Small-Scale Glass Processing Costs Material: Recycled
Glass
Issue: Most glass processing in the
United States is performed by large-scale beneficiation plants that
process glass for container or fiberglass manufacturers. Most larger beneficiation plants have been in operation long enough
to have a good understanding of their processing costs and to make
informed capital investment decisions.
However, knowledge of operating costs for smaller-scale glass
processing systems is much more limited.
Best
Practice: A
logical sequence of steps to developing an economic model for glass
processing might be the following:
1.
Determine
the volume and availability of local recycled glass. The volume figure should take into account current generation and
collection, and the potential for improved collection. Availability should take into account current
recycled glass dealers and the current local market value.
2.
Determine
the specifications to which the glass must be processed to access
secondary markets. As far
as possible, this should include informed estimates of the size
of the markets and the value processed glass may have in those markets.
There are some small scale systems on the market now that
include the ability to pulverize glass to sand size.
Producing finer gradations opens the door to potentially
higher value market applications.
3.
Determine
the equipment components that will achieve the level of processing
required to generate specification processed glass.
Always confirm equipment manufacturers’ claims with interviews
of existing users and processing trials.
4.
Build a
conservative cost model for processing, and match the model with
potential market values and available volumes of glass.
The diagram below illustrates
a possible system for producing fine grades of recycled glass.
The following categories of costs should be considered
when evaluating a prospective processing system.
·
Capital
Costs
·
Production
Costs
·
Selling,
General, and Administrative Costs Capital Costs: Capital costs include fixed
equipment costs (see Fine Sizing Recycled Glass Best Practice)
and site costs, including mechanical and electrical installation.
Small scale crushers (1-5 tons per hour) for producing glass
sand may cost anywhere from $10,000 to $40,000 or more. The most
basic glass processing system includes only a feed hopper and crushing
mechanism. However, for most applications, ancillary equipment
is required. Ancillary equipment
includes dryers (see Drying Technologies for Glass Processing
Best Practice), screens (see Screening Technologies for Glass Processing Best
Practice), and conveyors (see
Conveyor Technologies for Glass Processing Best
Practice).
Production Costs:
Production costs include the costs of labor, building and equipment
rental, utilities, gasoline, oil, maintenance and supplies, and
the cost of dust and debris disposal.
Special consideration should be given to the following:
·
Care should
be taken when choosing to make production labor a component of variable
cost. Continuous labor is
typically required to perform maintenance tasks and replace parts,
line feedstock, change dust collector barrels, move bulk bags of
product, and weigh the product.
·
Gasoline,
oil, lubrication, and rental costs should be calculated for a forklift
(for moving the product and bins) and bobcat loader (for loading
feedstock onto the in-feed conveyor) or other machinery used in
operations.
·
Building
rental costs should be based on the floor space required for equipment
as well as the space required for stockpiling materials and inventory.
Selling, General
& Administrative Costs: Selling, general, and administrative costs include
management, office expenses, insurance, taxes, and commissions. Opening up markets for innovative materials
has proven repeatedly to be more difficult then processors have
anticipated. The cost and
time required for marketing should be carefully evaluated.
Again, these items are a combination of fixed and variable
costs, and will depend on the targeted level of operations.
Implementation: Estimating costs for small-scale
glass processing is difficult because there are few successful installations
from which to develop models. Great
care should be taken in matching costs against realistic market
values. Average processing
cost per ton, depending on sizing and cleanliness required, ranges
from about $20 to $50 per ton, including amortized capital costs.
The Glass Processing Spreadsheet Best Practice contains
an example spreadsheet and formulas for duplicating the spreadsheet.
Benefits:
If
the full costs of glass processing are not accounted for in initial
estimates, the feasibility analysis and break-even production levels
can be misjudged. This best practice does not anticipate all
costs involved in a glass processing operation, but rather serves
as a guideline for model building.
Application
Sites: Glass
processing facilities
Contact: for more information about this Best Practice, contact
CWC mailto:info@cwc.org.
References: Small Scale
Recycled Glass-to-Fines Processing System, Rpt GL-96-3, Clean Washington
Center, 1996. Issue
Date / Update: November
1996
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