Case Study: Hatlar Group’s Feasibility Study for the Huludao Waste Tyre-to-Ethanol Project
Background
In response to China’s increasing demand for renewable fuels and the need to utilise non-food feedstocks, Hatlar Group Pty Ltd collaborated with Jinxi Chemical Refinery Bohai Group to conduct a comprehensive feasibility study for an innovative waste-to-energy project in Huludao City, Liaoning Province, China.
Project Overview
The proposed project aimed to establish a state-of-the-art facility to convert waste tyres into fuel ethanol using advanced steam reforming technology developed by Pearson Technologies. The initiative directly aligned with Chinese government policies promoting alternative fuels and minimising reliance on food-based feedstocks.
Objectives and Scope
The feasibility study, led by Hatlar Group, encompassed:
- Technical feasibility: Detailed evaluation of the Pearson Technologies steam reforming process for converting tyre powder into syngas and subsequent ethanol production.
- Market analysis: Assessment of China’s ethanol demand, raw material supply chains, and government incentives for renewable fuels.
- Environmental impact: Comprehensive review of the environmental management, mitigation measures, and compliance with Chinese regulations.
- Risk assessment: Analysis of financial, technical, and commercial risks associated with large-scale waste-to-ethanol operations.
- Investment and operational costs: Development of capital expenditure, operating costs, and revenue projections for staged project implementation.
Methodology
Hatlar Group’s approach included:
- Reviewing local and international best practices in waste-to-fuel conversion.
- Conducting site assessments to ensure logistical efficiency and reliable tyre supply.
- Engaging stakeholders, including government agencies and potential suppliers, to ensure regulatory compliance and long-term viability.
- Collaborating with Pearson Technologies to adapt the steam reforming system to Chinese feedstocks and operational conditions.
Key Findings
The feasibility study demonstrated that:
- The Pearson Technologies process could achieve ethanol yields up to 70% higher than conventional fermentation processes.
- Huludao City was strategically located, offering access to vast quantities of waste tyres and convenient transport links for ethanol distribution.
- The project’s environmental and socio-economic impacts could be effectively managed through robust mitigation measures and community engagement.
- Financial analysis showed a viable return on investment, particularly as government subsidies for ethanol production transition away from grain-based feedstocks.
