ECONOMIC ASSESSMENT OF REFUSE-DERIVED FUEL (RDF) PRODUCTION AS WASTE MANAGEMENT STRATEGY AND ALTERNATIVE FUEL IN CEMENT KILNS

Abstract

Background: The growing issues about waste management and climate change compel the exploration and implementation of sustainable energy solutions derived from waste. In this context, Refuse-Derived Fuel (RDF), a processed solid fuel generated from municipal solid waste (MSW), presents itself as a promising strategy. By offering an alternative to conventional fossil fuels, RDF can mitigate the environmental impact of MSW and potentially reduce greenhouse gas emissions. RDF can provide cleaner energy for a more sustainable future. Objective: This study aims to evaluate the RDF site's economic condition, revenue generation, costs, and the net benefit from RDF production in RDF Plant-based landfills in Indonesia. Method: In addition, cost–benefit analysis (CBA) was carried out to study the economic factors. Result: According to cost-benefit analysis, benefits are higher than production costs. The net benefit gained in this study is IDR 33.035.853.659, with each ton of RDF offering IDR 1.242.977 in benefits. The study revealed that revenue per ton RDF is about IDR 414.000, with a production cost RDF of 342.388 per ton. Conclusion: The study concludes that utilizing all generated waste into RDF presents a financially beneficial strategy for municipalities and consumers (cement kilns). Findings indicate the potential for RDF implementation to yield cost savings and land savings.