Setting Up a Tyre Pyrolysis Recycling Business In India
Tyre Pyrolysis In India
Tyre Pyrolysis Recycling presents a promising solution to the environmental challenges posed by discarded tires, offers sustainable resource management and energy recovery opportunities, and establishes a tire pyrolysis plant to address India’s burgeoning waste tire problem.
Introduction to Waste Tyre Recycling
Tyre Pyrolysis Recycling presents a promising solution to the environmental challenges posed by discarded tires. It offers sustainable resource management and energy recovery opportunities. With India’s burgeoning waste tire problem, establishing a Tyre Pyrolysis Recycling facility can, if done correctly, contribute to environmental conservation and present a lucrative business opportunity.
However, sadly, 95% of current pyrolysis operations operate low-grade and highly polluting equipment that does not produce quality products; in fact, it is worsening the environment and the reputation of the tire recycling industry. This needs to change, and that’s where Klean Industries can help.
Economic Growth and Tire Production. India’s tire and recycling sector is witnessing significant growth, with tire production rising alongside economic expansion. This growth underscores the importance of recycling end-of-life tires, especially as the local tire industry grows at 12% per year.
Potential Growth. The global tire recycling market is experiencing steady growth, with a Compound Annual Growth Rate (CAGR) of 3.3% projected over 2022–2032. The Indian tire and rubber recycling industry, driven by the growing domestic automobile industry, has the potential to reach INR 350 billion in the next five to ten years.
Government Initiatives. The government increasingly prioritizes sustainable growth, with initiatives to foster the tire recycling sector. Niti Aayog’s comprehensive study on tire recycling and its subsequent recommendations exemplify this commitment.
Tire Pyrolysis Sector. The tire pyrolysis sector in India recycles 1.3 million tons of tires annually, producing almost half a million tons of fuel oil. This sector offers opportunities to collaborate with tire producers for value addition.
Extended Producer Responsibility (EPR). The Ministry of Environment, Forest & Climate Change (MoEF & CC), in collaboration with the Central Pollution Control Board (CPCB), has drafted the Tyre Recycling EPR policy, signaling a proactive approach to waste management and environmental stewardship.
Pyrolysis Plants
Pyrolysis plants can be classified into several types based on the operational method and the scale of operation. Here are some common types:
- Batch Pyrolysis Plants: These plants operate in batches, meaning they process one batch of material at a time. Once a batch is completed, the plant is cooled down, the end products are removed, and a new batch is introduced.
- Continuous Pyrolysis Plants: These plants operate continuously, with raw materials being fed into the plant and end products being removed simultaneously. This type of plant is typically used for large-scale operations.
- Conventional/Slow Pyrolysis Plants: These plants operate at a slow heating rate and low-temperature ranges, producing tar and char as the main products.
- Fast Pyrolysis Plants: These plants operate at high temperatures and rapid heating rates and are commonly used to produce bio-oil and gas.
- Ultra-Fast/Flash Pyrolysis Plants: These plants operate at rapid heating rates and temperatures, producing less gas and tar than slow pyrolysis.
Each type of pyrolysis plant has specific advantages and is used for different applications. The choice of plant type depends on the desired end product and the characteristics of the feedstock. However, in India, within the pyrolysis method, two main types of plant setups are used: batch pyrolysis plants and continuous pyrolysis plants. Batch and continuous pyrolysis processes produce different quality final products.
Most tire pyrolysis units in India use batch processes that produce low-grade pyrolysis oil and tire-derived char, which is NOT recovered carbon black. These units vary in process control, safety features, raw materials, finished products, and waste handling methods. The Central Pollution Control Board (CPCB) mandates that only Advanced Batch Automated Process (ABAP) type tyre pyrolysis oil Units are permitted for standardizing batch pyrolysis operations.
Final Product
In tire pyrolysis, the products generated are:
- Pyro Gas: It’s a combustible gas with various components. Hydrocarbon gas can be cleaned in a wet scrubber system to make harmless smoke for release into the atmosphere or reused for heating within the facility.
- Pyro Oil: This liquid product can range from valuable fuel oil to less valuable blend stock. When mixed with light diesel oil, it can be utilized in various industries, such as boiler companies, rolling mills, casting industries, asphalt plants, and more.
- Char: Char is a solid residue containing carbon, silica, and other materials. Without upgrading the char into recovered carbon black, tire-derived char has the value of coal and has limited end uses. However, Klean Industries can convert this char into high-value recovered carbon black.
- Steel: Thin wire from tires, sold as scrap steel.
Raw Material
According to the SoP published by the MoEF & CC, the plant can use only indigenously generated waste tyres, such as those generated within India. Raw materials for the tire recycling business include:
- Used or waste tires (Radial or Nylon)
- Shoe soles
- Waste conveyor belts
Coal is used to generate heat in the pyrolysis plant.
