Feedstock First: QA, Contracts, and Pricing for Pyrolysis Projects in Thailand

In the world of pyrolysis, particularly within Thailand, success hinges significantly on the quality of feedstock used in the process. Whether it's end-of-life tires (ELT), various plastics, or biomass, establishing robust quality assurance (QA) measures, solid contracts, and transparent pricing formulas is crucial for the success of pyrolysis projects. This blog delves into these components, backed by case studies from Thailand, to ensure you secure high-quality inputs while minimizing risks and establishing viable economic models.

Why Feedstock Discipline Matters

Feedstock quality directly influences yields and product quality in pyrolysis. For instance, Thailand’s typical yield profiles for ELT reveal that by regulating moisture and contamination, one can achieve approximately 40% tire pyrolysis oil (TPO), 32% carbon black, 13% steel, 9% syngas, and 6% sludge. These yield figures come from a case analysis based on IPCC-aligned accounting, which serves as a reliable planning baseline.

Pyrolysis plant utilizing end-of-life tires as feedstock.

Thailand generates around 600,000 tons of end-of-life tires annually, providing a stable and abundant source of feedstock for continuous pyrolysis operations, provided that quality and logistics are adequately managed. A notable example is the investment by Marubeni and Green Rubber Energy (GRE) in Thailand, which highlights the importance of stable rubber carbon black (rCB) quality and organized ELT collection through partnerships such as B-Quik. This kind of procurement strategy underpins viable rCB and TPO sales, showcasing how effective feedstock contracts are the foundational step in the supply chain.

Understanding the Thai Feedstock Landscape

End-of-Life Tires (ELT)

The landscape for ELT in Thailand is characterized by a predictable composition that allows for strong recovery of steel and carbon black. The potential for TPO, which can be used for blending and upgrading, makes ELT a highly viable feedstock option. Furthermore, conducting life cycle assessments (LCA) within Thailand indicates that the environmental benefits increase when accounting for recovered products and optimizing electricity consumption.

Plastics

In terms of plastics, poly styrene (PS), polyethylene (PE), and polypropylene (PP) can serve as good feedstock options. However, chlorine management is necessary for polyvinyl chloride (PVC). Due to the composition and sorting limitations of municipal solid waste (MSW) in Thailand, it is best to site plastics pyrolysis facilities where pre-sorting and QA measures can be reliably implemented, such as in industrial estates or transfer stations.

Sorted plastics prepared for the pyrolysis process.

Biomass

Common biomass feedstocks include bamboo, rice husks, and wood residues. Projects aiming at carbon removal credits are encouraged to implement digital monitoring, reporting, and verification (MRV) systems, which can track kiln data, laboratory tests, and application logs. The partnership between WongPhai and Planboo in Prachinburi serves as an exemplary model for such initiatives.

The QA Specifications to Include in Your RFP

When drafting a Request for Proposal (RFP) for feedstock quality assurance, it is critical to establish clear acceptance thresholds. For instance, consider the following QA specifications for ELT:

• Moisture: ≤ 5%, with no free liquids present.

• Size: Chips ranging from 20 to 50 mm (or whole tires if compatible).

• Contamination: PVC, metals, and non-rubber components should be ≤ 0.5% w/w; soil and sand should be ≤ 1% w/w.

• Prohibitions: No hazardous waste, liquids, batteries, or electronic waste allowed.

• Sampling: Use ISO-style random composite sampling methods, including a minimum of 10 sub-samples per lot, with sealed witness samples tested within 24 to 48 hours.

  
  

Adhering to these specifications is vital because moisture and contaminants can severely degrade TPO and rCB specifications. Consistent studies conducted on ELT in Thailand have identified QA as the principal lever for achieving stable outputs.

Product-Side QA: What You Need to Monitor

To ensure high-quality output from your pyrolysis process, it is equally important to back-propagate product-side QA measures into feedstock procurement. The following QA attributes warrant attention:

• TPO: Density, viscosity, sulfur content, ash levels, and higher heating value (HHV) are essential metrics, with acceptable ranges agreed upon with buyers.

