B PLAS: BioPLAstics from Sludge

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1 B PLAS: BioPLAstics from Sludge Transforming a waste into a renewable resource for advanced biodegradable materials SABIO materials Department of Chemistry G. Ciamician - Paola Galletti, Emilio Tagliavini, Cristian Torri, Chiara Samorì Department of Managment - Matteo Mura, Franco Visani Interdepartmental Center for Environmental Science (CIRSA) - Serena Righi Miklós Gyalai-Korpos, Laszlo Zentko

2 Bioplastics

3 Bioplastics Global production capacities of fossil-based plastics in 2014 ~ 300 Mt Global production capacities of bioplastics in Biobased content amounts to 30 % 4 Contains fossil-based PBAT, PBS, PCL Drop-in solutions cover 61% of the global bioplastics production: they are (partially) biobased but non-biodegradable commodities plastics Bioplastics, facts and figures, European biplastics 2015

4 Polyhydroxyalkanoates (PHA) o Linear polyesters produced by microbial aerobic fermentation o Biodegradable o Biocompatible o Tunable (combination of ~ 150 monomers) scl-pha (R = H, CH 3, C 2 H 5, C 3 H 7 ) ~ PP mcl-pha (R = (CH 2 ) 3 CH 3 -(CH 2 ) 8 CH 3 ) ~ LDPE

5 Polyhydroxyalkanoates (PHA) Agricultural Medical and pharmaceutical Packaging High production costs (5-6 /Kg) with respect to fossil plastics (~ /Kg) or other bioplastics ( e.g. PLA: 3-4 /Kg) PHA extraction Bacteria cultivation Carbon source PHA cost distribution Cultivation approach (pure microbial cultures /OGM) Selected carbon source Downstream steps (extraction/purification) Use of mixed microbial cultures (MMCs) Use of cheap carbon sources Use of green and sustainable extraction tools New applications

6 From waste and sludges to materials (2014 on going) TRL projects CKIC B-PLAS CKIC BioGrappa POR-FESR Valsovit CKIC BioGrappa FDF Probiopol FDF Probiotype Probiopol Probiotype CKIC Accelerator

7 The idea: boosting grape Economia circular economy Circolare enlarging opportunities COMPOST Grapes Grape seeds (GS) Grape lees (GL) Sewage sludge (SS) Grape pomace (GP) BIOGAS ENERGY Wine and winewaste New products Tartaric acid polyphenols ethanol, oil oenocyanin

8 Converting sludge from a cost to an asset The Arc of Sewage Sludge History. As wastewater treatment improved, sludge production increased. Coinciding with this increase, regulations moved the practice from open disposal on land and oceans, to bans on ocean dumping, and beneficial land based reuse. Public concern and local and state ordinances banning or severely limiting land application are now common. Rather than addressing the next issue incrementally, a change in the arc of history must include the reduction of sludge and the exploitation of sludge chemical and energy content, converting sludge from a cost to an asset.

9 B-PLAS: bioplastics from sludge Project Objectives 1.To estimate the production cost of PHA as well as the Capital Expenditures (CAPEX) and Operating Expenditures (OPEX) of the process for 2-4 potential scales based on flowsheet design, equipment sizing and cost evaluation. Sensitivity analysis will be carried out to identify the impacts of design and economic factors on cost items which can help to define the targets for further cost reductions. 2. To verify the characteristics and requirements of sludges from different treatment plants (organic waste input from agro-food, pharmaceuticals, municipal waste companies) to produce VFA and then PHA. 3. To finetune and validate the business model through stakeholders interactions and interviews on both sides of the supply chain: both wastewater treatment plants/biogas units, as well as potential users of bioplastics (in different markets such as food, packaging, designer goods) will be approached mostly in Italy and Hungary using the same method. This will be the main focus of the project and will suggest a follow-up proposal and exploitation plan for business outcome. 4. To update the LCA produced in the BioGrappa pathfinder with the improved technological process.

10 B-PLAS Business Model VALUE PROPOSITION - Financial impact: to reduce the high and increasing cost of sludge disposal in many companies of the food industry. Having the possibility to transform sludge into bioplastic also reduces the risks of future increases in the cost of disposal and/or limitations to the disposal. - Circular economy: to provide a contribution to circular economy, where waste is transformed into raw materials, reducing the needs for disposal and transportation of sludge. - Environmental impact: to reduce the environmental impact of manufacturing activity: carbon footprint and non-biodegradable plastic.

11 B-PLAS Business Model CHANNELS CUSTOMERS AND PARTNERS Two different business models STRUCTURE INVESTMENTS AND REVENUE STREAMS Focused on private companies and public administrations generating huge amounts of sludge (over tons/year). Both the biological digestor and the chemical extractor placed at the customer s site. Revenues generated by the services provided to the customer (engineering, maintenance, plant management). No investment is needed for the NewCo. The investment for the customer ranges between 1 and 1,2 millions. Focused on companies generating little amounts of sludge ( tons/year) The biological digestor is placed at the partner s site, while a central chemical extractor is managed by the NewCo. Investments related to the central chemical extractor ( K for 10K tons capacity). Revenues from PHA sales and a fee for managing the biological digestors. The investment for a biological digestor with a 5K tons ranges between 400 and 500k.

12 B-PLAS Business Model EXPECTED FINANCIAL RESULTS PRELIMINARY RESULTS - The main drivers of the profitability of the project are the PHA s market price and the disposal cost per ton; - The costs of running the biological digestor are mainly related to electricity (55%), maintenance (29%) and labour (16%); - The costs of running the chemical extractor can be forecasted with a limited variability and are mainly related to labour (35%), dimethylcarbonate (PHA extraction solvent) (33%) and electricity (26%); - Using reasonable values for PHA price (5-6 /Kg) and sludge disposal costs (20-30 /ton) our preliminary projections provide interesting returns both for the partner and the NewCo (ROI=15%-25%) and short payback periods (3-5 years).

13 Aknowledgements Thank you for your attention B PLAS ER POR FESR Biograppa Probio type I Valsovit Contacts: paola.galletti@unibo.it cristian.torri@unibo.it matteo.mura@unibo.it franco.visani@unibo.it II Probiopol