How does 1,000 kg of waste become 1,000 litres of paraffin oil?
The specific weight of the paraffin oil we produce is 0.89 g/ml. This means that we produce 890 kg of paraffin oil from 1,000 kg of plastic waste, which in turn corresponds to 1,000 litres.
What is paraffin oil and what does ENESPA AG use it for?
Paraffin oils are hydrocarbons, also called alkanes, which only consist of the elements carbon (C) and hydrogen (H). The common molecular formula is CnH2n+2. Different substances are produced depending on the length of the molecules. For short molecules (propane) up to hexadecane for heating oil or lubricant.
Alkanes (paraffins) are important base materials for the chemical industry, which processes them into products such as plastics or fuels.
As a plastics recycler, we supply our paraffin (alkanes) to the plastics industry and thus initiate the circular economy of mixed plastic waste. The refineries produce plastic granulate from our high-quality paraffin oil. This can then be reused for the production of new plastic products, thus completing the circular economy.
The price we set for the sale of paraffin oil depends on the composition (chain length of the molecules) of our paraffin oil. By fine-tuning the system, we can optimise our returns.
How are we different than other companies that have already done the same?
There have been and continue to be several companies that have developed or are developing systems to recycle mixed plastic waste using the thermolysis process. No company has yet been able to produce consistently with this method.
There are different reasons for this:
- The energy balance was not right in the systems designed to date. The newly developed modules from Biofabrik are the first systems where the energy balance is positive and the process is therefore economical
- Large plants were planned and built that could never produce long-term because of constant breakdowns
- Companies are in the development phase
- There were not enough financial resources available to solve identified problems
- Disputes among the partners
We have transferred the risk of system development to Biofabrik Technologies GmbH by buying the equipment. Biofabrik has proven that they have mastered the thermolysis process and have leading engineers and partners for the development of such facilities. The modular concept guarantees continuous operation. The owner of Biofabrik Technologies GmbH is on ENESPA AG’s Executive Board, which ensures that the technology is bound to ENESPA AG.
What are the risks of buying ENESPA shares?
There is no investment without risk. The only question is how great this risk is. Here are a few facts:
- By purchasing ready-to-operate thermolysis equipment from Biofabrik, the risk of equipment development no longer exists.
- The prototype has been successfully tested over a long period of time.
- We will commission the world’s first industrial facility.
- There are contracts with major companies concerning the acceptance of plastic waste and the sale of paraffin oil. Our calculations are based on these prices.
- The Schwarze Pumpe site is the ideal place to implement such a project. A fully developed infrastructure is in place. There are numerous government funding opportunities and the local labour market suits us well. We have applied for our paraffin oil to be certified in order to counteract the political squabbles surrounding the price of oil. This means that our end product is classified as “renewable” and we can command much higher prices.
What are the advantages of the partnership with the equipment manufacturer?
We can eliminate the risks of in-house development as well as save money and time by investing in the production of fully-developed equipment. Combined with contemporary experience in site approval, environmental impact assessment and raw material testing, we can now move directly into plastics recycling operations.
What advantages does ENESPA AG have over its competitors?
Operating a recycling facility for mixed plastic waste based on thermolysis is not entirely straightforward. ENESPA AG is familiar with all the hurdles and technical challenges. We also have in-depth experience with site permits and environmental impact assessments.
We will still be among the first companies to operate such facilities economically. Our advantages are our expertise, the concept of the system and our partnership with a renowned equipment manufacturer. In addition, the demand is huge for the full circular economy of mixed plastic waste.
How quickly will ENESPA AG return a profit?
As planned, we will already be in the black with the first facility. Ask for the detailed investor brochure.
What about CO₂ pollution from the operation of the facility?
Distillation of the heated plastic mass also produces gas (5% to 15% in the material balance), which cannot be used for the recycling process for material reasons. This gas is not flared as is usually the case, but used to operate the facility. Here, CO₂ is produced when the generator is in operation. However, there is no comparison to the CO₂ emissions produced in the conventional incineration of all of the plastic waste. You can find the graph on the material balance here.
Doesn't it make more sense to burn plastic waste to generate heat in the waste incineration plant?
The circular economy for all raw materials is indispensable in reducing our ecological footprint, our environmental pollution to a sustainable level. The paraffin oil we recycle is returned in full to the plastics manufacturing process. From the perspective of CO₂, the complete circular economy for plastic waste also makes sense (the incineration of 1 kg of mixed plastic releases 2.83 kg CO₂). Source: Prof. Kleinstein, Bern: Thermolysis is the process to be used to preserve the value of mixed plastic waste.
Detailed documents for investors
ENESPA AG will generate positive cash flow starting with the first investment. By operating several facilities simultaneously, revenues increase disproportionately and, accordingly, so does the value of the company. There is great demand for this technology. 18 locations in Germany are interested in operating a facility at this time.
Several sites in Germany are showing great interest in operating the recycling facilities. We will put the first facility into operation where we find the best conditions. Thanks to the mobility of the units, we are flexible when it comes to location. The business development unit of the Schwarze Pumpe Industrial Park in Spreetal is very interested in the ENESPA project. Following a thorough investigation, the responsible development bank declared the project eligible for funding. The project will be supported by the development bank once the approval process is completed.
The aim is for the first 8,000 kg/day facility in the industrial park to be commissionedby the end of 2021. As soon as this facility is in reliable operation, ENESPA will build another ten facilities and then gradually expand to forty facilities. The ten facilities are expected to be fully operational by the end of 2022.