PYROLYSIS OIL

Tyre Pyrolysis Oil (TPO) - Main Applications

Pyrolysis oil has a variety of applications, including as fuel for energy generation,  crude oil supplement in refineries, and fuel for asphalt burners.

Fuel for energy generation

TPO can be used as an alternative fuel in power plants and industrial boilers, providing a sustainable energy source and reducing reliance on fossil fuels.

Crude oil supplement in refineries

TPO can be blended with conventional crude oil in refineries to produce a range of petroleum products, including petrol, diesel, and jet fuel.

Fuel for asphalt burners

TPO can be used as a fuel in asphalt plants for heating and drying aggregates, contributing to the production of asphalt for road construction and maintenance.

Feedstock for chemical production

TPO can be used as a feedstock for producing various chemicals, such as solvents, adhesives, and polymers, through further processing and refining.

Tyre Pyrolysis Oil - Main Drivers

As more companies aim for circular economy profiles, the demand for recycled products, such as TPO, is expected to rise. This may further expand the range of potential output products in the future.

Growing demand for technology that enables material circularity
  • Circularity enables suppliers to develop new business models (base on control over a circular material flow) and reduced environmental impact.
  • Driven both by regulatory push for e.g. increased recycling or reuse by end customers valuing circularity.
Growing demand and regulatory push for renewable content in fuel
  • Regulatory frameworks push for increased use, e.g. in EU, providing incentives and penalties to drive producers to add renewable content to fuel. TPO includes renewable content from the natural rubber in the tyre feedstock used.
  • A higher share of large tyres (e.g. truck, mining) drives up share of renewable content.
Increased investments in pyrolysis capacity
  • Grow and commercialization of tyre pyrolysis technology drives capacity investment, which generates additional TPO volumes.
  • This increase adds both focus and also capacity reassurance for potential TPO clients, making them more interested in reviewing TPO as feedstock.
Variation in raw material prices and demand
  • TPO price and demand may be impacted by the crude oil price since it is a substitute product.
  • Link with crude oil price estimated to vary between applications, depending on switching costs and other values gained from TOP, e.g. circularity and adding recycled or renewable content.