Australian company, Integrated Green Energy Solutions (IGES), has announced a joint venture agreement with the Chinese Crown World Holdings (CWH) to expand its plastic-to-fuel production operations in China.
The agreement targets construction of a waste plastic-to-fuel facility in Weifang in Shandon Province of China. The facility will have an initial production capacity of 200 tonnes per day, producing 70 million litres of road-ready fuels per annum.
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The proposed site has existing infrastructure and sufficient space to expand the facility to over 600 tonnes per day as the joint venture ramps up supply and offtake activities.
The first project will be jointly funded by both parties, with IGES contributing US$12.75 million (AU$16.41 million) and CWH contributing US$12.25 million (AU$15.77 million).
Crown World Holdings is a wholly owned subsidiary of Beautiful China Holdings (BCH), committed to becoming the leading eco-environmental protection operation and service provider in China.
In 2017, the Chinese government notified the World Trade Organisation it intended to ban the import of all scrap plastics and unsorted paper by the end of 2017 as part of a broad clean-up effort against “foreign garbage.”
As of January 2018, China enforced this policy. The move has hit Europe’s recycling industry hard, as 87 per cent of Europe’s waste ended up in China.
As China has committed to cleaning up the plastic problem that has led them to ban foreign plastics, IGES is using the opportunity to help the country convert the waste plastics into road-ready diesel fuel, using its patented pyrolysis technology.
IGES’s patented plastic-to-fuel process enables the company to reduce the environmental impacts of waste plastic, that would otherwise be used in landfills or discarded into the environment.
Earlier in January, IGES had announced the purchase of an Amsterdam-based entity with a fully approved and sanctioned Environmental Approval Permit, enabling IGES to produce road-ready diesel that meets European Standard EN590 and gasoline by December 2018.