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Scrap Tires The Recovery of Carbon Black and Fuel Oil

Scrap Tires The Recovery of Carbon Black and Fuel Oil. Ray Riek COO, Delta Energy, LLC rriek@delta-energy.biz. Scrap Tire Availability - USA ref: 7/04 Rubber Manufacturers Association Report. 290 million scrap tires generated in 2003 In “storage” Texas: 53 million abatement stalled

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Scrap Tires The Recovery of Carbon Black and Fuel Oil

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  1. Scrap TiresThe Recovery of Carbon Black and Fuel Oil Ray Riek COO, Delta Energy, LLC rriek@delta-energy.biz

  2. Scrap Tire Availability - USAref: 7/04 Rubber Manufacturers Association Report • 290 million scrap tires generated in 2003 • In “storage” • Texas: 53 million abatement stalled • New York 40 million abatement starting • Colorado: 35 million no abatement • Michigan: 25 million abatement starting • Ohio: 25 million abatement in progress • Alabama: 20 million abatement starting • Connecticut 20 million no abatement • Total in USA: 275 million scrap tires(grossly underestimated) • Unused scrap tires: 57 million per year (570 thousand tons) • Underutilized: Fuel & Civil Engineering uses - 186 million per year (1860 thousand tons)

  3. Scrap Tire Utilization • One scrap tire is generated per year per person in the USA • Similar expectation in all developed countries • Approx. 80% of scrap tires generated annually are recovered • Remainder is land-filled or dumped • Current market for scrap tires in a shredded form (tire chips) • Fuel (cement kilns, stationary power plants) – Btu value similar to coal • Raw material for crumb rubber for finished products such as doormats • Embankments, playground cover • More shred is currently produced than is consumed • Shred is therefore provided at a very low price • Frequently given away because of the lack of market

  4. Recovery of Raw Materials • Many failed attempts over second-half 20th century • Incomplete process and product development • Low commercial development experience • Inability to develop customers before plant investment • Poor funding • Several efforts underway (driven by spike in fuel oil price) • No historical success in bringing the recovered carbon black to market

  5. Active Recovery Efforts Long list of failures and shuttered facilities • Titan Technologies, Inc. - founded in 1990; Albuquerque, New Mexico • Three plants in Asia are not believed to be operational due to poor economic conditions & competition for tires as a fuel source • Titan claims to have six plants in planning or construction; four along the US-Mexico border, one in Texas, and one in Columbus Ohio. • Status of these ventures is largely unknown and unverifiable • Earthfirst Technologies, Inc. – founded in 1997; Mobile, Alabama • Public Company: currently reports inability to sell the carbon black material recovered from their process • Licenses technology – no known sales

  6. Active Recovery Efforts Continued • Carbon Recovery Corp., recently founded; West Berlin, New Jersey • Microwave technology • Batch Process • Looking for funding • KOUEI Industries, recently founded; Vancouver, BC, Canada • Batch process • Delta-Energy, LLC, founded 2000; Pittsburgh, Pennsylvania • Demonstration facility • Patented technology • Qualified customers for recovered carbon black and oil • Only known company to qualify carbon black for sale • Looking for funding

  7. Technology Employed • Titan, EarthFirst, and Delta-Energy all employ a continuous reactor operating between 800-1100 degrees F. • Batch processing leads to prohibitive capital requirements and product variability • Catalyst use lowers operating temperatures and improves efficiency • Most operators historically have been content to recover the oil and gas from pyrolysis of tires • Borderline economics that have led to many bankrupted operations • Newest entrants are developing technology that enables the direct recycle of recovered carbon black • Low manufacturing cost enables competition with products produced from oil

  8. A Continuous Operating FacilityCourtesy: Delta-Energy, LLC Delta-Energy Demonstration Plant

  9. Products From A Shredded TireCourtesy: Delta-Energy, LLC Pounds D-E Black™(Reinforcing material used in rubber products)6.8 De-polymerized oil (1.1 gallon of oil generated per scrap tire) 8.5 Off-gas 1.4 Scrap (Balance after steel de-beading and shredding processes)0.3 Total shredded tire 17

  10. Summary • Technology has advanced sufficiently to enable economic recovery of commercially useful materials from scrap tires • Several developers are in the process of funding first commercial operations and looking for viable investors and operators • First commercial plants supplying products are expected to be in operation in 2006 • Delta-Energy, LLC

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