Sustainable Development Goals
Project Status:
Completed | Operating Since 2018
Organizations Involved:
VA Energy, Owl Energy, Thailand Board of Investment, a local oil refinery, and several plastic recyclers
Services:
Due Diligence, Supply Chain Management, Component Supply, Operator Training
The Challenge:
Despite ongoing efforts in Southeast Asia as a whole, in Thailand, plastic waste leaking into the marine environment remains a significant problem. In 2019, the Government of Thailand released the Roadmap for Plastic Waste Management 2018-2030 and is developing the National Action Plan on Marine Plastic Debris to alleviate the current impacts and avert future damage caused by marine plastic debris. While these efforts are critical steps toward controlling the country’s plastic pollution problem, further insight is needed into the origin of plastic waste and its movement in the environment. According to a recent study and report titled "Plastic Waste Material Flow Analysis for Thailand: Summary Report," completed by the World Bank, the resulting data underpin the findings and outline the sheer volume of the problem.
Despite a high municipal solid waste collection and recycling rate of 88.8% in Thailand, remaining uncollected plastic waste and many unsanitary disposal facilities result in an estimated 428 kton/year of mismanaged plastic waste. Most mismanaged plastic waste available for wash-off into rivers and the marine environment (defined as ‘exposed mismanaged plastic waste’) is generated in rural areas (70.1%), where collection rates are lower and disposal facilities are limited. Bangkok contributes 18.4% of the exposed mismanaged plastic waste due to the large volumes of waste generated and left uncollected. A significant amount of uncollected waste in the Chao Phraya catchment is disposed of directly into waterways.
Ten districts, out of a total of 247, account for 51.7% of the total exposed mismanaged plastic waste in the high-priority catchments. These are all situated in or near Bangkok and are relatively close to the marine environment. Across four high-priority catchments (excluding Mae Klong), on average, 47.6% of mismanaged waste in the rivers is discharged into the aquatic environment. An annual average of 9.3 kton/year of plastic waste is discharged into the marine environment from four high-priority catchments (see figure below; numbers exclude Mae Klong).
This is equivalent to a marine plastic footprint of 0.4 kg per capita per year. During stormy years, this may increase to 14.3 kton/year, while it may be as low as 4.9 kton/year in drier years. In tourist hotspots, it is estimated that a total of 16.8 kton/year of mismanaged plastic waste is generated, with the source varying across different tourist hotspots. According to the report linked above, there is an estimated 0.7 kton/year of exposed, mismanaged plastic waste, which is leaked into the environment primarily from unsanitary disposal facilities in cities and from uncollected waste in rural areas. The lack of reliable hydrological data in the tourist hotspots resulted in unreliable results for the transport of exposed mismanaged plastic waste to the marine environment.
This situation is out of control. Additional insight into the sources and pathways of plastic waste in the environment is necessary to inform policies and investments that create positive change if there is any hope for the circular economy to flourish in Thailand.
The Solution:
In 2015, VA Energy, a private limited company, was established in Thailand. The company was founded by three young, dynamic, and visionary businessmen who were ready to tackle the plastic waste crisis facing Thailand. The company was also registered under BOI (Board of Investments in Thailand) and acquired an Oil Refinery and Processing License from the Government of Thailand. The Company has also obtained all the necessary clearances and certificates to operate the business in Thailand.
With all the necessary permits, VA Energy became one of a kind, listed as Thailand's first independent oil producer (IOP) that utilized waste plastic as a raw material and produced high-quality, industry-grade pyrolytic oil. The first oil production facility was installed and commissioned in the Banga Phli area outside Bangkok, Thailand, in February 2018. As a result, the company continues to look at the possibility of expanding its business horizons by partnering with key industrial players in Thailand and other Southeast Asian Countries.
The aim was to establish a pilot plant equipped with state-of-the-art plastic pyrolysis equipment, which converts plastic waste into oil. This pilot project holds significant potential to contribute to Thailand's circular economy. This facility was designed as a batch process by a Korean company. However, the project did experience technical challenges with operation performance, problems which we later fixed due to continued engineering. Feedstock quality was initially a challenge, but it was later resolved with the feedstock suppliers, and quality assurance measures were implemented. Additionally, due to the nature of batch pyrolysis processing, a rigorous maintenance program was implemented due to continued plant fouling. As a result of significant process improvements and continued operational enhancements, VA Energy sold the pilot facility as an R&D site to continue research into plastic-to-fuel applications.
The company is currently developing a significantly larger project, which will utilize commercial-grade equipment more suitable for extended continuous operation and the production of higher-quality outputs.
The Outcome:
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