In any pyrolysis project, profitability is the core measure of success. The essence of profitability can be defined by a simple formula: Profit = Total Revenue − Total Cost. For the question “Is Pyrolysis Profitable”, the answer lies in maximizing revenue while effectively controlling costs. In the following, we will analyze various aspects of pyrolysis project profitability. By examining ways to maximize returns, we will show how a well-executed pyrolysis project can lead to sustainable profitability.
Pyrolysis Profitability Analysis: Raw Materials Perspective
The global pressure on solid waste management is increasing, particularly with the accumulation of plastics, oil sludge, tires, and biomass. Profitable pyrolysis project offers an effective solution. In this process, polymeric organic materials in these wastes undergo chemical bond cleavage at high temperatures, generating gas and liquid products. At the same time, the process also produces valuable solid carbon residues. Pyrolysis system has become a key method for solving waste management challenges. It offers a sustainable approach to waste reduction and resource recovery. Below is an profit analysis of the pyrolysis of different types of waste:
Waste Plastic
- Types: Plastic products made of PE, PP, PS, etc.
- Products: Pyrolysis oil, industrial residues, syngas
- Commercial Value: Plastic pyrolysis is essentially a plastic to oil process. It usually obtains oil products with higher market value through catalytic pyrolysis. These oil products can be used to replace fuels or chemical production, and the market demand is large.
Oil Sludge
- Types: Oil-based drill cuttings, tank bottom oil sludge, oil sludge contaminated soil, etc.
- Products: Pyrolysis oil, industrial residues, syngas
- Commercial Value: Oil sludge is a hazardous waste of the petroleum industry. Hazardous waste treatment usually involves high third-party treatment fees. Pyrolysis can not only reduce waste treatment costs, but also obtain pyrolysis oil with certain commercial returns.
Scrap Tire
- Types: Passenger tires, commercial tires, OTR tires, etc.
- Products: Pyrolysis oil, carbon black, steel wire, syngas
- Commercial Value: The commercial value of tires lies not only in the oil, but also in the original carbon black produced. Recovered carbon black (rCB) after fine processing is widely used in the tire manufacturing industry, with high demand and considerable economic returns.
Waste Biomass
- Types: Wood, sawdust, coconut shell, rice husk, etc.
- Products: Biochar, combustible gas, wood vinegar, tar
- Commercial Value: Biochar is increasingly valuable as a sustainable material in the environmental protection field. In addition, the by-products produced by biomass pyrolysis plant also have a certain market demand in the fields of agriculture and energy production.
Profitability Drivers of Pyrolysis Projects
Massive Solid Waste Accumulation
Market Growth for Sustainable Resource
Differentiation of Regional Recycling
Policy Support for Waste Management
Massive Solid Waste Accumulation
Various solid wastes, such as plastics, oil sludge, tires, and biomass, come from various industrial production activities. This can provide a continuous supply of raw materials for pyrolysis projects. Take waste plastics as an example. According to data from the United Nations Environment Program, about 400 million tons of waste plastics are produced worldwide each year. The waste is not only huge in quantity, but also is purchased cheaply for the operating cost of pyrolysis plant. This lays the foundation for the profitability of pyrolysis.
Market Growth for Sustainable Resource
The global demand for sustainable resources continues to grow, especially the demand for alternative energy and carbon reduction resources. Pyrolysis technology can not only provide alternative fuels (such as pyrolysis oil & syngas). In addition, biochar, as a hot resource for Carbon Dioxide Removal Market, meets the growing global demand for carbon sequestration. This has gradually released the commercial potential of pyrolysis technology, thereby obtaining long-term market returns in multiple fields.
Differentiation of Regional Recycling
There are differences in waste treatment needs in different regions. Pyrolysis projects can be customized according to these differences to maximize the profitability of the project. For example, some regions have a developed agricultural planting industry. Pyrolysis projects can adjust recycling plans and production lines according to the local agricultural waste composition. Therefore, customizable pyrolysis solutions significantly improve the recycling rate and market adaptability of waste resources.
