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Setting Up a Tyre Pyrolysis Recycling Business In India

Tyre Pyrolysis Recycling presents a promising solution to environmental challenges posed by discarded tires, offering opportunities for sustainable resource management and energy recovery. With India's burgeoning waste tire problem, establishing a Tyre Py

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Tyre Pyrolysis Recycling presents a promising solution to environmental challenges posed by discarded tires, offering opportunities for sustainable resource management and energy recovery. With India's burgeoning waste tire problem, establishing a Tyre Pyrolysis Recycling facility not only contributes to environmental conservation but also presents a lucrative business opportunity.

Economic Growth and Tire Production: India's tire and recycling sector are witnessing significant growth, with tire production rising alongside economic expansion. This growth underscores the importance of recycling end-of-life tires, especially as the local tire industry grows at a rate of 12% per year.

Potential Growth: The global tire recycling market is experiencing steady growth, with a Compound Annual Growth Rate (CAGR) of 3.3% projected over 2022-2032. The Indian tire and rubber recycling industry have the potential to reach INR 350 Billion in the next five to ten years, driven by the growing domestic automobile industry.

Government Initiatives: The government is increasingly prioritizing sustainable growth, with initiatives aimed at fostering the tire recycling sector. Niti Aayog's comprehensive study on tire recycling and its subsequent recommendations exemplify this commitment.

Tire Pyrolysis Sector: The tire pyrolysis sector in India recycles 1.3 million tons of tires annually, producing almost half a million tons of fuel oil. This sector offers opportunities to collaborate with tire producers for value addition.

Extended Producer Responsibility (EPR): The Ministry of Environment, Forest & Climate Change (MoEF & CC), in collaboration with the Central Pollution Control Board (CPCB), has drafted the Tyre Recycling EPR policy, signaling a proactive approach to waste management and environmental stewardship.


Pyrolysis plants can be classified into several types based on the operational method and the scale of operation. Here are some common types:

1. Batch Pyrolysis Plants: These plants operate in batches, meaning they process one batch of material at a time. Once a batch is completed, the plant is cooled down, the end products are removed, and a new batch is introduced.

2. Continuous Pyrolysis Plants: These plants operate continuously, with raw materials being fed into the plant and end products being removed simultaneously. This type of plant is typically used for large-scale operations.

3. Conventional/Slow Pyrolysis Plants: These plants operate at a slow heating rate and low temperature ranges, producing tar and char as the main products.

4. Fast Pyrolysis Plants: These plants operate at high temperatures and rapid heating rates, commonly used to produce bio-oil and gas.

5. Ultra-Fast/Flash Pyrolysis Plants: These plants operate at very rapid heating rates and temperatures, producing gas and tar in fewer amounts compared to slow pyrolysis.

Each type of pyrolysis plant has its own advantages and is used for different applications. The choice of plant type depends on the desired end product and the characteristics of the feedstock. However, in India, within the pyrolysis method, there are two main types of plant setups that are used:

  1. Batch pyrolysis plants
  2. Continuous pyrolysis plants

Both batch and continuous pyrolysis processes produce the same final product. Most tire pyrolysis units in India use batch processes. These units vary in their process control, safety features, raw materials, finished products, and waste handling methods.

The Central Pollution Control Board (CPCB) mandates that only Advanced Batch Automated Process (ABAP) type tyre pyrolysis oil Units are permitted for standardizing batch pyrolysis operations.


In tire pyrolysis, the products generated are:

  1. Pyro Gas: It's a combustible gas made up of various components. Hydrocarbon gas can be cleaned in a wet scrubber system to make harmless smoke for release into the atmosphere, or it can be reused for heating within the facility.
  2. Pyro Oil: This is a liquid product that can range from valuable fuel oil to less valuable blend stock. The oil, mixed with light diesel oil, can be utilized in various industries such as boiler companies, rolling mills, casting industries, asphalt plants, and more.
  3. Char: It's a solid residue containing carbon, silica, and other materials. Utilized in ink or cement sectors.
  4. Steel: Thin wire from tires, sold as scrap steel.


According to the SoP published by the MoEF & CC, the raw material that the plant may use can be only indigenous generated waste tyre, that is, waste tyres generated within India only.

Raw materials for tire recycling business include:

  1. Used or waste tires (Radial or Nylon)
  2. Shoe soles
  3. Waste conveyor belts
  4. Coal for generating heat in the pyrolysis plant.


  1. Government Policies:

The Ministry of Environment, Forests, and Climate Change has introduced a draft notification outlining regulations for Extended Producer Responsibility (EPR) regarding waste tires. This policy expands the responsibility of producers or importers to include the disposal of waste tires. EPR obligations for 2022-23 are set at 35% of the quantity of new tires manufactured or imported in 2020-21, increasing to 70% in 2023-24 and reaching 100% by 2024-25 based on the quantity of new tires produced or imported in preceding years.

