Costs

Costs of 100% recycling

Update: This webpage summarizes my PhD research. Since then I have done a lot of new research. Please visit the publications section to read the newest articles.

Full calculation of the costs associated with 100% recycling can be found in the article:

100% Recycled Hot Mix Asphalt: A Review and Analysis, Resources, Conservation and Recycling

The figure below summarizes the calculation results of material related costs per ton of produced asphalt ranging from 0% to 100% RAP content. Depending on the market situation with availability of RAP, the costs of per ton of 100% RAP mixture would be reduced between 32 to 48 USD or 50 to 70% compared to virgin mix. Clearly, the major part of the costs comes from binder expenses and as the cost of oil continues to rise, the benefit of using high RAP mixtures will only increase.The assumptions for costs that were used in the calculation are shown below the figure.Full methodology of the calculation is available in the article (see above).

Aggregate - 19.80/t

Binder - 704.00/t

Recycling Agent - 1.30/l

RAP Purchasing - 11.00/t

RAP Disposal - 5.50/t

RAP Processing - 3.30/t

Burner Fuel - 3.47/t

RAP and Performance Testing - 1.48/t

Pollution Control - 2.75/t@100%RAP

Return on Investment

Of course Switching to production of 100% RAP mixture would require investment in plant technology, such as asphalt production related equipment, RAP processing units, and possible RAP storage upgrade. These expenses will vary greatly depending on the chosen technology and readily available equipment.

Three different investment levels (1, 2, and 5 million USD) and profit margins ranging from USD 0 to 40 per tonne of mix were used for calculation of time to break even and the results are illustrated in figure to the left. The profit per tonne of mix will likely not be directly related to the savings calculated earlier; at least until proved that the quality and longevity of 100% RAP pavement is equal to that of conventional asphalt. However, even a reduction of asphalt price by as much as USD 20 compared to low RAP mix would still promise the contractor at least USD 12 profit per tonne of produced mixture (see figure). At such margin, for example, time to reach break-even point would be less than three years for 1 million USD investment and 30,000 t/yr. production rate.

Full methodology and cost analysis can be found in the article (see above)