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September 04, 2020 10:32 AM

Enviro buoyed by demand for ‘bio-oil’ from scrap tires 

ERJ Staff
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    Stockholm – Scandinavian Enviro Systems AB (Enviro) has reported a “dramatic increase” in interest in pyrolysis oil it extracts from end-of-life tires, over the past 12 months.

    As the oil has a high bio-content due to the natural rubber in tires, it is generating growing market interest as an alternative to fossil-based fuels, explained a 4 Sept Enviro statement.

    “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,” said Thomas Sörensson, CEO of Enviro.

    Demand is being driven by increasing sustainability demands from both the capital market and consumers and tightened regulatory requirements.

    This, said Enviro, 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, this has led Enviro to upgrade its projections for revenue from a recycling plant based on Enviro’s proprietary technology.

    “The changed market conditions mean that the recovered oil will have a strong positive effect on the revenues from a plant,” said Sörensson. 

    These developments, forecast the CEO, could contribute to a strong increase of the previously calculated revenue of around SEK 110 million per plant and year.

    A recycling plant based on Enviro’s standard model can process about 30,000 tonnes of tires per year, recovering a commercial volume of approximately 14,000 tonnes of pyrolysis oil.

    Enviro is also working with Sweden research institute 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 EU’s REACH regulations, which would facilitate trading in and transportation of the recovered oil.

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