Sustainable Development Goals
Organizations Involved:
Pyrolysis Hellas, Niersberger, European Union, Leading Oil Refinery & Chemical Company
Services:
Design & Engineering, Feasibility Study, Due Diligence, Carbon Management, Component Supply, Operator Training
The Challenge:
The country’s waste management situation is a major structural problem in Greece. Greece landfills the majority of its municipal waste 81%, compared to 31% for the EU-28 average), with only 16% being recycled (EU-28: 27%) and 4% composted (EU-28: 15%), the EU Commission stated in an Environmental Implementation Review on Greece in February 2017. Illegal landfilling, very low recycling rates, and hazardous waste management were criticized most. Financing was also a significant issue, particularly for areas where EU funding is not available. But the tide has begun to change.
In 1997, Greece disposed of its waste by some 6,500 uncontrolled landfills. Even in May 2014, the EU Commission discovered that 70 illegal landfills were still in use and 223 had been closed but not remediated. The latest figures show 20 uncontrolled, still used, 46 closed, but not sanitary landfill sites, and 21 necessarily further used deposits. According to Eurostat, Greece produced 5,362,000 tons of municipal waste in 2016, of which 5,277,000 tons were treated, 4,415,000 landfilled, 698,000 tons recycled, 27,000 tons incinerated including energy recovery, and 135,000 tons composted and digested.
Under the principle of ‘extended producer responsibility, all tyre importers and vehicle importers must organize or participate in (enter into a contract with) an alternative waste management system. Used tyres are collected directly from the collection points, namely tyre repair stations, garages, retreading centers, and car dismantlers affiliated with the corresponding alternative management system of end-of-life vehicles (ELV).
Approximately one-third of produced vehicle tires are reused or retreaded, while the rest are classified as waste. Vehicle tires consist mainly of elastomer rubber but also contain quantities of metal, such as steel and iron, at a percentage that can reach up to 15% of their weight. Used vehicle tyres can be recovered significantly when they are characterized as waste. Recovery is the total quantity recycled for producing mechanical processing products and the amount of elastics directed towards heat recovery, whether whole or shredded at the mechanical processing facilities.
Despite the volume of generated waste, a unified European framework for managing waste tyres has not been established to date. In Greece, the management of waste tyres is governed by Law 2939/2001 as amended by Law 4496/2017 and currently in force, and more specifically by Presidential Decree 109/2004 on measures and conditions for the alternative management of used car tyres. Program for their alternative management
As stipulated by the quantitative targets set, by 31 June 2006, the recovery of waste tyres must cover at least 65% of tyres being retired. Within the same deadline, recycling must reach at least 10% of tyres being retired.
In Greece, it is estimated that approximately 100,000 metric tonnes of scrap tires are generated each year. Approximately 47,000 to 50,000 metric tonnes of tyres are imported annually of which 43% are commercial truck tires and the rest are passenger car tyers. From this perspective, tyre recycling is a necessity. As part of the European Union, it is illegal to landfill waste tyres. In Greece, scrap tires' disposal rates (gate fees/tipping fees) range between €25-€50 per metric tonne. The current marketplace for granulated products from shredded tyres in Greece is saturated, and new opportunities exist from the recovery of products with more value.
The Solution:
Karabas European Hellenic Recycling SA (“KEHR”) was founded in 1999. In 2021, it developed a JV partnership with Corinth Capital, a private equity fund in Cyprus, to develop a joint venture called Pyrolysis Hellas SA ("PHS"). Currently, KEHR collects and recycles all types of scrap vehicle tyres through traditional methods by shredding them into rubber granules, rubber powder, and shock-absorbent surfacing slabs.
PHS has engaged in a Detailed Feasibility Study ("DFS") with Klean Industries to build a modern tyre recycling facility that encompasses a state-of-the-art scrap tyre pyrolysis plant to recycle 20,000 TPA of waste tyres into valuable chemical products. The PHS’s Environmental Impact Study for the construction and operation of a Waste Tyre Pyrolysis Plant has been approved and the competent Greek Authorities have awarded the corresponding Environmental License.
PHS proposes constructing and operating the said Waste Tyre Pyrolysis Plant in Mulkia at an existing industrial site that KEHR owns. It is envisioned that this site will be expanded with a new process building to house the new tyre pyrolysis plant used to create Recovered Carbon Black (“rCB”) and Recovered Fuel Oil (“rFO”) through a propriety carbonization process owned by Klean Industries which operates on a commercial scale. The recovery of valuable resources from used tyres will contribute positively to the Government of Greece’s waste reduction and re-utilization efforts, including the promotion of independent sustainable energy efforts. The PHS project will produce its raw materials according to ASTM D36, and the latest standards will be certified by ISO 9001 and 14001.
The Outcome:
This project is still subject to PHS's ability to raise the capital needed and secure the "take or pay" style of offtake agreements required for financing. With the significant rise in interest rates, inflation, logistics costs, and raw material escalation, we believe this project will struggle to make economical sense at 20,000TPA and that the project needs to be scaled to a minimum of 40,000TPA for the project to be able to service the debt. However, EU grants attributed to the equipment cost may fill the gap, making this project more feasible at the 20,000TPA. Providing the project moves forward, the result is the preservation of finite resources through the production of the following sustainable commodities (approximate volume):
If you would like to learn more about this project, please get in touch with us now >> GO.
©2025 All Rights Reserved. Terms of Use
