A Case Study for Economic Viability of Biogas Production from Municipal Solid Waste in the South of Chile

Abstract

This research evaluated the technical and economic feasibility of a biogas plant in the south of Chile to generate energy (WtE) for the plant’s own consumption, energy for sale to the country’s electricity grid and produce biofertilizer from municipal solid waste (MSW). In the town of Panguipulli, 26 tons of solid waste are produced daily, of which 12 tons correspond to household organic waste. These arrive directly to a landfill, wasting their potential to generate products and energy. To study the economic feasibility, an analysis was carried out on the investment, costs and income that make up the cash flow of the project evaluated at 15 years. The results gave an NPV of 214.099.637 CLP and an IRR of 15% at a real discount rate of 10%, with a payback period of 6 years. The research concluded that it is feasible to design a biogas plant that works from household organic waste in Panguipulli. This will contribute to the mitigation of climate change and will promote circular economy actions and the sustainable management of MSW in the south of Chile.