Policy Support for Waste Management
Many countries and regions are strengthening policy support for waste management. For example, the EU’s Circular Economy Action Plan includes biochar as a key component for achieving a circular economy and offers economic support. Other countries also encourage waste resource utilization through policy incentives. Given these trends, is pyrolysis profitable has a certain answer. As an environmentally friendly waste treatment technology, pyrolysis gains more policy preferences and investment support in the market.
How to Get Profit from Pyrolysis Project?
Pyrolysis Product Sales
Pyrolysis products are the main source of income for the project. These products are widely used in multiple industries. They can not only replace traditional energy and materials, but also meet the growing demand for environmental protection. In particular, pyrolysis products are widely used in alternative fuels, carbon sequestration and resource recovery. Due to its diverse applications, pyrolysis products bring stable market returns and continuous income streams to the project.
Waste Treatment Services
Pyrolysis technology can not only transform waste into valuable products. It can also provide services to other companies or governments that need waste treatment. Pyrolysis provides an efficient solution for difficult-to-treat waste such as pyrolysis of oil sludge, waste plastics and waste tires. By providing waste treatment services to companies, etc., investors can charge service fees. Thus, this brings additional cash flow to investors to broaden their income channels.
Carbon Credit Trading
As a tool for carbon sequestration, the market demand for biochar is growing. Biochar production can participate in carbon credit trading. Thus, it earns income with carbon emission reduction. According to market data, the global biochar revenue in the carbon credit trading market has reached about US$600 million in 2023, and the annual trading volume is expected to grow to US$3 billion by 2030. This revenue method achieves a pyrolysis profitable and sustainable win-win situation.
Ways to Maximize Revenue from Pyrolysis Projects
Optimize Equipment Efficiency
Large Processing Capacity
Is a pyrolysis plant profitable? Using pyrolysis equipment with large processing capacity can improve production efficiency and increase overall output. In this way, pyrolysis projects can quickly expand production scale, thereby achieving revenue growth.
Continuous Pyrolysis
Continuous pyrolysis plant can achieve simultaneous feeding and discharging. This production method can increase the output of a single device per unit time, reduce operating and maintenance costs and increase revenue.
Expand Product Market
End Product Reprocessing
Existing pyrolysis products can be further processed to increase added value. For example, pyrolysis oil is converted into non-standard diesel by distillation. These deep-processed products usually have higher market value.
Explore New Application Areas
Pyrolysis can obtain additional sources of income by opening up new markets. For example, biochar can now be used in animal husbandry and building materials. Carbon black refined into rCB can be used as a new material for industrial manufacturing.
Is Pyrolysis Profitable: ROI Insights Across Key Waste Type
Is pyrolysis profitable? Analyzing the ROI for pyrolysis projects reveals the economic potential, including waste plastic, oil sludge, waste tires, and biomass. Each waste type presents distinct revenue opportunities and cost-saving advantages. This makes pyrolysis a viable option for sustainable profitability.
