Techno-Economic Evaluation of Vertical Compound Retort Technology in Large-Scale Magnesium Production

The rising global demand for lightweight structural materials has made magnesium vital in the automotive, aerospace, and electronics sectors. Currently, the Pidgeon process dominates magnesium production, particularly in China, but faces major drawbacks including high energy use, low efficiency, and labour-intensive operations. This study evaluates the technological and economic feasibility of Vertical Compound Retort (VCR) technology as a scalable alternative. Based on Pidgeon principles, VCR features a vertically oriented retort that enhances thermal efficiency, material throughput, and reduces labour intensity. Its design enables better heat distribution, easier material handling, and reduced heat loss and downtime. A feasibility study is conducted for a 3,000-ton/year plant in Gresik, East Java, Indonesia, which includes analysing process design, energy consumption, and material flow. The economic assessment covers capital and operating costs, profitability, and sensitivity analysis. Results indicate that VCR technology offers significant advantages in energy efficiency, process stability, and scalability. It holds promise for cost- effective, large-scale magnesium production in resource-rich regions.