GeoBio Energy Inc., dba Plastics Conversion Technologies Inc., plans to set up a plastics recycling facility in Fond du Lac, Wis.
The Spokane-based company has signed a land purchase and development agreement with the city of Fond du Lac to purchase 12.2 acres in the an industrial park.
PCT expects to break ground on the facility in four to six months, according to Gary De Laurentiis, PCT's founder and chief operating officer. Auto shredder residue will be the major feedstock for the recycling plant.
This is an absolutely ideal location for our company to build a facility, De Laurentiis said. It is located halfway between a large, undisclosed supplier of auto shredder residue and the landfill accepting the residue.
PCT expects to spend $20 million on the facility, including about $5 million for equipment. The firm is raising $20 million in industrial revenue bonds to cover the capital cost of the project. Private placements will cover operating costs, De Laurentiis said in a telephone interview.
Auto shredder residue is a byproduct of metal recycling plants that handle scrap vehicles. De Laurentiis said PCT's plant will generate three streams: polypropylene/polyethylene, ABS/high-impact polystyrene, and other. In total, about 35 kinds of plastics are present in shredder residue. The PP/PE stream accounts for about 70 percent of the weight. The other category, representing about a third of the residue, will be converted into synthetic oil, De Laurentiis said. PCT is now talking to potential licensors of plastics-to-oil technologies.
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