Many economic activities generate waste. Waste is generated as a by-product of the productive process and goods and packaging are disposed of by consumers and other end-users.
Waste from households tends to be made up of organic wastes, paper, glass, metal and plastic. Councils are also responsible for collecting and disposing of litter.
The amount of waste generated tends to increase with the size of human settlements and the level of industrial activity. The costs imposed by waste generation go beyond the financial costs of processing, treatment and transportation to landfill sites. Waste-related pollution and contamination can affect the environment and human health.
The Federal Department of the Environment and Water Resources notes that in 2002 and 2003, 17.7 million tonnes of solid waste was deposited at landfills in Australia. This equates to an average of 1.4 Tonners per Capita, of which 36% of waste deposited at landfills is recycled.
Working off an arbitrary landfill rate of $55/Tonne at 64% of 17.7 million Tonnes, we estimate potential landfill charges to be $623 million per annum.
275,000 Tonnes of waste oil was generated in Australia in 2003. Of this, only 5,000 Tonnes were recycled; a further 227,000 Tonnes were incinerated. This means that 43,000 Tonnes of waste oil was added to Australia’s stockpile.
These figures reflect a lack of infrastructure to handle the treatment of Australia’s waste oil.
Sakura Oil has the capacity to not only reduce Australia’s waste oil stockpile, but also to replace the wasteful incineration process with a clean technology process.
If 80% of Australia’s waste oil generated per annum could be converted to crude oil, and that crude oil could be sold at 80% of the average barrel price, then the potential sales value of that waste oil is calculated as:
275,000 Tonnes at 7.2 barrels per Tonne = 1,980,000 barrels of oil per annum
At 80%, this equates to 1,584,000 barrels. Assuming an average barrel price of $77.50, and taking this at 80%, we arrive at a potential value of $98.2 million USD per annum.
In addition, the Australian Government has introduced a stewardship program for waste oil generators, which allows a subsidy payment to oil recyclers of up to 5.449c per litre to offset the cost of collecting and processing waste oil.