Feasibility Study of a PET Mechanical Recycling Plant in Iceland
Student: Anna Marie Grace Reneau
Year: 2023
Supervisor: Einar Jón Ásbjörgsson
Abstract:
The objective of this thesis is to investigate the feasibility of establishing a PET plastic recycling plant
in Iceland. The feasibility study covers four key fields: technical, economic, policy, and environmental.
Each section utilises different methods to meet the objective. The technical section outlines
that design of the proposed plant based on engineering standards and know-how. The economic section
evaluated the project’s finical feasibility, using analysis methods such as net present value (NPV)
and break-even point. The policy and environmental sections conduct a detailed literature review of
various factors that could impact the project’s development.
The initial research proves that there is a significant amount of plastic currently being discarded in
Iceland. This plastic is either sent overseas for recycling or landfilled. There is growing interest to see
this happen locally. There are many benefits to recycling plastic in Iceland. One key benefit found in
the research is a 1/3 reduction in CO2 emissions when compared to shipping the bottles to be recycled
in Europe.
Determining the economic feasibility of the project proved challenging because of the lack of credible
equipment specifications and costs. Despite this, the analysis shows that under the right circumstances,
the project is economically feasible.
Further technical and economic analyses is necessary to fulling determine the project’s true feasibility.
Ideally, further research would be done by a company looking to make this project a reality. Nonetheless,
this thesis provides insight and guidelines for establishing a PET plastic recycling plant in Iceland.