U.S. PLASTIC-TO-FUEL MARKET ANALYSIS

The U.S. Plastic to fuel market is projected to surpass US$ 238.2 million by the end of 2030, in terms of revenue, growing at a CAGR of 9.3% during the forecast period (2023 to 2030).

U.S. Plastic to Fuel Market: Growth Drivers

The need for clean fuel is expected to grow significantly each year.

The demand for clean fuel is expected to witness exponential increase every year, with rising pollution levels coupled with growing government regulations to control and curb the carbon content in fuels expected to drive demand for hydrogen in the near future. Because hydrogen-powered fuel cells are a pollution-free source of energy, they have seen rapid adoption over the last decade and are now widely utilised to power automobiles and buses.These factors are anticipated to drive the production of hydrogen from plastics during the forecast period. For instance, in 2022, Oregon.gov attends Clean fuel programs. The clean fuel program encourages reductions in carbon intensity by allowing fuel providers to sell credits they have earned by going beyond the reduction goals for that year. Those excess credits can be saved to offset future deficits the entity may incur or for future sales as demand increases.

Figure 1. U.S. Plastic-to-Fuel Market, Revenue Share (%), By Fuels Type, In 2022

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Growing plastic production and consumption in the U.S. are predicted to fuel the expansion of the Plastic to fuel business.

Growing production and consumption of plastic in U.S. countries is expected to fostermarket growth Plastic to fuel. This is raising the adoption of plastic to fuel technology in the country. Moreover, the growing level of water pollution in the ocean is another major factor expected to accelerate the market growth of the U.S. Plastic to fuel. The growing production of automobiles that is creating demand for fuel is further expected to augment the market growth of the U.S. Plastic to fuel. For Instance In 2022, ExxonMobil Corporation announced successful startup of one of the largest advanced recycling facilities in North America. The facility at the company’s integrated manufacturing complex in Baytown, Texas, uses proprietary technology to break down hard-to-recycle plastics and transform them into raw materials for new products. It is capable of processing more than 80 million pounds of plastic waste per year, supporting a circular economy for post-use plastics and helping divert plastic waste currently sent to landfills.

U.S. Plastic to Fuel Market: Restraints

High capital cost and quality of feedstock have huge impact on plastic to fuel facilities:

The Plastic to fuel technologies are opportunistic and reflect positive outlook for plastic manufacturers. However the current scenario of treating waste into fuel is not as profitable as that of conventional fuel making. The key challenge present in the market is economies of scale. Most manufacturers observed that the feedstock quality largely affect the fuel quality.

U.S. Plastic to Fuel Market- Impact of Coronavirus (Covid-19) Pandemic

Due to the COVID-19 outbreak, Russia, U.K., France, Italy, Spain, and Germany are some of the worst affected member states in the European region like Russia, Germany, united Kingdom, France etc. Businesses in the region face severe economic difficulties as they had to suspend their operations or substantially reduce their activities. In 2020, Viridor and PLASTIC ENERGY signed a Memorandum of Understanding (MoU) to develop a new project, which would convert up to 30,000 tons of unrecycled plastic to recycled oils every year. Similarly, UK’s first plastic to hydrogen plant nears construction, as the Front-End Engineering Design (FEED) phase has been completed. Likewise, Clariant and VUCHT, a part of Duslo, Slovakia, announced that they are transforming plastic into diesel. The two companies signed an agreement in 2020 to implement the strategy to develop winter diesel from plastic waste.

U.S. Plastic to Fuel Market: Market Segmentation

On the basis of fuels, Vadxx dominated the U.S. Plastic to fuel market in 2022 with around 40% of the market share in terms of revenue, followed by Agilyx and RES Polyflow, respectively.

U.S. Plastic to Fuel Market: By Region

On the basis of End Product, Crude Oil dominated the U.S. Plastic to fuel market in 2022 with around 60% of the market share in terms of revenue, followed by Diesel.

Figure 2. U.S. Plastic-to-Fuel Market, Revenue Share (%), By End of Product, In 2022

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U.S. Plastic to Fuel Market: Recent Developments

In May 2021, Oil Refiner, SK Inc, is prepared to work with Jeju clean energy to develop upcycling technology for creating petrochemical raw materials from plastic trash.

In September 2020, Bio fabrik WASTX plastic technology, a machine prototype that can turn plastic trash into gasoline has been unveiled.

In December 2020, the Municipal Solid Waste (MSW) category contributed to about US$& 85 Million in the total plastics-to-fuel market share providing a major impetus for the USA Plastic to fuel market growth.

In 2021, the Trump administration released a set of proposed regulations that would encourage the use of plastic-to-fuel cars and trucks. The proposed regulations would require companies to use more recycled plastic in their products, and would increase the number of tax credits available for companies that produce vehicles using alternative fuels.

U.S. Plastic to Fuel Market: Key Companies

Key players operating in the U.S. Plastic to fuel market are Plastic2Oil, Agilyx Corporation, Vadxx Energy, and Green Envirotec Holdings

Definition: Plastic to fuel is an advanced technology used to convert plastic waste into liquid fuels in order to deliver environmental benefits. This process involves the development of ultra-clean and ultra-low sulfur fuel from unsorted waste plastic. In this process plastic is shredded and heated to a temperature of 400 degree Celsius in an oxygen-free chamber, the process known as pyrolysis. Automotive, food & beverage, petrochemical, agricultural, and cosmetics are major end-user of Plastic to fuel.