Application — §4 Sustainability

Application §4·Sustainability & scale-up

Built to outlast the grant.

The grant funds the demonstration and de-risking layer. The operating economics stand on contracted commercial revenues — and everything the project learns becomes a package that private capital can finance elsewhere.

4.1Five kinds of staying power

Financial. The facility runs on contracted feedstock in and contracted offtake out, at agreed pricing. The grant finances the demonstration layer — capital, supply-chain formalisation, certification, studies — while operating economics stand on commercial revenues. Feedstock purchases and working capital come from SPV equity and operating revenues, not from the grant. When the grant ends, the plant simply continues as a commercial operation within the SPV.

Environmental. UKL-UPL permitting with monitoring conditions, hazardous-fraction exclusion at intake, and a net GHG benefit quantified by LCA — pyrolysis oil displacing virgin fossil feedstock, with open-dumping avoidance reported separately to avoid double counting. Estimated climate benefit: ~9,000–10,500 tCO2e avoided over project life, ~1.4 tCO2e/t — to be fixed by inception LCA.

Institutional. The formalised MSME supply contracts survive the project; provincial and national authorities receive an evidenced policy input; and the operating procedures and permits remain with the SPV.

Scale-up. The business cases package the demonstrated model — technology configuration, unit economics, permitting playbook, supply-chain template — for 2–3 further Indonesian locations, presented to banks, DFIs and private investors, with SWITCH-Asia network dissemination carrying replication beyond Indonesia.

Access to finance. On the demand side, the SPV's financial reporting and audit trail are built to bankable standards from inception. On the supply side, structured engagement with local banks and DFIs from month 10 uses the demonstration plant's operating data as evidence that chemical-recycling infrastructure is financeable.

Input needed — EE, by 24 Aug Indicative unit economics from Thailand operating data and contracted prices: revenue per tonne of oil, feedstock cost per tonne, opex, margin. The financial-sustainability argument above needs these numbers to land. 
flowchart LR
    DEMO["Demonstration plant<br/>operating data — volumes, yields,<br/>unit economics, permit compliance"]
    BC["Replication business cases<br/>2–3 Indonesian cities"]
    BANK["Banks & DFIs<br/>engaged from month 10"]
    FOLLOW["Follower plants<br/>privately financed"]
    DEMO --> BC --> BANK --> FOLLOW
Figure 6From demonstrated evidence to privately financed replication — the plant exists to generate the data that unlocks the next ones.