Circular Economy for Sustainable Management of Plastic Waste to Produce Liquid Fuel and the Environmental Impact of the Whole Life Cycle (Case Study in Banjarnegara, Central Java, Indonesia)

Abstract

A circular economy approach that optimises materials and resources needs to be promoted to rural communities, especially in watersheds to the coast. Community-based plastic waste cleanup activities in rural areas can help reduce the vulnerability of plastic waste entering rivers to the sea. This study uses break-even point analysis to determine the break-even value in the Production of Fuel Oil from Plastic Waste at the Banjarnegara Waste Bank (BSB), also in terms of the environmental impact of the whole life cycle of a product produced by the business using a Life Cycle Assessment (LCA). BSB is an industry in Banjarnegara Regency, Indonesia, which specializes in the pyrolysis of fuel oil derived from plastic waste. BSB has never calculated the economic value of producing Fuel Oil from Plastic Waste. BSB relies exclusively on production based on social activities driven by environmental management, so the profits cannot be calculated. BSB management's income fluctuates because the break-even point for producing fuel oil from plastic waste is still being determined. The findings indicated that the annual cost for refining Fuel Oil from Plastic Waste in BSB amounted to Rp. 248,265,025 rupiah. Although the most significant contribution of environmental impact is terrestrial Acidification, followed by ocean eutrophication, stratospheric ozone depletion, water consumption, and ionising radiation, BSB's generation 5 pyrolysis innovation can suppress the adverse effects of the pyrolysis process, which involves high heat and pressure, the presence of waste, and water use.