2. Current State of MSW Treatment in Taiwan
3. Research Methods
3.1. Case Situation
- The cost for collection from the households requires the support of collecting trucks, containers, and collectors. For the time being, the Taiwan EPA has established a food waste recycling system, providing sufficient facilities to recycle food waste. The food waste collected is temporarily stored at the transfer station. Each composting plant can receive sufficient food waste for free but needs to pay the transportation cost from the transfer station to the destination.
- The main costs are classified into two categories: (i) the fixed cost covering the depreciation and the financial interest for the acquisition of the land, building, and machinery for composting; and (ii) the variable cost including operation and maintenance (O and M) costs, supplemental material costs, labor costs, and electricity, and water consumption costs.
- The major capital investment comes from the acquisition of land space and composting facilities. Both land area requirements and capital investment vary with the type of the employed technology and the design capacity. The unit land cost, based on the 2016 average value of agricultural land without buildings in the rural regions, is assumed to be NT$ 4000/m2 for all cases. Therefore, the total land cost is proportional to the required land area. The composting facility is assumed to cover the shredding, mixing, composting, curing processes, and packaging, excluding the truck and other transportation systems. The service life of the composting facility is assumed to be 15 years. A straight-line depreciation over the lifetime of the fixed assets is calculated for the depreciation cost of composting facilities. The amortization cost for land acquisition, the construction of the building and the installation of machinery is based on 3% of interest rate. A simple cost analysis without consideration of discounted cash flow is conducted.
- The monthly wage is assumed to be NT$ 30,000. The current electricity price NT$ 3.6/kwh (about 0.12/kwh) is used to calculate the electricity consumption cost.
- The wholesale price for the compost produced by Cases 1 and 2 is NT$ 4000/tonne and NT$ 3040/tonne, respectively, while Case 3 adopts a direct sale to the end user (farmers) at the price of NT$ 9270/tonne. In contrast, the compost produced by Cases 4–6 are not sold, but presented as a gift to farmers who have engaged in waste recycling. The market value of the compost produced by government affiliated units (Cases 4–6) is assumed to be NT$ 2000/tonne since no market exists for their products.
- The environmental impact including the greenhouse gas (GHG) emissions and waste water disposal resulting from the composting process is neglected.
4. Cost/Benefit Analysis of Food Waste Composting
Conflicts of Interest
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|mixer and size reduction||yes||yes||yes||yes||yes||yes|
|Turning||Automatic||Front-end loader||Front-end loader||Mechanical system||Front-end loader||Front-end loader|
|Designed capacity a||36,000||18,000||1800||3600||2880||540|
|Annual total cost b||68,734,000||27,929,936||4,256,945||6,633,333||3,917,667||1,864,433|
|Unit total cost c||3819||2897||5008||5103||6529||23,117|
|unit market price c||4000||3040||9270||3000||3000||3000|
|unit profit c||181||131||4262||(2103)||(3529)||(20,117)|
|Major Composition (%)||Weight per Bag||Price (NT$)|
|Mineral fertilizer||KCl||60||40 kg||400|
|TFC #1||26||13||13||10 kg||310|
|TFC #4||14||28||14||10 kg||360|
|TFC #6||5||18||18||10 kg||330|
|Organic fertilizer||Natural base||2.5||2.5||1.5||60||25||160|
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