How Much Does an Oil Sludge Thermal Desorption Unit Cost? A Look at CAPEX

Cathy Wang • February 25, 2026

For companies in the petrochemical, drilling, or refining sectors, oil sludge is one of the most challenging by-products to manage. Classified as hazardous waste in most jurisdictions, it poses significant environmental risks if not treated properly. Fortunately, pyrolysis technology—specifically thermal desorption—offers a highly effective solution to separate hydrocarbons from solid waste, recovering valuable oil while rendering the solids inert.


However, for engineering managers and investors, the first question is rarely about the chemistry; it is about the cost. What is the capital expenditure (CAPEX) required to bring an oil sludge thermal desorption project online?


The answer varies dramatically based on scale, technology, and automation levels. Generally, the investment can range from a few hundred thousand RMB for a small pilot unit to upwards of 5 million to 30 million RMB (approx. $700,000 to $4.1 million USD) for a large-scale, continuous industrial plant.


Understanding the Price Tiers

To help you budget effectively, it is useful to break down the market into three distinct categories of thermal desorption units (TDUs).

1. Small Pilot & Lab-Scale Units (CAPEX: Tens of thousands RMB)

These are the entry-level systems, typically used for research, feasibility studies, or treating very small, batch-specific quantities of waste.

  • Typical Cost: ~¥200,000 – ¥800,000 RMB.
  • Capacity: Usually 1 ton to 5 tons per day.
  • Configuration: Simple batch reactors with manual feeding and discharge. They prove that the process works for your specific sludge but are rarely economical for large-scale remediation.
  • Best For: Universities, research labs, or companies testing the viability of thermal treatment before scaling up.


2. Mid-Scale Modular Units (CAPEX: ¥2 Million – ¥10 Million RMB)

This is the sweet spot for many contractors and industrial sites that need to process waste on-site without massive civil works.

  • Typical Cost: ~¥2,000,000 – ¥10,000,000 RMB.
  • Capacity: 10 tons to 30 tons per day.
  • Configuration: Often semi-continuous or fully automatic batch systems. These units feature improved safety mechanisms, basic emission controls, and better oil recovery rates.
  • Best For: Small refineries, oil field service companies, or environmental remediation firms handling localized contamination.


3. Large-Scale Industrial Continuous Systems (CAPEX: ¥15 Million – ¥30 Million+ RMB)

For large refineries or centralized hazardous waste treatment centers, scale is everything. A continuous thermal desorption unit is the pinnacle of the technology, designed to run 24/7.

  • Typical Cost: ~¥15,000,000 – ¥30,000,000 RMB (or more depending on auxiliaries).
  • Capacity: 50 tons to 100+ tons per day.
  • Configuration: Fully continuous rotary kilns or screw reactors. These systems are highly automated, featuring PLC controls, sophisticated cooling towers, non-condensable gas recirculation for fuel savings, and multi-stage pollution control to meet stringent emission standards.
  • Best For: Major petrochemical complexes, large-scale refineries, and government-approved industrial waste hubs.


What is Included in the CAPEX?

When budgeting for a thermal desorption unit, the reactor itself is only half the story. A complete CAPEX estimate for a project usually includes:

  1. The Main Reactor: The heart of the system, usually a rotary kiln or heated screw conveyor where desorption occurs.
  2. Feeding & Discharge Systems: To handle the sticky, messy nature of oil sludge, you need robust screw conveyors or piston feeders.
  3. Condensation System: A series of heat exchangers and coolers designed to condense the vaporized hydrocarbons into liquid oil.
  4. Pollution Control: A crucial element. This includes ceramic packing towers, desulfurization units, and dust removal systems to ensure off-gas is clean.
  5. Safety & Instrumentation: PLC control rooms, pressure/temperature sensors, and flare stacks for handling excess syngas.


The ROI Perspective

While a 30 million RMB price tag might seem steep, it is essential to view this through the lens of Return on Investment (ROI). A TDU converts a liability (sludge) into assets:

  • Recovered Oil: Sold as industrial fuel or reprocessed.
  • Recovered Solids: Non-hazardous soil or sand that can be used for construction or landfill cover, saving on disposal fees.
  • Avoided Fines: Compliance with environmental regulations prevents substantial penalties.

Depending on local gate fees for hazardous waste disposal (which can be extremely high) and the price of crude oil, many investors find that large-scale units pay for themselves within 2 to 4 years.


Conclusion

Investing in an oil sludge thermal desorption project is a significant financial decision. While small pilot units offer a low-cost entry point for testing, industrial-scale remediation requires a CAPEX typically in the range of 5 million to 30 million RMB. Understanding your throughput requirements and the purity of the end products you need will help you navigate this wide range and select the technology that fits your long-term strategic goals.