  1. Financial Assistance:

For small-scale plants requiring an investment of approximately 20 to 25 lakhs, entrepreneurs can avail loans through the Pradhan Mantri Employment Generation scheme. As a recycling project, borrowers may secure up to 90% of their investment as a loan along with a subsidy of up to 15%. Additionally, the Ministry of Micro, Small & Medium Enterprises (MSME) in India provides various schemes and benefits tailored for businesses operating in the waste tire recycling sector.

  1. Innovation Support:

The Union Ministry for MSMEs has initiated a scheme offering financial support of Rs 15 lakh and access to incubator facilities for aspiring entrepreneurs with innovative solutions, particularly in focus areas such as water and waste management.


  1. Tyre Pyrolysis Waste:

Gas Emissions: During tyre pyrolysis, two types of waste gases are produced. The first is tail gas from the pyrolysis reactor, and the second is exhaust gas from heating the reactor. The first type, a non-condensing but combustible gas, is reused to heat the reactor. The second type undergoes purification through a flue gas system, including a tower for desulfurization and purification, a dust collector, and a water scrubber.

Wastewater: All water used in the tyre pyrolysis facility is recycled, with no discharge of wastewater.

Solid Waste: Carbon black is the residue left in the pyrolysis reactor, generated as a by-product. It can be sold directly, compressed into briquettes for fuel, or ground into powder for pigment production.

  1. Environmental Impact of Tyre Pyrolysis Plants:

Production Concerns: Incomplete pyrolysis can lead to harmful substances if gas treatment is inadequate. Proper control measures prevent these substances from being released.

Gas Recycling: Recycling syngas is crucial to minimize fuel consumption and environmental impact. Failure to recycle can contribute to pollution and climate change.

Oxygen Levels: High oxygen levels during pyrolysis can lead to combustion instead of proper pyrolysis. Efficient energy recovery offsets emissions.

Explosion Risk: Safety features are necessary to prevent explosions due to oxygen bursts or defects.

Storage and Transport: Careful handling is essential to prevent fires and pollution. Proper handling ensures safety for the environment and people.



Waste tyres are a global problem, causing environmental and health issues. Tyre pyrolysis is a process that converts waste tyres into useful products. The tyre pyrolysis industry can help reduce the negative impacts of waste tyres on the environment.


Tyre pyrolysis products have various industrial and commercial applications. The tyre pyrolysis industry can create employment and economic opportunities, and can also lower the greenhouse gas emissions and landfill space.


The feasibility of the tyre pyrolysis industry depends on several factors, such as:

  • Availability and cost of waste tyres
  • Market demand and price of tyre pyrolysis products
  • Regulatory and policy framework
  • Technical and operational aspects
  • Financial and social aspects

Tyre pyrolysis industry can be profitable and viable if these factors are favorable and well-managed


The Ministry of Environment, Forest and Climate Change (MoEF & CC) has updated the Hazardous Waste Rules, known as "The Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2022."

Producers must take responsibility for the tires they make, sell, or import, called Extended Producer Responsibility (EPR). Recyclers issue EPR Certificates based on tire recycling, which producers buy to meet their obligations. This process is managed through a centralized portal developed by the Central Pollution Control Board (CPCB).


