Starting Up a Plant for Waste Rubber and Plastic Conversion to Fuel

Opportunity Snapshot

  • Country: South Africa South Africa
  • Industry: Waste Management
  • Stage: Start-up
  • Investment size: $5,000,000 / min. $4,000,000
  • Type of investment: Debt, Equity

Investment Opportunity

The rising concern and environmental problem related to waste rubber and plastic created the unique opportunity to setup a recycling business.

In South Africa and the rest of the world the recycling of used tires has become an increasing necessity. Waste tire can be seen on dumping sites, in rivers-in fact everywhere. The South African government has identify this as a major concern-an environmental concern.

The recycling business will capitalize on the opportunity in the recycling of waste tires by erecting the resalable output products will be: steel wires (scrap metal), tire derived fuel(TDF), tire derived oil(TDO) and carbon black. The setup`s initial capacity will be the recycling of 25 tons of waste rubber and plastic per working day. The products will be sold to scrap metal traders, fuel traders and the ink and paint industry. All of these products are in difficulties are foreseen in the marketing of these products

Big fuel traders are prepared to by TDF (tire derived fuel) produced by the plant. The calculations are based on a price of $0.21 per liter. The steel/scrap metal produced out of the recycling process can be sold to any scrap metal dealer. Steel is always in demand. The price of scrap metal is estimated at $90.25 per ton. Black carbon is used by ink and paint manufacturers as well as rubber industry. It is possible that carbon black can be pressed into charcoal briquettes and used as burning fuel. The agencies will be granted close to the source of waste tires, scrap metal dealer are situated all over south Africa. The transport industry will buy the distilled fuel produced.

From 30 tons of tires you get+-13500 liters of TDO (tire derived oil)-distilled to +-11500 liters of TDF (tire derived fuel),12 tons of carbon black and 3 tons of steel.

Investors can receive more information about this investment project if they contact us on Merar. Business plan is available on Merar as well.

Use of financing

Start-up finance, Payback in 5 years.

Looking for similar investment opportunities