Canada’s Klean Industries Inc. has announced the signing of a non-binding Letter of Intent (LOI) to supply its equipment and patented technologies for upgrading char derived from the thermal processing of end-of-life tyres (ELT) into recovered carbon black (rCB). This project includes four new plants, two of which will be located in India and two in Malaysia. Combined, these plants are expected to annually process up to 50,000 tonnes/year of pyrolysis char.
Klean’s specialised carbon upgrading systems for tyre char enable the economic conversion of low-value tyre char into high-value rCB which can replace virgin carbon black (vCB) by volumes of 10% to 100% depending on the application. It claims its proven process can increase the value of the tyre char as much as 10x by making it chemically and physically more acceptable for use in various manufacturing markets.
These new projects will continue to expand Klean’s activities in Asia, where the KleanTeam has been actively developing projects for the past two decades.
Asia produces an estimated 1 billion end-of-life tyres/year, and many countries in this region are adopting stricter policies toward environmentally sustainable methods of processing tyres. This helps create one of the largest markets in the world for recovered carbon products. The GHG impact is also significant, and it’s estimated that the carbon emission offsets alone from these combined facilities will be more than 150,000 tonnes/year.
“Klean has spent years developing long-term arrangements throughout the global supply chain, enabling us to do what other vendors and suppliers cannot, at less than 50% of the capital costs and 1/4 of the manufacturing time. Today, Klean is in a unique position to help expand these international markets that are playing a larger role in the global circular economy. With more countries and corporations continuing their push for industrial circularity to achieve net-zero carbon emissions, the market for recovered carbon materials is becoming global. International manufacturers are actively sourcing recovered products from Asia, India, and other countries outside the US and EU. Less than 1% of all carbon black material used globally in new tire production is recycled due to a weak supply pipeline for the recovery and reuse of carbon black. With Klean’s global experience and relationships with product manufacturers we are also well positioned to assist customers with off-take for the recovered carbon black produced for our equipment,” said Jesse Klinkhamer, CEO of Klean Industries Inc.
As technology continues to improve and be adopted, the demand for recovered carbon black is expected to surge rapidly and those prepared for this demand will reap the rewards. According to the research company “Research & Markets,” the global market size for recovered carbon black is projected to be US$492 million in 2023, with an estimated compound annual growth rate of 35% from now until 2030.
Klean anticipates further expansions as the demand for rCB grows with shortages in virgin carbon black, aging virgin carbon production infrastructure, emission regulations, supply chain bottlenecks, product traceability regarding raw materials and product manufacturing, and import tariffs on non-domestic carbon black production.
Klean is currently working with several of the largest global tyre manufacturers, rubber, and plastic automotive parts suppliers along with numerous other supply line producers and end-users who all see the market potential and opportunity for rCB to offset both emissions and costs associated with traditional carbon black manufacturing.
Significant investments in the recovery of resources found in end-of-life tyres are underway in various markets such as Europe, the US, and Asia which puts Klean Industries well positioned to benefit from the significant growth demand in these markets.
Recovered carbon black presents the opportunity to reduce the tyre industry’s reliance on petrochemicals by replacing a portion of traditional carbon black with a sustainable and circular alternative without introducing performance tradeoffs. Additionally, using recovered carbon black in new tyres?reduces CO2 emissions by?up to 85% compared to virgin materials.
That combined with the global issue of how to manage the growing stockpiles of end-of-life tyres presents an opportunity that cannot be overlooked. The Klean Team has been actively involved in working with many of the largest tyre manufacturers to help these companies achieve their stated goals. A core part of Klean’s intellectual property and know-how is focused on the processing of waste rubber and scrap tyres. Klean has a proven portfolio of advanced thermal technologies that transform end-of-life tyres into high-quality, valuable raw materials primarily recovered carbon black and recovered fuel oil.
Klean has further reinforced its current business initiatives by coupling its manufacturing capabilities with trade finance relationships. By establishing and strengthening international trade finance relationships with the Export Development Bank of Canada and Elevate Financial Corp, the company is now able to offer new and existing customers financing on competitive terms for loans to purchase plants and equipment of all sizes on approved credit of up to 85% both secured and unsecured depending on size and financial requirements.