Sustainable Development Goals
PROJECT INFORMATION AT A GLANCE:
Project Status:
Operating, cooperation concluded 2018
Organizations Involved:
Klean Industries, Enrestec, Pell Frischmann, Worley, Farrans, Burns & McDonnell, Pegasus Capital Advisors
Services / Equipment:
Feasibility Studies, Design & Engineering, Due Diligence
An operational pyrolysis plant serves as a crucial starting point for expanding this technology internationally. To successfully replicate it, we need a reliable technology that engineering firms can implement, investors can fund, and customers can trust. Klean tested this concept in collaboration with Enrestec by completing a Detailed Feasibility Study and securing exclusive licensing rights for North America and the European Union. However, the partnership was ultimately ended because the technology did not meet the requirements for the proposed projects abroad.
Starting in 2014, Klean evaluated Enrestec's continuous tire pyrolysis technology for North America, the European Union, and Malaysia. This initiative brought together an operational reference, three strategic engineering partners, and potential investors. In 2015, the collaboration progressed into teaming and licensing agreements. However, Klean concluded the partnership at the end of 2018 because the proposed international deployment could not meet the technical due diligence expectations of the engineering and investment participants involved.
The experience shaped Klean’s subsequent direction by acquiring CRR’s intellectual property and expertise in 2019, leading to the development of an international offering around that separate technology platform.
Recover valuable materials and develop a model that can travel
Klean’s initial market assessment estimated that Taiwan generates around 24 million end-of-life tires each year. The country has developed tire-recycling policies and subsidy mechanisms over several decades, establishing a strong foundation for material recovery and energy applications.
Enrestec, established in 2005, was an early participant in Taiwan’s continuous tire pyrolysis market. Its process provided a method to recover carbon and oil from processed tires, linking those products with industrial demand.
Klean had the opportunity to evaluate how its technology and business model could be implemented in other markets. North America, the European Union, and Malaysia presented distinct project conditions, customer needs, and delivery requirements. For projects that sought debt financing, it was essential for the engineering partners to support the proposed engineering, procurement, and construction arrangements.
Assess a continuous process and the markets for its products.
Enrestec’s system incorporated feed equipment, a combustion furnace, a reactor, and an oil-condensing system. The process utilized an indirectly heated, double-stacked auger configuration to continuously move chipped tires through carbonization.
Klean's project assessment reported estimated yields of approximately 38% pyrolysis oil and 28% recovered carbon black. Enrestec backed its carbon products with a professional laboratory, developing materials suitable for plastics and industrial rubber applications. The account also mentioned that the recovered carbon is utilized in the production of new tires.
The laboratory linked process performance with product sales: recovered carbon must meet manufacturer requirements.
Link the energy product to a nearby customer.
A key aspect of Enrestec’s model was its utilization of pyrolysis oil to produce steam for industrial clients nearby. Placing facilities within industrial parks facilitated an efficient energy exchange, connecting tire conversion with an established need for process heat.
The neighboring customer played a crucial role in the plant's economics. Converting oil into steam provided an outlet for the recovered energy within the industrial park. To replicate this model in other locations, it was essential to understand the customer's heat demand, the infrastructure needed to meet that demand, and the value of energy in each specific area. These considerations were commercial questions that could not be separated from the assessment of the technology involved.
Advancing from feasibility to obtaining international licensing.
In 2014, Klean and Enrestec initiated a Detailed Feasibility Study (DFS) to evaluate the international market potential of their technology. Klean collaborated with three strategic engineering partners who were chosen to facilitate potential Engineering, Procurement, and Construction (EPC) delivery in the target regions, taking into account the needs of prospective project debt lenders.
After completing the DFS in 2015, the companies entered into a Teaming Agreement to pursue projects outside of Taiwan. When investors were brought on board for project financing, they signed a Master License Agreement later that year. This agreement granted Klean exclusive rights to use Enrestec technology in North America and the European Union, with options for Central and South America as well.
Klean was involved in technical evaluation, engineering coordination, market development, and securing the commercial rights necessary for a potential international rollout.
Acknowledge operational achievements and make a decision regarding deployment.
At the time of Klean’s original case study, Enrestec was estimated to recycle approximately 36,000 tonnes of tires annually in Taiwan and 25,000 tonnes in Thailand. This operation involved industrial recycling with customers for recovered products and industrial energy.
The facilities showcased a business model that combined recovered materials with local energy demands from industry. However, at the end of 2018, Klean and Enrestec ended their collaboration. At that time, the technology did not meet the technical due diligence requirements expected by the engineering firms and investment partners necessary to support the proposed third-party EPC delivery outside of Taiwan.
Klean had secured exclusive rights to key markets and introduced potential investors. However, even at that early stage, it decided to end the collaboration. This decision carried a clear and important lesson: operating successfully in one market did not guarantee that the same technology would meet the engineering and financing requirements needed for an international rollout..
Transition from licensed access to owning the technology.
In August 2019, Klean acquired Carbon Resources Recovery GmbH (CRR) in Berlin, securing ownership of its intellectual property and expertise in recovering carbon black and tire-derived oil with biogenic content.
CRR partnered with Niersberger Group as the EPC provider for the commercial facility in Poland, holding a 50% ownership interest in it. This collaboration provided Klean with a distinct technological foundation, bolstered by commercial deployment and accumulated operational knowledge.
Currently, the CRR technology supports TyreNova, which is offered internationally through Klean’s exclusive partnership with KBR. KBR contributes global licensing, engineering, and delivery capabilities, while Klean provides technical leadership and development expertise. The commercial reference in Poland and the TyreNova alliance highlight the ongoing development of this separate platform.
The progression is important to prospective customers: Klean’s current offering is based on years of evaluating operating processes, negotiating technology rights, developing projects, and collaborating with engineering teams necessary to deliver them.
1. Klean’s experience reaches through to commercial agreements.
The Enrestec project evolved from a 2014 DFS into partnerships and exclusive territorial licensing in 2015, facilitated by coordination with engineering partners and introductions to investors.
2. The customer determines the value of the recovered product.
Enrestec's carbon applications and oil-to-steam model illustrate the necessity of connecting process design with actual materials and energy markets.
3. Klean has made a decision based on its technical judgment.
The company ended its cooperation in 2018, acquired CRR in 2019, and then developed a separate global deployment platform with KBR.
These accomplishments and lessons have been selected. Additional technical and commercial insights can be obtained through engagement with Klean.
Selecting tire pyrolysis technology involves making strategic choices related to product sales, engineering delivery, and financing. Klean offers valuable experience in navigating these decisions, including the necessary groundwork to evaluate an operational reference for entering a new market.
Engage Klean to align your feedstock, target products, and location with a suitable process and development plan. A paid Detailed Equipment Quotation (DEQ) will provide the preliminary equipment specifications and investment estimates. This will be followed by a Detailed Feasibility Study (DFS) and Front-End Engineering Design (FEED).
Develop Your Tire Pyrolysis Project with Klean >> GO.
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ABOUT THE INFORMATION PRESENTED
This case outlines Klean’s historical collaboration with Enrestec and the subsequent development of a separate technology platform. Figures and conclusions relate to the periods described. Further technical, client and commercial information is addressed within an agreed engagement, subject to appropriate confidentiality arrangements.
This project addresses the United Nations Sustainable Development Goals (SDGs) by aligning with the goals and associated targets illustrated by the WBCSD’s Tire Industry Project (TIP). TIP provides a framework for action that outlines impactful pathways for the tire sector to contribute to achieving the Sustainable Development Goals (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 Tire Sector SDG Roadmap”.
