EnerPure UMO Recycling Plant IRR Rises to 51%
EnerPure Inc. (“EnerPure” or the “Company”), a leader in recycling and energy transition, is thrilled to announce significant advancements in the deployment of its first full-scale Used Motor Oil (UMO) recycling plant. The Company has set an ambitious goal to establish 21 recycling plants in the coming years. Through the integration of product optimization and engineering expertise into its economic model, EnerPure has successfully increased its Internal Rate of Return (IRR) from 49% to 51%.
Innovations in Process Design
In the first half of the year, EnerPure completed its energy-efficient Process Design along with the corresponding Process Flow Diagrams (PFDs). These developments indicate that 28% of the marine fuel produced will meet the standards for low sulfur marine gasoil (LSMGO), while the remaining 72% will be categorized as very low sulfur fuel oil (VLSFO). It's important to note that LSMGO typically commands a higher price compared to VLSFO, and both products from EnerPure maintain a sulfur content of less than 1,000 ppm, surpassing industry standards.
Exceptional Conversion Rates
The Recycling Plant boasts an impressive 92% conversion rate from UMO to marine fuel. Additionally, a remarkable 95% conversion rate for saleable products, which includes by-products, underscores the efficiency of the entire process.
Strong Economic Insights
Todd Habicht, CEO and Founder, remarked, “The completion of our product optimization and the successful production of recycled LSMGO not only enhances our environmental impact but also improves our financial returns. Our experience from the pilot plant, combined with our engineering team’s collaboration with Ascent Engineering, has led to the finalization of the process flow diagrams. The enhanced economics of our Recycling Plant highlight our potential to roll out 21 facilities in the near future, with the aim of reducing half a million tonnes of greenhouse gas emissions.”
Update on Financial Projections
As part of this process, the Company has revisited several assumptions regarding the financial projections for its Alberta Recycling Plant. The updated economic assessments were informed by the processing of 1.6 million liters of Used Motor Oil (UMO) at the pilot plant. As engineering efforts progressed under the guidance of Ascent Engineering Inc., the latest project economics are as follows:
Overview of Updated Project Economics
In US dollars
IRR: Previous Economics 49%, Updated Economics 51%
EBITDA ($ millions): Previous: $5.8; Updated: $6.3
Revenues ($ millions): Previous: $15.7; Updated: $15.6
Capital Expenditure (CAPEX) ($ millions): Previous: $14.5; Updated: $14.9
Payback Period: Previous: 2.5 years; Updated: 2.4 years
Annual UMO Liters Processed: Previous: 30m; Updated: 31.5m
Dedication to Environmental Responsibility
The completion of the process design and PFDs enables the Company to update its calculations concerning carbon intensity and greenhouse gas (GHG) reductions. Life Cycle Associates has been engaged for this update and is expected to provide findings soon. The objective is to ensure that the Recycling Plant(s) are well-designed and operate efficiently, delivering sustainable economic returns without relying on GHG credits or recycling fees.
With an estimated capital cost of $14.9 million USD per facility, EnerPure is committed to expanding its UMO recycling solutions to regions that may lack the capacity to implement such systems effectively, thereby promoting significant economic and environmental benefits.
About EnerPure
EnerPure specializes in recycling Used Motor Oil (UMO) to reduce greenhouse gas emissions while producing lower carbon-intensive marine fuel. With around 17 billion liters of UMO improperly disposed of each year, EnerPure utilizes its patented technology to transform UMO into high-quality marine fuel, addressing this critical environmental challenge.
Contact Information
For more information, please reach out to:
EnerPure Inc.
www.enerpure.tech
news@enerpure.tech
Frequently Asked Questions
What is EnerPure's current IRR for its UMO recycling plant?
EnerPure currently reports an increased IRR of 51% for its Used Motor Oil recycling plant.
How many UMO recycling plants is EnerPure planning to deploy?
EnerPure aims to deploy a total of 21 UMO recycling plants in the coming years.
What products are produced from the UMO recycling process?
The recycling process produces both low sulfur marine gasoil (LSMGO) and very low sulfur fuel oil (VLSFO).
What economic benefits does EnerPure offer with its recycling plants?
EnerPure's facilities are designed with a low capital cost of approximately $14.9 million per plant, providing significant economic advantages in local recycling efforts.
What are the environmental impacts of EnerPure’s technology?
EnerPure's recycling technology helps reduce greenhouse gas emissions by recycling UMO, thus addressing improper disposal practices and contributing to more sustainable marine fuel production.
