High Quality Fuel Production System from Plastics, Industrial Oil and Refinery Residues.

Project Information

Kurata Systems

Grant agreement ID: 684677

DOI

10.3030/684677

Project closed

EC signature date 8 June 2015

Start date 1 July 2015

End date 31 October 2015

Funded under

• SOCIETAL CHALLENGES - Secure, clean and efficient energy

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

LEGORIZA S.R.L.
Spain

Periodic Reporting for period 1 - Kurata Systems (High Quality Fuel Production System from Plastics, Industrial Oil and Refinery Residues.)

Reporting period: 2015-07-01 to 2015-10-31

Summary of the context and overall objectives of the project

The innovative Kurata Systems Process represents an alternative production method of high added value fuels from residues such as plastics, used industrial oil and refinery residue. We do something extraordinary which is to take the world problematic waste and we turn it into something of value: we provide a technology for transformation.
THE NEED UNDERLYING THE OPPORTUNITY: The growing demand for less expensive, alternative fuel products makes it an ideal end-of-life option for wastes. The Business opportunity is attractive and the benefits presented by the Kurata technology are two-fold: transforming non-recycled waste into a valuable commodity, and creating a reliable source of alternative fuel from an abundant, low-cost feedstock.
• Alternative Fuel Source Opportunity: Based on the latest EUROSTAT information, crude oil production in EU reached 1.05 billion barrels in 2014, which corresponded to 4.0% of world oil production. The gross inland consumption of oil in EU that year was 4.78 billion barrels. Hence in 2014, 78% of the oil consumption in EU was met by imports, mostly from the OPEC (40.3%), followed by Russia (24.8%) and Norway (22.0%). This dependency will increase steadily in the future.
European oil production is predicted to decline at an annual rate of 2.1% on average during the period to 2030, while oil consumption will continue to increase, although slowly, at a rate of 0.2%. Overall, the dependency of the EU on oil imports will gradually rise to 87% in 2030. The Kurata Systems Process represents a source of locally generated fuel reducing the external dependence of oil consumption.
• Waste Management Opportunity: In Europe, we currently use 16 tons of consumables per person per year, of which 6 tons become waste. Although the management of waste continues to improve in the EU, the European economy currently still loses a significant amount of potential “secondary raw materials”. Waste is not only an environmental problem, but also an economic loss. Turning waste into a resource is one key to a circular economy. Kurata Systems works to solve the problem of waste accumulation and landfilling, reducing the need for incineration, actively helping the improvement of environment and reducing the global emissions. Our technology offers an alternative that is environmentally friendly while producing local high quality fuels.
THE SOLUTION PROPOSED TO EMBRACE THIS OPPORTUNITY: The Kurata Process is a disruptive new method to transform different waste materials into a high added value product as diesel. The implementation of Kurata technology has been carried out in our 1st pre-industrial scale Cardiles Oil pilot-plant. The pilot-plant allowed us to test the viability of the Kurata Process at a small scale. We obtained Diesel and other fuels in the range of medium crude oil distillates that meet the legislation specifications.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

This Feasibility Study has allowed Legoriza S.L. to detect new strategies and conclusions for Kurata Systems project to reach the market:

From the Life Cycle Cost Analysis of the Technical Feasibility Study we can obtain the clear conclusion that the processing line of plastics is the most profitable and the investment is recovered in less time than the used industrial oil and refinery residues lines regardless of the price of the Brent barrel.

In the Technical Feasibility Study different actions have been detected to develop the overall Kurata process, significant profits can be squeezed out by implementing different measures and actions obtained from the RAMS analysis. Also, this activity has allowed us to define the technical objectives to achieve the optimal gasification unit for each raw material, the requirements to each step in the gasification unit manufacture and the resources we will need to implement them. Finally, we have identified the technical risk associated with the project and their proposed mitigation measures.

We also have performed a Commercial Plan, thanks to the Raw Material Study and their geographic study we have identified potential suppliers of different raw materials to guarantee the feedstock inputs of the Kurata Process. Also, a thoroughly analysis of the market fuel was helpful to define our final end users, both in Spain, Panama and Europe. We have signed different agreements for the supply of raw materials and selling final product.

The different financial ratios obtained in the Financial Feasibility Study shows the great potential of the project in the future. Also, the company will be profitable and solvent once the plant is operational and would get profits and generates sufficient cash from operating activities.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Legoriza S.L. is aimed to contribute, through its own actions, to the fulfillment of the strategic objectives of Kurata and create an image in the market as a company that wants to be leader in waste recovery, also becoming a local leader in fuel manufacturing and whose know-how is valued by others, never forgetting providing our stakeholders with an increased value.

The 2nd Melo Plant projected by Legoriza is presented as a strong support of present and future to assist in the improvement of the energy problem that EU has today, with a clear environmental focus.

Used industrial oil, plastics and refinery residues are derived from hydrocarbons, they have a high energy content that can be reconverted into new fuel. The possibility to employ different raw materials into the process gives great versatility and potential to the project. While reuse and recycling are the preferred methods of waste recovery, it is not always economically feasible, or even possible, illustrating the opportunity for other economical means of recovering. Kurata Systems fuels involves an extra added value for the final product.

Once the process is standardized we will make a market replication developing the process in new plants across Spain and Europe. The spread out of this technology will be a revolutionary alternative way in the production of fuels and waste management. Its high processing performance and product quality give a great economic efficiency, which is complemented by its strong environmental background.

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