As the global tire industry seeks sustainable alternatives, recovered carbon black (rCB) is emerging as the cornerstone of a circular, low-emissions approach to tire manufacturing and recycling. Driven by ambitious environmental objectives, major tire companies are increasingly adopting this sustainable substitute for carbon black to decarbonize their production chains and maximize the value of end-of-life tires.

Executive Summary (Updated 2025)

Carbon Black and Its Recently Developed Substitute, Recovered Carbon Black: Key Facts.

Carbon black (CB) is a raw material obtained from the incomplete combustion of heavy petroleum products, also referred to as virgin carbon black (vCB). It is commonly used in black-colored day-to-day use products such as car tires. Its substitute, recovered carbon black (rCB), produced via thermal pyrolysis, addresses two opportunities. First, it provides a sustainable method for recycling used tires, from which rCB is derived. Second, it decarbonizes tire production, as rCB production generates five times less carbon emissions than conventional fossil-fuel-based production (vCB).

The global demand for carbon black in 2023 is estimated to be ~18 million tons per annum. The substitution potential of rCB is expected to grow over the next few years.

The European carbon black market accounts for nearly 15% of global demand, estimated at ~18 million tonnes per annum (Mtpa) in 2023. rCB is estimated to have the potential to substitute for 10-20% of traditional uses, although its relatively inferior quality limits its suitability for one-to-one replacement in specific use cases. Given current consumption, this could represent 250-550 thousand tons per annum in Europe alone, representing several hundred million euros in value. Ongoing R&D efforts actively aim to improve production processes and even upgrade rCB to make it suitable for a broader range of applications.

A new ecosystem, driven by a commitment to sustainability, is being shaped in the end-of-life tire supply chain.

The initial carbon black supply chain involved three players: petroleum suppliers & oil refiners, vCB producers, and end-users, which mainly included tire manufacturers. The introduction of rCB reshaped this supply chain, adding three leading players: rCB producers and upgraders, end-of-life tire suppliers, and regulatory authorities. Numerous investment funds and major industry players are early-movers active in the emergence of this new rCB market (e.g., Niersberger, Antin Infrastructure Partners).

Several technological and regulatory barriers still need to be tackled to reach large-scale deployment.

The primary challenges for rCB producers include ensuring consistent product quality, addressing the still-immature state of pyrolysis technology, overcoming the industry’s slow adoption of new products, and achieving standardization. The introduction of the ASTM committee D36 in 2017, with its rating system for rCB quality, marks a positive shift towards addressing these challenges and promoting coordination within the industry.

Despite the ambition of rCB producers and strategic partnerships with prominent industry names, announced capacities are not expected to meet medium-term demand, leaving a gap for investors

Today, a dozen rCB players produce ~20,000 tonnes per annum of rCB. The three largest producers today are Circtec in partnership with Birla Carbon, alongside Pyrum Innovations AG and Bolder Industries. Recently, in March 2023, the Swedish company Enviro, supported by Michelin and Antin Infrastructure Partners, announced its ambition to reach a processing capacity of ~38,000 tonnes per annum (ktpa) of rCB by 2030.

However, the current installed capacity (~20 ktpa) and announced additional capacity (~232 ktpa) are insufficient to meet the estimated demand for recovered carbon black in Europe (250-550 ktpa).

The current state of the industry poses numerous questions for all actors involved in order to ensure its success, namely the ability to secure long-term offtake agreements and the successful upscaling of production capacities, thus reducing both commercial and technological risks for investors.

‍1. Carbon black and its recently developed substitute, recovered carbon black: key facts

Carbon black is a raw material produced from the incomplete combustion of heavy petroleum products, commonly referred to as virgin carbon black. It has widespread applications in rubber, paints, and coatings and is a key component of various everyday items such as charger cables, phone covers, and ink pens. One prominent application of carbon black is in car tires, where it serves both as a black pigment and a filler material.

Its substitute, recovered carbon black (rCB), developed through a thermal pyrolysis process, addresses two opportunities.

