ECONOMY & ITS PHILOSOPHY PART-E TIRE/PYRO OIL

Pyro Oil/Tire Oil

·      This article has been written in bullet form for pure empathetic and distress stake holders can concentrate on it.

·      There is no record of tire oil (waste tire oil) or Pyro oil.

·      No sales tax is being charged in invoicing to FWO /Construction companies or other customers as it is being used in many areas with multipurpose objective.

·      Middlemen /reseller are earning most of the time  from Rs 30 -40 per Liter from 2009-20

·      Earlier these plants were imported from china and installed at different places specially near to the HFO IPP’s area because its mixing was easy in HFO.

·      Earlier people started business to import tire and smuggled tire in 3 pieces for cement factories where Waste/Old Tires were used as fuel.

·      Few officers analyzed this and change the duty of imported tires e.g. if 15% duty was on cement then 20% duty was on that company which was importing waste tire and proving that it will be used in industry or they will sell to IPP’s as fuel as worldwide this is being done.

·      However, these imported 80% waste tires from Saudi Arabia, middle east but mainly used to generate Pyro oil/Tire Oil and from 2008 to 2016 it remained on peak as far as consumption is required specially for IPP’s and Captive power as fuel but mixed with HFO.

·      In Diesel its mixing was not a big challenge but the main issue was controlling its rotten egg smell.

·      Many peoples imported and started to generate Pyro/Tire oil without any approval of District Government or explosive even till to date this has not been approved as [per POL product in Pakistan from concern authorities.

·      Thus it tells that it is illegal business.

·      The couple of educated person tried to regularize it and also tried to get NOC but they were not able to get EPA NOC which is required in any product approval selling either through retail outlet or industry.

·      When HFO prices declined around 2015-16 the concern mafia plants became choked now their major chunk of income due to illegal way reduced.

·      So they started to provide to retail outlets or companies for mixing in smuggled product like Diesel, White spirit, and locally it was started to mix in SKO and LDO which were already sold in black marketing after deducting the consumption of armed forces or few good engineering companies (separate post/article already written).

·        Its use was best for old bitumen/asphalt plant to ignite the plant initially when LDO & SKO is not available and most of the time in last 3 years it was used and sold to

·      But unfortunately construction companies and FWO.

·      Unfortunately, its sales & purchase is not covered in sales tax and who are selling they are charging around 16-18% sales tax but it is rare that you will find invoice.

·      Even while providing in Gilgat Baltistan suppliers earned Rs 30-50 Rs per liter.

·      The bottom line is that these 1st to 4th generation plants are not approved by district Government and Environment department did not provide any NOC till to date.

ANALYSIS

·      In 2012 to 2017 when mostly SKO & LDO was sold in black marketing and was not provided to FWO then on advise of someone I convinced to shift New Bitumen Plants to HFO but they were reluctant because on Motorway one oil company gave them used lubricant and said that it is LDO imported from Saudi Arabia. At that time, I requested my management and Parco they gave special favor and we became able to get some additional quota while reducing some black marketing.

·      However, after couple of months then same issue then I did analysis of Pyro oil, HFO and LDO I.e. mentioned below it was done in 2014 and any one from FBR or custom department can do analysis now or services may be provided based on interest.

·      In winter this product normally uses in smuggled product and also in IPP if they operate on HFO.

?      Pyrolysis oil is the end product of waste plastic and tyre pyrolysis. Pyrolysis oil is widely used as Industrial Fuel to substitute Furnace Oil, Industrial Diesel and Light Diesel Oil.

?      The word is coined from the Greek-derived elements pyro "fire" and lysis "separating".

?      In general, pyrolysis of various feedstock substances produces gas and liquid products and leaves a solid residue richer in carbon content, char.

?      Pyrolysis is a thermo chemical decomposition of various material or other feedstock at elevated temperatures in the absence of oxygen.

