Elsevier

Waste Management

Volume 95, 15 July 2019, Pages 674-686
Waste Management

Systematic assessment of critical factors for the economic performance of landfill mining in Europe: What drives the economy of landfill mining?

https://doi.org/10.1016/j.wasman.2019.07.007Get rights and content

Highlights

  • 80% (439,276) of the generated landfill mining scenarios show negative results.

  • System-level factors are critical for the economic feasibility of landfill mining.

  • Main costs are related to treatment and disposal of excavated and processed materials.

  • Main revenues account to avoided landfill management costs – an indirect revenue.

  • Site selection is of key importance from a practical perspective.

Abstract

Landfill mining (LFM) is a strategy to mitigate environmental impacts associated with landfills, while simultaneously recovering dormant materials, energy carriers, and land resources. Although several case study assessments on the economy of LFM exist, a broader understanding of the driving factors is still lacking. This study aims at identifying generically important factors for the economy of LFM in Europe and understanding their role in developing economically feasible projects in view of different site, project and system-level conditions. Therefore, a set-based modeling approach is used to establish a large number (531,441) of LFM scenarios, evaluate their economic performance in terms of net present value (NPV), and analyze the relationships between input factors and economic outcome via global sensitivity analysis. The scenario results range from −139 Euro to +127 Euro/Mg of excavated waste, with 80% of the scenarios having negative NPVs. Variations in the costs for waste treatment and disposal and the avoided cost of alternative landfill management (i.e. if the landfill was not mined) have the strongest effect on the scenario NPVs, which illustrates the critical role of system level factors for LFM economy and the potential of policy intervention to incentivize LFM. Consequently, system conditions should guide site selection and project development, which is exemplified in the study for two extreme regional archetypes in terms of income and waste management standard. Future work should further explore the developed model to provide decision support on LFM strategies in consideration of alternative purposes, stakeholders, and objectives.

Introduction

Recent estimates state that Europe hosts several hundred thousands of landfills, of which the majority are old municipal solid waste (MSW) deposits lacking up-to-date sanitary technology (Van Vossen and Prent, 2011, Jones et al., 2018). Although these sites are associated with local to global environmental impacts, land-use restrictions and needs for aftercare and remediation (Johansson et al., 2012, Laner et al., 2012), Europe does not yet have any coherent strategy for their future management (Krook et la., 2018a). In several recent policy initiatives, including European Parliament seminars, policy briefs, and proposals to the amendment of the Landfill Directive, Landfill mining has been suggested as an alternative strategy to address unwanted implications of landfills while simultaneously recovering deposited materials, energy carriers and land resources (Jones et al., 2018). Although such an ambitious approach to landfill management displays a broader societal potential (Damigos et al., 2016, Krook et al., 2012, Jones et al., 2013) visions of a circular economy (European Commission, 2018), it also adds complexity to the implementation and evaluation of such projects (Van Passel et al., 2013, Burlakovs et al., 2017, Johansson et al., 2017). This complexity is further advocated by a general lack of real-life projects validating the feasibility of landfill mining as a mean to facilitate aftercare, reclaim valuable land or landfill void space and bring significant amounts of metals, minerals and energy carriers back to use in society (Krook et al., 2015). In this study, we focus on the essential issue of economic feasibility as the further development of the landfill mining area suffers from a deficit in knowledge about if, and if so, how, such projects could be executed cost-efficiently (Krook et al., 2015, Jones et al., 2018). In essence, our current understanding is restricted to a few case studies assessing the economic feasibility of mining a specific deposit by considering one or a limited number of possible project settings (Frändegård et al., 2013, Zhou et al., 2015, Wagner and Raymond, 2015, Wolfsberger et al., 2016, Winterstetter et al., 2018). Although these assessments provide valuable insights on some current challenges, they fail to address the importance of local landfill settings (Krook et al., 2018b) and only offer limited and case-specific guidance on how different technical set-ups (e.g. Danthurebandara et al., 2015, Kieckhäfer et al., 2017, Winterstetter et al., 2015) and policy and market conditions (Ford et al., 2013, Van Passel et al., 2013, Rosendal, 2015) influence economic performance. In order to facilitate selection of suitable landfills for mining and development of profitable projects, there is thus a need for more generic knowledge that goes beyond individual cases and develops a systemic understanding of the landfill mining economy (Krook et al., 2018b, Laner et al., 2016). This is especially so because the characteristics and importance of different site (e.g. landfill compositions, land values and obligations for aftercare), project (e.g. technologies for sorting, treatment and resource recovery) and system (e.g. policy instruments, regulatory frameworks and market structures) conditions could vary widely between projects and regions (Hogland et al., 2018, Hölzle, 2019).