Waste Plastic
| BLJ-16 Plastic Pyrolysis Project in South America | ||||||||
|---|---|---|---|---|---|---|---|---|
| Introduction | According to the market data of South America, the estimated ROI report, the various expenses are as follows: | |||||||
| Item | Details | Unit | Unit price/USD | Quantity | Amount/USD | Total amount | Remark | |
| Fixed Investment Cost | Equipment | BLJ-16 | Set | 169650.00 | 1.00 | 169650.00 | Supporting high-end exhaust dust removal and 304 stainless steel main furnace material | |
| Transportation | From China to Santa Marta port | Set | 23362.00 | 1.00 | 23362.00 | Frame Delivery should through Hamburg, then deliver to Czech. |
||
| Customs tax | 16% | Set | 27144.00 | 1.00 | 27144.00 | |||
| Installation | Beston technician's salary | Day | 150.00 | 50.00 | 7500.00 | |||
| Round -trip airtickets | Ea | 5200.00 | 2.00 | 10400.00 | ||||
| Visa | Ea | 3000.00 | 1.00 | 3000.00 | ||||
| Local labor | Day | 20.00 | 6.00 | 120.00 | 4 labors are needed | |||
| Materials | Installation materials ready | Set | 5200.00 | 1.00 | 5200.00 | Foundation, pipe, etc. | ||
| License | Environmental, firefighting, etc. | Set | 2000.00 | 1.00 | 2000.00 | |||
| Workshop | 1000 | ㎡ | 1000.00 | 0.00 | 8 years | |||
| US$248,376.00 | ||||||||
| Operating Cost | Raw materials | plastic | Ton | 20.00 | 8.00 | 160.00 | ||
| Water | / | m³ | 0.013 | 2.00 | 0.026 | |||
| Electricity | / | KWH | 0.22 | 562.00 | 123.64 | 18 hours per day | ||
| Fuel | Pyrolysis oil | kg | 150.00 | 0.00 | ||||
| Labor | / | People | 6.00 | 20.00 | 120.00 | |||
| Maintenance | / | Day | 20.00 | 1.00 | 20.00 | |||
| Depreciation | 8 years | Day | 80.00 | 1.00 | 80.00 | |||
| Tax | 19% | Day | 497.04 | 1.00 | 497.04 | |||
| US$1,000.71 | ||||||||
| End Products Price | Pyrolysis oil | 70% | Ton | 480 | 5.45 | 2616.00 | ||
| Subsity | / | Ton | / | / | / | |||
| US$2,616.00 | ||||||||
| Daily Income | US$1,615.29 | |||||||
| Monthly Income | Working day | Day | 25 | US$40,382.25 | ||||
| Yearly Income | Working day | Day | 300 | US$484,587.00 | ||||
Waste Tyre
| Return on Investment of BLJ-16 Tyre Pyrolysis Project in Europe | |||||||
|---|---|---|---|---|---|---|---|
| Introduction | According to the market data of Europe, the estimated ROI report, the various expenses are as follows: | ||||||
| Fixed Investment Cost | Item | Details | Unit | Unit Price/USD | Quantity | Amount/USD | Remark |
| Equipment | BLJ-16 | Set | 89000 | 1 | 89000 | ||
| Transportation | Seafreight | Set | 64600 | 1 | 64600 | ||
| From Port to Site | Set | 5800 | 1 | 5800 | |||
| Customs Tax | 0.15 | Set | 13350 | 1 | 13350 | ||
| Installation | Beston technician's salary | Day | 350 | 50 | 17500 | ||
| Round-trip aritickets | Ea | 3820 | 2 | 1640 | |||
| Visa | Ea | 750 | 1 | 750 | |||
| Local welder | Day | 120 | 100 | 12000 | 2 welders are needed | ||
| Local plumber | Day | 120 | 20 | 2400 | |||
| Local labor | Day | 108 | 50 | 5400 | |||
| Crane forklift | Day | 160 | 30 | 4800 | |||
| Materials | Installation materials ready | Set | 5200 | 1 | 5200 | Foundation, pipe, etc. | |
| Licenses | / | Ea | 2000 | 1 | 2000 | Environmental, firefighting, etc. | |
| Workshop | 500 | ㎡ | 380 | 500 | 190000 | ||
| Total Amount | $452440.00 | ||||||