Firstly, it provides a sustainable way of recycling used tires from which rCB is derived. Used tires, with a lifespan of approximately five years (50,000 km), contribute significantly to the global waste stream, with over 1.5 billion discarded annually, representing a substantial and underutilized resource. In Europe, in 2019, 95% of the 3.5 million tons of passenger ELTs were collected. This high collection rate is attributed to the ELTs management system introduced in Europe in 2006, which places the responsibility on tire manufacturers for ELTs collection and recycling. The thermal pyrolysis technology developed by several tire producers and start-ups repurposes end-of-life tires by producing rCB and thereby creating a sustainable tire recycling loop.

Second, recovered carbon black is a lever for decarbonizing the tire production chain.  A vehicle tire contains, on average, 30% carbon black. rCB production generates five times fewer carbon emissions than conventional fossil fuel-based production (vCB). This generates 10 kg of CO2 when produced from virgin carbon black compared to only 2 kg of CO2 when produced from recovered carbon black. This move toward sustainability has been somewhat accelerated by the Russian embargo due to the invasion of Ukraine, underscoring the strategic importance of rCB in ensuring supply chain resilience and supporting the industry’s pivot toward more sustainable production practices. As of July 2024, the European Union (EU) will ban imports of carbon black from Russia, which accounts for approximately 30% of the EU’s imports.

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2. Global demand for carbon black is expected to be ~18 Mtpa in 2023. The substitution potential of rCB is likely to grow over the next few years

‍The estimated global market size for carbon black in 2023 is ~17.9 million tonnes per annum (Mtpa), with a value of around $18-20 billion. This size is primarily driven by industrialization in the Asia-Pacific (APAC) region and a strong automotive industry in North America. In Europe, the demand for carbon black is estimated at ~2.7 million tons, representing around $3 billion and 15% of the overall demand.

Recovered carbon black serves as a sustainable alternative to virgin carbon black. It has the potential to replace 10-20% of virgin carbon black (due to its inferior quality), equivalent to 250-550 ktpa of rCB in Europe, valued at approximately $265-530 million.

However, this substitution is constrained by the lower quality of rCB compared to vCB. Ensuring product consistency and quality is the primary challenge faced by rCB producers. Product consistency is the key client requirement as it enables the seamless integration of rCB into industrial processes. A lack of control over feedstock can lead to substantial variations in rCB output quality. Moreover, supplying high-quality rCB (fiber/debris-free) is another challenge, as it determines the suitability of the material for specific applications. For example, a high level of impurities (e.g., ash and silica) can render it unsuitable for use in tire tread applications.

To address these challenges, stringent control over raw materials, extensive laboratory testing, and the development of new technologies are essential. Ongoing research aims to enhance production processes and improve rCB quality, thereby expanding its range of applications. Notably, recent developments indicate a shift toward the use of sustainable materials in tires. For instance, Michelin’s MotoE 2022 tires incorporated 40% sustainable materials while meeting safety and performance criteria, including speeds of up to 250 km/h. This serves as an example of the ongoing improvement in the quality of rCB.

In 2017, the ASTM committee D36 established a rating system for the quality of recovered carbon black, ranging from N900 to N100, with N900 being the worst quality and N100 being the best. Both rCB and vCB can be employed in mechanical rubber goods and tire carcass applications (N900 < –> N500). However, pure rCB can only be utilized in tire treads (N300 < –> N100) if it undergoes upgrading processes. Specialty applications, such as toners, inks, or polymers (rated above N100), are still not accessible to rCV due to the high-quality requirements.

Overall, the application spectrum for rCB is expanding, thanks to progress in rCB upgrading and enhancement processes, gradually bringing it closer to vCB applications.

3. A new ecosystem, driven by a commitment to sustainability, is being shaped in the end-of-life tire supply chain

The carbon black supply chain comprises various stakeholders, and with the recent emergence of rCB and the interest it has generated, it has become increasingly complex. Initially, the end-users of carbon black – tire, rubber, chemical, plastics, and ink producers - purchased vCB from manufacturers such as Cabot, Birla Carbon, and Orion, who source their raw materials from oil refineries. The introduction of recovered carbon black reshaped this value chain, adding three leading players: raw material suppliers, carbon black producers, and upgraders.

