Overview

SCFs is providing technical assistance to a plastic waste management project in Bali, Indonesia. Applying a patented thermo-mechanical process in conjunction with shredding and granulating, the project aims to convert plastic waste into a lightweight composite aggregate primarily for use in the concrete industry.

Indonesia’s archipelago consists of over 18,000 islands with a total coastline of over 80,000km. As one province of Indonesia, Bali is part of the Coral Triangle with significant biodiversity of marine species. Every year, there are 6.2 million tons of mismanaged plastic waste which causes several impacts on human and ecosystem health affecting more than 360 million people across the entire Coral Triangle. In Bali, three of the most major landfills are on fire and authorities are fighting to control this major issue with tons of toxic smoke entering the environment and necessitating relocation of local population. The goal of the project is to tackle Bali’s major issues on insufficient waste management, mismanaged waste, overflowing, and uncontrolled landfills, by developing a scalable ‘Plastic Neutral’ solution to maximise the plastic value chain and create sustainable, localised circular economies.

The project’s business model relies on the production of a new aggregate product, developed through thermo-mechanical processing, shredding, and granulating of waste stream plastic and other waste material, that provides technical enhancements, alternatives, and differentiators for a wide range of concrete applications in partial replacement of stone aggregate. The infrastructure required to produce the aggregate product will likely include 3-line main plants, 2 modular plants, one material recovery facility (MRF) plant. The project developer is assessing the potential locations for the project.

The Challenge

Bali is currently Indonesia’s most popular tourist islands with a land area of 5,780km². Tourism has been the key industry for Bali the last few decades contributing pre-covid GDP of 61%, representing over 6 million tourists per year, which generated significant revenue for Indonesia.

Post-Covid tourism has risen slowly but is impacted by environmental issues; from ocean and beaches strewn with plastic waste, as well as plastic and other waste in the land, river, and ocean environment, and continuing issues with overflowing landfills and more recently landfills on fire.

Bali’s population, both resident and tourist generate over 1.6M tons of waste per year of which of 300,000 tons is plastic waste. Bali’s 10 landfills, growing each year, desperately need a solution to reduce the incoming flows of waste as well as waste already in the landfills.

Bali’s tropical monsoon climate has two seasons with monsoon rain falling between October to April. Rain flows to the 400 waterways and rivers running 3,500km carrying over 33,000 tons of plastic waste into the ocean.

Moreover, the growing construction and infrastructure generates the need for stone aggregate. In Bali, it is typically limestone. Current waste picking is particularly focused on PET bottles and HDPE bottles, other plastics are considered low value, unwanted, or difficult to recycle.

By converting plastic waste to a new material for the building and construction industry. The project is expected to:

• Reduce waste in the environment: reducing carbon emissions from burning and plastic decomposing in the environment. The 3 lines are expected to produce 52,500 Tons of composite aggregate offsetting over 130,000 Tons of CO2e
• Improve sustainability in construction through use of recycled materials: Typical plant size with 1 line producing up to 17,500 Tons of aggregate/Year
• Reduce mining for new stone aggregate: Reduction of 80,000 Tonnes required from mining/quarrying activities equivalent bulk density 1 line, 3 lines 240,000 Tonnes

SCF’s Involvement- Technical Assistance

To further support and inform the development of this project, the SCF’s Technical Assistance Facility is commissioning a prefeasibility study with the following scope:

A technology study to review the existing technologies and methods for recycling low-value plastics including global case studies.

Also, the SCF’s Technical Assistance Facility is commissioning a feasibility study, including the following assessment:

1. Indonesia National baseline for plastic flows focusing on low-value plastics.
2. Analysis of challenges and limitations in recycling low-value plastic waste.
3. Review of the existing technologies and methods for recycling low-value plastics.
4. Evaluation of site locations, local environment, and weather analysis
5. Analysis of SPV creation, permits, permit planning, and regulatory requirements for the project according to the national and local laws, regulations, and policies.
6. Further study on project capital requirements and financial models: plastic waste feedstocks and any costs/revenue associated with plastic waste, dumping fees, cost of infrastructure that highly related to the project.
7.  Analysis of technology, design and engineering, and planning that impact the project from technical side.
8. More evaluation of social conditions, environment and weather at a local level.
9. Forwards on project team organisation and stakeholder, ESHIA requirements analysis, marketing strategy, and risks analysis and mitigation.