A Life Cycle Costing of a Composting Facility for Agricultural Waste of Plant and Animal Origin in Southeastern Spain

Abstract

This study is an economic evaluation of a composting facility in southeastern Spain (applying Life Cycle Costing), a key region in European horticulture with a significant availability of agricultural biomass. Composting helps reduce dependence on inorganic fertilizers, aligning with European policies that promote the transition toward organic fertilization practices. In addition, compost enhances soil health, increases soil organic carbon, and supports climate change mitigation. Despite its agronomic and environmental benefits, and the large availability of biomass in this region, there is a notable lack of literature addressing the economic costs of composting, which is the first step in assessing the sustainability of a production process. The proposed facility (production: 9000 tonnes of compost per year) utilizes pruning residues and manure to produce high-quality organic amendments. The analysis includes infrastructure, equipment, and every operational input. Likewise, the analysis also provides socio-economic indicators such as employment generation and contribution to the regional economy. Three scenarios were evaluated based on the pruning–shredding location: at the plant, at the farm with mobile equipment, and at the farm with conventional machinery. The most cost-effective option was shredding at the farm using mobile equipment, reducing the unit cost to EUR 65.19 per tonne due to the transport of a smaller volume of prunings and, therefore, lower fuel consumption. The plant also demonstrates high productivity per square metre and generates stable employment in rural areas. Overall, the findings highlight composting as a viable and competitive strategy within circular and low-carbon agricultural systems.