Photo - Sahara Recycling
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Sahara Recycling

Converting Landfill Plastic into Sustainable Feed-Stock

Pakistan
Market: Petroleum refining, Production, Chemistry, Other
Stage of the project: Idea or something is already done

Date of last change: 12.10.2023
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Idea

Our company is making an intervention between collection & open land-filling of solid waste in Pakistan to recover 1.5 million tons of plastic waste and convert it to sustainable feed-stock through our proprietary technology to limit fossil fuel consumption & curb environmental impact. We are also working to develop H2 from organic waste and CCSU technologies that will enhance the profitability and reduce over 200 million tons CO2 emissions by 2040.

Current Status

We have run a pilot from 2017-2020 producing 90 tons of feed-stock and had to terminate our operations due to Covid. During our pilot run we used the alternative fuel for our non-ferrous metal recycling furnaces and also supplied similar industry. We have refined our design for commercial production from piloting to industrial scale. We have secured waste supply-chain from Lahore Waste Management Company responsible for collecting 5500 solid waste per day. We did not have local market off-take until 2023.

Market

Our client one the largest up & down stream petroleum businesses in Pakistan, the feed-stock can be used by other four refineries processing transport fuels. In 2023 local off-take interest has a demand of 100 tons/day for sustainable feed-stock. The local market does not have a a fulling integrated petrochemical facility, off-taker gives us the opportunity to serve local and international client and build market beyond our reach.

The international market is at a starting point and make it the right time for us to be a part of $50 billion market by 2030. The feed-stock market will grow to to 30-40 million tons demand from petrochemical industry globally.

Problem or Opportunity

Our client is a local refinery with partner in European petrochemical industry, Pakistan landfills 3.3 million tons, 30% is recovered through scavenging and 70% is land-filled. Our company is making an intervention by setting up material recovery facilities (MRF) to recover plastic waste and convert it into sustainable feed-stock. The client and its partner have a need for our product to achieve sustainability it will use the product in production processes to manufacture new plastics.

The project infrastructure it is very important by setting up a material recovery facility we can can recover 500 tons/day plastic supply-chain enough for large production scale-up catering to local market.

Solution (product or service)

Our company will produce sustainable feed-stock (carbon range C5-C35) that is fit to run in petroleum & petrochemical processes, helping the industry and end-users reach sustainability goals that can be used in producing new plastics curbing fossil fuel consumption, reducing land-filling and environmental impact.

Competitors

Sahara Recycling is the first company to run a pilot chemical recycling plant, the local plastic recycling industry uses mechanical processing technique. The landfill plastic waste is not fit for mechanical processing having zero market making it very cost effective input waste material.

The market in local and global market is just building up and there no local suppliers of sustainable feed-stock. This is the right time to build and deploy the project and technology to come at par with global markets by 2030.

Advantages or differentiators

1- we are the only company to have chemical recycling technology and currently have not competition or replicated technology substitute in Pakistan.

2- The product can also be upgraded to Euro 5 for transport purposes in case off-take is not readily available.

3- Government operated waste management companies need to address waste issue in Pakistan and are offering low priced input material making the project cost effective.

These advantages in local recycling market gives us a space to become market leaders. The current industry does not have any other alternative to process low quality plastic waste. We have run pilot and have designed a proprietary technology that will continue to in development of an integrated process to produce plastic from plastic waste bridging the market supply demand gap. The market size is $2-3 billion annually for imports of plastic resin from different petrochemical companies.

Finance

The first phase is based on 2-3 revenue streams:
1- Sustainable Feed-Stock - $860/ton
5 Year Sales: $13,157,600, $14,473,560, $15,920,616, $17,512,978, $19,263,876

2- Recyclables - $115/ton
5 Year Sales: $2,448,600, $2,693,660, $2,963,326, $3,259,959, $3,586,255

3- Waste Plastic rPellets - $1200
5 Year Sales: $3,684,400, $4,052,440, $4,457,684, $4,903,752, $5,394,627


Business model

Our business model is B2B, our supply-chains will scale-up to 12-15 municipalities for recovery of plastic waste giving us key advantage over recycling industry in Pakistan due to advance technology development.

The product sales can be made to all 5 refineries in Pakistan as we are positioned at the start of upstream operations. The project is also positioned to build first integrated petrochemical complex in the country with market size of $5 billion.

The additional waste streams such as organic is being explored for H2 production to initiate clean energy transition. This development will also integrate Carbon Capture Storage & Utilization opening additional synthetic fuel streams such as sustainable aviation fuels.

Money will be spent on

The money will be spent on sorting lines, recycling technology & production facility

Offer for investor

Small Scale Commitment: $500,000-1,000,000 - 10% Equity
Industrial Scale Commitment: $5,000,000-10,000,000 - 25% Equity

Team or Management

Risks

Current economic crisis, currency devaluation and global commodity market prices have made business very difficult due to an import based economy in Pakistan. This project is a perfect fit with cheap materials with potential to be converted into high value input products.

Invention/Patent

Chemical recycling technology application is submitted and pending patent at the moment

Photos

Photo 1 - Converting Landfill Plastic into Sustainable Feed-Stock
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