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Home » A Chat with Dan Nienhauser on Waste-to-Fuel Tech and the Economic Impacts

A Chat with Dan Nienhauser on Waste-to-Fuel Tech and the Economic Impacts

Joan Aimuengheuwa by Joan Aimuengheuwa
July 10, 2023
in Environment
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A Chat with Dan Nienhauser on Waste-to-Fuel Tech and the Economic Impacts
Dan Nienhauser, Co-founder and CEO, Stellar3

Dan Nienhauser, Co-founder and CEO, Stellar3

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  • Waste-to-fuel technologies generate revenue and reduce waste management costs by converting waste into low-carbon fuels (DN)
  • AI and ML technologies enhance waste management and fuel production through optimized sorting, predictive maintenance, and improved resource recovery (DN)
  • Waste-based fuels contribute to energy security, reduce landfill usage, and can be produced from diverse waste streams, addressing multiple waste management challenges simultaneously (DN)
Waste management has become a big deal in recent times, with the world producing over 2 billion tonnes of waste annually; imagine these converted and utilized for a variety of useful products.

Well, technology is doing the most and Dan Nienhauser, the Co-founder and CEO of Stellar3 had a discussion with TechEconomy to help us understand this, including the possibilities in waste management and technology.

Nienhauser is a waste-based fuels expert with a decade of experience in waste management and chemical recycling. He was the founding Executive Director Finance & Admin at The Earth Institute at Columbia University, founding Board Member of the Arizona Collaboratory, and co-founder of NW Direct in New York, a design and ideation firm.

Let’s dive in: 

TE: As an expert in waste-based fuels and low-carbon fuel production, could you share insights on the economic aspects of transforming waste into low-carbon fuels and how this approach can address the existing waste management challenges?

DN: It is possible to address waste management challenges by converting waste into low-carbon fuels. The process offers several economic advantages. The following are some insights into the economics of this approach:

From waste that would otherwise be discarded, waste-based fuels can generate new revenue streams. Rather than incurring costs for waste disposal, waste management facilities can generate income by converting waste into low-carbon fuels. In addition to offsetting operational expenses, this revenue may also provide additional profits.

Waste-to-fuel technologies can reduce waste management costs. Companies can save on tipping fees, transportation costs, and other expenses related to waste handling by diverting waste from landfills and incineration, which typically have high disposal costs. In addition, waste-derived fuels are a cost-effective alternative to fossil fuels, especially at times when conventional fuels are expensive or imported.

There are many countries and regions that provide incentives and subsidies for the production of renewable energy, including low-carbon fuels derived from waste. Tax credits, grants, and feed-in tariffs can make waste-based fuel production more economically feasible and attractive to investors. A stable market demand for renewable fuels may be created by standards and mandates.

Waste-to-fuel facilities can generate jobs in a variety of sectors through their development and operation, and distribution of circular materials and blend-ready fuels. Employment opportunities are available in engineering, construction, research and development, operations, maintenance, and supply chain management. Waste management jobs can contribute to local economic growth and provide employment opportunities in regions facing waste management challenges.

Waste management, such as landfilling and incineration, has environmental costs associated with greenhouse gas emissions, soil and water pollution, and resource depletion. These negative environmental impacts can be mitigated by converting waste into low-carbon fuels. Some environmental damage and expensive pollution control measures can be avoided by using waste-based fuels.

Waste can be converted into low-carbon fuels in line with the principles of the circular economy. Recovering value from waste materials reduces reliance on virgin resources. By promoting resource efficiency and reducing waste generation, this approach can contribute to the development of a more sustainable and resilient economy. The majority of waste is generated locally where the population is highest, and waste-based fuels are not subject to the high carbon footprint associated with extracting virgin oil, refining it and transporting it to the end user.

Diversifying energy sources and reducing dependence on imported fossil fuels are two ways waste-based fuels contribute to energy security. In addition to increasing their energy independence, countries can reduce their vulnerability to geopolitical risks and price fluctuations associated with fossil fuel imports by utilizing local waste resources.

