Sustainable Development Goals
Organizations Involved:
Klean Industries, Enrestec, Pell Frischmann, Worley, Farrans, Burns & McDonnell, Pegasus Capital Advisors
Services:
Design & Engineering, Turn-Key DBC, Due Diligence, Supply Chain Management, Carbon Management, Component Supply
The Challenge
Taiwan faces a significant environmental challenge concerning the disposal of end-of-life tires, with an estimated 24 million tires reaching the end of their useful life each year. Traditional disposal methods, including landfilling and incineration, pose serious environmental hazards, such as soil contamination, water pollution, and air quality degradation. Recognizing these challenges, the Taiwanese government has implemented stringent regulations to promote sustainable waste management practices. This underscores the urgent need for innovative recycling solutions to effectively mitigate discarded tires' environmental impact.
The recycling of waste tires in Taiwan has spanned over three decades. Although initiatives for tire recycling began in the late 1980s, governmental support for scrap tire recycling gained momentum with the introduction of the “Regulations for Recovery and Disposal of Discarded Tires” in 1989. Tires, as critical transportation components around the globe, play an indispensable role in domestic and international trade. They comprise various materials, including natural and synthetic rubber, carbon black, and steel coils. The improper management of waste tires—particularly when removed from vehicles without the possibility of being retreaded—can lead to significant environmental health risks, including toxic runoff, breeding grounds for mosquitoes, and potential fire hazards due to their flammable nature.
Since the late 1980s, waste tire recycling in Taiwan has made noteworthy progress, bolstered by a combination of regulatory support and subsidy policies that have been instrumental in driving this success. This paper aims to present an updated overview of waste tire recycling practices in Taiwan, highlighting a successful case study of a waste tire pyrolysis plant. Notably, this facility may represent the first commercial operation of its kind utilizing a continuous processing system. Over the past 16 years since waste tire recycling initiatives gained traction, the tire-derived materials generated from the certified recycling volume of waste tires have primarily been utilized for two primary purposes: rubber recycling for new products and energy recovery through various conversion processes. This dual approach addresses the waste tire challenge and contributes to a more circular economy within the region.
The Solution
Enrestec Inc. was founded in 2005 and has pioneered advanced pyrolysis technology to tackle Taiwan's waste tire issue. Their pyrolysis system operates continuously, converting chipped waste tires into valuable by-products. This system comprises four main components: feed equipment, a combustion furnace, a reactor, and an oil condensing system. The pyrolysis process generates approximately 38% pyrolysis oil and 28% eco-friendly carbon black. Enrestec's commitment to quality is supported by a professional laboratory that ensures the recycled carbon black meets stringent standards for use in plastics and industrial rubber products.
In 2014, Klean Industries partnered with Enrestec to conduct a Detailed Feasibility Study (DFS) to assess the global market potential for adopting their technology in North America, the European Union, and Malaysia. This study was carried out in collaboration with 3 strategic engineering partners of Klean Industries (listed above), who were selected to manage the engineering, procurement, and construction of projects in these regions as demanded by project debt lenders.
Following the completion of the DFS in 2015, Klean and Enrestec entered into a Teaming Agreement to strengthen their collaboration on additional projects outside of Taiwan. As investors were introduced for project financing, Klean and Enrestec executed a Master License Agreement later that year for the exclusive use of the Enrestec technology in North America and the European Union, with options to extend to Central and South America as part of the final agreement.
The Outcome
Enrestec was the first mover with its innovative approach to tire recycling in Taiwan. The company is now estimated to recycle approximately 36,000 tonnes of discarded tires annually in Taiwan and 25,000 metric tonnes in Thailand. This process converts the tires into valuable resources, such as recovered carbon black used in various applications, including new tires. In contrast to most pyrolysis companies, Enrestec utilizes pyrolysis oil to generate steam for over-the-fence end users within the industrial parks where they locate their systems. This solution helps reduce environmental hazards associated with waste tires and contributes to a circular economy by supplying high-quality recycled materials to various industries. Enrestec has established itself as a leader in sustainable tire recycling in Taiwan and Thailand, setting a benchmark for environmental responsibility and technological advancement in waste management.
At the end of 2018, Enrestec and Klean Industries ended their cooperation because, at the time, the technology could not meet the technical due diligence requirements regarding the expectations of engineering firms and investment partners who were critical to deploying Enrestec's technology outside of Taiwan. The technology is similar in process design to Bolder Industries and Circtec, using a double-stacked auger-driven carbonization process that is heated indirectly.
Shortly after, in August 2019, Klean Industries acquired Carbon Resource Recovery GmbH (CRR) from Berlin. CRR developed leading technology for recovering high-quality recovered carbon black and biogenic oil. Klean Industries now wholly owns the intellectual property and know-how developed by CRR. CRR partnered with the Niersberger Group as the engineering, procurement, and construction (EPC) provider to deliver the Reoil plant in Poland. CRR owned 50% of the Reoil facility, now the longest-running and most profitable end-of-life tire pyrolysis plant globally.
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