Government Policies, Programs & Financial Assistance
Government Policies. The Ministry of Environment, Forests, and Climate Change has introduced a draft notification outlining regulations for Extended Producer Responsibility (EPR) regarding waste tires. This policy expands the responsibility of producers or importers to include the disposal of waste tires. EPR obligations for 2022–23 are set at 35% of the number of new tires manufactured or imported in 2020–21, increasing to 70% in 2023–24 and reaching 100% by 2024–25 based on the number of new tires produced or imported in preceding years.
Financial Assistance. Entrepreneurs can obtain loans through the Pradhan Mantri Employment Generation scheme for small-scale plants requiring an investment of approximately 20 to 25 lakhs. For a recycling project, borrowers may secure up to 90% of their investment as a loan and a subsidy of up to 15%. Additionally, the Ministry of Micro, Small & Medium Enterprises (MSME) in India provides various schemes and benefits tailored for businesses operating in the waste tire recycling sector.
Innovation Support. The Union Ministry for MSMEs has initiated a scheme offering financial support of Rs 15 lakh and access to incubator facilities for aspiring entrepreneurs with innovative solutions, particularly in focus areas such as water and waste management.
Ecological Impact
Tyre Pyrolysis Waste — Gas Emissions. Two types of waste gases are produced during tire pyrolysis. The first is tail gas from the pyrolysis reactor, and the second is exhaust gas from heating the reactor. The first type, a non-condensing but combustible gas, is reused to heat the reactor. The second type undergoes purification through a flue gas system, including a tower for desulfurization and purification, a dust collector, and a water scrubber.
Wastewater. All water used in the tyre pyrolysis facility is recycled, with no wastewater discharge.
Solid Waste. In a typical batch pyrolysis process, carbon char is the residue left in the pyrolysis reactor, generated as a by-product. It has limited uses and is mostly used as an inexpensive coal replacement fuel. However, it can be compressed into briquettes for brick kilns as fuel or ground into powder for low-quality colorant/pigment production, provided the PAHs have been removed.
Environmental Impact of Tyre Pyrolysis Plants — Production Concerns. Incomplete pyrolysis can lead to harmful substances if gas treatment is inadequate. Proper control measures prevent these substances from being released.
Gas Recycling. Recycling syngas is crucial to minimize fuel consumption and environmental impact. Failure to recycle can contribute to pollution and climate change.
Oxygen Levels. High oxygen levels during pyrolysis can lead to combustion instead of proper pyrolysis. Efficient energy recovery offsets emissions.
Explosion Risk. Safety features are necessary to prevent explosions due to oxygen bursts or defects.
Storage and Transport. Careful handling is essential to prevent fires and pollution. Proper handling ensures safety for the environment and people.
Need, Benefits & Feasibility for the Tyre Pyrolysis Industry
Waste tyres are a global problem, causing environmental and health issues. Tyre pyrolysis is a process that converts waste tyres into valuable products. The tyre pyrolysis industry can help reduce the negative impacts of waste tyres on the environment, but only if the approach is made with professional-grade equipment and not by these batch processes that derive from China.
Benefits of the Tyre Pyrolysis Industry. Tyre pyrolysis products have various industrial and commercial applications. The industry can create employment and economic opportunities and lower greenhouse gas emissions and landfill space.
Feasibility of the Tyre Pyrolysis Industry. The feasibility of the tyre pyrolysis industry depends on several factors, such as: the availability and cost of waste tyres, market demand and price of tyre pyrolysis products, the regulatory and policy framework, technical and operational aspects, and financial and social aspects. The tyre pyrolysis industry can be profitable and viable if these factors are favorable and well-managed.
Applicable Laws
The Ministry of Environment, Forest and Climate Change (MoEF & CC) has updated the Hazardous Waste Rules, known as “The Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2022.” Producers must take responsibility for the tires they make, sell, or import, which is called Extended Producer Responsibility (EPR). Recyclers issue EPR Certificates based on tire recycling, which producers buy to meet their obligations. This process is managed through a centralized portal developed by the Central Pollution Control Board (CPCB).
Requirements for Establishing Batched Type Waste Tyre Pyrolysis Plant
Plot area/spacing requirements. For a single batch type pyrolysis reactor of 10–12 tons capacity, a minimum plot area of 3,000 m². A single batch-type pyrolysis reactor of 20 tons capacity requires a minimum plot area of 4,000 m². For a continuous-type pyrolysis reactor, a minimum plot area of 7,000 m².
Components and equipment used in tire pyrolysis plants include: automatic feeder, pyrolysis reactor, buffer tank, oil tank, two vertical condensers, oil-water separator, two horizontal condensers, two cooling towers, tail gas cleaning and odor removal system, desulfurization and purification tower, wind conveying system, and grinding machine.
Licensing requirements:
- Udyam (MSME) registration — offers benefits like easier loans, government aid, tax breaks, export support, priority lending, and simplified business assistance. Registration is entirely online, paperless, and self-declared; your Aadhaar Number is enough, with PAN and GST details fetched automatically.
- Trade license — permission to start a specific trade or business in a given area.
- GST Number — an indirect tax levied on the supply of goods and services.
