Comprehensive Economic Feasibility Study Report

for the Project Recycling Refinery for Used Engine Oil Waste and Its Conversion into Diesel, Gasoline, and Heavy Oil (Bitumen)

Based on a Worst-Case Scenario, with 26 working days per month taken into account.

1) Executive Summary

The project aims to establish a small-to-medium-scale (9 ton/day) refinery dedicated to recycling used engine oils and converting them into marketable petroleum products, instead of disposing of them as hazardous waste.

Adopted Production Capacity:
• 9 tons per day
• 26 working days per month
• 312 working days per year

Project Concept in Brief:
Purchase used engine oil → process and distill it → produce (diesel, gasoline, heavy oil/bitumen) → sell the products in the local market.

2) Project Importance and Strategic Feasibility

• An environmental and industrial project at the same time
• Converts harmful waste into energy products
• Reduces imports and strengthens the local economy
• Continuous and non-seasonal demand for diesel and heavy oil
• High flexibility in pricing and product off-take

3) Key Assumptions of the Study (Worst-Case Scenario)

3.1 Cost Assumptions
• Purchase price of raw oil per ton: 493.50 USD
• Operating and processing cost per ton: 211.50 USD
• Total cost per ton: 705.00 USD
• Cost per liter: 0.705 USD

3.2 Production Assumptions
• Each ton = 1,000 liters
• Daily capacity = 9 tons = 9,000 liters

4) Production Outputs and Ratios

Product	Ratio	Quantity (Liters/Ton)	Selling Price (USD/Liter)	Revenue (USD)
Gasoline	25%	250	1.06	264.38
Diesel	55%	550	0.85	465.30
Light Components	3%	30	0.85	25.38
Heavy Oil (Bitumen)	12%	120	1.06	126.90
Water + Gases	5%	—	Internal use	0
Total	100%	1,000 liters	—	882.96 USD

5) Financial Analysis – Per Ton

• Revenue per ton: 882.96 USD
• Cost per ton: 705.00 USD
• Net profit per ton: 177.96 USD
This profit is achieved under the worst possible pricing scenario.

6) Financial Analysis – Full Capacity (9 Tons per Day)

(26 working days per month taken into account)

6.1 Daily Results
• Total daily costs: 6,345.00 USD
• Total daily sales: 7,937.60 USD
• Net daily profit: 1,592.60 USD

6.2 Monthly Results (26 Working Days)
• Total monthly costs: 164,970.00 USD
• Total monthly sales: 206,374.47 USD
• Net monthly profit: 41,404.47 USD

6.3 Annual Results (312 Working Days)
• Total annual costs: 1,979,640.00 USD
• Total annual sales: 2,476,529.64 USD
• Net annual profit: 496,889.64 USD

7) Analytical Interpretation of Results

7.1 Project Strengths
• The project remains profitable even under the worst conditions
• High financial safety margin
• Relatively low break-even point
• Easily scalable (increased capacity = increased profits)

7.2 Project Sensitivity
• The critical factor is the purchase price of raw oil
• As long as the price per ton ≤ 493.50 USD, the project remains secure
• Any improvement in selling prices or reduction in costs directly increases profitability

8) Risks and Mitigation Measures

Risk	Mitigation Mechanism
Fluctuation in raw oil prices	Long-term supply contracts / Highest purchasing price
Fuel price volatility	Product diversification / selling 10% below local market prices
Technical failures	Preventive maintenance
Environmental regulations	Full compliance with standards (Green Environmental Eco-Friendly Project)

9) Final Conclusion

This project represents a strong and secure investment opportunity, because it:
• Relies on an available and low-cost raw material
• Converts waste into products with stable demand
• Generates clear profits even under the worst-case scenario
• Combines economic feasibility with positive environmental impact

Scaling Opportunity (Strategic Million-Dollar Funding instead of $705K Funding): High-Capacity Refinery Upgrade

Note: While our primary entry model is set at $705K, we offer a Strategic Million-Dollar Funding option. This upgrade scales production to 12 tons per day by adding a fourth refining unit, securing dedicated industrial land, and deploying a Mobile Fueling Station to dominate local distribution. This model aligns with our $1.7M guaranteed recovery plan, offering a robust 2.4x Debt Coverage Ratio and a monthly surplus of over $57,000.

Green Energy & Petroleum 12Ton/Day Refinery $1M Investment Opportunities

9) Final Conclusion

With a secured daily supply of 9 tons of used engine oil at a price not exceeding 493.50 USD per ton, this project ranks among the safest and most profitable industrial investments. It is a green, environmentally friendly project that converts hazardous waste into valuable energy products in line with sustainable and circular economy principles.
Despite selling gasoline and diesel at 10% below local market prices, the project generates a net monthly profit of approximately 41,404 USD, which comfortably covers monthly loan repayments of about 28,260 USD while preserving a healthy cash buffer. Overall, the project offers investors strong financial resilience, environmental value, and stable long-term returns.