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1. Applications /
2. Asphalt Shingle Recycling /
3. Profitability

Profitability of Shingle Recycling

With a strong market demand for asphalt cement (AC) and a largely untapped supply of asphalt shingle waste, shingle recycling continues to grow as one of the most profitable recycling opportunities today.

Asphalt shingle waste represents a major profit center for:

• Asphalt paving contractors
• Asphalt mix supply companies
• Transfer stations
• Material recovery facilities (MRFs)
• Landfills

Additionally, as shingle processing technology continues to evolve, shingle recycling may offer increased opportunities for shingle manufacturers, power plants, and other markets.

Learn more about shingle recycling markets.

Rotochopper shingle grinding technology optimizes the profitability of shingle recycling by minimizing the costs that can cut into your bottom line—wear-related maintenance and dowtime. The Rotochopper RG-1 and RG-1 E (electric-powered) are the only machines purpose-built to minimize wear costs and downtime while maximizing single-pass grinding efficiency.

Profit Sources of Recycled Asphalt Shingles

See examples below.

Asphalt cement

Asphalt shingle waste contains roughly 20% to 30% asphalt cement (asphalt binder)*. Asphalt cement has a typical value ranging from $200 to $500 per ton. In recent years, asphalt cement has soared to over $900 dollars in some regions within the USA. Prices vary widely by region. A Rotochopper RG-1 will process a steady 60 - 75 tons of shingle waste per hour, even in hot weather.**

* Asphalt cement content varies with shingle construction (fiberglass vs. organic shingles), age of the shingles, and other factors. Some shingles may contain up to 36% asphalt cement.

** A Rotochopper RG-1 will process up to 100 tons per hour to 1/2" minus. Rates of 60 - 75 tons per hour are typical. Production rates vary with raw material consistency, ambient temperature, and other factors.

Tipping fees

Shingle recyclers typically receive tipping fees ranging from $20 to $75 per ton to accept shingle waste. Since the RG-1 has the lowest operating costs of any shingle grinding equipment, this income alone can make shingle recycling with an RG-1 profitable.

Aggregate

The granule surfacing on asphalt shingles is a highly refined aggregate. Since asphalt paving mixes require aggregate, the granules and mat fiber in shingles can reduce the need for mined aggregate.

RAS Profitability Example 1

An asphalt paving company grinds shingle waste to supplement the virgin asphalt cement (AC) used in paving mixes, lowering their costs.

Input variables

AC content of shingles = 20%

AC value = $350 per ton

Processing rate = 75 tons of ground shingles per hour

Tipping fee = $20 per ton

75 tons of ground shingles per hour x 20% AC content = 15 tons of AC processed per hour

15 tons of AC x $350 per ton = $5,250

75 tons per hour x $20 per ton tipping fee = $1,500

$5,250 + $1,500 = $6,750 per hour (minus operating expenses)

RAS Profitability Example 2

A waste handling company grinds tear-off shingles and sells the ground material to an asphalt paving company.

Input variables

AC content of shingles = 25%

AC value = $250 per ton

Processing rate = 75 tons of ground shingles per hour

Tipping fee = $20 per ton

75 tons of ground shingles per hour x 25% AC content = 18 tons of AC processed per hour

18 tons of AC x $250 per ton = $4,500

75 tons per hour x $20 per ton tipping fee = $1,500

$4,500 + $1,500 = $6,000 per hour (minus operating expenses)*

* Using RAS in an asphalt paving mix requires extra equipment and handling than using virgin asphalt cement (AC). Asphalt paving companies therefore will typically pay less for the AC in roofing shingles than for virgin AC. The price an asphalt paving company is willing to pay is subject to the regional demand and availability of all asphalt cement sources.

Give us a call or contact your regional Rotochopper rep to receive a profitability projection based on the pricing for your area. We frequently provide detailed profitability projections that include equipment operating and maintenance costs, labor costs, tipping fee income, and finished product income.