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 industry. 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 more than US$ 95.0 million in terms of revenue in 2019 and is predicted to grow at a CAGR of 6.8% during the forecast period (2020 to 2027).
Plastic-to-fuel technology has contributed GDP of the U.S. country according to the Coherent Market Insights analysis, plastic-to-oil operations can add US$ 8.9 biliion to the U.S. economy. Moreover, according to the American Chemistry Council, the volume of waste plastic generated in the U.S. could support 350 to 600 plastic to oil facilities. This could result in generation 17,200 jobs within supply chain industry in the U.S. This is expected to propel the growth of the U.S. plastic-to-fuel market.
Increasing investment by major players in plastic-to-fuel technology is expected to augment the market growth over the forecast period. For instance, in November 2018, Brightmark Energy has invested US$ 10 million in plastics-to-fuel (PTF) technology company RES Polyflow. Brightmark announced an additional US$ 47 million to invest in the opening of the company's first plant, which will be based in Indiana. The plant is going have the annual capacity to process 100,000 tons of plastic into 18 million gallons of low-sulfur diesel and naptha blendstocks, as well as 5 million gallons of wax.
Processing technology of plastic-to-fuel is complex which hampers the result of the overall process is expected to hamper the market growth. Various facilities have difficulties in obtaining optimal production levels due to technical issues. Thus, this is expected to restrict the adoption of plastic-to-fuel technology which in turn restricting the market growth.
On the basis of end product, crude oil dominated the U.S. plastic-to-fuel market in 2019 with around 59% of market share in terms of revenue, followed by diesel.
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 2019, Scientists have found a novel way to turn daily plastic waste products like water bottles and plastic bags into jet fuel. This technology is good and relatively simple, a way to convert these plastics into oil in which plastic waste is melted at high temperatures with activated carbon to produce jet fuel.
Growth in the automotive industry in the U.S. country due to the increasing production of the automobile is expected to accelerate the market growth of plastics-to-fuel. In 2018, U.S. light-vehicle sales reached 17.2 million units. Overall, the United States is the world’s second-largest market for vehicle sales and production. Thus, the rising production automobile in the U.S. country is expected to fuel the growth of U.S. plastic-to-fuel market.
Key players are operating in the U.S. plastic-to-fuel market are Plastic2Oil, Agilyx Corporation,Vadxx Energy, and Green Envirotec Holdings
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