waste processing plants
DELOS: DESARROLLO LOCAL SOSTENIBLE
The recycling promoted by the processing of construction and demolition waste (CDW) and its production of recycled aggregate (RA), despite being a technologically known process and generating environmental benefits, still faces technical and economic barriers, which need to be elucidated and overcome, being a research gap. The research aim was to analyze the feasibility for the implementation of CDW processing plants. In the first stage, focused on technical barriers, from a wide bibliographic and documentary review, the parameters porosity, water absorption, density and resistance were identified as those that are most altered with the insertion of the RA in concrete production, determining that the previous classification and granulometric homogeneity of the RA influences the technical feasibility of its applications. Therefore, in the second stage, a case study was carried out to analyze the effects and magnitudes of costs intrinsic to the processing and viability of a plant, usi...
Waste and Biomass Valorization, 2011
Construction and demolition waste (C&DW) constitutes a priority waste stream in the European waste strategy due to its large volume and its high recycling and reuse potential. Directive 2008/98/EC on waste, stresses the need of quantify the waste stream and to improve the material recovery efficiency of C&DW in the European Union. Designing a suitable network of facilities involves an adequate knowledge of the inputs to material recovery facilities. In this work, a two-step methodology for the quantification and waste management analysis of C&DW has been developed and applied to the case study in Cantabria, a northern Spanish region. In the first step, the quantification of C&DW was calculated by means of an equation which combines municipal licenses and ratios of waste per unit area of construction, demolition and renovation. The selected ratios for the study case in Cantabria belong to four northern Spanish regions, and they were developed by two associations of architects, one technological institute and by the regional legislation recently developed in the region. In the second step, the waste management assessment for C&DW was carry out throw the development of a multicriteria-based methodology for decision-making in order to select the most suitable management alternative. The application of the methodology to the case study in Cantabria has been performed using four multicriteria analysis methods: Evamix (EV), Weighted Summation (WS), Electre II (E2) and Regime (REG). Analyses of the sensitivity of the results have been also carried out in order to investigate the robustness of the solutions obtained in the decision making process.
Operational Research, 2018
The growing concern regarding global sustainability is increasingly evident in the construction sector due to the impact of waste production. The aim of this work, which follows the one of Correia (2013), is to develop a new optimization approach in order to plan a network for recycling Construction and Demolition Waste (CDW). The approach is based on the methodology of Processes and Systems Engineering (PSE), allowing better problem systematization, visualization of the CDW flows between processes and better planning of the needs of the network. The developed model, of the mixed integer linear programming (MILP) type, is a tool to support CDW management in the assessment of the recycling network from two points of view: from a regulatory perspective that aims to minimize the total costs of the network and from the perspective of transforming entities, which aim to maximize profit in the recycling processes. It is also possible to design diverse scenarios and perform sensitivity analyses of model parameters that make the assessment more clear regarding location, types and capacity of new processes to be installed. The model was validated for a 10 parish sample and then explored for the 211 parishes that comprise the Metropolitan Area of Lisbon (MAL). However, due to its generic formulation, the model can be applied at regional or national level. The main results indicate a preference for direct deposition in landfills and the fact that high quality recycling processes are not economically viable for the MAL.
Solid waste generation model validation and economic loss estimation due lack of recycling
Anais da Academia Brasileira de Ciências
Urban Solid Waste Management (USWM) is one of the components that infl uences in the sustainable cities. It is a fundamental factor in achieving the Sustainable Development Goals (SDGs), 2030 agenda. This paper work aims to validate a mathematical model for solid waste generation and to estimate the economic loss due lack of recycling in the city of Campo Grande, State of Mato Grosso do Sul/Brazil. The model adopted was developed by Dias et. al. (2012), which allows projecting the mass of waste to be generated by the inhabitants from socioeconomic indicators, such as per capita income, social classes and size of population in a specifi c urban territory. Besides, waste composition was analyzed to determinate the value and share of the gravimetric characterization, in order to estimate the economic loss in areas, which there are no selective collection of Household Solid Waste (HSW). The model showed strong adherence, when compared to the real mass of HSW collected. The economic loss due to selective collection approaches nearly 9.6 million US$, or about 11 US$ per person per year. The study can provide support for economic evaluation of project sand public policies related to USWM executed in any other city with similar characteristics.
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The construction and demolition sectors are among the world’s most critical activities, generating large amounts of waste. Thus, these sectors’ waste accumulation problem is related to the environmental protection system and proper waste management. On the other hand, it is well known that proper waste disposal can increase its value. In this way, the economic potential of the trash can be raised again. Therefore, this article will examine the economic potential of construction and demolition (C & D) waste. Different waste management processes will be analyzed to better understand the topic from a financial perspective in this area underway in Spain. Therefore, data from other regions of Spain were collected. This data led to results where the most expensive rooms were Pais Vasco and the Balearic Islands, where disposal of C & D waste had the highest prices, exceeding EUR 30 per ton. Conversely, the lowest prices are found in regions such as Navarre and Andalusia, where prices per t...
Economic instrument is indubitably perceived as effective for encouraging or forcing contractors to conduct environmentally friendly construction practices. Previous studies in relation to this topic mainly put emphasis on economic analysis of construction and demolition (C&D) waste management from a static point of view, which failed to consider its dynamics nature by integrating all essential activities throughout the waste chain. This paper is thus intended to highlight the dynamics and interrelationships of C&D waste management practices and analyze the cost–benefit of this process using a system dynamics approach. Data related to concrete and aggregate of a construction project in Shenzhen was collected for the application of the proposed model. The findings reveal that net benefits from conducting C&D waste management will occur, but a higher landfill charge will lead to a higher net benefit, as well as an earlier realization of the net benefit. In addition, the general public under a higher landfill charge will suffer from a higher environmental cost caused by illegal dumping. The simulation results also suggest that current regulation in Shenzhen should be promoted to facilitate a dramatic increase in net benefit from the implementation of C&D waste management. This research is of value in facilitating better understanding on the dynamics of C&D waste management activities throughout the waste chain, as well as providing a tool for simulating the cost–benefit of C&D waste management practices over the project duration.