💰 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

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🔧 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

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⚙️ 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

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🛢️ 3. Production Output (Daily)

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

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

Selling Price: $0.60–0.75 per liter (average: $0.65)
Monthly Revenue:
169,000 L × $0.65 = $109,850

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📊 4. Gross Profit & ROI

Metric	Value (USD)
Monthly Revenue	$109,850
Monthly OPEX	$11,700
Gross Profit	$98,150
Payback Period (CAPEX ÷ Profit)	~4.3 months
Annual Profit (est.)	> $1.1 million

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📈 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

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🌍 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

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📌 7. Financial Considerations

• Subsidies & Carbon Credits: Depending on country policies, up to $50–$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.

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🔒 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

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✅ 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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🏭 Case Studies from Operational Plastic to Fuel Plants

 

1. India – Small-Scale Modular Pyrolysis Plant (5 TPD)

Location: Gujarat, India
Operator: GreenEnvy Tech Pvt. Ltd.
Feedstock: Mixed post-consumer plastics (LDPE, HDPE, PP)

Key Features:

• Modular skid-mounted design for rural deployment

• Operates at 450–500°C under vacuum

• Uses ceramic wool insulation and indirect heating via thermic oil

Performance:

• Yield: 60–65% fuel oil, 20% gas, 10% char

• Output used for internal diesel generator

• Fully automated with PLC controls and gas recycling loop

Challenges:

• Impurities in mixed waste required pre-washing unit

• Catalyst fouling reduced yield after 4 months (solved by switching to alumino-silicate)

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2. USA – Industrial Scale Plant (25 TPD)

Location: Ohio, USA
Operator: RES Polyflow (now Brightmark Energy)
Feedstock: LDPE films, mixed packaging waste, low-grade post-MRF residue

Key Features:

• Horizontal rotary kiln pyrolysis

• Operates in batch-mode with 8-hour cycles

• Uses synthetic zeolite catalyst

• Designed with integrated emission treatment (scrubber + activated carbon)

Performance:

• Oil Yield: ~68%

• 100% of non-condensable gases reused for heating

• End product certified as off-road diesel (ASTM D975-compliant)

Lessons Learned:

• Proper size reduction critical for uniform heat transfer

• Gas cleaning system needs daily maintenance for optimal VOC removal

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3. Japan – Compact Urban Plant (10 TPD)

Location: Osaka, Japan
Operator: Blest Co. Ltd.
Feedstock: Clean HDPE & PP industrial waste

Key Features:

• Compact design for urban siting

• Fully enclosed system with odor control

• Fast startup time: <2 hours

Outputs:

• Fuel: Paraffinic oil used in small engines

• Offgas: Compressed and bottled for use as backup fuel

• Char: Sold as filler for asphalt products

Innovations:

• Real-time process analytics (IR sensors)

• CO₂-neutral cycle by integrating solar-powered heating

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4. Kenya – Community-Based Plant (2 TPD)

Location: Kisumu, Kenya
Operator: EcoFuel Africa
Feedstock: Agricultural plastic waste and bags

Key Features:

• Locally fabricated fixed-bed reactor

• Manual loading and gravity discharge

• Operated by women cooperatives as income generation

Products:

• Oil used for powering irrigation pumps

• Gas flared due to lack of storage system

• Ash used in brick making

Social Impact:

• Created 25+ jobs

• Reduced open burning of plastic

• Enabled clean water access through pump deployment

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5. China – Co-Processing in Cement Kilns

Location: Shandong, China
Operator: SINOMA Cement Plant
Feedstock: Shredded mixed plastics (<50 mm)

Key Features:

• No separate pyrolysis unit: plastics co-processed in cement kiln at >900°C

• Energy recovered directly in clinker production

• No fuel oil produced, but fossil fuel savings achieved

Benefits:

• Replaces up to 10% coal input

• No additional emissions (confirmed via stack testing)

• Integrated into waste management plan of city

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📊 Comparative Summary Table

Case	Capacity	Feedstock	Yield (Oil)	Energy Use	Tech Highlights
India	5 TPD	Mixed plastics	60–65%	Thermic oil	Modular, off-grid ready
USA	25 TPD	MRF residue	~68%	Gas reuse	ASTM-grade diesel
Japan	10 TPD	Clean HDPE/PP	70%	Low	Urban setup, odor control
Kenya	2 TPD	Agri waste	55%	Biomass	Community-led design
China	20–50 TPD	Shredded mix	N/A	Kiln-integrated	Co-processing, no residue

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📝 Key Takeaways

• Feedstock quality significantly influences oil yield and process stability.