Recovered Carbon Black producers can be categorized into three groups:

• Raw rCB producers supply low-value tire char, which requires post-processing and refining to meet the needs of the carbon black market.
• Post-processed rCB producers can be further classified into two types: integrated players that own the pyrolysis technology for oil and rCB recovery and pure operators who own the plant they operate but obtain a license from technology providers to carry out the manufacturing process.
• rCB upgraders acquire post-processed and raw rCB and utilize carbon activation and ash leaching methods to enhance rCB quality, producing high-value specialty-grade rCB.

Two strategic partnership models have emerged to enhance access to rCB for end customers, including Michelin, Goodyear, and Pirelli, who are also consumers of vCB:

• First, collaborations between vCB and rCB manufacturers have enabled rCB players to leverage vCB players’ market access while vCB players can align with sustainability goals. The long-term agreement between Birla Carbon and Circtec, dating back to 2021, exemplifies this type of partnership.
• Second, commercial partnerships have been established between rCB producers and end-users to facilitate co-development, better align with customer requirements, and, importantly, secure rCB offtake, at least during the initial market introduction. An example of such a partnership is the collaboration between Swedish rCB manufacturer Enviro Systems, backed by Antin Infrastructure Partners and Michelin. Antin and Enviro entered into a joint venture in March 2023 to build a series of plants in selected European geographies. Antin is a majority shareholder of the JV, Michelin is a minority shareholder, and Enviro has an option to become a significant minority shareholder.  Michelin supports the JV by signing multi-year supply agreements regarding recycled materials from the first plants established. The JV signed multi-year contracts for the supply of end-of-life tires and offtake agreements for the recovered carbon black and oil products, securing offtake contracts of 5-10 years with leading tire manufacturers, including Michelin, Nokian Tyres, and Preem. They announced in February 2024 that they had made the final investment decision for the first plant in Uddevalla, Sweden.

In addition to rCB producers, the carbon black value chain now incorporates end-of-life tire recyclers who supply rCB producers with the necessary raw materials. In Europe, these recycling entities are non-profit organizations funded by tire producers and importers. They collect an eco-contribution, which in 2023 amounts to €1.40 per processed car tire, deducted from the initial sale price of the tire.

To fulfill their obligation regarding end-of-life tire management, major tire manufacturers such as Bridgestone, Continental, Goodyear, Pirelli, and Michelin have established non-profit organizations in the countries where they operate to oversee the collection of used tires. Examples of these organizations include Aliapur in France (founded in 2003) or Ecopneus Scpa in Italy (founded in 2011). This efficient collection system, with a collection rate of nearly 95%, was established in response to European directives, which made public actors responsible for regulation another vital player in the carbon black value chain. One of the most influential public entities overseeing this chain is the European Union’s Directorate-General for the Environment, which has introduced various directives over the years. In 1999, it prohibited the landfilling of used tires; in 2000, it implemented measures to prevent waste generation from vehicles and their components; and in 2006, it introduced the Extended Producers’ Responsibility scheme, making tire producers responsible for managing used tires.

Waste management companies such as Veolia and Suez play a crucial role in this tire collection process, collaborating with garages, dedicated recycling centers, public landfills, and gas stations to supply used tires to rCB producers.

Marubeni also entered the rCB market in February 2024 through an investment in RCB Nanotechnologies, a Munich-based company currently constructing an rCB chemical purification plant to produce recovered carbon black for use in tires. Marubeni plans to consolidate and structure a sustainable value chain from rubber raw materials to tires.

