Modelling the financial viability of centralised and decentralised black soldier fly larvae waste processing units in Surabaya, Indonesia

Autor: M.G.P. Grau, B.M.A. Dortmans, J. Egger, G. Virard, C. Zurbrügg
Rok vydání: 2023
Předmět:
Zdroj: Journal of Insects as Food and Feed, 9 (3)
ISSN: 2352-4588
DOI: 10.3920/jiff2022.0012
Popis: Black soldier fly larvae (BSFL) waste processing has proven to be a promising approach, which can be applied in centralised or decentralised settings. Financial considerations however still remain undisclosed given business secrecy. Building on the experiences of a facility and operational setup in Indonesia, this study conducted an indepth cost analysis using methods such as time motion studies, activity based costing and a mass flow balance to evaluate business models. Thereafter followed an analysis of different scenarios on how to integrate the approach into the solid waste management system of Surabaya, Indonesia assuming different degrees of decentralisation with market rates and prices from 2020. Results show that a centralised plant, managing all steps of the BSFL process ( Scenario 1), achieves the highest net present value (NPV), mainly through the economy of scale. When BSFL waste treatment is conducted using a decentralised approach, close to the waste sources, and the nursery and postprocessing of larvae remains at a central location (Scenario 3), other benefits besides the still positive NPV can be shown. Such a scenario for instance would reduce the spatial footprint of the central facility, create jobs within the communities and reduce the transport costs and total costs for the municipality. Another scenario (Scenario 2) hypothesises a decentralised waste treatment as well as post-processing of larvae at the same decentralised location increasing storability and the value of products. Although this achieves higher NPV values compared to Scenario 3, it requires larger scale units to achieve financial viability. Coordination and facilitation by local government can further strengthen a network of decentralised BSFL treatment plants, as the city authorities could focus on operating a centralised nursery (Scenario 2), supplying young larvae at low cost or free of charge to increase the financial viability of the decentralised plants treating the waste.
Journal of Insects as Food and Feed, 9 (3)
ISSN:2352-4588
Databáze: OpenAIRE