That actually makes a lot of sense. Burn the paper at a plant, boil water, make steam, turn a turbine, make electricity. Now you have electricity from a product that would have ended up in a land fill.
The problem is that there is not a lot of available land fill space CLOSE enough to where the population lives. There is plenty of potential landfill space in Wyoming, Montana, etc. However, there is not much space left on Staten Island.
They make wood pellets that people like me burn in their pellet stoves in the winter from compressed sawdust. Why not make fake fire logs of something like that from recycled paper or cardboard.
With the increase of online commerce, the largest volume in the trash stream is actually cardboard. It is about twice as much in cubic yards/volume as anything else. The other components being mixed paper, glass, plastics, aluminum cans , scrape metals, construction debris and lastly general mixed trash.