THE recovered carbon black (rCB) is set to become a fundamental lever for the decarbonization of the tire sector, a significant component of the climate impact of the automobile industry.
Carbon black (CB) is a raw material resulting from the incomplete combustion of heavy petroleum products, also called virgin carbon black (vCB). It is commonly used in black colored daily use products such as car tires.
Its substitute, recovered carbon black (rCB) is a sustainable material produced from the thermal pyrolysis of used tires. This technique involves heating tires to high temperatures in the absence of oxygen, allowing the rubber to break down into carbon black, as well as oils and gases, which can be reused or converted into energy.
Recovered carbon black (rCB) provides a sustainable way to recycle scrap tires at scale and its production generates five times fewer carbon emissions than conventional, fossil fuel-based production of virgin carbon black (vCB). .
By 2023, global demand for carbon black will reach around 18 million tonnes, with the market valued at between $18 billion and $20 billion. The European market represents 15% of this global demand, or around 2.7 million tonnes, equivalent to a value of $3 billion.
Recovered carbon black (rCB) presents itself as a sustainable alternative with the potential to substitute 10 to 20% of virgin carbon black, or 250 to 550 kt per year in Europe, representing an approximate economic value of 265 to 530 millions of dollars.
This potential is, however, limited by the lower quality of recovered carbon black (rCB) compared to virgin carbon black. The presence of impurities particularly limits its use in demanding applications such as tire treads.
Continuous Research and Development efforts and technological advancements aim to improve the production process and quality of recovered carbon black (rCB), thereby expanding its scope of applications.
The virgin carbon black (vCB) supply chain, traditionally dominated by manufacturers like Cabot, Birla Carbon, and Orion, has become more complex with the introduction of recovered carbon black (rCB), thereby reshaping the sector with the addition of new key stakeholders: suppliers of raw materials, producers and valorizers of rCB and, finally, end users.
The emergence of reclaimed carbon black (rCB) has spurred strategic partnerships, notably between virgin (vCB) and reclaimed carbon black (rCB) manufacturers for sustainability gains, as well as direct collaborations with end users, such as Michelin, to secure supplies of recovered carbon black (rCB).
To meet European requirements for the management of end-of-life tires, major tire manufacturers such as Bridgestone and Michelin have created non-profit organizations, such as Aliapur in France, ensuring the collection of used tires up to 95 %.
Waste management companies, including Veolia, are also helping by working with recycling infrastructure to transport used tires to producers of recovered carbon black (rCB). Growing investor interest and strategic partnerships, such as that between Klean Carbon and Niersberger to develop commercial-scale pyrolysis technology within the European Union, or initiatives like Michelin’s BlackCycle, which aim to establish a circular economy for tires in Europe, underline the conviction of stakeholders regarding the role of recovered carbon black (rCB) in the evolution towards a more sustainable tire industry.
In a manifesto published in January 2024, in partnership with Bridgestone, Michelin indicates that “less than 1% of all carbon black used today in the world for the production of new tires comes from recycled tires at the end of their life, in due to a sub-optimal supply chain for carbon black recovery and reuse.” And added that “the conversion of end-of-life tires into advanced materials (…) marks an important first step towards achieving (their) objective of 40% recycled and renewable sustainable materials by 2030”.
The expansion of the recovered carbon black (rCB) market is hampered by several factors, mainly linked to a lack of technical maturity, with pyrolysis technologies, crucial for the production of recovered carbon black (rCB), not having yet reached the level of development necessary for large-scale commercialization.
On the other hand, the slow adoption of recovered carbon black (rCB) in the tire industry, due to prolonged development and integration processes, represents another significant obstacle.
Finally, despite the creation in 2017 of a committee (ASTM D36), establishing a system for evaluating the quality of recovered carbon black (rCB) to facilitate its integration into various applications, the complexity of the classifications can still slow down development. of standardized products.
In Europe, the dozen players in the recovered carbon black (rCB) industry have a combined production capacity of around 20 kt per year, with Circtec and Pyrum Innovations AG among the most notable, the latter aiming to quadruple its capacity by 2030.
Sweden’s Enviro Systems is planning the construction of five plants to increase annual production of recovered carbon black (rCB) to around 70 kt, aiming to process a third of Europe’s scrap tires.
At the same time, Enviro and Antin Infrastructure Partners founded a joint venture in March 2023 with the ambition of recycling up to 1 million tonnes of end-of-life tires each year in Europe. The final investment decision for the first factory based in Sweden was signed in February 2024 with production scheduled to begin in 2025.
Although other players, such as Elysium Nordic and Wastefront, are currently in the development phase and planning to increase their production capacity, the current supply does not meet European demand, estimated between 250 and 550 kt per year, signaling an opportunity for new entrants to the market.
With growing demand for recovered carbon black not fully covered by current production and short-term ramp-up capabilities, there is an opportunity for new players and investors to enter the market as illustrated by entry of Marubeni in February 2024 with the acquisition of the German company RCBNano.
To fully realize the sector’s potential, it is crucial to develop an environment conducive to sustainability and achieve technological maturity enabling large-scale deployment. Technological advances and growing interest in recovered carbon black (rCB) are enabling a transition to a more ecological and sustainable tire industry, with a positive impact on the automotive industry as a whole.
Source : Emerton (international strategy and transformation consulting group, recognized for its global expertise in the infrastructure, industrial and high-tech sectors)