Apart from a limited applicability of the findings, most previous assessments only provide superficial knowledge of what builds up the economy in the studied projects (Krook et al., 2018b). Typically, the provided results are limited to the net profitability and some main cost and revenue items, while the contributions and interrelations of the underlying conditions and settings that actually build up this performance remain unknown, or at least not reported (Esguerra et al. 2018). In particular, little emphasis has so far been laid upon the interactions of various conditions occurring on the site, project and system levels and how such interaction effects influence the landfill mining economy (cf. Saltelli et al., 2019, Ferretti et al., 2016, Saltelli and Annoni, 2010). Without such fine-grained knowledge, it is difficult to develop a sound understanding about the principles and critical factors of the landfill mining economy.

This study aims to enhance both the applicability and depth of current knowledge regarding what builds up the economic performance of landfill mining in different situations and settings. In doing so, we combine capital budgeting metrics, scenario modeling and global sensitivity analysis to perform a fine-grained assessment of how different site, project and system conditions interplay and jointly contribute to the net present value (NPV) of a large number of landfill mining scenarios. Altogether, these scenarios represent a wide range of possible landfill mining conditions and settings that could be encountered within Europe. In order to illustrate the usefulness of such generic and fine-grained knowledge on the economic principles of landfill mining, we apply it on two specific regional settings as a mean to facilitate selection of suitable landfills for mining and corresponding project set-ups. The spatial and temporal scope of the study involves MSW landfills in Europe with current regional variations in policy and regulatory frameworks, markets conditions and price settings as well as waste management and treatment practices.

In the following section, the selected factors and the methods used to analyze the results are described. In Section 3 results are presented with respect to the NPVs of the whole LFM projects as well as with regard to the present values of selected cost and revenue items. Critical factors are identified and discussed in general, for specific cost and revenue items, and also with respect to two specific regional settings (=archetypes). Finally, in Section 4, major findings on economically favorable and unfavorable conditions for landfill mining are highlighted and recommendations on how to improve the economic feasibility of landfill mining are provided.

Section snippets

Modeling approach

The modeling approach to investigate the importance of different factors for the economy of landfill mining builds on (i) the combination of generic factor datasets to develop a large number of possible landfill mining scenarios, (ii) the economic assessment of each established scenario, and (iii) the analysis of relationships between factor variation and model results using global sensitivity analysis (see Fig. 1). The use of mathematically rigorous procedures to investigate the effect of

Net present value of the whole landfill mining project

The results for the 531,441 landfill mining scenarios show a mean net deficit of −27 Euro/Mg and a large variation of possible outcomes, ranging from −139 to +127 Euro/Mg (Fig. 3). This implies that landfill mining is a challenging business venture with only 19% or 99,821 scenarios resulting in net profits. Most of these profitable scenarios (i.e., 92% or 92,165 scenarios) range within >0 to 50 Euro/Mg, while only few of the scenarios (i.e., 0.1% or 89 scenarios) have profits that are over 100

Conclusions

Through a set-based modeling approach, this study contributes with a systematic understanding of what builds up the economic performance of landfill mining in general and in a wide range of different European situations and settings. In contrast to previous case studies, the present analysis also generates knowledge on how different site, project and system conditions interplay and jointly contribute to the economic performance of landfill mining projects.

In general, landfill mining is a

Acknowledgements

This study has received funding from the European Cooperation for Science and Technology - Mining the European Anthroposphere (COST-Action MINEA, Action No CA15115), the Christian Doppler Laboratory for Anthropogenic Resources, and the European Training Network for Resource Recovery Through Enhanced Landfill Mining (NEW-MINE, Grant Agreement No 721185).

The authors declare no competing financial interests.

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