ABSTRACT

The study was focused on the evaluation of the cost benefit analysis of a pilot pyrolysis plant for the conversion of waste plastic into useful diesel oil. Because the start-up capital for a 2 kg waste plastic capacity for a one-hour was large, with a comparatively low yield of hydrocarbon, it is important to economically test the viability ofthe plant. The methodology of cost benefit analysis was applied with emphasis on the systems payback period and the yearly internal rate of return (IRR). These indices were done using Excel. Earlier experimental results had indicated that for a 1000-hour annual operation. 1000 liters of diesel is expected at 2000 kg of waste plastic, with a corresponding revenue benefit of USD 1, 120. For the system’s total life cycle, up to 10,000 litres of diesel can be produced resulting to about USD 11,200. From the cost benefit analysis, it was observed that the system has a payback period ofjust two years compared to its 10-year life span and beneficial from economic viewpoint and is estimated to generate a net income of up to 700 USD for each thousand-hour operation. Furthermore, the results demonstrates that the pyrolysis plant gave an IRR of 48 % when the cost of plastic was neglected. An IRR of 48 % indicates that plant is expected to generate a rate ofreturn of 48 %. When the cost of plastic is accounted for, the system's IRR is reduced to 33 % annually and is still feasible from an economic view point. Therefore, the pyrolysis is economically feasible for scaled up operation.