TRANSFORMING AUSTRALIA’S WASTE CRISIS INTO A CIRCULAR ECONOMY WITH ADVANCED TYRE PYROLYSIS TECHNOLOGY

Sustainable Development Goals

Current Project Status:
Development Started 2023 | Feasibility Study | Pre-FEED
Organizations Involved:
Klean Industries, KBR, Viva Energy, CEVA Logistics, CMA CGM, InvestVictoria, Sustainability Victoria, Tyre Stewardship Australia, Several Tyre Recycling Companies  
Services:
Design & Engineering, Component Supply, Feasibility Study, Due Diligence, Supply Chain Management, Operator Training

Klean Industries is developing a cutting-edge tyre pyrolysis plant in Australia. The plant aims to process end-of-life tyres into valuable commodities, such as recovered carbon black and renewable fuels, thereby advancing sustainable waste management and supporting the circular economy.

The Challenge: Addressing Australia’s Growing Waste Problem:

Australia faces an unprecedented waste crisis, with end-of-life tyres (ELTs) and non-recycled plastics (NRP) overwhelming landfills and being exported for incineration or improper disposal. Rising disposal fees, regulatory limitations, and inefficient recycling infrastructure have exacerbated the issue, underscoring the urgent need for a scalable and sustainable solution.

Currently, over 450,000 metric tonnes of waste tyres, or 50 million scrap tyres, are discarded annually in Australia. Despite a voluntary Tyre Stewardship Scheme (TSA) managing approximately 25% of collected tyres, the Australian government has acknowledged that the program has reached its peak effectiveness. Australia risks falling short of its waste reduction and circular economy goals without stronger regulations and innovative recycling solutions.

In response, Klean Industries is spearheading a groundbreaking initiative to turn waste tyres into high-value recovered resources. This initiative will foster a low-carbon, zero-waste future while creating hundreds of highly skilled cleantech jobs and driving billions of dollars in economic growth over the next decade.

The Solution: Klean Industries’ Advanced Tyre Pyrolysis Plant in Melbourne

Since 2023, Klean Industries has been working with local partners to develop a fully integrated tyre pyrolysis facility in Melbourne. A Detailed Feasibility Study (DFS) confirms the project's viability, with contract negotiations underway for feedstock supply and pre-sold offtake agreements ahead of the Final Investment Decision (FID).

Strategically located 45 km northwest of Melbourne, this facility will play a crucial role in Australia’s transition to a circular economy. It will support key sustainability initiatives outlined in the United Nations Sustainable Development Goals (SDG) while delivering economic and environmental benefits.

Key Highlights of the Melbourne Tyre Pyrolysis Project

Commercial-Scale Processing Capacity:

  • 160–240 metric tonnes per day (TPD) (~16,000–20,000 tyres per day)
  • 60,000–80,000 metric tonnes per annum (TPA)

High-Value Recovered Products:

  • Recovered Carbon Black (rCB): a Sustainable replacement for virgin carbon black
  • Recovered Steel Wire & Fiber: a sustainable materials replacement for the construction industries
  • Biogenic Recovered Fuel Oil (rFO): Low-carbon fuel for transportation and industrial applications
  • Green Hydrogen Co-Production: Supporting Australia's clean energy transition

Advanced Carbon Upgrading Technology:

  • Transforms low-value tyre char into high-performance recovered carbon black
  • It can replace virgin carbon black by 10–100%, reducing reliance on fossil-derived carbon black
  • Enables closed-loop tyre-to-tyre recycling

Unmatched Environmental & Economic Benefits

Manufacturing new tyres relies heavily on petroleum and virgin carbon black, which have high environmental footprints. Klean Industries’ CBk KleanCarbon™, produced from waste tyres, offers a +90% reduction in water use and CO₂ emissions compared to traditional carbon black production.

Carbon Emission Offsets:

  • 450 kg CO₂ reduction per metric tonne of recovered carbon black
  • Virgin carbon black production emits over 2.5 metric tonnes of CO₂ per tonne produced
  • Estimate to produce over 100,000 metric tonnes of CO₂ annually

By leveraging Klean Industries’ proprietary tyre pyrolysis and carbon upgrading technologies, the Melbourne plant will directly support Australia’s net-zero and sustainability goals while providing high-performance recovered materials for the tyre, rubber, and plastics industries.

Future-proofing with Advanced Fuel Technologies & Digital Traceability

As part of the Front-End Engineering & Design (FEED) phase, Klean Industries is evaluating enhanced fuel upgrading technologies to refine recovered pyrolysis oil (rFO) into higher-value products:

  • 90% VLSFO-Quality Hydrocarbon Product – Marine fuel & industrial applications
  • 10% Naphtha-Like Product – Petrochemical feedstock for refining and manufacturing
  • 35–40% Biogenic Content – Due to natural rubber composition in ELTs, reducing overall carbon intensity

In addition, this facility will integrate Klean Loop™—a blockchain-powered SaaS platform that provides:

  • End-to-end transparency across the tyre recycling and manufacturing supply chain
  • Track & trace capabilities for recovered carbon black, tyre-derived oil, and carbon credits
  • Seamless data integration to support regulatory compliance and carbon offset reporting

The Outcome:

The result is the preservation of finite resources through the production of the following sustainable commodities (approximate volume):

  • Est 6.5-8.5 million tyres a year recycled
  • Est 20-28 KTPA of CBk carbon black
  • Est 28-38 KTPA of circular low-carbon intensity fuels
  • Est 9-12 KTPA of steel
  • Est +100,000 TPA of Carbon Dioxide emission offset
  • Hundreds of jobs are created in a region that requires economic development

Why Klean Industries is the Clear Leader in Tyre Pyrolysis Technology

For over two decades, Klean Industries has been the trusted global leader in tyre pyrolysis and resource recovery solutions. Unlike competitors that are still in the pilot phases, Klean has fully operational, commercial-scale plants supplying major tyre manufacturers, carbon black producers, and industrial clients.

Klean’s Key Advantages:

  • ✅ Proven Commercial-Scale Technology: Decades of real-world performance in tyre pyrolysis & carbon upgrading
  • ✅ High Quality Recovered Carbon Black (rCB): Superior quality & performance, meeting ASTM standards
  • ✅ Sustainable Fuel Production: Biogenic pyrolysis oil for low-carbon energy applications
  • ✅ End-to-End Circular Economy Integration: Supporting tyre-to-tyre & tyre-to-fuel recycling models
  • ✅ Scalable & Modular Solutions: Designed for global deployment & high-yield operations

By choosing Klean Industries, businesses can future-proof their operations, lower costs, and achieve true circularity—turning waste into valuable, sustainable resources while driving profitability and reducing environmental impact.

Transform Tyre Waste into High-Value Resources with Klean Industries

Contact Klean Industries today to learn how our cutting-edge tyre pyrolysis and carbon upgrading technologies can help your company maximize sustainability, reduce costs, and unlock new revenue opportunities in the circular economy.

If you would like to learn more about this project, please get in touch with us now >> GO.

This project addresses the United Nations Sustainable Development Goals (SDGs) by considering the goals and associated targets illustrated by the WBCSD’s Tyre Industry Project (TIP). TIP offers a framework for action that outlines impactful pathways for the tyre sector to contribute to the ambitions of the SDGs. To learn more about how Klean's approach, solutions, and technologies contribute to advancing the SDGs, please review the report "Sustainability Driven: Accelerating Impact with the Tyre Sector SDG Roadmap." See: https://www.wbcsd.org/Sector-Projects/Tire-Industry-Project/End-of-Life-Tires-ELTs