·      The process is used heavily in the chemical industry,

·      To produce charcoal, activated carbon, methanol, and other chemicals from wood.

·      To convert ethylene dichloride into vinyl chloride to make PVC.

·      To produce coke from coal, to convert biomass into syngas, heating oil and bio-char.

?      This process has limitless potential and from ordinary industrial energy resource to producing electrical energy through its by – products

?      Low energy consumption.

?      Pyrolysis gas covers the process energy needs after the startup period.

?      The environmental emissions characterized by a low Sulphur Oxide concentration.

?      Cleaner process compared to combustion.

?      Dioxins and furans are not produced, due to the absence of oxygen and the low operating temperatures.

?      Low sulfur heating oil/ bunker fuel can be produced which can be used in industrial boilers.

?      Fossil fuel dependency reduction

?      Political aspects – new frontiers

?      One of the most proven and commercially feasible waste to energy technology.

?      Solid waste disposal problem can be resolved.

?      Recovery/production of valuable materials- 100% recycling

?      Carbon footprint neutral technology.

USES:

?      Combustion in Asphalt Plants.

?      Diesel Engines.

?      Combustion in Turbines.

The answer is Pyrolysis.

?      PYRO can be directly use on the Asphalt plants where LDO is already being used, without any further alteration.

?      Almost 90% Asphalt plants in Pakistan are without HFO system installed in it, as its not cost effective.

?      HFO is least considerable option for any Asphalt plant, because of very higher residue value, which increase maintenance cost of Plant and also increased repetitive shut downs.

?      Specially in winters, there is significant cost incurred on HSD for initial burning of HFO, thus increasing accumulative cost.

?      Major Asphalt plants are either using LDO or Pyro i.e. Khalid Rauf, NLC, Sarwar & Co, Alam Khan, Bahria, SARCO, MRC.

?      An integrated green process capable of producing a variety of products from pesticides, industrial chemicals to bio-oils.

?      Have potential to be used as a fuel oil substitute.

?      Oils burn efficiently in standard or slightly modified boilers and engines.

?      The oils have heating values of only 40?50% of that for hydrocarbon fuels.

?      Quite cheaper compared to commercial fossil fuel available in the market.

?      Good scope and have proven cost effectiveness.

?      Fast pyrolysis of scrap rubber is one of the most recent renewable energy processes to have been introduced.

?      Bio-oil that can be readily stored and transported.

?      Can also be used for production of chemicals.

?      Has been successfully tested in boilers and further usages are being explored.

?      Electric Power Research Institute (EPRI) and the US Department of Energy (DOE) have been funding numerous case studies to investigate the feasibility of integrated biomass energy systems, utilizing a dedicated feedstock supply system (DFSS) for energy production.

?      Energy created is recycled and used internally thus making it self-sufficient and carbon neutral process.

?      Equipment has also advanced over time.

?      In China alone there are 30 patents registered.

?      Machines evolved from first generation to fifth generation.

?      Plants running under complete legal cover across the world.

?      In certain cases, these units are even subsidized by government for ensuring successful and continuous operations.

?      India has authorized hundreds of plants through State Pollution Control Board.

?      Countries using pyrolysis technology and its products:

?      Germany

?      USA

?      Eastern Europe

?      United Kingdom

?      China

?      India

?      Japan

?      Finland

?      South America

?      South Africa

?      Thailand

?      Turkey

?      Over 100 plants are being set up

?      Some are already in operation.

?      Ordinary production capacity - from 6MT to 10MT daily

?      20 days of production/month.

?      Plants and technology are new in Pakistan

?      First plant was established only 30 months ago.

?      Technology growth rate faster than industry

?      Pakistan can become self-sufficient in heating oil requirement by the year 2025.

CONCLUSION AS OF JANUARY 15TH, 2021:But this is Illegal and not included in Tax Net and not at all should be regularized as per today status these plants must be sealed as they are mixing product in smuggled product.

?