Tyrecycle eyes expansion

Tyrecycle Eyes Expansion

With a strong global market forecast for tyre-derived fuel, Australia’s largest tyre recycler, Tyrecycle, is set to expand its operations across Australia, with a commitment to investment in new plants and technology.

The recently released Tyre Derived Fuel (TDF) Market– Global Industry Analysis (2017 – 2020), Growth Trends and Market Forecast (2021 – 2025) highlights the shift to TDF is already increasing at speed with cement and paper and pulp industries taking the lead.

The research report estimates the global TDF market will reach a valuation of US$430.3 million (about AUD$573 million) by the end of 2025.

Jim Fairweather, CEO of Tyrecycle, says that while the global market forecast is encouraging, Australia’s tyre recycling industry needs to embrace innovation and raise awareness if it is to expand into a globally sustainable business.

“The global research report solidifies the need to build confidence in the sector with a genuine commitment to embracing new opportunities,” he says.

As end-use industries regain momentum in the post-COVID-19 economy, analysts anticipate that will further stoke the usage of TDF, often used as a supplemental fuel at cement and paper and pulp facilities, providing improved boiler efficiency, a reduction in carbon emissions, and lower fuel costs.

“It’s the kind of projections the sector needs to back itself. At Tyrecycle, we are gearing up for significant expansion in our production capacity and capability for TDF,” Jim says.

Tyrecycle is investing more than $50 million to expand its operations across Australia to cater to growing national and international demand.

The company has a new plant that opened at Erskine Park in Sydney in July, with a second new plant scheduled to commence building in WA in the coming months. It is also bolstering its South Australian, Victorian and Queensland operations, further strengthening the company’s capabilities across its national footprint, ahead of the Federal Government’s ban on the export of whole-baled tyres set to take effect in December this year.

“It is a transformative change that offers the tyre recycling sector a significant opportunity to raise the stakes in achieving better and more sustainable environmental outcomes,” Jim says.

He acknowledged that the industry needs to appropriately capitalise the market, that consumers need to understand that there is a cost to recycling properly, and that the consumer will bear that cost so retailers can do the right thing by the environment.

“However, while regulation will go some way towards addressing the important role that waste tyres can play in helping to progress a circular economy, further incentives for tyre recyclers to invest in higher end product development will also be important,” Jim says.

“We also need to support those retailers who are doing the right thing in ensuring tyres are appropriately recycled, by educating consumers in understanding there is a cost to recycling in a way that supports good social and environmental outcomes.”

In Australia each year, approximately 465 kilotons of tyres reach their end-of-life. Tyrecycle, having been in the market for close to 30 years, collects about 40 per cent of the total and about 55 per cent of the retail market for processing and remanufacturing of those waste tyres.

“That paints a clear picture of just how much more work there is to be done in further highlighting the potential of the industry,” said Jim.

The National Circular Economy Roadmap highlights that Australia currently lacks the necessary market demand for recycled products.

“Expanding meaningful partnerships, both locally and globally, will be key to supporting competitiveness and scale for Australian manufacturers, as we seek to progress improved access to export markets and supply chains,” Jim says.

“We all need to be smarter about how we use the Earth’s limited resources and that requires government, industry and consumers to accept responsibility for the role they each have to play in driving sustainable change.”

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