Economic assessment of a 40,000 t/y mixed plastic waste pyrolysis plant using direct heat treatment with molten metal: A case study of a plant located in Belgium
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Accepted Version
Date
2020-11-13
Authors
Riedewald, Frank
Patel, Yunus
Wilson, Edward
Santos, Silvia
Sousa-Gallagher, Maria J.
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier Ltd.
Published Version
Abstract
Pyrolysis has been identified as an ideal process to recycle mixed plastic waste (MPW). This study investigates the economics of a 40,000 t/y MPW pyrolysis process, called PlastPyro, located in Belgium, to an accuracy of +/- 15% i.e. "Definite Estimate". The process uses molten metal in a direct heat treatment process to pyrolyse the waste. An internal rate of return (IRR) of 20% strongly indicates that a 40,000 t/y PlastPyro plant is financially attractive for private investors. The capital expenditure (CAPEX) is estimated to be (sic)20.1 m or (sic)26.1 m if the cost of capital is included. The operating expenditures (OPEX) of the plant are estimated (sic)3.4 m per year. The sensitivity analysis shows six main variables having major impacts on the financial returns of a PlastPyro plant: (1) the addressable volume and quality of plastic waste, (2) the feedstock costs, (3) the capital and operating expenditures, (4) the revenues from the sale of the produced pyrolysis oil (P-oil), (5) the tipping fees and (6) the potential to co-locate a PlastPyro plant with a waste plastic sorting facility. For example, the 15-year low P-oil revenue price of (sic)210/t results in an IRR of 20%; but on the 6th of March 2020 the P-oil price may have achieved (sic)227/t, resulting in an IRR of 37%. The paper also shows that a reliable supply of MPW is available, and that reliable, accessible markets for the P-oil are available. Finally, cost estimates should state their accuracy and usually factorial cost estimates are not accurate enough to state the IRR.
Description
Keywords
Mixed waste plastic , Recycling , Pyrolysis , Economic assessment , Accuracy of cost estimates , CAPEXOPEX
Citation
Riedewald, F., Patel, Y., Wilson, E., Santos, S. and Sousa-Gallagher, M. (2020) 'Economic assessment of a 40,000 t/y mixed plastic waste pyrolysis plant using direct heat treatment with molten metal: A case study of a plant located in Belgium', Waste Management, 120, pp. 698-707. doi: 10.1016/j.wasman.2020.10.039