Warren plant in final stages of commissioning
The GDT processing plant at Warren, New South Wales is now in the final stages of commissioning before commencing initial production.
This step will see module 6 operating for around ten hours a day for five days a week, which will be sufficient time to process at least ten tonnes of tyres each week to deliver 4000 litres of oil, 4 tonnes of carbon and 2 tonnes of steel.
The components to construct modules 4 and 5’ have been ordered and construction is planned to commence this month.
These two modules should be completed in the third quarter of this year and the plant should be operating 24/7 and at half capacity by the end of the year.
Installation of the final three modules to complete the plant is planned for December 2016.
Tasmania: Working to secure environmental planning permission
The finalisation of construction plans for the GDT tyre recycling plant in Longford, Tasmania is in progress within the State Government environmental planning process. Two EPA inspectors are travelling to Warren to check for themselves that there are no emissions produced by the process.
The ELT (end-of-life) tyre stockpile at Longford continues to grow and is now estimated to be around 1.3 million so the task of recycling continues to grow every day and there is ongoing media coverage about the need for a recycling solution to be found.
GDT continues to work with the Tasmanian EPA to secure permission to build and expects that this will be concluded so that the first module on the site will be operational by the end of 2016.
Test unit to develop the world’s first means of recycling OTR (Off The Road) tyres
GTD has signed an agreement with Tytec Logistics of Perth to build a test unit to develop the world’s first processing plant to recycle “Off the Road” (OTR) tyres, such as those used on mining dump trucks, agricultural and road building machinery.
This is the first step that will result in the construction of a tyre recycling plant in Perth to commence operating in 2017, but as these tyres weigh up to four tonnes they represent a challenge in materials handling.
The prototype plant will be built adjacent the operation at Warren and is expected to begin processing the first OTR tyres in June/July 2016.
Tytec Logistics manages about 90 per cent of the very large OTR tyres in Australia and provides logistics, storage and remanufacturing services.
The potential recycling rewards are tantalising because GDT estimates that a tyre weighing 4 tonnes will yield 1740 litres of oil, 1.6 tonnes of carbon, and 0.8 tonnes of steel which will go back to the tyre manufacturer for reuse.
The Hyder Report in 2013-14 estimated that there are 155,000 tonnes of OTR end-of-life tyres generated in Australia each year of which 79.4 per cent are left on site and there are no means of recycling them.
Do low oil prices have an impact on GDT?
The current historically low oil prices do have an effect on GDT’s financial return, the same as any commodity trader, but the oil from the tyre recycling process is defined as coming from a renewable resource and enjoys a premium.
Our financial calculations have been made around the crude oil price as this is a very conservative way to budget even though the GDT oil will be benchmarked against the ‘fuel oil’ standard.
To sum up: There is some impact from the price of crude oil, but it will be much less than the fluctuations in the daily price of crude and the impact will become clearer as oil deliveries are made on a regular basis.
International interest in the GDT process continues
International interest in the GDT process has continued with negotiations proceeding for plants in Thailand and New Zealand.
Permission has been granted for five plants in Thailand with three potential joint venture partners who have all visited Warren and seen the plant in operation.
Their Thailand business model is to use the oil for generation of electricity.
GDT has been approached by the New Zealand Government and a potential joint venture partner has visited Warren.
New Zealand generates 60,000 tonnes of end-of-life tyres (ELTs) per year which is sufficient for three plants.