The following summarises the economic and financial feasibility study of a Hydrogen Recovery Plant Energy (URE) of 120 tons/day of Urban Solid Waste (MSW). The study focuses on producing hydrogen/ammonia and energy with sales of 1.50 US$/Kg and 355.00 R$/MWh, respectively. The GATE FEE is approximately 90.00 R$/ton, and the citizen tariff for the disposal of Urban Solid Waste (RSU) is 7.45 R$/month/residence. The plant also generates around 90.00 R$/ton of CO2 equivalent carbon credit. The CAPEX (turnkey) for the project is approximately R$ 64.71 million, with a payback of roughly 7.00 years. The annual IRR for the project is around 26.83%. These figures demonstrate the project's strong financial potential, providing a solid foundation for investment.

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In contrast to the global trend of eliminating sanitary landfills and prioritising the construction of UREs to take advantage of the energy resources present in MSW, Brazil has witnessed a need for more attention given to the production of biogas from landfills by landfill owners and public entities. This inattention is a manoeuvre to perpetuate landfills, a source of significant financial gain for their investors, without due compensation for society and the environment. The implementation of UREs would better ensure the latter.  In a global sense, the joint implementation of URE and Water Electrolysis Units in Brazil can move the national industry by R$ 69.65 billion.  A study has shown that it is possible to install 688 units for the recovery of energy (UREs) to process 82,600 tons of municipal solid waste (MSW) generated daily in the country. These UREs will be modified to produce ammonia and will require an investment of R$ 44.51 billion. The installation of these UREs will create 16,952 jobs and add 1.33 GW to the energy distribution network. The investment will also make it possible to establish hydrogen plants at R$ 25.14 billion. These plants will be capable of producing 20.46 tons/year of H2, generating revenue of approximately US$ 61.40 million/year. This will be accomplished by installing electrolysis plants close to the URE, providing tax revenue of around R$ 5.84 billion/year, with R$ 611.46 million/year going to the municipalities where the plants are located.

 

This will also create over 15,000 new direct jobs, promoting the country's economic and social development. Moreover, this investment will not only eliminate the foreign exchange loss associated with importing nitrogen fertilisers, which is presently valued at around US$ 27.04 million/year, but also transform Brazil into a fertiliser exporter rather than an importer, contributing to a more sustainable economy. It's widely acknowledged that the biggest challenge in attracting investors to implement URE/WTE is the requirement. of SBLC (Standby Letter of Credit), which can be up to 20% of the capital expenditure. Additionally, investors must provide a guarantee during the repayment of financial resources granted by investment funds. We have created a financial economic analysis system for URE/WTE projects. With the help of this system, we have developed a financial structure that allows investment FUNDS to participate in the venture without requiring SBLC and the real guarantee of assets. This makes it feasible to execute such projects at a financial rate of 3.0%, with a grace period of 2 years and 12 years of amortisation.

 

DBEST PLAN, a Brazilian Engineering and Information Technology company, aims to provide cost-effective financial solutions for projects that produce clean energy and environmentally friendly products. Currently, they are focusing on the production of Green Hydrogen. To justify the investment of R$69.63 billion, the company has prepared a comprehensive financial and economic study. The positive impact of this investment on the national industry and the country's economic and social development is evident.

 

To evaluate the Urban Solid Waste Energy Recovery project, we begin by determining the IRR (Modified Internal Rate of Return - MTIR) and the Cost of Equity Capital (CAPM - Assaf Neto), based on the entrepreneur's desired rate of return (Minimum Attractive Rate - MAR), financing rate, and the amount of municipal solid waste and sewage sludge with their respective average calorific values (PCI). However, we must also consider the restrictions, such as the availability of cash from municipalities and sanitation companies for funding, existing contracts with landfill owners, and the market price for energy sales.

 

We want to clarify that the claims made by municipal managers regarding the unavailability of resources for the proper disposal of Municipal Solid Waste (MSW) are unfounded. Based on the Economic and Financial Feasibility Study of 120 tons of URE per day of MSW for Hydrogen production, we believe that there is an opportunity for the implementation of Energy Recovery Units (URE) for MSW, allowing for the capture and storage of hydrogen produced in gasification. This implementation will enable public ministries to defend citizens' constitutional rights to health and a clean environment. We would appreciate a meeting to provide more details about this project.

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Source: The developer responsible for the Study of the Feasibility of Urae based on Green Hydrogen is the Engineer Mr Sebastiao Martins, Director of DBEST PLAN Engineering and Information Technology. All his projects on Green Hydrogen can be made available for a preview explanation on Zoom Meetings. Schedule yours to know more." Extracted from one of the DBest Plan projects available for further discussions.

 

Source: DPLAN Engineering and Information Technology, Eng. Sebastiao Martins

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To reach the engineer, you can call us on our landline number, +44 208 432 9801, and we will connect you with him, or you may choose to contact him directly on his mobile number through WhatsApp: +55 (31) 99645 0801.

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