Plastic May Be The Newest Fuel Find
Tuesday, October 06, 2009SUSIE GHARIB: Here's an interesting fact. Americans throw away 30 million tons of plastic every year and less than 7 percent of that is recycled. But now, a Washington, DC- based startup says it's come up with a unique solution, a solution that keeps plastic out of landfills and surprisingly, boosts energy supplies here in the U.S. Stephanie Dhue explains.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: These trashed butter tubs and flower pots have the potential to power an engine. The key is to take the oil out of the plastic. Startup company Envion has set up this demonstration plant inside Montgomery County, Maryland's trash sorting station. CEO Michael Han calls it a simple solution.
MICHAEL HAN, CEO, ENVION: Basically we're reverse engineering it. That's a good way to think about it. This reactor separates. It is a heating element core through infrared technology -- which we have the patent -- and converts, melts that plastic and converts it into a byproduct of sustainable, renewable oil.
DHUE: Envion's oil generator can convert 10,000 tons of plastic waste a year, creating 4,000 to 5,000 barrels of oil. Envion wants to sell the generators to state and county governments and waste management firms for $7 million a piece.
HAN: So the price of oil today is $70. So, obviously, having a byproduct that is fully refined is obviously a very strong revenue source for the county.
DHUE: Han says the company already has one customer buying its oil.
HAN: This particular product here is classified as a light medium oil, which is kerosene, jet fuel, diesel or car gasoline.
DHUE: Smells like gas. Once Envion proves the technology and the business plan can work, Han hopes to expand rapidly.
HAN: Our goal is to be in every county in America. There's 3,242 counties in America today and we know that plastic is inherent in all of those counties and we can play a viable solution in degrading plastic immediately.
DHUE: But it may not be a solution for Montgomery County, which has no plans to make the plant permanent. The county doesn't have the room or the money, factors that could challenge other local governments and challenge Envion. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Derwood, Maryland.