The use of waste-to-fuel technologies can help divert waste from landfills, extending the life of existing landfills and reducing the need to establish new ones. In areas with limited land and high land costs, maximizing landfill space is critical. As a result of converting waste into low-carbon fuels, fewer landfills are needed, allowing other productive uses of land to be realized.

Technological innovation, economies of scale, and process optimization can reduce costs of waste-to-fuel technologies, presenting a compelling economic case for implementation. They can help alleviate waste management challenges by generating revenue, reducing costs, stimulating renewable energy, creating jobs, and avoiding environmental costs.

TE: Pyrolysis is often mentioned as a key process in waste transformation. Could you explain how pyrolysis works and highlight its distinct advantages over traditional burning or incineration methods?

DN: In the absence of oxygen or with limited oxygen supply, pyrolysis converts organic materials, such as biomass or waste, into solid, liquid, and gaseous products. As a quick overview of pyrolysis, here are the steps:

  • Typically, organic material in the form of shredded waste or biomass is heated between 300 and 800 degrees Celsius (572 to 1472 degrees Fahrenheit). A rotary kiln, fluidized bed reactor, or pyrolysis plant can be used for heating.
  • The organic material undergoes thermal decomposition as the temperature rises, releasing volatile compounds. Gases, vapors, and tars are among these volatile compounds.
  • After being transferred to a cooling system, the volatile compounds are rapidly cooled and condensed. A series of heat exchangers or condensers convert gases into liquids or solids during the cooling process.
  • Bio-oil or pyrolysis oil is commonly known as the condensed liquid and can be refined into higher-value chemicals or used as a fuel. A solid residue, referred to as biochar or pyrolysis char, retains a significant amount of carbon and can be used as a soil amendment. In various applications, non-condensable gases, such as syngas or gas producers, can be combusted to generate heat.

Compared to traditional burning or incineration methods, pyrolysis offers the following distinct advantages:

  • Pyrolysis is usually more energy-efficient than traditional methods of burning or incineration. The loss of energy due to incomplete combustion is reduced by the absence or limited supply of oxygen during the process. Energy efficiency can be improved by utilizing bio-oil and syngas as fuels to generate heat and electricity.
  • In comparison to traditional burning or incineration, pyrolysis produces fewer emissions. During pyrolysis, oxygen is absent, so harmful pollutants such as nitrogen oxides (NOx) and sulfur dioxide (SO2) cannot be formed. In addition, bio-oil and syngas generated from pyrolysis can be further treated to remove impurities, resulting in cleaner combustion and lower emissions.
  • The process of pyrolysis produces a variety of valuable products, such as bio-oil, biochar, and syngas. The products can be used as renewable fuels, chemical feedstocks, or soil amendments. In addition to enhancing the sustainability of the process, the versatility of the products adds economic value.
  • Organic waste can be converted into useful products by pyrolysis, a waste treatment and resource recovery method. By diverting waste from landfills, it reduces the environmental impact of waste disposal. Furthermore, the process supports circular economy principles by recovering resources from waste materials.
  • A wide range of organic materials can be processed by pyrolysis, including agricultural residues, forestry waste, municipal solid waste, and plastics. By utilizing diverse waste streams as feedstocks, it is possible to address multiple waste management challenges simultaneously.
  • The biochar produced during pyrolysis can sequester carbon when applied to soils. As a carbon sequestering and soil improvement material, biochar is highly stable and can retain carbon for an extended period of time.

To ensure pyrolysis technology’s effective and sustainable implementation, it’s important to consider specific factors such as feedstock quality, process optimization, and environmental regulations. Stellar3 engineering team has decades of experience developing thermal solutions for demanding industries such as automotive, ceramics, and mining/metals. We have a distinct advantage in the efficiency and output quality of our pyrolysis waste transformation facilities. 

TE: When it comes to plastic waste, what are the best practices for effectively utilizing and transforming it into valuable products or low-carbon fuels? Are there specific technologies or strategies that have proven to be successful in this regard?

