Policy impact on economic and environmental sustainability of anaerobic digestion: Industrial case study Insights.

Abstract

This paper thoroughly examines how policy incentives impact the economic and environmental sustainability of anaerobic digestion (AD) systems. It uses techno-economic and life cycle analyses, along with real industry data, to explore the entire AD process-from feedstock acceptance to digestate disposal. It evaluates the effects of various U.S. policy crediting programs on the economic viability of different AD pathways for treating sewage sludge and food waste. Tipping fees are identified as the primary driver of profitability, while policy credits play a crucial role in enhancing economic feasibility, particularly for renewable natural gas production. However, future regulatory changes could reshape this economic landscape. All AD pathways are found to significantly reduce greenhouse gas emissions, though economic outcomes are highly sensitive to digestate disposal costs and feedstock tipping fees. Co-digestion with food waste is proposed as a strategy to reduce dependence on policy credits and improve long-term economic stability.