Economics Vision
The shape of change
Investment
BGL proposes a £700 million capital project funded from private and public sources to bring the facilities into production within 24 months of inception. BGL estimates that it will achieve payback, on an IRR-basis, in around 5 years. The peak funding requirement is forecast to be £490 million, coinciding with the development phase of the project.
Forecast
Overall, BGL forecasts that the 10-year IRR is 26.0% based on current input costs, output prices, and the dynamics of full capacity. It is estimated that this point is achieved at 400,000 tons of waste plastic processed per annum, producing 4 million litres of output oil across 50 production lines. The production capacity is modular and can be tuned to provide a wholly sustainable Diesel fuel output or similar for naphtha, allowing flexibility for the project in the post-diesel economy. This level of production is approximately 10% of the diesel imported from Russia.
Impact
The project will help create jobs within Freeport Zones (Levelling Up), contribute to reducing environmental damage (recycling plastics) and utilise technology funded from Korea (Global Britain Investment).