STOCKHOLM — Scandinavian Enviro Systems A.B. (SES) has reported a dramatic increase in interest in pyrolysis oil it extracts from end-of-life tires over the past 12 months.
The oil has a high bio content due to the natural rubber in tires and is generating growing market interest as an alternative to fossil-based fuels, Enviro stated.
"Based on the market response and our own calculations, the oil recovered from end-of-life tires could contribute to a strong increase of revenues from recycling plants that use our technology," Scandinavian Enviro CEO Thomas Soerensson said.
Sustainability demands from businesses and consumers are driving the need for the oils, which also are getting a boost from tightened regulatory requirements. This, ESE said, has led to greater demand for alternatives to fossil-based raw materials in several industries, including the refining and chemical industries.
Combined with indications relating to prices and demand, SES has upgraded its projections for revenue from a recycling plant based on its proprietary technology.
"The changed market conditions mean that the recovered oil will have a strong positive effect on the revenues from a plant," Mr. Soerensson said. These developments, he added, could contribute to a strong increase of the previously calculated revenue of around $12.5 million per plant a year.
A recycling plant based on SES's standard model can process about 30,000 metric tons of tires per year, recovering a commercial volume of approximately 14,000 tons of pyrolysis oil.
SES also is working with Research Institute of Sweden (RISE) and major players in the oil industry to increase the recovery rate for oil and expand its applications.
The company also intends to certify the pyrolysis oil in accordance with the European Union's REACH regulations, which would facilitate trading in and transportation of the recovered oil.