- Factory License — under the 1948 Factory Act, each factory owner must register premises with local authorities. Documents include site schematics, location details, machinery information, and land ownership or lease proof.
- Electricity permission — necessary because the recycling process involves machinery running on electricity.
- Hazardous & Other Waste authorization — occupiers must apply to the State Pollution Control Board for hazardous waste authorization.
- CTE and CTO authorization — from the state pollution control board, before commencing the recycling business.
- Fire Safety Certificate — a fire department NOC confirming the building is fireproof.
- EPR Portal registration — a promoter must obtain an EPR license under the Hazardous and Other Waste (M&TM) Amendment Rules 2022 from the CPCB.
Cost Breakdown
Here is a simplified cost breakdown for a tire recycling plant: price of the waste tire pyrolysis machine, cost of other supporting equipment, space expenses, construction costs, raw material costs, fuel costs, labor expenses, and maintenance costs.
Conclusion
With the rapid increase in cars in India, the demand for tires has also risen. However, as each tire eventually becomes waste, recycling them has become crucial to address environmental and resource challenges. Due to the growing vehicle population, India generates around 0.6 million tons of tire scrap yearly. Efforts like mandating the scrapping of old vehicles and the rise of organized players are expected to increase the availability of scrap tires.
Stockpiled tires pose environmental and health hazards, but technologies like gasification and pyrolysis offer promising solutions. Pyrolysis, for instance, can turn tires into valuable products like fuel oil, carbon black, and steel wires. Though faced with technical and economic challenges, this technology is becoming more feasible. For instance, from 1000 kg of waste tire input, around 450 liters of industrial fuel oil, 125 kg of petroleum gas, 330 kg of carbon black, and up to 110 kg of steel wires can be produced.
The economics of tire reprocessing units are attractive. Profitability is determined by factors like tipping fees, revenue from product sales, processing costs, and disposal costs. The initial investment for a small pyrolysis unit ranges from Rs 3.5 to 4.0 crores, increasing with capacity. Maximizing tire use through technologies like pyrolysis can reduce environmental impact and conserve natural resources. While tire management remains a growing problem, pyrolysis offers a potential solution by converting tire waste into marketable products, thus addressing the tire disposal challenge in the years ahead.
Frequently Asked Questions
Is tyre pyrolysis profitable? Investing in a pyrolysis plant for waste recycling can be profitable. Advanced technology — not Chinese-made — requires a relatively significant initial investment, benefits from ample raw material supply, offers quick returns on investment, and holds promise for the future. Besides economic gains, it also contributes positively to the environment.
What are the challenges with pyrolysis? Continuous processing is the only way forward for a commercially successful plant. The batch processing method has many challenges, including achieving optimal oil yield. Standard batch pyrolysis takes about 8 hours, but high water content in tires can extend this to 10 hours or more. Overloading the reactor can cause instability, so precise adherence to feeding specifications is crucial — but is often overlooked with batch processing.
Can pyrolysis oil be a diesel substitute? Researchers are actively exploring combustible pyrolysis oil derived from waste plastic or tyre material as a biogenic feedstock for refining into biofuel for diesel engines. Economic studies and practical applications suggest that in some industrial refining applications, pyrolysis oil can match diesel in terms of engine performance and energy output if its cost remains below 85% of diesel oil.
What percentage of tyres are recycled in India? According to industry data and investigations from the KleanTeam, India discards approximately 1.5 million tons of End-of-Life Tyres (ELTs) annually and is still operating without a comprehensive plan. Additionally, India imports more than 300,000 tons of used tires from countries like Australia each year for recycling.
Learn More:
- Recovered Carbon Black — Circular rCB Plant, India
- Sustainable rCB & Tire Pyrolysis — India
- Commercial-Scale Tyre Pyrolysis — Klean Carbon, USA
- Feasibility Studies for Tyre Pyrolysis
Unlock the Full Potential of Tire Pyrolysis with Klean
As India’s tire pyrolysis market grows, choosing the right technology and equipment is crucial for long-term success, regulatory compliance and profitability. Klean Industries offers world-class tire pyrolysis and carbon black upgrading solutions, delivering superior product quality, high yields and sustainable operations.
Why Choose Klean Industries for Your Tire Pyrolysis Business?
- ✅ Proven, high-performance tire pyrolysis systems — engineered for maximum oil recovery, ultra-low emissions and high-efficiency carbon black production.
- ✅ Fully compliant, future-ready technology — meeting India’s environmental regulations, CPCB guidelines and global sustainability standards.
- ✅ High-yield carbon black upgrading systems — enhancing rCB purity, surface area and particle size for reuse in rubber and plastics manufacturing.
- ✅ End-to-end solutions — from turnkey pyrolysis plants to carbon black refinement and fuel upgrading.
- ✅ Proven track record with global industry leaders — partnered with top tire manufacturers, oil refiners and industrial carbon users worldwide.
Klean has built 3 recovered carbon black plants in India over the past two years and holds a signed letter of intent to deliver five more.
Ready to build a profitable, sustainable tire pyrolysis business in India?
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