Saturday, September 04, 2021 9:50:36 AM
Low capacity infers a very high fixed cost element to absorb. This includes things like insurance, maintenance personnel, cleaning crews and management. A 500 or better yet a 1000 tonne per day plant makes better sense from a cost per barrel viewpoint.
A low quality liquid fuels output has substantially less revenue per barrel than a finished refinished product. Even if it is a low sulphur product it will not mean anything unless you upgrade it offsite or sell it to a blender at which point you are giving away potential profits. Selling the output as power depends on the market. In the second and third world it makes sense. the US power prices are too low. Tipping fees to receive the plastics are often too low to cover the full production costs.
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