Vadxx Energy, based in Cleveland and with a research and development (R&D) facility in nearby Akron, Ohio, is a young company that manufactures or recovers commodities from plastic scrap and other petroleum-based discards. Among the products the company’s process yields are synthetic crude oil, natural gas, recovered metals and a carbon “char” product.
Among the companies with which Vadxx is working is Houston-based Greenstar Recycling. The two companies are participating in a project that will convert Greenstar’s mixed and contaminated plastic scrap into the petroleum products that the Vadxx process creates.
In November 2011, Greenstar and Vadxx Energy signed a memorandum of understanding to form the joint venture. It is the first commercial-scale application of Vadxx’ system, planned for Akron, Ohio, designed to turn the mixed plastics into oil using the thermal depolymerization process.
In a 2011 visit to the Vadxx R&D facility, editors from REW interviewed Vadxx Chief Operating Officer Sean L. Arnold and Vice President of Business Development Russell Cooper.
Q: How can the Vadxx process fit into the picture for recyclers and waste generators?
A: Disposing of these materials is a cost center right now. It becomes a revenue stream with this process. (SA)
Q: What is expected from those who provide material to be used in the Vadxx process?
A: We expect our partner to clean the material and extract any contaminants, but we don’t want to micromanage the partner. We know the sorting process is imperfect. However, the cleaner the waste stream in, the more profit the partnership makes in the conversion process. As well, the Vadxx process works best with a fine, dense material of less than 1 inch in size. “ (RC)
Q: How do energy prices figure into your business model?
A: We need a barrel of crude oil to sell in the $35 to $45 range to break even. (SA)
Q: Are there end markets for the char byproduct?
A: Right now, we can sell the char at a nominal rate. We are looking for someone to bring us ideas for a higher-value use of the char and we are confident that it is sellable. It will not have to be part of the waste stream. (RC)