Plastic-to-fuel is the process of converting plastic waste into liquids in order to make proper use of plastic waste. Pyrolysis, polymerization, and gasification are some of the major technology used to convert plastic-to-fuel. Fuels produced from plastic are can be used across automotive, food & beverage, agriculture, and petrochemical industries. Plastic such as polypropylene and polyethylene can convert into diesel, gasoline, LPG, and aromatics. The U.S plastic-to-fuel market was estimated to be valued at more than US$ 117.3 million in terms of revenue in 2022 and is predicted to grow at a CAGR of 9.3% during the forecast period (2023 to 2030).
Drivers
Plastic-to-fuel technology has contributed to the GDP of the U.S. country according to the Coherent Market Insights analysis, plastic-to-oil operations can add US$ 8.9 billion to the U.S. economy. Moreover, according to the American Chemistry Council Inc., the volume of waste plastic generated in the U.S. could support 350 to 600 plastic-to-oil facilities. This could result in the generation of 17,200 jobs within the supply chain industry in the U.S. This is expected to propel the growth of the U.S. plastic-to-fuel market.
Market Opportunities
Increasing investment by major players in plastic-to-fuel technology is expected to augment market growth over the forecast period. For instance, in November 2020 Brightmark Energy invested $10 million in plastics-to-fuel (PTF) technology supplier RES Polyflow. According to Brightmark, an additional US$ 47 million has been committed to the start-up of the company's first plant, which will be situated in Indiana. 100,000 tonnes of plastic can be transformed each year at the factory into 100,000 tonnes of low-sulfur diesel, 100,000 tonnes of low-sulfur naptha blendstocks, and 5 million litres of wax.
Market Restraints
Processing technology of plastic-to-fuel is complex, which hampers the result of the overall process and is expected to hamperthe market growth. Various facilities have difficulties obtaining optimal production levels due to technical issues. Thus, this is expected to restrict the adoption of plastic-to-fuel technology, which in turn restricts the market growth.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/us-plastic-to-fuel-market-3838
Key Takeaways
On the basis of end product, crude oil dominated the U.S. plastic-to-fuel market in 2022 with around 59% of market share in terms of revenue, followed by diesel.
Market Trends
Rising adoption of new technology for the conversion of plastic into oil is expected to have a positive impact on the market of the U.S. plastic-to-fuel. For instance, in June 2020 Scientists have developed a revolutionary method to convert common plastic garbage, such as water bottles and bags, into jet fuel. This method, which melts plastic trash at high temperatures with activated carbon to create jet fuel, is effective and quite easy. It allows for the conversion of these polymers into oil.
Growth in the automotive industry in the U.S. country due to the increasing production of automobiles is expected to accelerate the market growth of plastics-to-fuel. In 2020 17.2 million light vehicles were sold in the United States. The world's second-largest market for car sales and manufacturing is the United States. As a result, it is anticipated that the U.S. market for plastic-to-fuel would rise as a result of the country's increasing automotive manufacturing.
Competitive Section
Key players operating in the U.S. plastic-to-fuel market are Plastic2Oil, Agilyx Corporation, Vadxx Energy, and Green Envirotec Holdings
Few Recent Developments
In November 2020, Agilyx, a company that transforms waste plastics into chemicals and fuels, has announced a partnership with Monroe Energy LLC to deliver up to 2,500 bbl (barrels per day) of Agilyx's synthetic feedstock. Agilyx uses a unique waste plastics recycling technique to generate the feedstock.
