Products

MARKETS & POTENTIAL

Where does Reverse Polymerization of scrap tires fit in the market?

  • Is Reverse Polymerization a waste treatment technology?
  • Is it an alternative energy technology?
  • Is it a recycling technology?
  • Is it a carbon black production technology?

In fact, Reverse Polymerization of scrap tires is all four and understanding the technology and understanding the markets are critical to understanding the significant potential of the process.

Potential revenues are generated from five sources:

  • Oil production and/or energy generation
  • Sale of the recycled carbon black
  • Tire tipping fee
  • Sale of the recovered scrap steel
  • Sale of greenhouse gas credits

Reverse Polymerization offers a profitable and environmentally responsible method to address the growing scrap tire problem. The process completely reuses/recycles 100% of the scrap tire feed. EWI believes that Reverse Polymerization is an integral part of sustainable development.

Oil, Gas and Energy Production

A Model TR-6000 produces over 1,000,000 gallons of oil/year and 10,300 tons/year (9,300 tonnes/year) of gaseous hydrocarbons with a total heating value of greater than 377 billion BTU (greater than 397 billion kJ). These hydrocarbons can be used to generate power at the site or sold as fuel or other feedstock. For example the oil is similar to a synthetic crude oil and can be sent for refining. The gaseous hydrocarbons consist of methane, ethane, propane and butane, which can be separated and sold. If onsite power generation is selected, the hydrocarbons from a Model TR-6000 will provide sufficient energy to drive a 6 MW steam turbine. The TR-6000 uses 3 MW, leaving 3 MW net for sale to the grid.

As the price for crude oil approaches $100/barrel the return to investors from energy sales from a scrap tire Reverse Polymerization facility will only continue to increase in the future. Potential investors need only examine recent and significant increases in all energy costs to confirm the future potential.

Carbon Black

A TR-6000 tire reduction facility will produce greater than 15,000,000 lbs of carbon black per year (6,800,000 kg/year). World demand for carbon black is greater than 6,300,000 tonnes annually (6,900,000 tons/year) of which the tire industry uses approximately 67% of total production.

Production is most heavily concentrated in locations where tires are produced and/or used (industrialized countries and Asia Pacific). The growth of carbon black production is projected to increase to approximately 8,700,000 tonnes by the year 2010, or an increase of approximately 40% (Source: International Carbon Black Directory and Sourcebook, 1997).

In virgin carbon black production, the main input and the majority of the variable cost of production is fuel used for the combustion process. With recent increases in world energy costs, virgin carbon black prices can be expected to rise. The virgin carbon black industry is also a significant greenhouse gas emitter and will come under increased pressure from governments and environmental groups.

Reverse Polymerization of scrap tires can provide a valuable opportunity to world carbon black producers. Using Reverse Polymerization of scrap tires for part of their production, carbon black producers can realize the following benefits:

  • Direct reduction of the cost of carbon black production.
  • Incorporation of recycled material into their product mix to meet future requirements (e.g. EU mandate on percentage recycling)
  • Reduction in greenhouse gas emissions.
  • Reduction of fuel costs for virgin carbon black production by using the hydrocarbons generated for Reverse Polymerization.

Carbon Credits

The Kyoto Protocol has created renewed interest in the reduction of greenhouse gas emissions and efforts to reduce such emissions. Combustion of fossil fuels is the largest single source of these emissions. Greenhouse gases include:

  • Carbon Dioxide (CO2)
  • Methane (CH4)
  • Nitrous Oxide (N2O)
  • Hydrofluorocarbons (HFCs)
  • Perfluorocarbons (PFCs)
  • Sulfur hexaflouride (SF6)

Reductions (or increases) set under the Protocol are a percentage of the base year (1990) and are to be achieved by 2012. Selected targets include:

  • European community 92%
  • Canada 94%
  • Russia 100%
  • USA 93%

In addition the United States accounts for approximately 22% of all emissions. To achieve these targets many countries will need to take major reduction steps or purchase greenhouse gas credits.

Reverse Polymerization offers environmental benefits over tire derived fuels that will result in increased value to investors through greenhouse gas credits. These credits will have an increasing commercial value over the next decade. A TR-6000 facility fixes a minimum of 6,800 tonnes (7,500 tons) of carbon per year compared to tire derived fuel use. This assumes the hydrocarbons are burned to generate power and not used as production feedstocks. The reduction in carbon emissions is equal to 25,000 tonnes of CO2 or 27,500 tons per year. This does not include the significant reduction in greenhouse gas emissions that will be realized by replacing the production of virgin carbon black with recycled carbon black. Also 88% of the sulfur is fixed or removed rather then being emitted into the atmosphere, contributing to acid rain.

The market for trading carbon credits is still in its infancy and the value of carbon credits is currently in the $5 US to $10 US per ton per year range; however, market analysts have predicted the price of carbon credits may rise to $20 US to $50 US per ton per year in the next few years.

Summary

Clearly the market potential for Reverse Polymerization is significant even where the use of TDF is well established. Reverse Polymerization offers a significant advancement in reuse and recycling of scrap tires and production of recycled carbon black. As world energy prices continue to increase and environmental regulations are tightened, Reverse Polymerization will become an even more attractive solution.