Dear Readers,

Month by month, our Weibold academy series dwells deeper into the world of tire recycling and highlights different sides of this business. In case you have missed our previous articles, you can find the links at the end of this post.

Tire pyrolysis and heating oil 

In tire pyrolysis, oil makes up approximately 35-45% wt. of output depending on type of the thermal treatment. Recovered pyrolysis oil with a wide distillation cut consists of three fractions with the middle distillate fraction prevailing, and it cannot be considered as an alternative blending component for traditional (commercial) motor fuels, fuel oils or heating oils before a purification and sometimes additional treatment.

Scope of applications of tire pyrolysis oil depends on local and national regulations. In countries with strict environmental protection laws tire-derived pyrolysis oil may require distillation & chemical treatment and/or additional refining process, which in turn will upgrade its quality and application properties.

Utilisation of the tire-derived pyrolysis oil as fuel oil pool component for power plant is one of the most common applications of the product. It usually does not require a final boiling point (FBP) modification and chemical treatment, but thorough filtering, which makes production process significantly cheaper in comparison to its utilisation as motor fuel or marine distillate pool component for diesel motor vehicles, ships, non-road and stationary diesel engines.

Prices of fuel oil largely depend on its origin, production scheme, available components and quality , however, when crude oil price is high, it is commercially viable to sell pyrolysis oil with rebates, attracting customers and expanding sales volume.

The main challenge to sell the heavy fuel oil in different countries is sulphur content. National regulations vary from country to country, but usually in Europe sulphur content should be not exceed 1%. This trend should persist up to 2020.

In 2016, rough estimations of prices per litter of fuel oil in Europe ranged from 0.78 to 1.00 EUR. In Finland, the price fluctuated around 1.00 EUR/l, in Estonia – 0.85 EUR/l, in Germany – 0.78 EUR/l, in Russia – even 0.238 EUR/l. In Turkey – 0.70 – 0.74 EUR/l.

To take a significant market share, some pyrolysis operators sell fuel oil for electricity and energy production at rebates compared to standard market prices for conventional heavy fuel oil. As a rule,  European companies operating power plants and thermal equipment use different types of fuel oils with some countries preferring even renewable material, mainly FAME- or biomass-based fuels. However, the same companies are often interested in maintaining their fuel reserves on the level, especially in the coldest months of winter, and therefore they hedge their bets purchasing tire-derived pyrolysis fuel.

National governments of the European countries strongly encourage transition to renewable energy and this trend is expected to persist throughout the next two decades. In some EU countries, power plants and heating companies are owned by state and therefore they purchase fuel through open auctions and exchange systems.

Currently, it looks very likely that the demand will be shifting towards oil-based fuels to meet the global 0,50% sulphur limit, with the main question being how much of this will be traditional marine distillate grades and how much will be fuel blends that do not fit into any of the current ISO 8217 distillate grade categories.

The base case in the CE Delft study for 2020 assumes that some 13% of petroleum fuels will have a sulphur content of 0.10% or less, and that these will be mostly distillates, while 76% of petroleum fuels will have a sulphur content of between 0.10% – 0.50% which will consist of various blends.

To successfully sell tire-derived pyrolysis oil (diesel-like fractions) to power plants or ships as an alternative fuel oil component, a custom formulation of fuel oil component composition and final product quality enhancement are needed. Our team will gladly help you find out, which parameters you need to account for to build a successful tire pyrolysis business and supply power plants, ships and stationary diesel aggregates with your oil.

Links to our previous articles:

  1. Welcome to weibold! Academy
  2. weibold! Academy: Recycled Rubber Output Spectrum and Rubber Granulates
  3. weibold! Academy: Rubber Granulates, Rubber Powder, Tire Derived Steel and Tire Derived Fiber
  4. weibold! Academy: Tyre Recycling Value Chain
  5. weibold! Academy: Applications for Tyre Recycling Plant Output
  6. weibold! Academy: Rubber Granulate Applications
  7. weibold! Academy: Rubber Powder Applications – Rubber Industry
  8. weibold! Academy: Rubber Powder Applications – Surface Coatings
  9. weibold! Academy: Success Factors in the Tire Recycling Industry
  10. weibold! Academy: Understanding Tire Recycling Technology
  11. weibold! Academy: Total Quality Management in Tire Recycling
  12. weibold! Academy: Applications for Fibers from End-of-Life Tires
  13. weibold! Academy: Safety and health effects of crumb rubber infill in artificial turf
  14. weibold! Academy: Tire pyrolysis – products and applications
  15. weibold! Academy: Tire-derived fuel in cement production
  16. weibold! Academy: How to improve tire collection in small cities
  17. weibold! Academy: How to prevent tire fires
  18. weibold! Academy: Recycled tires in railroad construction
  19. weibold! Academy: Basics about tire-derived fuel
  20. weibold! Academy: Waste tires in civil engineering
  21. weibold! Academy: How to create your own sandals from used tires
  22. Weibold Academy: Sustainable rubber powder composites
  23. Weibold Academy: How recycled tires enhance safety of children on playgrounds
  24. Weibold Academy: Recycled tires in footwear manufacturing
  25. Weibold Academy: Advantages and the current state of tire retreading industry
  26. Weibold Academy: Basics about rubberized asphalt
  27. Weibold Academy: What to consider before buying tire recycling equipment
  28. Weibold Academy: Tire recycling regulations in Europe