Fertilizers, electricity, and feed additives made from secondary raw materials: RECYCLING SOLUTIONS looks back on 2020

Fertilizers, electricity, and feed additives made from secondary raw materials: RECYCLING SOLUTIONS looks back on 2020

22.03.2021

Recycling Solutions has summed up the results of 2020. In total, the company sold more than 2.3 million tons and 1.45 million m³ of technogenic waste and by-products generated by domestic enterprises to 24 countries. The company earned UAH 1.1 billion in gross income and invested UAH 53 million in setting up new processing factories.

Recycling Solutions paid UAH 71.9 million in sales taxes on industrial waste and by-products to the state budget. The past year was also marked by the enhanced production capacity, as the company launched a new plant with a capacity of 100 thousand tons to process coke by-products in Kryvyi Rih.

‘Recycling Solutions’s mission is to implement the circular economy principles. In 2020 alone, we helped reduce industrial waste dumps by 1.7 million m³ and greenhouse gas emissions1 by almost 0.5 million tons in CO2 equivalent, which is comparable to the annual greenhouse gas emissions in one of the Ukrainian regions2. We’re proud that we manage to make our contribution to improving the environment of Ukraine year after year’, said Dmytro Anufriiev, CEO of Recycling Solutions.

COKE BY-PRODUCTS

At year-end, Recycling Solutions launched Ukrainian Mineral Fertilizers—a mineral fertilizer plant—in Kryvyi Rih. Ammonium sulphate crystals are a valuable metallurgical by-product that can be turned into fertilizer. For many years, they have been exported to such countries as Turkey, Bulgaria, and Serbia for processing. Recycling Solutions set up a local production facility to turn ammonium sulphate crystals into a ready-to-use granular product. The plant not only upholds the circular economy values by recycling its industrial waste but also cuts any transport costs in this case. It specializes in ammonium-sulphate-based nitrogen sulphur fertilizers. The new plant’s production capacity ensures that the Ukrainian farmers get up to 100 thousand tons of finished products annually. In total, the company invested over USD 11 million. In 2020, the plant produced 65 thousand tons of finished products.

LIVESTOCK BY-PRODUCTS

In April 2020, Recycling Solutions joined the creation of the first plant in Ukraine for the production of high-protein feed additives for livestock and pets, which is being built by Feednova. The construction project is almost finished. The main facilities in Busk are ready, while the installation of production lines is underway. The plant is scheduled to open in the second quarter of 2021.

GREENHOUSE GAS EMISSIONS

In the spring of 2020, the company generated the first electrical kilowatt as part of a pilot project on coal mine methane cogeneration at the Stepova mine of DTEK’s Mine Group Pershotravenske (Dnipropetrovsk Region). During the year, the company conducted the commissioning activities. Currently, it’s one of the few alternative energy projects in Ukraine designed to produce electricity and heat energy from industrial gases. In 2020, the project generated a total of 2.3 thousand MWh using coal mine methane.

RARE AND INDUSTRIAL GASES

Despite some slack time for the consumption of industrial gases in Ukraine, European and Asian electronics manufacturers didn’t slow their production and thereby generated stable demand for rare gases. In total, Recycling Solutions sold 1.45 million m³ and 28,000 tons of rare and industrial gases last year. In 2020, the company also boosted the neon-helium mixture sales which amounted to 64 thousand m³ (+83% compared to 2019).

METALLURGICAL SLAGS AND COAL COMBUSTION PRODUCTS

Although the quarantine significantly affected the metallurgical and cogeneration waste segment, the company managed to keep its sales in 2020 at the level of 2019, i.e. 1.82 million tons of metallurgical slags and 0.41 million tons of coal combustion products. Due to the quarantine, the small manufacturers of building materials suspended their operation for three months, while the concrete producers which are the major consumers of secondary raw materials cut their output by 4%. The segment of dry mixes, bricks, and cinder blocks saw the largest decline in the consumption of coal combustion products. Besides, encapsulating the thermal power plants caused the microsphere production to drop by 50% during the spring quarantine. The year was also marked by the significantly increased railway transportation costs. Note that these trends didn’t affect dump slags—it had stable demand thanks to the Big Construction state infrastructure project. Despite the quarantine measures, the company exported granulated slags to Europe, as it faces a shortage of such raw materials which would compete on quality and price with the Ukrainian products. Last year, Ukrainian metallurgical slags began to be used in Slovakia and Latvia.

1 This means the cumulative effect of cogenerating coal mine methane as well as using metallurgical slags and coal combustion products to manufacture building materials, which replace natural materials or clinker causing greenhouse gas emissions.

2 State Statistics Service of Ukraine: http://www.ukrstat.gov.ua/operativ/operativ2018/ns/vzap/arch_vzrap_u.htm

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