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To reduce the cost of oil refining, one can start from five core aspects.

2026-01-14

To reduce the costs of pyrolysis oil refining, efforts should be made from five core dimensions: raw materials, equipment, operation, environmental protection, and industrial chain collaboration. Cost reduction and efficiency improvement can be achieved by combining large-scale production with technological optimization. Specific measures are as follows:


Optimize the Raw Material Supply Chain to Reduce Raw Material Costs

Diversified Raw Materials and Centralized Procurement

Integrate a variety of raw materials such as waste tires, waste plastics, and waste engine oil; sign long-term supply agreements with waste recycling enterprises and industrial parks to lock in low-cost raw materials. Meanwhile, select high-purity raw materials to reduce labor and energy consumption costs incurred by sorting and crushing.

Local Factory Construction and Integrated Raw Material Pretreatment

Build factories in regions with concentrated raw material supply (e.g., logistics hubs, waste materials distribution centers) to cut transportation costs. Incorporate raw material crushing and drying processes into the integrated on-site workflow to avoid additional expenses caused by outsourcing.


Resource Utilization of Residues to Offset Costs

Purify the carbon black generated during pyrolysis and sell it to rubber and coating manufacturers; directly feed the combustible tail gas back into the pyrolysis furnace for combustion to replace purchased fuels. Realize "waste-to-treasure" conversion and offset part of the raw material expenditure.

Optimize Processes to Reduce Energy Consumption

Equip with waste heat recovery devices to utilize the waste heat from pyrolysis furnace flue gas for raw material drying, thereby reducing energy consumption.

Extend Equipment Service Life

Adopt high-quality equipment materials resistant to high temperature and coking; conduct regular preventive maintenance to reduce equipment downtime caused by failures and the replacement frequency of wearing parts, thus lowering operation and maintenance costs.


Refine Operation Management to Cut Operational Costs

Automation for Staff Reduction and Efficiency Improvement


Employ interdisciplinary technicians for core positions to reduce labor costs.

Internalize Environmental Treatment Costs to Avoid Extra Expenditure

Establish an Environmental Protection Closed-loop System

Integrate tail gas desulfurization, wastewater treatment and residue utilization into an integrated process to realize waste recycling and reduce the procurement cost of chemicals.

Align with Environmental Standards in Advance

In accordance with the environmental requirements of the project location and target export markets (e.g., EU Regulation 2019/904), make one-time investment in compliant environmental protection equipment to avoid repeated capital input due to rectification.

Collaborate Through Industrial Chain to Expand Cost Reduction Channels

Co-refining Cooperation with Refineries

Directly transport pyrolysis crude oil to traditional refineries for hydrofining and share the refineries' fractionation and purification facilities, thus saving huge costs for constructing independent deep-processing equipment.


Group Going Global to Reduce Compliance Costs

Jointly apply for international certifications (e.g., CE, EPA) with other enterprises in the industry to share certification expenses; connect with overseas customers through industry associations to reduce foreign trade channel costs.

waste tyre pyrolysis plant30


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