The main objective of the SynOil Horizon 2020 SME Phase 1 project is to establish the technical and commercial feasibility for the European and worldwide commercialization of Composite Recycling Ltd’s (CRL) waste plastic recycling process.
Globally only 9% of the waste plastic stream is recycled, leaving up to 80% that is either landfilled, incinerated or accumulates in the environment. In 2011 the EU member states exported nearly half of the plastic waste collected for recycling or 3 million tons to Asia, mostly to China. In the UK just over 500,000 tonnes of household plastic were collected in 2015. Both statistics clearly indicate the scale of the collected non-recyclable waste plastics in the EU, the UK and indeed worldwide. No shortage of mixed, non-recyclable plastics waste is predicted. On the contrary, the global plastic production currently standing at some 400 million tons per year, and in tandem plastic waste, is predicted to double till 2035 as plastic is such a useful material.
The SynOil project investigates the technical and economic feasibility of a commercial scale mixed plastic waste pyrolysis process, which uses molten metal to pyrolyse plastic waste. The aim of the economic analysis is to determine under which conditions a SynOil plant is financially viable. The financial performance of a 40,000 t/y SynOil plant located in Belgium is analysed. The capital expenditure is estimated to be €20.8m or €27.0m if the cost of capital is included. The operating expenditures (OPEX) of the plant are estimated €2.9m per year. An IRR of 20% and an NPV of €1.47m strongly indicate that a 40,000 t/y SynOil plant is financially interesting for private investors achieving all business criteria of success: (1) the SynOil plant is economic with an IRR of over 20% with oil prices at a 15-year low of August 2015, (2) a reliable, ample supply of waste plastic is available and (3) reliable, accessible markets for all products i.e. P-oil, are available. The market and sensitivity analysis showed six main variables determining the economic viability of a SynOil 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 P-oil, (5) the tipping fees and (6) the potential to co-locate the plant with a municipal waste plastic sorting facility.
