RES Polyflow signs offtake agreement with BP for plastic-to-fuel facility in Indiana
RES Polyflow, an Ohio, U.S.A.-based manufacturer of Plastics-To-Fuel energy recovery systems has entered into an offtake agreement with BP for the fuels produced by its first commercial production facility.
Located in Ashley, Ind., U.S.A., the RES Polyflow plant will convert 100,000 tons of plastic waste into 16 million gallons of ultra-low sulfur diesel fuel and naphtha blend stocks per year. The project is expected to begin processing in 2019. The facility will also produce commercial grade waxes for sale to the industrial wax market.
Under the terms of the agreement, BP will purchase all of the diesel fuel and naphtha blendstocks produced by the RES Polyflow facility for distribution in the regional petroleum market.
“As a global energy business, BP is focused on the dual challenge of meeting society’s needs for more energy, while at the same time working to reduce carbon emissions,” said Carey Mendes, head of BP’s Global Oil Americas marketing and trading business in Chicago. “Agreements like this one highlight our commitment to helping drive the transition to a low-carbon future, which is embedded in the core of our business strategy.”
The offtake relationship with BP demonstrates that the company’s proprietary Plastics-To-Fuel process delivers a viable business model for energy recovery in North America, said RES Polyflow CEO Jay Schabel. “We provide communities with an alternative to traditional methods of plastic disposal that complement current recycling practices. In addition to creating permanent manufacturing jobs, a reduced carbon footprint associated with the production of high demand petroleum products can be realized for the first time at commercial scale.”
The RES Polyflow process converts a wide mix of co-mingled plastic waste into a consistent hydrocarbon liquid on a continuous and highly efficient basis. Once online, the Ashley, Ind. facility is expected to create a new market for the growing stream of complex plastic film, flexible packaging and other low value, non-recycled plastic waste that typically ends up going to landfills or fouling local waterways.
The company plans additional Plastics-To-Fuel facilities for surrounding U.S. midwestern states. The new locations will be anchored by the Indiana facility as the primary post-processing site for the BP offtake agreement.