Finally, the interest from various investment funds in this emerging substitute, coupled with strategic partnerships involving prominent industry players, highlight the growing importance of this new product. For example, the post-processed rCB producer Klean Carbon, a subsidiary of Klean Industries (“Klean”), has collaborated with Niersberger Group, Europe’s leading biogas engineering and construction company. Niersberger was the EPC contractor for Carbon Resources Recovery (CRR), which designed, engineered, and owns the know-how developed in part from a German tire pyrolysis and rCB production technology called TPL Pryolyse. This project served as the basis for the technology developed for the Reoil project in Poland that Niersberger constructed. CRR is also a wholly owned subsidiary of Klean Industries. This makes Klean Industries one of the most substantial rCB players globally, as the technology used at the Reoil plant has become the best-performing tyre pyrolysis and rCB-producing plant in all of Europe. It has been operating for over eight years, illustrating that Klean’s technology is the only TRL 9 technology currently available. (Source Klean Industries)

More information about Klean’s project can be found here » GO.

Furthermore, Antin Infrastructure Partners’ investment fund has formed a joint venture with Enviro Systems, with support from Michelin, to create the world’s first large-scale tire recycling group. Lastly, the BlackCycle project, an initiative coordinated by Michelin and funded by the EU, aims to establish a circular tire economy in Europe.

The commitments of various tire manufacturers on recycled and sustainable materials will increase demand for rCB and interest from many other new entrants:

• Michelin and Bridgestone shared in a joint whitepaper the goal of 100% sustainable materials in tires by 2050
• Fabien Gaboriaud, Senior Vice President of Sustainable Materials and Circularity at Michelin, shared a goal of achieving 40% of sustainable materials from recycled and renewable sources by 2030.

‍4. Several technological and regulatory barriers still need to be tackled to reach large-scale deployment of rCB

While the recovered carbon black market appears promising and dynamic, several challenges hinder its expansion, primarily because the technical maturity of the market has not yet been fully realized.

Most pyrolysis technologies are considered demonstration systems (TRL 7 on the Technological Readiness Level scale) or first-of-a-kind commercial systems (TRL 8), which are still too immature for large-scale commercialization and require further development to reach (TRL 9).

The industry’s slow-paced integration of rCB in new products constitutes another obstacle to the expansion of rCB. Indeed, the process of developing new products with recovered carbon black or integrating it into existing ones has often experienced a lengthy lead time, typically taking a decade or more, as seen in the tire industry. Corporate sustainability initiatives, such as Michelin’s commitment to incorporating 40% recycled and sustainable materials in the production of new tires by 2030 and 100% by 2050, should accelerate the adoption of recovered carbon black in the rubber industry as a viable substitute for virgin carbon black.

Finally, there is a lack of standardization in terms of testing and product classification for rCB. In 2017, ASTM committee D36 was established to outline the differences between char, carbon black, raw recovered carbon black, and recovered carbon black. Additionally, subcommittees were formed to develop quality and safety standards for recovered carbon black products, as well as terminology, guidelines, practices, and testing methods. This led to the creation of a rating system that categorizes the quality of recovered carbon black on a scale from N900 to N100, determining its suitability for various applications. While this rating system facilitates the exchange between producers and buyers, the numerous distinctions within the N900 and N100 ranges can complicate the system and slow the development of standardized products.

‍5. Despite the ambition of rCB producers and their strategic partnerships with prominent industry names, announced capacities are not expected to meet the demand in the medium term, leaving a gap for new producers to position themselves

Today, in Europe, around twelve players are trying to meet the demand for rCB. Together, they have an operating production capacity of ~20 kton per year. The largest producer is Circtec, an integrated player that has formed a strategic partnership with a significant vCB producer, Birla Carbon. Another prominent rCB producer is the listed company Pyrum Innovations AG, which has recently formed a collaboration with BASF SE, the leading chemical group, and Suez, a French water and waste management specialist. Pyrum is positioning itself as a significant player in the rCB market, aiming to expand its production capacity by four times by 2030.

Another notable player in rCB production is the Swedish company Enviro Systems, whose technology has been acquired by Antin Infrastructure Partners. The company aims to build five factories in Europe by 2030, aiming to manage one-third of the used tires in Europe, resulting in an annual production of nearly 70 kton of rCB. Enviro has also set an ambitious target of processing 1,000 kton of recycled tires, around 300 kton of which would be converted into rCB. However, they have yet to outline a specific industrial plan at this stage.

