Business & Industry

Apr 1, 2016

New Fuel From Used Tires

Used tires are one of the most common byproducts of the automobile industry. Over the decades, used tires have been piled up and forgotten. Recent urbanization and land development projects have used these rejected pieces of rubber and steel to various purposes, but the energy they contain is held prisioner inside. Now, a new technology and an incredible entrepreneurial idea, allows you to reuse the energy of a used tire, and make a profit with a fast Return On Investment (ROI) project.


Normally, products as gasoline, diesel and other refined products are produced in oil refineries where crude oil is processed. It is unusual to speak about producing such products from other origins. But there are less known technologies that successfully produce refined fuels using used tires and other waste plastics with high caloric content. This process can assure a very high environmental protection. This technology is dully registered at the World Intellectual Property Organization under the Patent Cooperation Treaty since 2002 and it has been already tested and applied.

After the experimental phase was completed, Portuguese company GBEN – PRODUÇÃO DE COMBUSTÍVEIS, Lda. is now representing the technological license for the industrial development of this technology in several countries in Europe or in other Continents, such as South America and Africa, with important internal markets of used tires.

The entire technology and operation unit is a turn-key solution. Initial studies recommended a standard amount of 40 ton/day, which means the need to have access to about 15.000 ton/year of used tires and other waste plastics for reaching a non-stop production. However, this amount may be reached in successive phases through 10 ton/day modules, facilitating the start up. The estimated investment is about EUR 15.000.000, of which about EUR 10.000.000 corresponds to equipment to be delivered by the group that owns the technology, in order to avoid any breach of confidentiality regarding the registered licenses. This estimation has to be adjusted as soon as specific technical designs are finalized, and a final decision about location and the engineering cabinet responsible for the technical execution has been made. The Project takes about 20 months to be built and ready to start production, as the normal term for the manufacture and assembly of the equipment is 14 months.

The selection of the location and the site for implementing the industrial plant must take into consideration the location of used tires and other used plastics collection points to the area of the plant, as well as the places of concentration of vehicles and consumers. This means buying or renting a site with an area of about 30.000 m2, allowing a possible expansion if there is access to more than 15.000 ton/year of used raw materials.

In its inception, the technology used in these plants is basically the same as the one used in oil refinery which transforms crude oil into refined products and gas, through a normal petrochemical process: the cracking of the molecules, gasification, cleaning of gases and rectification. The main technological innovation in this patent is in recycling waste, providing direct environmental benefits in terms of removal of any pollutant components and assuring high yield in the production of new products, such as gasoline, diesel, gas, solvents and acids. One must take into consideration that the fact that the technology improves the environmental quality is included in the general concept of Valorization Operations referred into the Annex II of the Directive 2008/98/CE with the denomination of R1 – Use as fuel or another source of energy.

The functioning of the plant relies entirely on the regular access to the raw materials that are to be turned into fuels or other chemical products for industry and electricity from renewable source. This transformation is legally possible, as the industrial process is in accordance with legal applicable rules for recycling and energy valorization of waste, as set up in Directive 2008/98/CE of the European Union. For an industrial unit of 40 ton/day the annual production of gasoline and diesel, but also solvent, sulfur acid and electricity can generate a total aggregated sales of about EUR 8 million in the selected market. Considering the estimated operational costs, including about 25 workers, the provisional operational result leading to the conclusion that this Project is financially feasible with high levels of net present value (NPV) and internal rate of return (IRR).

Your VIP Partner spoke with one of the technology developers, Mr. George Shamkulashvili, that assured the technical feasibility of the industrial process and has mentioned that investors are needed to develop this Project in several countries which are concerned with the negative consequences of the disposal of used tires in the environment, instead of using this source of energy for recycling them for producing new energy products necessary for the economy as gasoline, diesel, solvents and electricity.

If you are an investor looking for opportunities within the fuels area, this is an excellent opportunity to take the lead of technology and contribute to a better, less polluted greener planet.

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