• rCB: Key measurements include iodine adsorption, dibutyl phthalate (DBP) absorption, ash content, metals, particle size, and tint strength. Tire-grade rCB necessitates stable upstream QA and may involve partnerships for purification, similar to the situations seen with GRE.

  
  

Biomass and waste materials awaiting processing.

Crafting a Robust Contract: Essential Clauses

When drafting contracts for feedstock procurement, it is crucial to include specific clauses that will protect both parties involved. Here are some essential elements to consider:

1. Volumes, Tenor, and Delivery Plan: Establish monthly minimum/maximum volumes with a well-defined delivery plan to handle outages and ensure scalability.

   
   

2. QA & Rejection Protocol: Include provisions for pre-delivery declarations regarding moisture content, chip size, and class of contamination. On-site sampling must be conducted with witness samples, and any non-compliance should result in price deductions or lot rejection.

   
   

3. Pricing Formula: An effective formula can look like this:

   ```

   Base Price (THB/ton) × Quality Multipliers × Market Index × Logistics Factor

   ```

5. Where quality multipliers account for moisture and contamination penalties and the market index links to scrap indices for steel and TPO/rCB references.




6. EHS & Compliance: Suppliers must warrant compliance with legal waste handling, provide necessary permits, and adhere to environmental standards, especially regarding odor, dust, and leachate management.

   
   

7. Performance & Remedies: KPIs for on-time delivery, reject rates, average moisture, and contamination percentages should be specified, along with remedies for non-compliance, including price credits or replacement volumes.

   
   

Storage and Logistics: Critical Considerations

Behind every successful pyrolysis project lies a well-thought-out logistics strategy. Effective operations require:

• Covered Storage: Ensure feedstock is stored in covered facilities with forced ventilation, allowing for a 3 to 5-day buffer inventory while using drip-dry pads to maintain moisture specifications.

• Truck Inspection Protocols: To enhance quality control, implement strict vehicle inspections to prevent liquids and mixed hazardous materials from entering the facility.

  
  

• Electronic Tracking Systems: Employ weighbridges integrated with camera systems to foster traceability, which can enhance both quality assurance and billing systems.

  
  

Building a Bankable Supply Chain: A Case Study

The partnership between Marubeni and Green Rubber Energy (GRE) in Thailand stands as a case study in establishing a bankable supply chain for ELT to rCB/TPO conversion. By ensuring stable input QA and creating purified rCB quality through solid food-grade partnerships, along with organized ELT collection from reliable sources like B-Quik, they have created a robust operation with organized downstream sales channels.

By implementing tiered QA-linked pricing, establishing traceable collection contracts, and partnering with specialized purification companies, they have successfully mitigated risks, thereby enhancing the project’s bankability.

Key Takeaways for Future Projects

Before embarking on your pyrolysis venture in Thailand, it is essential to take the following steps into account:

1. Define Feedstock Specifications: Establish clear guidelines regarding moisture, size, contamination, and prohibited materials.

   
   

2. Create and Enforce Sampling Protocols: Set standard operating procedures for sampling and rejection processes, alongside witness sample collections for transparency.

   
   

3. Draft Transparent Pricing Formulas: Include penalties linked to quality assurance and indexation to align incentives and minimize disputes.

   
   

4. Establish Robust Agreements: Lock in volumes and tenor, and ensure a proper buffer inventory is in place.

   
   

5. Engage in Traceability Mapping: Identify collection points and routes for ELT, enhancing both logistics and quality control.

   
   

By taking these detailed steps, you can maximize the effectiveness of your pyrolysis project while contributing to a more sustainable and economically viable future in the domain of waste management in Thailand.

For further assistance in drafting QA specifications, pricing formulas, and contracts to ensure that your pyrolysis unit receives the right input every day, please contact us at AD ASIA Consulting — Services.