The business case for a recycling method depends crucially on prices of raw materials (the waste, including transport, and energy) and the prices that can be obtained for the resulting products. These are global commodities and prices can vary markedly over a short period of time. Despite the experience gained with the previous EEDA project, the applicants do not present an outline business case for the process that might persuade people to buy the machines, preferring to internalise the risk by owning and running the plants at producers' sites. The company believes this segment of the market is worth £30m p.a. and that Enval can intercept £10m of this, but does not state how many plants will be needed nor how much they will cost. So although the economics look favourable, the case has not been fully demonstrated.
The competitive situation is complex and dealt with very briefly in the application. There are several approches to the recycling of similar materials namely brick-type drinks cartons, which unlike the laminates to be used in this work contain significant amounts (70%) of paper. Conventional mills extract and recycle the paper content, and most landfill or incinerate the residue of aluminium and plastic (it is not clear if this is a laminate or not). However some make the residue into a structural material, and one in Germany sells some (all?) of it to the cement industry for use as a fuel that leaches aluminium into the cement. A Tetra-Pak joint venture in Brasil uses plasma treatment of the residue from paper extraction to get back energy, aluminium and paraffin, albeit leaving some material for disposal. However the Enval process has been shown to be suitable for treating intact plastic-aluminium laminate such as is used for toothpaste tubes, which does not contain significant amounts of paper.
Enval has a clear market entry strategy - to start by offering plastic-aluminium laminate producers an on-site service recycling off-cuts or waste laminate at the producer's factory. This has the advantage of cutting transport costs such as might apply to post-consumer waste, and it is argued this scale of plant, whilst appropriate for Enval, is too small to support a plasma treatment operation.
In summary, there is an existing market based on recycling used drinks cartons which gives rise to plastic and aluminium residue; the company has an intelligent plan for entering via a specific niche - recycling waste laminate at the factory; the viability of its business model should be better demonstrated with information from this project; whilst overall the market is subject to the vagaries of global commodity prices.