The U.S. Plastic-to-Fuel market is projected to surpass US$ 150.0 million by the end of 2027, in terms of revenue, growing at CAGR of 6.8% during the forecast period (2020 to 2027).
Increasing plastic waste on the land due to exceeding the production of plastic in the Country. According to the United States Environmental Protection Agency, the containers and packaging category had the most plastic tonnage at over 14 million tons in 2017. Thus, increasing volume of plastic waste on the landfill is encouraging players to adopt recycling plastic in order to deliver environmental benefits. This is expected to propel the market growth.
Rising demand for energy in the country due to the presence of well-established infrastructure is expected to foster market growth. According to the U.S. Energy Information Administration, fossil fuels petroleum, natural gas, and coal accounted for around 79% of total U.S. primary energy production in 2018. Rising demand for energy in the U.S country is expected to augment the market growth over the forecast period.
The high initial cost of the setup is expected to hinder the market growth of the U.S. Plastic-to-Fuel. As per estimates by the American Chemistry Council, a single plastic-to-oil facility will incur a capital expenditure of between US$ 10 Million to US$ 18 Million. Moreover, the pre-processing of waste plastic is another major factor that adds to the overall cost.
Plastic-to-fuel is not eligible for recycling approvals, according to the Federal, local and state governments this project does not fall under the category of recycling and hence not eligible for recycling approval. This factor is expected to hinder the growth of the plastic-to-fuel market.
Growing demand for petroleum products is expected to offer lucrative growth opportunity to the market of the U.S. plastic-to-fuel. According to the U.S. Energy Information Administration, gasoline is the most consumed petroleum product in the United States. In 2018, consumption of finished motor gasoline averaged about 9.33 million b/d (392 million gallons per day), which was equal to about 45% of total U.S. petroleum consumption.
Growth in the cosmetic industry in the country due to increasing sale of cosmetic products is projected to provide potential opportunity to the market of the U.S. plastic-to-fuel market. Petroleum products are widely used in the manufacturing of cosmetic products. Hence, growth in the cosmetic industry in the U.S. country is projected to augment market growth.
The growing focus of manufacturers in increasing the capacity and processing capabilities of the processors used to convert waste plastic to oil is expected to accelerate the market growth. Various research is conducted in order to deal with the technological barrier and minimize the pre-processing cost incurred on the sorting of plastic. This ongoing trend in the market is expected to stimulate market growth.
The rising trend of supplying technology to the third party to expand their presence in the market is expected to foster market growth. For instance, in January 2015, Green Envirotec Holdings has entered into an agreement with Texas-based Corporation, Cenco Leasing Co., whereby the company granted an exclusive license to the latter in order to develop its proprietary technology to convert discarded tyres and plastics into oil.
On the basis of fuels, Vadxx dominated the U.S. Plastic-to-Fuel market in 2019 with around 40% of market share in terms of revenue, followed by Agilyx and RES Polyflow, respectively.
Key players are operating in the U.S. plastic-to-fuel market are Plastic2Oil, Agilyx Corporation,Vadxx Energy, and Green Envirotec Holdings
Few Recent Developments
In Janurary 2018, Plastic2Oil Inc. has announced that it has signed a 20-year master agreement with Veridisyn Technologies LLC, a Tuscaloosa, Alabama-based company engaged in the development of alternative energy projects, under which Veridisyn has agreed to license P2O’s technology and purchase P2O processors.