Illegal Cost Manipulation in RDF Power Generation - October 1998

Illegal Cost Manipulation in RDF Power Generation - October 1998

RDF (Refuse Derived Fuel) power generation was introduced in waste processing facilities in Saitama and Tokyo, converting waste into solid fuel for energy production. However, illegal cost manipulation was discovered, particularly in waste processing companies in Saitama. Specifically, these companies charged double the usual cost for the RDF conversion process and falsely claimed subsidies from local governments and the national government. This manipulation led to the illegal acquisition of subsidies amounting to hundreds of millions of yen annually, prompting a large-scale investigation.

RDF power generation was noted for its role in recycling waste and creating clean energy. However, behind the scenes, cost manipulation undermined the expected effects of environmental policies. Companies such as Tokyu Ecology and Hitachi Zosen, major players in waste processing, were heavily implicated in the illegal activities surrounding RDF power generation projects.

What is particularly unusual is that these fraudulent actions took place under the guise of waste processing and clean energy initiatives, damaging the trust in environmental policies. Additionally, RDF facilities processed approximately 500 tons of waste per hour, supplying part of the energy needs for Tokyo and Saitama, making the impact widespread.