tire to oil pyrolysis: Executive Summary

Tire To Oil is the future of tire recycling!

Company Description - tire to oil pyrolysis:

TIRE TO FUEL™ is a New Hampshire company which has successfully developed and perfected an efficient, non-polluting, tire-to-energy technology that safely recycles used tires into high value energy products including fuel oil, synthetic gas (syngas) and carbon char. Our process also yields byproducts including scrap steel from steel belting and electricity produced by syngas powered generators. Our technology is environmentally pollution free without significant air emissions or risk of groundwater contamination. Because the plant emissions are well within existing environmental standards, we do not anticipate permitting opposition or credible environmental concerns. The fuel oil derived from tires was tested at the Clean Burn Energy Systems facility in Northfield, MA. The tests determined that our fuel oil is a high-energy, low emission fuel that slightly surpasses #2 heating oil in BTU content.

Mission Statement - tire to oil pyrolysis:

TIRE TO FUEL™ technology and recycling processes will contribute to the mitigation of a worldwide environmental tire disposal crisis. Over three billion tires are stored in tire dumps in the United States and over 300 million more tires are disposed of every year in legal and illegal tire dumps. Not only is disposing of tires very expensive for municipalities, tire dumps also pose serious environmental and health hazards. Toxic tire dump fires, often the result of arson, cause extensive air pollution and groundwater contamination. Hundreds of tire dump fires occur in America every year. One fire in Tracy, California burned 7 million tires for two years and caused immeasurable air and groundwater pollution. A US Department of Energy funded study of tire dump fires on the El Paso, Texas border with Juarez, Mexico determined that over 300 tire dump fires occurred there in one year.

Business and Management Plan - tire to oil pyrolysis:

Strong markets exist for all the recycled tire products that our plant will produce including heating oil, synthetic gas, char, scrap steel and electricity. Tipping fees for accepting tires are our highest source of revenue. These fees are significantly higher in large metropolitan areas and thus it is advantageous for us to locate additional plants in these locations.

Products, Tipping Fees and Marketing - tire to oil pyrolysis:

Strong markets exist for all the recycled tire products that our plant will produce including heating oil, synthetic gas, char, scrap steel and electricity. Tipping fees for accepting tires are our highest source of revenue. These fees are significantly higher in large metropolitan areas and thus it is advantageous for us to locate additional plants in these locations.

1. Heating Oil – Our fuel oil can be sold at competitive prices to a variety of industrial customers. One ton of recycled tires yields approximately 100 gallons of fuel oil. Thus a 600 ton-per-day plant will yield 60,000 gallons of fuel oil daily. Assuming a sale price of $2 per gallon, revenues are projected to be $120,000 per day or $39,420,000 annually after deducting 10% for plant downtime and maintenance. The selling price of our tire derived fuel oil is not contingent on the volatile price of crude oil. We can therefore market our energy products at fixed prices with long term contracts, as we do not purchase our tire feedstock as most refineries purchase crude oil. We are paid a tipping fee for accepting tires at our plant equivalent to $6 per gallon. (This assumption is based on receiving a net tipping fee of $600 per ton FOB plant and producing 100 gallons per ton.)

We are compelled by federal and state regulations to market our fuel for heating purposes and not transportation fuel. This is due to the EPA’s current ultra low sulfur requirement for transportation fuels that mandates a sulfur content of less than 15 parts per million. Congress determined that heating fuel shall not be regulated by the EPA but by individual states. Our tire derived fuel oil will satisfy state regulatory standards if marketed as heating oil. State sulfur content regulations for heating oil range between 3,500 ppm to 4,500 ppm and our fuel oil is well within these limits. Even if the sulfur standards for heating fuel were lowered to 15 ppm, which is doubtful, it would not pose a significant problem for us. We can install sulfur removal equipment based on the Claus sulfur removal process. Sulfur is currently selling for over $150 per ton and thus it may be profitable to install sulfur removal equipment in the future. Birch Energy successfully fabricated a small scale experimental refinery and produced kerosene, gasoline, diesel and bituminous tar from tire derived fuel oil. However, we do not believe it is prudent at this time to refine our fuel oil. We are confident that we will be able to sell our energy products for satisfactory prices without the additional expense and complication of the refining process.

2. Synthetic Gas The synthetic gas produced by our tire-to-fuel technology can be used for industrial heating purposes and also to generate electricity. Our tire-to-fuel process produces 70 cubic meters of syngas for every ton of recycled tires. Our syngas has been tested by Birch and his sons with highly satisfactory results. Birch tested the syngas energy potential and compared it to natural gas. The informal test determined that tire derived syngas had a slightly higher BTU content than natural gas. The test involved heating one liter of water to the boiling point with both gases. The syngas heated the water to the boiling point approximately two minutes faster than natural gas. We observed that the syngas burned clean, odorless, and free of smoke or visible particulates or emissions.

Thermal gasification of used tires from the literature indicates that the synthetic gas we produce includes C2H2, CH4, C2H4, H2, H2S, CO,  CO2 and C3H6. The combustion heat value of the produced syngas is about 4-7 MJ/m3, which is higher than that of blast furnace gas and reforming gas from coals. Much like natural gas or propane, our syngas is suitable for powering electric generators or for heating homes or businesses. The pollutant gases, such as SO2 and NOx, are at relatively low levels, about 100-300 ppm. We will utilize our

syngas to produce the electricity required to run our plant and offices and to sell to industrial customers. A 150 kWh generator will be sufficient for our plant needs. We will produce a surplus capable of generating 4 megawatts of electricity. We may use multiple generators and sell electric power to several industrial customers at different locations. Assuming a discounted rate of $.14 per kWh, the sale of 4 megawatts of electricity will generate revenues of $560 per hour or $13,440 per day. The cost of purchasing emergency standby, low hour generators with a total output of 4 megawatts including electrical engineering, hook up costs, transformers, etc. will cost approximately $1,400,000.

3. Char – Char is a byproduct derived from the gasification of tires. The properties of char are similar to coal, yet char contains considerably less sulfur than most bituminous coals. Our 600 ton-per-day recycling plant will yield 240 tons of char per day. We will utilize approximately 40 tons per day to heat the plant gasifiers, leaving 200 tons per day to market to industrial customers including power plants that use coal as their primary feedstock. We assume that we can sell the char for $70 per ton FOB plant. One lb. of char contains 15,000 BTUs vs. 12,000 BTUs in one lb. of bituminous coal. We will separate the wire belting from the char with a process we invented and then pulverize the char to enable us to fuel coal dust furnaces. Coal dust furnaces have been utilized in coal producing regions for over a century and the technology is proven and reliable. We will heat our plant and offices with coal dust furnaces fueled with char dust.

4. Scrap Steel – On average, a ton of tires contain 150 lbs of steel belting per ton. This amounts to 40 tons of scrap steel produced per day. The current price for mixed steel cutting scrap is around $275 per ton.


Concluding Remarks - tire to oil pyrolysis

Our technology offers a unique and ideal solution to the ecological crisis relating to the disposal of discarded tires in America, Canada, Mexico and in many other countries. We have an opportunity to convert a very expensive solid waste problem into a lucrative, revenue-generating asset. In the process, we can contribute to eliminating a major source of disease and reducing the reliance on foreign oil.

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TIRE TO FUEL PYROLYSIS™ - Turning Waste Tires into Fuel and Energy! TIRE TO OIL PYROLYSIS


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