(08/02/2024) In an era where the world grapples with a mounting waste management crisis, pyrolysis emerges as a beacon of hope. This innovative technology not only addresses the pressing issue of waste accumulation but also presents a sustainable growth opportunity for investors and industry partners. Let's delve into the numbers and trends that make pyrolysis a compelling proposition in 2024 and beyond.
Pyrolysis: A Market on the Rise
The pyrolysis market is experiencing remarkable growth.
Allied Market Research projects that the global pyrolysis oil market will reach $480.9 million by 2031, growing at a CAGR of 4.3% from 2022 to 2031 [2].
Even more optimistically, Mordor Intelligence forecasts the market to hit $1.28 billion by 2029, with an impressive CAGR of 19.71% during 2024-2029 [3].
This growth is not just in pyrolysis oil. The plastic-to-fuel market, a significant application of pyrolysis technology, is expected to reach USD 2.69 billion by 2030, expanding at a CAGR of 23.6% from 2024 to 2030 [4].
The Scale of the Problem
The global waste challenge is staggering. According to the World Bank, global solid waste generation is expected to increase by 70% by 2050, reaching over 3.4 billion tons annually [1]. This surge in waste, particularly in developing countries, poses significant environmental and economic challenges. However, it also presents an unprecedented opportunity for sustainable solutions. Technological Advancements Driving Growth
Recent breakthroughs are making pyrolysis more efficient and scalable:
Improved catalysts and reactor designs are enabling the processing of a wider variety of plastic wastes, including previously non-recyclable plastics [5].
The development of continuous-feed systems is enhancing operational efficiency and scalability [5].
Innovations in pyrolysis oil purifications improving energy efficiency in pyrolysis oil valorisation via chemical recycling[6].
Environmental and Economic Benefits
Pyrolysis isn't just profitable; it's environmentally beneficial. A life cycle assessment study conducted by Sphera for BASF found that pyrolysis of plastic waste emits 50% less CO2 than incineration [7]. This aligns perfectly with global sustainability goals and stringent environmental regulations.
Moreover, pyrolysis can produce plastics of similar quality to virgin feedstock, allowing for use in high-quality applications like food packaging [8]. This ability to create high-value recycled content is a game-changer in the circular economy.
Investment Landscape and Opportunities
The investment community is taking notice. PlasticsEurope reports planned investments of €7.2 billion in chemical recycling by 2030 in Europe alone [9]. This influx of capital is set to drive innovation and scale in the pyrolysis sector.
For investors, the opportunity extends beyond direct technology investments. The emergence of plastic credit systems, similar to carbon credits, presents a new frontier. As major consumer product companies commit to incorporating recycled materials into their packaging, demand for high-quality recycled plastics is soaring, potentially driving a robust plastic credit market [8].
Challenges and Future Outlook
Despite its promise, pyrolysis faces challenges. Environmental concerns about energy consumption and emissions need addressing [5]. Additionally, ensuring proper tracking and verification of recycled content will be crucial for credibility in emerging plastic credit systems.
However, the trajectory is clear. With supportive legislation in 24 US states [5] and growing global awareness of the waste crisis, pyrolysis is positioned for significant growth. As McKinsey predicts, up to 50% of plastics worldwide could be reused or recycled by 2030 [10], with pyrolysis playing a pivotal role.
Conclusion
Pyrolysis stands at the intersection of environmental necessity and economic opportunity. For investors and industry partners, it offers a chance to be at the forefront of solving one of the world's most pressing issues while tapping into a rapidly growing market. As we move towards a more circular economy, pyrolysis isn't just a technology – it's a billion-dollar solution to a global crisis.
References
[1] https://www.ifc.org/en/blogs/2024/the-world-has-a-waste-problem
[2] https://www.alliedmarketresearch.com/pyrolysis-oil-market-A53512
[3] https://www.mordorintelligence.com/industry-reports/pyrolysis-oil-market
[4] https://finance.yahoo.com/news/plastic-fuel-market-size-share-080600967.html
[5] https://www.idtechex.com/en/research-article/future-of-pyrolysis-market-in-light-of-a-changing-regulatory-landscape/31249
[6] https://www.apchemi.com/post/apchemi-launches-puremax-pyrolysis-oil-purification-plant-revolutionising-advanced-plastic-recycli
[7] https://www.basf.com/global/en/who-we-are/sustainability/we-drive-sustainable-solutions/circular-economy/mass-balance-approach/chemcycling/lca-for-chemcycling.html
[8] https://corsairgroup.com/mynews/say-hello-to-csr-plastic-credit/#:~:text=What%20is%20CSR%20Plastic%20Credit,are%20distributed%20into%20the%20circulation & https://verra.org/verra-views/five-things-you-should-know-about-plastic-credits/
[9] https://plasticseurope.org/sustainability/circularity/recycling/chemical-recycling/
[10] https://www.mckinsey.com/industries/chemicals/our-insights/how-plastics-waste-recycling-could-transform-the-chemical-industry