Recycling Automotive Shredder Residue: A Techno-Economic Analysis

Abstract This study presents a novel “sorter-at-shredder” business model for the pyrolysis of Automotive Shredder Residue (ASR) plastics, addressing the challenge of low plastic recycling rates in end-of-life vehicles (ELVs). ASR comprises 25% of ELV material, and ASR consists of about 43% polypropylene (PP) and polyethylene (PE) plastics, which can be separated using sink-float sorting technology and pyrolyzed into olefin-rich product. The “sorter-at-shredder” business model strategically places small-scale pyrolysis plants that process up to 280 tons per day at existing shredders, integrating with ferrous and non-ferrous processing chains and enabling daily processing of ASR plastics. The model focuses on PP and PE plastics, creating olefin-rich product that can be re-entered into the supply cycle. Economic analysis reveals a yearly revenue of $46.1M for olefins-rich product, and a promising payback period of 6.3 years for the shredder, falling within acceptable ranges. The model uses Dallas, Texas, to capitalize on regulatory, economic, and geographical advantages, including proximity to a cluster of 5 shredders which process 165 tons of PP and 119 tons of PE each day, and proximity to oil refineries which can purchase olefin-rich product from the shredder. Future work involves optimizing sorting and pyrolysis technologies, ensuring the model’s success and contributing to a sustainable automotive industry.