Tyre Derived Fuel (TDF) Market

Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025)



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Global Tyre Derived Fuel (TDF) Market: Outlook

Around one billion scrap tyres are generated and additional four billion are stockpiled across the world every year. Tyre-derived fuel (TDF) is fuel derived from all kinds of scrap tyres. Tyre derived fuel is less expensive than fossil fuels and coal. Use of Tyre-derived fuel reduces the amount of fossil fuels that would otherwise be consumed. It also decreases emissions. Scrap tyres is usually mixed with coal or other fuels, such as wood or chemical wastes, to be burned in concrete kilns, power plants, or paper mills.

According to the U.S. Environmental Protection Agency (EPA), when burned, tyres generate the same amount of energy as oil; 25%–50% higher energy than coal, and 100%–200% higher energy than wood. Moreover, the EPA and state-testing facilities have shown that TDF produces less emissions compared to other conventional fuels.

Scrap Tyre Management through Alternative Solid Fuels to Boost Demand

The demand for TDF facilities is driven by government support, efficient waste management, and energy security through the use of alternate fuel. Several governments across the globe are using the concept of ‘Reduce, Reuse, and Recover’ (3R) for scrap tyre management due to various advantages. Moreover, with fossil fuel price volatility, the demand for cheap alternative such as tyre-derived fuel is expected to increase. This would provide high growth opportunities to the tyre-derived fuel market.

COVID-19 pandemic has impacted several industries along with cement manufacturing, pulp & paper, and electrical utilities. Majority of TDF in whole form or shredded tyres is utilized in the cement industry as a supplemental alternative fuel. Temporary shut-down of cement, pulp & paper plants, etc. during lockdown imposed on several nations, has declined the demand for TDF in the first quarter of 2020. However, post unlock in several nations, the demand for TDF is picking up and is expected to recover at a fair pace.

Growing concerns regarding management of scrap tyres generated each year has paved ways for development of TDF facilities. Also, diversion of tyres from landfills reserves landfill capacity for other municipal waste and helps prevent scrap Tyre piles. Scrap tyre piles pose risks, as they can catch fire, releasing large amounts of toxic smoke and hazardous liquids that can contaminate air, water, and soil.

Cement Industry to Dominate in Terms of Yearly TDF Consumption

Industrial facilities across the world including cement kilns, pulp and paper mills, and electric utilities use TDF as a supplemental fuel to increase boiler efficiency; decrease air emissions; and lower costs. Cement manufacturing is a major end-user segment of the global TDF market. Currently, the cement industry holds more than 50% share of global TDF market. In terms of revenue, the cement manufacturing segment is anticipated to expand at a significant CAGR during the forecast period.

Fuel prices are continuously rising and there is no sign of relief in the near future. Fossil fuel still constitute major share of overall cement manufacturing costs. The cement industry depends heavily on coal, coke, and oil to fire the kiln and it can consume as much as 300,000 tons of coal per facility per year.

Currently, cement-manufacturing companies use tire-derived fuel (TDF) to supplement their primary fuel for firing cement kilns. The heating value of an average-sized passenger tire is approximately 13,000 to 15,000 British Thermal Units (BTUs) per pound, which is the same as that of coal. The major purpose for using tire fuel is to save on fuel costs.

Asia Pacific to Witness Staggering Growth Opportunities

Demand for shredded Tyres is increasing in the U.S. due to the presence of many cement plants. More than 49 million scrap tyres were used in cement plants in 2017. According to the World Business Council for Sustainable Development, every year the U.S. and the EU dump 14% and 16% of their scrap tyres into landfills respectively, whereas more than 50% of Tyres go to landfills in Saudi Arabia, Russia, Ukraine, and Argentina. Additionally, growing popularity of electric vehicles in North America and Europe provides a boost to vehicle sales. This is likely to result in increase in the flow of scrap tyres in the next few years which is expected drive the demand for TDF facilities in North America and Europe.

In Asia Pacific, end-of-life tyres are routinely disposed of in landfills or by using other methods such as burning, which have a harsh impact on the environment. This low recovery rate in developing countries of Asia may hamper the market in the region during the forecast period. Automotive Tyre Manufacturers’ Association (ATMA) together with TESS (Technology, Environment, Safety and Standards) are working with India’s government to develop the waste Tyre legislation.

Global Tyre Derived Fuel (TDF) Market: Competitive Landscape 

Key players in the tyre derived fuel (TDF) market includes: Liberty Tyre Recycling, ResourceCo Pty Ltd., Ragn-Sells Group, Tyre Disposal & Recycling, Reliable Tyre Disposal, Renelux Cyprus Ltd, L & S Tyre Company, Probio Energy International, Front Range Tyre Recycle, Inc., ETR Group, Emanuel Tyre, LLC, Scandinavian Enviro Systems AB, etc.

Liberty Tire Recycling collects and recycles over 140 million tires annually at 26 facilities throughout the U.S. In April 2020, Liberty Tire Recycling acquired Lakin Tire. Post-acquisition, the company now collects over 180 million tires per year and recycle approximately 2.6 billion pounds of rubber into innovative, sustainable products.

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