DN: There is a wide range of chemical compositions in plastics, as well as best practices for circular and transformational solutions.

A number of best practices, technologies, and strategies have shown promise when it comes to converting plastic waste into valuable products or low-carbon fuels. A few examples are as follows:

In mechanical recycling, plastic waste is sorted, cleaned, and processed to produce pellets or flakes that can be used to manufacture new plastic products. Recycling infrastructure as well as effective waste collection and sorting systems are necessary for this process. The majority of PET and PETE plastics are separated and recycled mechanically, which is why mechanical recycling is one of the most widely used recycling methods.

Alternatively known as advanced recycling or feedstock recycling, chemical recycling involves converting plastic waste into chemical building blocks or feedstocks that can be used to produce new plastics. Gasification, depolymerization, and pyrolysis are among the technologies that fall under chemical recycling. Plastic waste can be converted into fuels, waxes, solvents, or monomers for plastic production.

The pyrolysis of plastic waste can be used to convert it into low-carbon fuels. Pyrolysis oil and syngas are produced by heating plastic waste in the absence of oxygen to break down the polymers. In addition to serving as fuels, these products can also serve as feedstocks for the production of chemicals and new plastics. Advances in pyrolysis system efficiency has proved commercial systems can economically transform single and mixed plastic streams into circular materials and blend-ready fuels.

Incineration or gasification are waste-to-energy technologies that can convert plastic waste into energy. Incineration involves the controlled combustion of plastic waste to generate heat and electricity, while gasification involves the partial oxidation of plastic waste to generate synthesis gas. By recovering energy from plastic waste, these technologies reduce fossil fuel consumption, although incineration has a low mass balance and can produce air pollution.

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A solvent-based recycling method involves the use of specific solvents to dissolve or break down plastic waste. The process recovers high-quality polymers and additives that can be used to make new plastics and other products. For certain types of plastic that are difficult to mechanically recycle, solvent-based recycling is particularly effective.

The implementation of design strategies that facilitate the recycling and recovery of plastics plays a vital role in maximizing their utilization. Among these are the use of easily recyclable plastics, the promotion of mono-material packaging, avoiding complex multi-layer structures, and designing products that can be disassembled and separated. As a result of design for recycling principles, more efficient recycling processes can be achieved as well as higher quality recycled materials can be maintained.

In extended producer responsibility (EPR) policy, producers are responsible for managing their products at the end of their useful lives. By implementing EPR systems for plastics, manufacturers can design products that can be recycled, invest in recycling infrastructure, and take responsibility for the proper disposal or recycling of plastic waste. As a result of EPR programs, recycling has been promoted and technology development has been encouraged.

Raising public awareness about plastic waste management and recycling is crucial for maximizing the use of plastic waste. By educating consumers about proper waste segregation, recycling processes, and the environmental impacts of plastic pollution, we can promote behavioral changes and increase recycling participation.

There is no single technology or strategy that can address all plastic waste challenges. Effective plastic waste utilization requires a combination of approaches tailored to local conditions, waste streams, and market demands. Implementing successful plastic waste management and transformation initiatives requires collaboration among stakeholders, including governments, industry, and communities.

TE: AI and ML technologies have shown great potential in various industries. How do you see these technologies being applied in waste management and what benefits can they bring to enhance waste-based fuel production or overall waste management processes?

Artificial Intelligence (AI) and Machine Learning (ML) technologies have significant potential to enhance waste management processes and waste-based fuel production. AI and ML can be employed to develop automated systems for waste sorting and recycling. Machine vision and image recognition techniques can analyze and classify waste items based on their material composition, shape, and color. 

This enables efficient and accurate sorting of recyclable materials, optimizing the recycling process and increasing recycling rates. AI and ML algorithms can analyze historical data, including waste generation patterns, collection routes, and bin utilization rates, to optimize waste collection schedules and routes. By predicting waste generation and identifying optimal collection points and timings, AI-powered systems can reduce fuel consumption, improve collection efficiency, and minimize costs associated with waste collection operations. 

