Introduction

The growing demand for sustainable raw materials and the increased focus on decarbonization in the United States has created an exceptional market opportunity for setting up profitable tire pyrolysis plants. With over 300 million end-of-life tires (ELTs) generated annually in the U.S., tire pyrolysis offers a unique revenue opportunity through the production of recovered carbon black (rCB), tire pyrolysis oil (TPO), and recycled steel.

This whitepaper provides an in-depth market analysis, step-by-step business case, and revenue modeling for establishing a highly profitable tire pyrolysis plant in the United States.

Market Overview: End-of-Life Tires in the United States

Tire Waste Volume

• Annual Waste Tires in the U.S.: Over 300 million tires are disposed of annually.
• Primary Disposal Methods: Landfilling, incineration, and low-value material recovery.
• Legislative Pressure: Increasing U.S. state regulations are pushing for advanced tire recycling solutions, making pyrolysis an ideal sustainable alternative.

Market Demand for Pyrolysis Products

• Recovered Carbon Black (rCB): The U.S. imports over 2.5 million tons of virgin carbon black annually, presenting a massive opportunity to substitute it with rCB.
• Tire Pyrolysis Oil (TPO): The market for TPO as a low-carbon alternative to heavy fuel oil, sustainable aviation fuel (SAF), and marine fuel is rapidly growing.
• Recovered Steel: Recycled steel extracted from tires can be directly sold to steel mills, creating an additional revenue stream.

Why a Tire Pyrolysis Plant in the United States Is Highly Profitable

• Rapid Market Demand: The global recovered carbon black market is expected to reach $2.5 billion by 2030, with the U.S. as one of the largest buyers.
• Government Incentives: Tax credits, green energy grants, and circular economy initiatives support tire recycling operations.
• High-Value Output: Pyrolysis plants can create multiple revenue streams by producing rCB, TPO, and recycled steel, ensuring fast ROI.

Step-by-Step Business Case for Setting Up a Tire Pyrolysis Plant in the U.S.

1. Location Selection

• Prioritize locations near high tire waste generation centers (e.g., California, Texas, Florida, and New York).
• Secure proximity to industrial off-takers for recovered carbon black, pyrolysis oil, and steel.

2. Technology Selection

• Invest in advanced pyrolysis technology capable of producing high-quality recovered carbon black and low-sulfur pyrolysis oil.
• Opt for carbon-negative technologies to access federal and state-level tax incentives.

3. Regulatory Compliance

• Secure environmental permits in line with EPA tire disposal regulations.
• Partner with government-supported tire recycling initiatives.

4. Offtake Agreements

• Establish long-term offtake contracts for:
• rCB with tire manufacturers.
• TPO with refineries or SAF producers.
• Recycled steel with steel mills.

5. Investment & Return on Investment (ROI)

• Capital Investment: $15-20 million for a mid-scale tire pyrolysis plant.
• Annual Revenue: $25-35 million depending on production capacity.
• ROI Period: 2-3 years through multi-channel revenue streams.

Revenue Streams and Profitability

Product	Revenue Potential
Recovered Carbon Black	$900 - $1,200 per ton
Tire Pyrolysis Oil	$600 - $800 per ton
Recycled Steel	$300 - $450 per ton

Environmental Benefits

Building a tire pyrolysis plant in the U.S. contributes to:

• Reduced CO2 emissions: Significantly lower carbon intensity than virgin carbon black production.
• Circular economy expansion: Convert end-of-life tires into high-demand industrial commodities.
• Landfill diversion: Prevent millions of tires from incinerating or landfilling annually.

Conclusion

The United States offers one of the most lucrative markets for setting up a tire pyrolysis plant. Rising demand for sustainable raw materials, favorable government incentives, and multi-million-dollar revenue streams from recovered carbon black, pyrolysis oil, and recycled steel drive this market. With strategic investment, offtake agreements, and optimized operations, investors can achieve high profitability with a short ROI period.

If you would like access to the complete feasibility study, revenue model, and business case for setting up your profitable tire pyrolysis plant in the United States, please contact Klean Industries or request a free consultation today.

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