By Cathy Wang February 11, 2026
Plastic waste has emerged as a significant environmental challenge due to its persistent nature and widespread use. Pyrolysis, a thermochemical process, offers a promising route for converting plastic waste into valuable products such as fuel oil, gas, and solid char. However, the efficiency of the pyrolysis process is heavily influenced by the purity of the plastic feedstock. The presence of impurities, such as other polymers, metals, and additives, can substantially affect the yield, quality, and energy consumption of the pyrolysis process. The Role of Plastic Purity in Pyrolysis Composition and Reaction Pathways The purity of plastic directly determines the composition of the feedstock entering a pyrolysis plant . Plastics are made up of a range of polymer types, such as polyethylene (PE), polypropylene (PP), polystyrene (PS), each with different molecular structures and thermal decomposition behaviors. Pure plastic feedstock, often consisting of a single polymer, undergoes a more uniform and predictable pyrolysis process. Impurities, such as metals, glass, or mixed polymers, introduce additional complexity to the thermal degradation process. These contaminants can either promote undesirable side reactions or hinder the efficient degradation of plastic polymers. For example, the presence of metals can catalyze the formation of unwanted byproducts like tar and carbon black, leading to lower-quality outputs. Mixed polymers, on the other hand, may decompose at different temperatures, complicating heat transfer and slowing down the reaction rate.
By Cathy Wang February 6, 2026
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By Cathy Wang January 27, 2026
Oily sludge is one of the most challenging waste streams in the petrochemical and refinery sectors—a hazardous mix of oil, water, and solids. Traditional disposal methods, such as landfilling and incineration, pose significant environmental risks. Enter pyrolysis technology, which offers a paradigm shift by turning this hazardous liability into a source of environmental and economic gain. Here’s how it achieves both compliant pollutant removal and circular resource recovery. The Problem with Conventional Methods Landfilling oily sludge risks long-term soil and groundwater contamination through leachate. Incineration, while reducing volume, can emit harmful dioxins, furans, and particulate matter if not strictly controlled, and it wastes the inherent energy value of the hydrocarbons. Both methods are increasingly regulated, costly, and fail to align with circular economy principles. The Pyrolysis Advantage: A Closed-Loop Solution Pyrolysis treats oily sludge in an oxygen-free environment at high temperatures (typically 400–550°C). This process thermally cracks the complex hydrocarbons without burning them, leading to three main outputs: pyrolysis oil, syngas, and solid char. This approach delivers a dual environmental victory. 1. Guaranteeing Compliant Pollutant Removal The core environmental benefit is the complete destruction and transformation of pollutants. Oil and Hydrocarbon Removal: Oil sludge pyrolysis plant effectively breaks down the long-chain hydrocarbons and toxic organic compounds (like polycyclic aromatic hydrocarbons, PAHs) present in the sludge. These are not merely transferred but are chemically decomposed into simpler, safer molecules. The residual solid char typically contains less than 0.3% total petroleum hydrocarbons (TPH), far exceeding the strictest landfill acceptance criteria and allowing for safe disposal or further use. Pathogen and Odor Elimination: The high-temperature process sterilizes the sludge, eliminating pathogens and volatile organic compounds (VOCs) responsible for foul odors—a significant improvement over open drying beds or simple stabilization. Heavy Metal Immobilization: While pyrolysis does not destroy inorganic heavy metals, it permanently immobilizes them within the solid char matrix. This vitrification effect drastically reduces their leachability, making the final residue non-hazardous and preventing metal migration into the environment. 2. Enabling True Resource Circularity Beyond safe destruction, pyrolysis actively recovers value, embodying the "waste-to-resource" model. Pyrolysis Oil Recovery: The condensed liquid is a valuable fuel oil, which can be used directly in industrial burners or refined further. This reclaims the energy content of the wasted oil, offsetting fossil fuel consumption. Syngas Energy Recirculation: The non-condensable gas produced is rich in methane, hydrogen, and carbon monoxide. In a well-designed system, this syngas is recycled to fuel the pyrolysis reactor itself, creating a self-sustaining energy loop that slashes external fuel needs and operational costs. Solid Char Utilization: The mineral-rich, carbonaceous char can be utilized in multiple ways: as a low-grade solid fuel, as an additive in construction materials like bricks or asphalt, or even as a precursor for adsorbents. This completes the cycle, leaving near-zero waste. The Economic and Regulatory Driver This process is not just environmentally superior; it's economically compelling. By converting a costly disposal problem (with high handling and tipping fees) into a source of sellable oil and energy independence, pyrolysis improves project economics. Furthermore, it provides a clear, verifiable pathway for companies to meet stringent environmental regulations on hazardous waste treatment and resource recovery mandates. Conclusion: A Step Toward Zero Waste Oily sludge pyrolysis represents a mature and efficient technology that moves beyond mere pollution control. It delivers compliant decontamination by fundamentally destroying and immobilizing hazardous components, while simultaneously unlocking circular value through the recovery of energy and materials. In doing so, it transforms an environmental liability into a cornerstone of sustainable industrial operations, proving that the most responsible waste management is the one that eliminates the very concept of "waste." l