AI and ML can also assist in predicting equipment failures and optimizing maintenance schedules and optimizing resource recovery processes, such as biogas production or waste-to-energy conversion.

Overall, AI and ML technologies offer opportunities to optimize waste management processes, enhance waste-based fuel production, improve operational efficiency, reduce environmental impact, and support the transition to more sustainable waste management practices. Leveraging these technologies can lead to more effective and data-driven decision-making, driving innovation and continuous improvement in waste management systems.

TE: In addition to waste-based fuels, your company Stellar3 focuses on waste transformation technologies. Could you elaborate on other innovative solutions or approaches your company is working on that have the potential to address waste issues and contribute to a more sustainable future?

To begin with, Stellar3 hopes to contribute to a new global dialogue, one that views waste as a resource rather than a waste product for burial. At their chemical core, materials and products can be better formulated, utilized and then reused or repurposed – and thermal technologies and techniques play an important role in the development of circular solutions that transform waste back into non-virgin raw materials and fuels.

In addition to mixed plastics to liquid fuel (blend-ready diesel and naphtha) waste transformation plant, Stellar3 plant solutions include modular solutions for end-of-life tires (“EOLT”) and local mixed waste-to-energy that includes organics (food waste). The EOLT facility will eliminate the need for energy intensive shredding for end-of-life tires transformation, since the “full tire” solution separates nearly 99% of reusable steel and fabric from petroleum components of tires when they are transformed into pyrolytic oil and recycled carbon black. A localized 25-30 ton/day mixed MSW waste-to-energy plant will eliminate 97% of office/restaurant/destination waste and generate 1.1-1.5 Mw of electricity for medium-sized communities.

Stellar3 thermal engineering design and build prowess provides a superior set of modular plant solutions for a variety of feedstocks and outputs. Stellar3 designs, builds and sells or operates plants that transform a variety of wastes into low carbon fuels, circular materials or electricity – addressing market needs. For decades, our engineering team has developed thermal solutions for demanding industries including automotive, ceramics, mining, and metals. The Stellar3 plants can be smaller, operate for 20 years guaranteed and deliver superior outputs for feedstock provided.

Unlike other chemical recycling developers in the marketplace today, Stellar3 leverages Neural Networks (AI) currently available to it and develops proprietary and unique Machine Learning (“ML”) models for this industry. In future cases, Stellar3 will work with academic and commercial consultants to hypothesize and identify best operating procedures using multi-layer analysis of data. 

To begin with, ML efforts will study, organize, and improve feedstock and offtake logistics and supply chains. In order to improve efficiencies and output quality, multi-layer ML real-time predictive analysis will be implemented using cameras for spectral Identification (visual and infrared), sensors, scientific instrumentation, temperature, pressure, chemical monitoring, and other available and identified data.  

By continuously capturing and analyzing data in real-time, Stellar3 can provide actionable insights. In this way, we will be able to identify anomalies in the process or feedstock, predict failures, and identify inefficiencies in the supply chain. As well as improving the process, we will be able to provide useful data for making informed business decisions (reconfiguring controllable process elements to maximize yields).

As a company, Stellar3 aims to provide facility solutions that convert 99% of all wastes into circular materials and fuels. 

TE: Given your extensive experience in waste management and chemical recycling, are there any emerging trends or advancements in the field that particularly excite you? How do you envision these developments shaping the future of waste management and the production of low-carbon fuels?

Currently, the most exciting trend in waste management is the ability for science and engineering to turn “waste streams” into circular products, electricity, and low carbon fuels. For modular plants that have the ability to transform waste into syngas that can be processed into electricity, green pyrolytic oil for new tires or plastics, blend-ready fuels, and even hydrogen, there is a path forward that eliminates landfills while establishing circular product pathways for chemicals, tires and plastics.

Governments, communities, and industry must work together to create these changes, which will involve new technology breakthroughs, new attitudes and actions towards waste management, and ultimately new product designs.

We are now entering a commercially viable circular waste economy. As we advance in knowledge, cooperation, and technology, a new era will emerge.

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  • Joan Aimuengheuwa
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