5 Steps to a Successful RDF Business
1. Read the Fineprint
More and more newcomers to SE Asian waste management plan to sell Refuse Derived Fuel, RDF to cement companies. That's a very good trend. However, many seem to overlook the fine print and believe the sometimes overly simplistic view of equipment vendors. But earning money with RDF means much more than shredding and screening any material you have.
2. Meet Required Quality Standards
Buyers like cement companies require your RDF to meet 10 quality standards or more. Missing their required or acceptable limits means you will have to pay hefty penalties. Your delivery might even be rejected entirely.
3. Your Design Engineering makes or breaks Your Project
Limits apply to the content of moisture, ash, volatile matter, fixed carbon, sulfur, chloride, gross/net calorific value, particle size and minimum total weight per bale or delivery. That's why your upstream work in waste analysis and processing line design decides whether your RDF makes or burns your money.
4. Understand Your Commercial Risks
Each of your RDF deliveries undergoes a series of laboratory tests. Testing and payment are strictly 'ARB', meaning on an 'as-received-basis'. You are paid according to lab results, weeks after supply.
5. Do this
1. Start your RDF business with thorough waste analysis using US or EU standard test methods
2. Identify and eliminate sources of hazardous waste materials e.g.electronics, chemicals etc.
3. Design your line to meet your contracted RDF quality criteria and set output targets
4. Let different suppliers compete against warranted output targets
5. Don't accept commissions from equipment suppliers
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