A Ballpark Figure
Multiple factors determine final project cost, such as the infrastructure and logistic elements of the plant and the number — and nature — of pyrolysis lines required.
The availability of suitable land, access to transport systems, and access to an electricity grid connection point must also be considered. As a general guide, an eight-line plant can be established for approximately US$88million, including site works and construction.
It Makes Cents
For clients who wish to own the asset, a Project Design Fee, ranging from 3 – 5%, is payable on commencement to establish:
- The nature and profile of the intended feedstock.
- The engineering design (including design of process, building and infrastructure work) in order to finalise total project costing.
This fee forms a part of the total project cost and progresses the project to final contract execution. Other financial commitments include:
- A 15% deposit of the pyrolysis contract value (following completion and execution of the contract) to confirm the order of pyrolysis line equipment and see the commencement of site works.
- Progress payments (based on the cost to complete valuation) required as the construction and site works progress.
- A further payment representing a pre-agreed percentage of the pyrolysis contract value payable prior to the dispatch of a plant from the point of manufacture. This is followed by a second progress payment at the commencement of commissioning work (following completion of plant construction).
- The balance of the contract price — payable one month after the plant reaches agreed baseline performance KPI’s — as a retention guarantee.
- A Management Fee for the ongoing operational management of the finished plant.
It’s a Win-Win
For clients who simply wish to take advantage of InRim’s Waste Management Solutions, we will conduct the feasibility study and finance the development of a specific solution, while owning the asset ourselves. This ownership may be in partnership with other investors.
It’s About Time
While project logistics and existing infrastructure will inevitably influence the project timeline, a large-scale pyrolysis plant would generally be expected to take approximately 12 to 15 months to construct and commission. This time period follows the completion of engineering and site design, EPA, and other approvals.
As timelines differ depending on a variety of local factors, the individual location will ultimately determine final timeframes.