Hydrocarbon Processing - July 2022 - 37

Circular Economy
M. VILLEGAS, Koch Modular Process Systems,
Houston, Texas
Enabling a circular economy delivery model
through truckable modularization
As resources become scarcer, and as costs continue to rise,
companies are looking for new methods to reduce their material
feedstock costs and remain competitive. Societal pressures on
companies to minimize their impact on the environment and
reduce their carbon emissions further compound this situation.
One of the key strategies for achieving a competitive advantage,
while also meeting corporate sustainability goals, is to create
a circular economy. This can either be done by developing
the circular economy from the start or by converting a linear
economy to a circular economy (FIG. 1). To close this loop,
many companies leverage chemistry and related process technologies
(including process intensification and decarbonization)
to bridge the gap.
Recent examples of areas in the chemical processing industry
that have successfully implemented circular economies include
bio-derived materials and fuels, recycled plastics and recycled
oils. For bio-derived materials and fuels, products sourced
from living matter (also known as biomass) are processed as a
substitute feedstock for petroleum-based raw materials. In the
case of recycled plastics, waste plastic is chemically converted
back into feedstock-grade plastic, rather than having it end up
in a landfill. Then, this recovered plastic is reintroduced as feedstock,
eliminating the need for petroleum-based raw materials
to manufacture new plastic goods. Similarly, the recycled oil
industry cleans and reprocesses previously used oils and then
reintroduces these oils back into the marketplace, thus replacing
the demand for petroleum-based oils.
Creating a circular economy. Enabling a circular economy
can be accomplished by either developing new processes to utilize
renewable feedstocks or by redesigning existing processes
to substitute current non-renewable raw material feedstocks.
Renewable feedstock examples include bio-derived, recycled
or recovered materials. These feedstocks could be the result of
waste byproducts that originate from other internal manufacturing
processes or even from completely different industries.
The goal is to reclaim one's own manufactured product upon
end-of-life use and then reintroduce it into the beginning of the
manufacturing process as recycled feedstock.
When it comes to feedstock sourcing, the traditional linear
economic manufacturing model no longer works in many circular
economy-based models. Because bio-derived, recycled or
recovered materials are typically generated in smaller quantities
and/or across multiple geographies, it is uneconomical to transFIG.
1. A circular economy can be created from the start or
by converting a linear economy to a circular economy.
Hydrocarbon Processing | JULY 2022 37
port multiple feedstocks to a single, centralized manufacturing
facility. The added cost in transportation due to increased
source locations would also raise the manufacturing carbon
footprint rather than lower it. Therefore, in a circular economybased
manufacturing model, a hub-and-spoke feedstock delivery
model is more efficient and economical.
Hub-and-spoke feedstock delivery model. A hub-andspoke
feedstock delivery model consists of smaller centralized
processing facilities acting as hubs located relatively close to the
feedstock origin locations. The spokes extend into surrounding
communities, collecting feedstocks from multiple municipal
recycling facilities, farms and other point sources. Typically,
spokes extend only a few hundred miles from the hub.
For example, a hub could be placed in the middle of a 500-mi
circle containing no feedstock, provided there were 3-5 facilities
on the circumference located very near feedstock, albeit outside
the circle. This structure economically optimizes efficiency by
processing feedstock locally and minimizing transportation costs.
Using this model, multiple hubs are required to service extended
geographical regions or to provide national and interna
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