• Catalyst selection and pre-treatment are critical to long-term performance.

• Automation and safety systems are vital, even at small scales.

• Plants that integrate energy recycling and environmental controls achieve the best sustainability profiles.

• Social impact and economic viability are major drivers in developing countries.

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🔧 Detailed Design Calculations: Plastic to Fuel Pyrolysis Plant (10 TPD)

 

1. Input Data and Assumptions

Parameter	Value	Unit
Plant capacity	10,000	kg/day
Operation time	20	hours/day
Bulk density of plastic flakes	0.25	kg/L
Plastic to oil yield (avg.)	70	%
Heating value of feedstock	35	MJ/kg
Specific heat of plastic	2.0	kJ/kg·K
Target pyrolysis temp.	450	°C
Ambient temp.	30	°C

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2. Material Balance

Daily Feedstock:

• 10,000 kg plastic/day

Estimated Product Yields:

• Oil: 70% → 7,000 kg/day

• Gas: 20% → 2,000 kg/day

• Char: 10% → 1,000 kg/day

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3. Energy Requirement for Pyrolysis

Heating Load (Q):

$$Q = m \cdot c \cdot \Delta T$$

• $m = 10,000$ kg/day

• $c = 2.0$ kJ/kg·K

• $\Delta T = 450 - 30 = 420$ °C

$$Q = 10,000 \cdot 2.0 \cdot 420 = 8,400,000 \text{ kJ/day}$$

Convert to kWh:

$$8,400,000 \div 3600 = 2,333 \text{ kWh/day}$$

Add heat losses (assume 25%):

$$Q_{\text{total}} = 2,333 \cdot 1.25 = 2,916 \text{ kWh/day}$$

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4. Reactor Sizing

Assume 4 hours residence time and 250 kg/h feeding rate

$$\text{Volume} = \frac{\text{Mass}}{\text{Density}} = \frac{1,000}{250} = 4.0 \text{ m}^3$$

Assuming horizontal cylindrical reactor:

$$\text{Volume} = \pi \cdot \frac{D^2}{4} \cdot L$$

Assume L = 4 m:

$$4 = \pi \cdot \frac{D^2}{4} \cdot 4 \Rightarrow D = 1.13 \text{ m}$$

=> Reactor Size: 4 m length x 1.13 m diameter

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5. Condenser Sizing

Condense 7,000 kg/day of vapor to liquid

• Vapor flow rate: 350 kg/h

• Latent heat of condensation: 300 kJ/kg

• Cooling water ΔT: 10°C

$$Q = m \cdot L = 350 \cdot 300 = 105,000 \text{ kJ/h}$$

Cooling water flow rate:

$$Q = m \cdot c \cdot \Delta T \Rightarrow m = \frac{105,000}{4.18 \cdot 10} = 2,510 \text{ kg/h} \approx 2.5 \text{ m}^3/h$$

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6. Gas Scrubber and Flare Sizing

Combustible Gas: 2,000 kg/day (~100 kg/h)

Assume methane equivalent:

$$\text{Energy value} = 50 MJ/kg \Rightarrow 5,000 MJ/day = 1,389 kWh/day$$

Flare size estimation:

Assume 10 kg/h continuous flaring

Use flame diameter ≈ 0.3–0.5 m with vertical pipe height ≈ 3 m

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7. Fuel Oil Storage

Yield = 7,000 kg/day, assume density = 0.85 kg/L

$$\text{Volume} = \frac{7000}{0.85} = 8,235 \text{ L/day}$$

For 3 days buffer:
Storage Tank = 25,000 L (use 30,000 L for contingency)

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8. Char and Ash Handling

Char output = 1,000 kg/day
Assume stored in 1-ton jumbo bags or silos

Silo size (1.2 bulk density):

$$\text{Volume} = \frac{1,000}{1.2} = 0.83 \text{ m}^3/day$$

Use 3–5 m³ silo for buffer capacity.

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9. Electrical Power Consumption (Estimation)

Equipment	Power (kW)	Duration (hr)	Energy (kWh)
Reactor Heater	100	20	2,000
Condenser Pumps	5	20	100
Feed System	2	20	40
Scrubber/Fan	3	20	60
Automation + Lighting	5	24	120
Total Daily			2,320 kWh

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✅ Summary Table

Item	Design Value
Reactor Volume	4 m³
Reactor Dimensions	Ø1.13 m × 4 m
Energy Required	2,916 kWh/day
Condenser Water Flow	2.5 m³/h
Daily Oil Output	7,000 kg
Storage Tank Size	30 m³
Total Electric Consumption	~2,320 kWh/day

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