Formation of a company to produce heating oil from bilge oil

Business Purpose and Goals

(Managment Summary)

Resources are becoming ever more scarce, and in conjunction with an increased demand worldwide create dangerous resource shortages, resulting in enormous price increases for raw material, energy and fuel.

Already today a fast growing market for material recycling and secondary energy arise.

Governments worldwide are forced more and more to address the issues of how the national energy supply systems can be made more efficient and how to drastically reduce the dependence on foreign oil supplies.

The waste management business changes into a secondary raw material economy as a whole.

It is the innovative approach of the WastEnergy GmbH (WEG) in having developed an efficient way of using refuse as a dependable, secondary energy source - w2d® (Waste To Diesel).

After a comprehensive analysis of more than 20 treatment and utilization methods for the conversion of waste into oil a decision was made for the SYNTROL® method showing a high efficiency and profitability for investors and operators.

The energy recovery of prepared bilge oil takes place in a three-step oiling-process. The refuse material will be melted, cracked and evaporated in a particular reactor, pressure-free and under air exclusion. In the downstream condensers the evaporated cracking products are fluidised to the product oil. None-usable components are being discharged under controlled conditions. Not condensable gases can be used for the production of process heat in the appropriate heating system.

In this way one production line works with a yield of 83% and a capacity of 5.100 tons of pre­pared bilge oil to produce 4.250 tons (5 mill, litre) of a product oil similar to diesel fuel (fig. 1). The whole oiling-process is characterised by a high energy efficiency by means of a minimal use of external energy and a low power consumption.

In October 2007 WEG has been invited by the management of the port of Koper to present their w2d®- business model using the SYNTROL® method.

Effortful pre-planning were carried out with the aim of a fast company formation.

The port of Koper has, therefore, decided to resolutely use the unique combination of innovative technology and ideal market conditions to establish a common firm with the initiator of this business idea.

In March 2008 the ECOPORTO KOPER d.o.o. was established as a operating company to produce heating oil from bilge oil based on a partnership between the ports of Koper, Trieste and Venice as supplier of the bilge oil.

Local companies were found as customers of the produced heating oil.

According to the developed business and project plan the production should start on January 1st, 2009.

Delays by the board of the port of Koper required a new business planning in August 2009 with a production start on July 1st, 2011.

In the meantime further delays resulted, so that also this date is no more to be held.

The 5-year plan (fig. 2) contains one operating plant with one water treatment unit and one SYNTROL production line with a total investment requirement of approx. EUR 8,4 million, a production capacity of approx. 5 million litres product oil at 100% extent of utilization, with a corresponding sales volume of approx. EUR 2,9 million annually including payments for the bilge oil received (approx. EUR 1 million).

Fig. 1: Block diagram/Material flow - BILGE OIL TREATMENT