While most of the below has already been covered in various posts above, i am trying to give a high level summary of the business model in the framework of the below 4 pillars:
1. Raw Material –
- end of life waste tyre. abundant availability.
- which otherwise would have been burnt as fuel (causing lot of pollution)
- or else just dumped in landfills, where it doesnt decompose.
- and how higreen is solving this problem.
- 100tpd is currently their sweet spot in terms of being small size, so less risk, faster to set up, easier to sell the quantity of products produced, easier to buy the raw material, easier to operate and replicate in different locations, thereby spreading the risk.
(to arrive at this, they did lot of testing in lab – starting with 100kg reactor, micro reactor, vertical reactor, electricity fired, diesel fired, screw, barrel, double pass etc. practically every technology available in the world had been tested by them to arrive at where they are today) - they claim to be the largest single location plant operating at commercial scale in the world.
2. Finished Products –
- cradle to cradle concept.
- the rcb is reused in rubber products.
- which again can be recycled (ofcourse with lesser efficiency).
- it replaces vcb which is a crude derivative.
- the pyrolysis oil is a fuel alternative.
- the heat energy output is being used to make raw glass (currently), but going forward is likely to be used to generate power (about 1.5-2 Mw per 100 tpd plant, which is not very large).
- wide industrial usage of its products.
3. The Process –
- how continuous pryrolysis is so much better than batch process in terms of efficiency, power consumption (and wastage), reduced pollution (nil solid discharge, nil liquid discharge, flue gas composition meets stringent pollution norms), and quality of the finished products.
- its a suction based process, so no incidence of any pressure points in the reactor / kiln.
- various domestic and international environment and pollution certifications already obtained.
- how the company’s pyrolysis process is self sustaining in its energy needs (the heat produced from the process is used back into the process) and excess heat is used to generate power.
- how plant can be run 24×7 with just a monthly maintenance shutdown.
- small amount of external energy is used only at the time of restarting the furnace after maintenance, post which it is self sustaining. their own pyrolysis oil is also used in restarting the reactor.
- how the plant can be remotely monitored and partially controlled from anywhere in the world on computer / mobile phone.
- how it requires very less manpower to be actually present at the site.
- the capacity of the furnace (100tpd) has been arrived at after lot of iterations so as to run with optimum efficiency, optimum (low) cost, and to give optimum (high) quality of products.
- how the output is easily consumed by customers within a 100km radius thereby avoiding long distance transportation.
- the process is “simple but not easy” and therefore these iterations (in kiln rotation speed, different horizontal velocities and different temperatures at different sections inside the kiln, and consequent learnings) have led to the point where the factory has now become replicable.
4. Optionalities –
- with higher volumes, company can supply to tyre companies (whose requirements are large.
- with RnD efforts leading to rcb content improving from 80-85% to 99%+, the applications can be high-end UV / activated carbon filtration systems, where sales realisation is 4x the current.
- EPR income.
- Carbon credits (company has employed a consultant to conduct carbon accounting under categories of raw material, finished products and process).
- Export of its product.
- Domestic and Overseas expansion.
- Capex incentives being provided by various states to set up this plant (which will flow in over the years) will result in incremental ROCE.
(PS: invested and interested; risks have not been covered in this post).
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