Tyrecycle eyes new markets with $15m recycling plant
A $15 million recycling plant in East Rockingham is set to change the landscape of waste tyre processing in Western Australia.
The Tyrecycle plant, opening in February 2024, will have the capacity to process 42,000 tonnes of waste tyres of which there will be 7000 tonnes of crumb rubber produced per annum – double the size of the current Western Australia market.
The company has also secured a five-year offtake agreement with Japanese companies Daicel Corporation and Nippon Paper Group for steel-free, tyre-derived fuel (TDF) as a coal substitute.
Jim Fairweather, Chief Executive Officer, says the plant will be the most flexible and technologically advanced in the Tyrecycle network.
“There’s no plant even remotely close to this in Australia,” Jim says.
“This plant allows us to drive as much product back into the Western Australia market and domestic sales as physically possible. What we can’t sell domestically, it allows us to target stable markets, like Japan.
“COVID taught us the importance of long-term offtake agreements and secure outlets. Tyrecycle was able to wear the cost and take the volatility out of the supply chain because we have invested time, effort, and money into offshore outlets.”
The East Rockingham plant was built with assistance from state and federal government Recycling Modernisation Funds. It’s one of three new tyre recycling plants under the umbrella of global resource recovery leader ResourceCo, as part of a multi-million-dollar commitment to increase Australia’s processing capacity and capability.
Combined, the plants give Tyrecycle the ability to increase the sophistication of the product output, and access to greater markets, hence guaranteeing services to collection customers.
When it was launched in December 2021, the Tyrecycle recycling plant in Erskine Park, Western Sydney, was described as the largest and most sophisticated recycling plant in Australia. It represented a massive win for the environment and Australia’s circular economy, giving end-of-life tyres a new lease on life.
Jim described the East Rockingham plant as Erskine Park – but bigger and more flexible.
The turnkey build by Danish company Eldan Recycling consists of much of the same core technology as Erskine Park but has been designed to maximise production and safety. In conjunction with this, modifications have been made so that the new plant can process off-road tyres (OTR) – an ever-growing feedstock within the tyre recycling market.
The straight-line building has several discharge bays along the line so that various products can be pulled out at stages of production without interrupting operations.
While this makes the plant more efficient, it also means there’s little to zero chance of cross-contamination of the products being made, especially important when servicing markets such as Japan.
Collection bays are outside so services to collection providers can be maintained if the plant is undergoing upgrades or maintenance. More than $1 million has been invested in fire detection and suppression.
“We’re dealing with a material that can be flammable, and when you’re processing crumb rubber the risk is greater,” Jim says. “You cannot cut corners. You have to have well-designed systems and well-trained staff.”
Feeding into the East Rockingham plant will be a processing facility in Port Hedland, the first in Australia to target the thousands of tonnes of OTR waste from the mining industry.
Up to 245,000 tonnes of OTR products are used and become waste each year, according to the Tyre Stewardship Australia Tipping the Balance report. Many are still being disposed of in landfills, buried or stockpiled. Their size, construction and remote location make their disposal or reuse difficult and expensive.
Jim says Tyrecycle is in discussions with most of the major mining companies in Australia to collect their OTR waste.
“They understand their responsibility in managing their waste streams effectively and sustainably and are very keen to engage with us to find a solution that works,” Jim says. “We think this is the first time they’ve had that in front of them.”
Recycled OTR tyres processed in Port Hedland will be exported directly, or the processed material transported to East Rockingham for further refinement into crumb rubber to go back into Western Australia roads.
With both East Rockingham and Port Hedland plants due to come online in 2024, Western Australia is poised to become more self-sufficient in managing its rubber waste.
Jim says that given its geographical isolation, it’s difficult, but important, that the state has recycling facilities, no matter the waste stream. He says Tyrecycle has invested in the WA market on the back of the Recycling Modernisation Fund and the state government driving procurement of crumbed rubber for roads.
Demand for crumbed rubber for the state’s roads has grown with 3028 tonnes used in 2022-23. Jim says the WA government forecasts that will reach 9000 to 10,000 tonnes.
“The Western Australia Government has made a significant investment and commitment to buying crumbed rubber for roads through Main Roads Western Australia, the transport agency responsible for the state’s network,” he says.
“They should be commended for that. I think if other governments showed the same level of commitment, they may see more investment in their jurisdictions.”
Commissioning of the East Rockingham plant has been three years in the making – from securing the right location to design and build.
Jim says flicking the switch was rewarding not just for himself, but the entire team as it continues to work to ensure Tyrecycle is fulfilling a responsibility as market leader in tyre recycling.
“It’s important we do that better than anyone else,” Jim says. “This will be the best tyre recycling plant in the world.
“There’s an increased awareness from retailers that they need to do the right thing. It makes it easier for them to understand what the right thing looks like when they see plants like this.”
Tyrecycle now has seven tyre processing plants across the national footprint, equipped with rubber re-manufacturing capability. Combined, it collects about 17 million tyres per annum with a recycling rate of 99 per cent.
Working with governments, communities, and multi-national companies to progress the circular economy, Jim says the company is positioned to play a leading role in the global expansion of the resource recovery sector and is determined to make an impact across a range of industry sectors including waste, energy, and construction.
Having already re-purposed more than 60 million tonnes of materials, the broader ResourceCo Group, which includes Tyrecycle, is the largest energy-from-waste producer in Australasia, a large contributor to carbon abatement, as well as reducing harmful greenhouse gas emissions.
But it’s not resting on its laurels. The management team continues to push to pioneer new solutions and lead the industry.
“We must be better than our competitors, we must do things environmentally soundly and cost-effectively, so we are the best operator in Australia,” Jim says. “I think it’s good to be pushed, and for us to feel that responsibility, because it’s important we develop the whole waste and resource recovery category, not just tyre recycling.
“Pressure creates diamonds.”
For more information, visit: www.tyrecycle.com.au
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