The pure players include the Danish company Elysium Nordic and the English company Wastefront. While their facilities are still in the development phase, they are projecting an increase in their production capacities. Elysium Nordic anticipates an annual production capacity of 12,000 tonnes per annum (ktpa), while Wasterfront aims for around 23,000 ktpa.

Despite the presence of these promising companies and numerous partnerships, the current supply of rCB falls significantly short of the existing demand in Europe. The current supply stands at ~20 ktpa, while demand ranges from 250 to 550 ktpa. The potential future expansions of the most ambitious players, such as Enviro, could potentially bridge the supply and demand gap.

It is essential to acknowledge the two significant expectations for the future trajectory of the rCB sector. Having initially started at a gradual pace, the industry is now advancing into the stage of industrialization and commercialization, with momentum now gathering strongly. A strong interest is anticipated as the sector expands, as reflected in the emergence of long-term commitments and offtake agreements, which indicate a market ripe for the mass deployment of technology.

Given the increasing demand dynamics, the capacity of existing facilities, combined with the announced short-term additional capacities and long-term ambitions, falls short of meeting the demand. This discrepancy presents a compelling opportunity for new market entrants and investors. The immediate challenges that must be addressed include establishing a supportive framework for sustained engagement and achieving the technological maturity necessary for broad-scale deployment, both of which are essential for the sector’s full potential to be realized.

The outlook is promising as advancements in technology and growing market interest pave the way for a greener, more sustainable industry.

‍6. Key takeaways: Clear potential deserving attention from a wide range of players

The recovered carbon black market is still in its infancy, exhibiting promising signs of growth in the medium term, as it is one of the primary levers for decarbonization in the tire industry. Currently, market players do not share a common position on rCB: Some are actively striving to deploy capacity and be early movers in the market, while others have set ambitious decarbonization targets, including, but not limited to, carbon black production, transportation, and end-use applications. Finally, some actors are still reluctant to position themselves, given the relative uncertainty that lies ahead.

The industry is expected to take off once the primary regulatory and industrial challenges are addressed, primarily through market standardization and clear sustainability targets and mechanisms, which are the primary focus of current efforts.

Given the rCB market’s potential, players entering this market should not overlook a few key considerations.

For ELT suppliers and waste management companies

• Who will be the pioneers of this emerging market in which regulation plays a crucial role?
• What are the most effective means of capturing sufficient volumes of ELTs?

For technology providers and rCB manufacturers

• What are the key purchasing criteria and winning strategies to commercialize rCB effectively?
• Which emerging technologies or innovations could disrupt the rCB industry?
• How can the challenges of securing a consistent feedstock of ELTs be managed, and what strategies should be implemented to mitigate supply risks?
• What are the strategic prerequisites needed to support the production scale-up that the industry so desperately needs?

For conventional carbon black producers

• What impact has the rCB revolution had on the competitiveness and product portfolio of conventional CB producers?
• How can potential partnerships with ELT suppliers, rCB manufacturers, and off-takers be structured and leveraged?
• Which rCB players are relevant and open to a partnership?

For tire manufacturers

• What are the primary adoption trends of recovered carbon black in future products, and what key factors influence the decision-making process?
• What quality and performance standards are required from rCB manufacturers to enable adequate substitution and integration into future products?

For regulators

• How can regulatory frameworks be optimized to facilitate the sustainable growth of the rCB market?
• What mechanisms can be implemented to ensure compliance with sustainability targets and market standardization?

Download - Evaluating the Path to a Sustainable Tire Industry: Unlocking the Potential of Recovered Carbon Black » GO.

The Tire Industry’s Future Is Circular — And It Starts with rCB

From environmental targets to supply chain resilience, the global tire industry must adopt recovered carbon black (rCB) as a sustainable and scalable alternative to virgin carbon black.

Klean Industries Enables the Transition with:

✅ Commercial-scale rCB production from ELTs
✅ Carbon-upgrading systems for tire-grade performance
✅ ISCC-certified materials & KleanLoop™ traceability
✅ Partnerships with leading tire manufacturers worldwide

Connect with Klean Industries to build a profitable, sustainable, and circular supply chain using recovered carbon black for tomorrow’s tire market » GO.