๐Ÿ’ฐ Economic Feasibility and ROI Analysis of a 10 TPD Plastic to Fuel Plant

 

Economic Feasibility and ROI Analysis of a 10 TPD Plastic to Fuel Plant

๐Ÿ’ฐ Economic Feasibility and ROI Analysis of a 10 TPD Plastic to Fuel Plant


๐Ÿ”ง 1. Capital Expenditure (CAPEX)

Component

Estimated Cost (USD)

Pyrolysis Reactor (10 TPD)

$180,000

Condensation & Oil Recovery System

$50,000

Feedstock Handling & Shredding Unit

$35,000

Catalyst and Additives System

$15,000

Gas Scrubbing & Emission Control

$25,000

Instrumentation and PLC Control

$20,000

Utility Systems (Heater, Chillers)

$30,000

Civil Works & Installation

$45,000

Safety, Fire Protection & Permits

$20,000

Total CAPEX

$420,000


โš™๏ธ 2. Operating Expenditure (OPEX) per Month

Item

Monthly Cost (USD)

Labor (6 staff + 1 supervisor)

$5,500

Plastic Feedstock (free/donated)

$0

Catalyst & Chemicals

$1,500

Power & Fuel (10,000 kWh/month)

$2,000

Maintenance & Repairs

$1,200

Waste Disposal & Cleaning

$500

Insurance & Admin

$1,000

Total OPEX / month

$11,700


๐Ÿ›ข๏ธ 3. Production Output (Daily)

  • Plastic Input: 10,000 kg/day
  • Oil Yield: ~65% โ†’ 6,500 liters/day
  • Gas (used internally): ~20%
  • Char (solid): ~10% โ†’ used as solid fuel

Monthly Oil Production:
6,500 L/day ร— 26 days = 169,000 liters

Selling Price: $0.60โ€“0.75 per liter (average: $0.65)
Monthly Revenue:
169,000 L ร— $0.65 = $109,850


๐Ÿ“Š 4. Gross Profit & ROI

Metric

Value (USD)

Monthly Revenue

$109,850

Monthly OPEX

$11,700

Gross Profit

$98,150

Payback Period (CAPEX รท Profit)

~4.3 months

Annual Profit (est.)

> $1.1 million


๐Ÿ“ˆ 5. ROI Sensitivity (Oil Price)

Oil Price (USD/L)

Monthly Revenue

Payback Period

$0.50

$84,500

~6 months

$0.65 (avg)

$109,850

~4.3 months

$0.80

$135,200

~3.1 months


๐ŸŒ 6. Comparative Cost per Output Unit

Country

Oil Yield

Average Market Rate (USD/L)

Operating Cost

Profit Margin

India

60%

$0.55

Low

Moderate

USA

68%

$0.70

Medium

High

Indonesia

62%

$0.65

Low

High

Kenya

55%

$0.45

Very Low

Moderate


๐Ÿ“Œ 7. Financial Considerations

  • Subsidies & Carbon Credits: Depending on country policies, up to $50โ€“$100/ton may be credited under carbon offset markets.
  • Byproduct Utilization: Char can be monetized or used internally as a supplementary fuel.
  • Tax & Import Relief: Machinery often eligible for import tax waiver under environmental/renewable project incentives.

๐Ÿ”’ 8. Risk Factors & Mitigation

Risk

Mitigation Strategy

Fluctuation in oil prices

Diversify output (e.g., wax, char)

Feedstock contamination

Pre-sorting & washing system

Catalyst degradation

Regular analysis, replacement cycle

Regulatory changes

Ensure permits, follow environmental codes


โœ… Conclusion

With proper design, sourcing, and market linkage, a 10 TPD Plastic-to-Fuel Plant offers a highly profitable model with a short ROI period (<6 months) and strong sustainability value. This technology represents not only a waste management solution but also an economically viable renewable fuel enterprise.

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