Key Considerations for Establishing a Pyrolysis Oil Refining Plant Overseas

Key Considerations for Establishing a Pyrolysis Oil Refining Plant Overseas

Launching a pyrolysis oil refining plant overseas hinges on five core pillars: compliance & licensing, environmental emissions control, safety standards, supply chain management, and localized operations. Meanwhile, it is essential to adapt to the policies and cultural differences of the target country. The detailed considerations are as follows:

I. Compliance and Licensing: Prerequisite for Project Implementation

Compliance is the bottom line for overseas plant construction. Requirements vary drastically across countries and regions, necessitating 6–12 months of advance preparation.

Most countries classify pyrolysis oil refining projects as either “waste treatment” or “advanced recycling”, while a handful of regions (e.g., 24 states in the U.S.) categorize them as “manufacturing”. Project classification directly determines the intensity of subsequent supervision. Therefore, it is critical to consult the local environmental protection authority in advance to clarify the project’s nature and avoid regulatory conflicts.

A suite of core permits is mandatory for project commissioning, including Environmental Impact Assessment (EIA), hazardous waste operation license, emission permit, fire safety permit, and construction permit. In the EU, compliance with REACH and CLP regulations is required; in the U.S., registration with the EPA and OSHA is a must. It is advisable to entrust local law firms or consulting agencies to handle permit applications, ensuring that all submitted documents meet local language and formatting requirements.

Industry standards differ significantly by region. For example, the EU imposes extremely stringent limits on emissions of dioxins (≤ 0.1ng TEQ/m³), sulfur dioxide, and VOCs. Some U.S. states implement exemption policies for “advanced recycling” projects. Equipment selection must align with local emission standards, with priority given to environmental protection systems holding EU CE or U.S. UL certifications.

Attention should also be paid to tax policies and subsidies. Enterprises can leverage carbon reduction subsidies, solid waste treatment subsidies (e.g., EU carbon tariff deductions), and declare value-added tax and corporate income tax in compliance with regulations. Proactive communication with the local investment promotion agency is recommended to apply for preferential policies for foreign-invested enterprises and avoid double taxation.

II. Environmental Protection and Emissions Control: Core to Avoid Compliance Risks

Environmental regulations overseas are generally rigorous, with hefty fines for non-compliance (e.g., daily fines in the EU can reach millions of euros). Strict control must be exercised throughout the entire process, from equipment selection to daily operation and maintenance.

In terms of equipment selection, continuous pyrolysis equipment is preferred for its superior airtightness and low emissions. It should be equipped with a multi-stage system integrating condensation, desulfurization, denitrification, baghouse dust collection, and activated carbon adsorption to ensure exhaust gas meets discharge standards. Additionally, a Continuous Emission Monitoring System (CEMS) should be installed to upload real-time data on key pollutants (such as SO₂, NOₓ, VOCs, and particulate matter) to the local environmental authority for dynamic supervision.

By-products like carbon black and steel wire must be stored and transported in accordance with local solid waste regulations to prevent secondary pollution. Wastewater generated during production (e.g., condensed water) must be treated to reuse standards before discharge; some countries even mandate “Zero Liquid Discharge (ZLD)”, prohibiting direct discharge of untreated wastewater.

Regarding carbon compliance, projects in the EU must be incorporated into the ETS carbon trading system, requiring enterprises to calculate total carbon emissions and purchase allowances as needed. In some U.S. states, enterprises are obligated to declare greenhouse gas emission data regularly. Carbon emissions can be reduced by recycling combustible gas for furnace combustion and recovering waste heat. Enterprises can also apply for carbon reduction certifications (e.g., ISO 14064) to enhance the project’s green competitiveness.

 III. Safety and Technology: Foundation for Stable Operation

Pyrolysis processes involve high temperature, high pressure, and flammable/explosive gases. Industrial safety requirements overseas are extremely strict, making it imperative to establish a comprehensive HSE (Health, Safety, Environment) management system.

For process safety, a slight negative pressure or inert gas protection system should be adopted to prevent explosions inside the pyrolysis reactor. When the pyrolysis temperature exceeds 500℃, negative pressure processes are preferred to minimize safety risks. Alarm devices for over-temperature, over-pressure, and gas leakage must be installed and linked to automatic shutdown and fire suppression systems. Critical equipment should undergo regular pressure testing and non-destructive testing to identify potential safety hazards promptly.

For personnel safety, all employees must receive professional training certified by local OSHA or EU-OSHA and master emergency response procedures. Personal protective equipment (PPE) against high temperatures and toxic gases must be provided for on-site operations. Enterprises should formulate detailed emergency response plans, conduct regular drills for fire and gas leakage scenarios, and submit the plans to the local emergency management department for filing.

Technology localization is also crucial. Equipment must be compatible with local voltage and fuel standards (e.g., 380V, 50Hz in Europe) to avoid malfunctions caused by incompatibility with local infrastructure. A local inventory of critical spare parts should be maintained to prevent prolonged downtime due to part shortages. Long-term maintenance agreements should be signed with equipment suppliers to ensure timely technical support.

IV. Supply Chain and Localized Operations: Key to Stable Profitability

Overseas plant construction requires in-depth adaptation to the local market environment, addressing challenges such as raw material supply, product sales, and daily operational communication.

For raw material security, long-term cooperation agreements should be signed with local waste recyclers to secure a stable supply of core raw materials (e.g., waste tires, waste plastics) and control procurement costs at the source. Close attention should be paid to raw material import policies, including tariffs and import quotas, to avoid raw material shortages caused by trade barriers.

For product sales, fuel oil must meet local industrial fuel standards (e.g., EU EN 590, U.S. ASTM D396) and can be directly supplied to industrial users such as power plants and cement factories. Carbon black can be further processed into rubber fillers, pigments, and other high-value-added products. Some countries even offer special subsidies for recycled carbon black products.

For localized operations, it is recommended to hire local management and technical personnel who are familiar with local regulations, policies, and cultural customs, thereby effectively reducing communication costs. In particular, personnel in key positions such as safety and environmental protection must hold valid professional certifications to meet local employment requirements.