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Waste-to-Energy Potential for Lampung's Bakung Landfill
WINDONESIA July 26, 2024
The Bakung Landfill in Lampung Province. (Antara/Ruth Intan Sozometa Kanafi).
The Finance Ministry's Directorate-General of Treasury (DJPb) of Lampung Province Regional Office Head Mohammad Dody Fachrudin stated that waste management at the Bakung Landfill through the Bakung waste-to-energy program could become a regional investment opportunity for Lampung.
"Based on the regional fiscal review (KFR) compiled with data from the Lampung Investment Forum (FOILA), the Bakung waste-to-energy program can be a regional investment opportunity in Lampung," Dody said on July 25, 2024.
He informed that with an area of 14.1 hectares (ha) where 90 percent of the location is filled with waste, and the solid urban waste produced reaching 800 to 1,000 tons per day, the portion of that land with clear and clean status can be developed for the construction of waste processing technology into refused derived fuel (RDF) products.
"The business scheme that can be developed from this waste management includes RDF products sold through special project vehicles or implementing business entities, and these RDF products can be sold by the responsible party through the Environmental Agency," Dody explained.
He added that one of the potential buyers of these RDF products is the Tarahan coal-fired power plant, which is located 18 kilometers away from the Bakung Landfill.
"There are several advantages to the Bakung waste-to-energy investment opportunity, such as incentives in business licensing, government guarantees for public-private partnerships between local governments and businesses in providing infrastructure or services for public interest, as well as support for project financing feasibility," he said.
Other advantages for land that already has clear and clean status include regulatory support promoting the use of renewable energy, the feasibility of selling RDF products above productive prices, and assured waste supply.
"In terms of financial feasibility, the estimated investment value for the Bakung waste-to-energy project is Rp577.5 billion with a payback period of only 8.3 years. The potential investment profit estimated through an internal rate of return is 22.73 percent with a weighted average cost of capital at 10.48 percent," Dody stated.
He concluded that the potential of the Bakung waste-to-energy project the investment opportunity for turning waste to energy in Lampung Province can be further developed and realized.
Source: lampung.antaranews.com