| Operating Cost | Raw Materials | Waste tyre | Ton | 0 | 12 | 0 | |
| Water | / | m³ | 0.39 | 3 | 1.17 | ||
| Electricity | / | KWH | 0.2 | 864 | 172.8 | ||
| Fuel | Natural gas | Liter | 0.77 | 240 | 184.8 | ||
| Labor | / | People | 72 | 4 | 288 | ||
| Maintenance | / | Day | 85 | 1 | 85 | ||
| Depreciation | 8 years | Day | 175.18 | 1 | 175.18 | ||
| Tax | 5% | 0 | |||||
| Total Amount | $906.95 | ||||||
| End Products Price | Tyre oil | 45% | Ton | 5.4 | 433 | 2338.2 | 45% of input |
| Steel Wire | 15% | Ton | 1.8 | 216 | 388.8 | 15% of input | |
| Carbon black | 3% | Ton | 3.6 | 162 | 583.2 | 30% of input | |
| Subsidy | Ton | 100 | 12 | 1200 | |||
| Total Amount | $4510.2 | ||||||
| Daily Income | $3603.25 | ||||||
| Monthly Income | Working day | Day | 25 | $90081.17 | |||
| Yearly Income | Working day | Day | 300 | $1080974 | |||
Biomass
| Return on Investment of BST-50 Wood Chips Carbonization Project in The Middle East Regin | ||||||||
|---|---|---|---|---|---|---|---|---|
| Item | Details | Unit | Unit price/USD | Quantity | Amount/USD | Total amount | Remark | |
| Fixed Investment Cost | Equipment | BST-50 | Set | 250000 | 1 | 250000 | ||
| Transportation | From China to Destination Port | Set | 90000 | 1 | 90000 | |||
| From Port to Site | Set | 5800 | 1 | 5800 | ||||
| Customs tax | 0.15 | Set | 37500 | 1 | 37500 | |||
| Installation | Beston technician's salary | Day | 100 | 50 | 5000 | |||
| Round -trip airtickets | Ea | 2420 | 2 | 4840 | ||||
| Visa | Ea | 350 | 1 | 350 | ||||
| Local welder | Day | 65 | 100 | 6500 | Two welders are needed | |||
| Local plumber | Day | 65 | 20 | 1300 | ||||
| Local labor | Day | 16.8 | 50 | 840 | ||||
| Crane forklift etc. | Day | 80 | 30 | 2400 | ||||
| Materials | Installation materials ready | Set | 3500 | 1 | 3500 | Foundation, pipe, etc. | ||
| License | / | Ea | 2000 | 1 | 2000 | Environmental, firefighting, etc. | ||
| Workshop | 500 | ㎡ | 160 | 500 | 80000 | |||
| 490030 | ||||||||
| Operating Cost | Raw materials | Wood chips | Ton | 100 | 120 | 12000 | ||
| Water | / | m³ | 1.76 | 3 | 5.28 | |||
| Electricity | / | KWH | 0.11 | 2922 | 321.42 | |||
| Fuel | Natural gas | Liter | 7.25 | 270 | 1957.5 | |||
| Labor | / | People | 16.8 | 4 | 67.2 | |||
| Maintenance | / | Day | 85 | 1 | 85 | |||
| Depreciation | 8 years | Day | 209.3 | 1 | 209.3 | |||
| Tax | 0.05 | 0 | ||||||
| 14645.7 | ||||||||
| End Products Price | Biochar | 0.3 | Ton | 680 | 36 | 24480 | 30% of input | |
| Wood vinegar | 0.08 | Ton | 1280 | 9.6 | 12288 | 8% of input | ||
| Tar oil | 0.02 | Ton | 450 | 2.4 | 1080 | 2% of input | ||
| 37848 | ||||||||
| Daily Income | 23202.3 | |||||||
| Monthly Income | Working day | Day | 25 | 580057.5 | ||||
| Yearly Income | Working day | Day | 300 | 6960690 | ||||
Achieving Pyrolysis Profitability with Beston Group
Is Pyrolysis Profitable? The answer depends on maximizing returns through strategic resource use and efficient production. With a well-executed approach, pyrolysis projects can deliver both sustainable profitability and environmental impact. For those seeking tailored, high-return solutions, Beston Group offers the solutions to make the most of each pyrolysis opportunity. Don’t hesitate to contact us!