  1. Plot area / spacing requirements
    1. For a single batch type pyrolysis reactor of 10-12 tones capacity, a minimum plot area of 3000m2.
    2. For a single batch type pyrolysis reactor of 20 tones capacity, a minimum plot area of 4000m2.
    3. For a continuous type pyrolysis reactor, a minimum plot area of 7000m2.
  2. Components and equipment used in tire pyrolysis plants include:
    1. Automatic feeder – Feeds raw material into the pyrolysis reactor.
    2. Pyrolysis reactor – Heats and pyrolyzes the material.
    3. Buffer tank – Stores excess oil gas and ensures smooth operation.
    4. Oil tank – Stores the obtained fuel oil.
    5. Two vertical condensers – Cools oil gas.
    6. Oil-water separator – Filters and cleans oil gas to prevent backflow.
    7. Two horizontal condensers – Cools oil gas.
    8. Two cooling towers – Cools oil gas.
    9. Tail gas cleaning and odor removal system – Cleans and removes odors from tail gas.
    10. Desulfurization and purification tower – Purifies smoke.
    11. Wind conveying system – Collects carbon black.
    12. Grinding machine – Further processes carbon black into refined grinding powder.
  3. Licensing requirements:
    1. Udyam (MSME) registration
      1. Registration offers benefits like easier loans, government aid, tax breaks, export support, priority lending, simplified business assistance, and global growth opportunities.
      2. MSME registration is fully online and paperless, based on self-declaration. No documents are needed; just your Aadhaar Number suffices. PAN and GST details are automatically fetched from Government databases.
      3. Once registered online, you'll get a certificate with a QR code to access your enterprise details. No renewal is needed.
    2. Trade license – A trade license is a document/certificate that gives the applicant (person seeking to open a business) permission to start a specific trade or business in a given area/location.
    3. GST Number: GST is an indirect Tax levied on the supply of goods and Services. It is applicable to all India service providers, traders and manufacturers as their Turnover basis.
    4. Factory License - Pursuant to the 1948 Factory Act, it is compulsory for each factory owner to register their premises with local authorities before starting a business. Factory License acts as an approval document provided by authorities to carry out manufacturing activities. Apply for the license at the labor department of your state. Required documents include site schematics, location details, machinery information, and proof of land ownership or lease.
    5. Electricity permission – This is necessary because the recycling process involves machinery that runs on electricity, so take prior permission of electrification from concern authority.
    6. Authorization under Hazardous & Other Waste Rules, 2016 by SPCB/PCC: Any 'Occupier' of the facility involved in the handling, generation, collection, storage, packaging, transportation, use, treatment, processing, recycling, recovery, pre-processing, co-processing, using, selling, transfer or disposal of hazardous and other waste shall be required to apply to the State Pollution Control Board and obtain Hazardous waste Authorization.
    7. CTE and CTO – Authorization by SPCB/PCC: Prior to commencing the recycling business, the business must take CTE and CTO authorization certificate from the concern state pollution control board.
    8. Fire Safety Certificate / fire clearance certificates: The fire department NOC is provided by the fire departments of the specific state after having confirmed and tested the whole building resistance to fire, i.e. the building is fireproof and can prevent fire-related incidents.
    9. Registration certificate obtained from EPR Portal for Waste Tyre Management: For Tyre recycling business the promoter must obtain EPR license under Hazardous and other waste (M & TM) Amendment Rules 2022 from Central Pollution Control Board (CPCB).
  4. Cost breakdown:

Here is a simplified cost breakdown for a tire recycling plant:

  1. Price of waste tire pyrolysis machine
  2. Cost of other supporting equipment
  3. Space expenses
  4. Construction costs
  5. Raw material costs
  6. Fuel costs
  7. Labor expenses
  8. Maintenance costs


Some of the key players in the global tire recycling market include :

  1. Global Rubber, L&S Tire,
  2. Champlin,
  3.  Golden By-Products,
  4.  Mac’s Tire Recyclers,
  5.  Tire Disposal & Recycling,
  6.  Emanuel Tire,
  7.  Entech,
  8.  Lakin General,
  9.  Liberty Tire Services.

If you are thinking for such business then next can be you, and we at Corpzo, here to help you’re for establishing your project.


With the rapid increase in the number of cars in India, the demand for tires has also risen. However, as each tire eventually becomes waste, recycling them has become crucial to address environmental and resource challenges. India generates around 0.6 million tons of tire scrap yearly, mainly due to the growing vehicle population.

Efforts like mandating the scrapping of old vehicles and the rise of organized players are expected to increase the availability of scrap tires. Stockpiled tires pose environmental and health hazards, but technologies like Gasification and Pyrolysis offer promising solutions. Pyrolysis, for instance, can turn tires into useful products like fuel oil, carbon black, and steel wires.

This technology, though faced with technical and economic challenges, is becoming more feasible. For instance, from 1000 kgs of waste tire input, around 450 liters of industrial fuel oil, 125 kgs of petroleum gas, 330 kgs of carbon black, and up to 110 kgs of steel wires can be produced.

The economics of tire reprocessing units are attractive, with profitability determined by factors like tipping fees, revenue from product sales, processing costs, and disposal costs. The initial investment for a small pyrolysis unit ranges from Rs 3.5 to 4.0 crores, increasing with capacity.

Maximizing the use of tires through technologies like pyrolysis can reduce environmental impact and conserve natural resources. While tire management remains a growing problem, pyrolysis offers a potential solution by converting tire waste into marketable products, thus addressing the tire disposal challenge in the years ahead.


  1. Is tyre pyrolysis profitable?

Answer: Investing in a pyrolysis plant for waste recycling can be profitable. The technology requires relatively low initial investment, benefits from ample raw material supply, offers quick returns on investment, and holds promise for the future. Besides economic gains, it also contributes positively to the environment.

  1. What are the challenges with pyrolysis?

Answer: One challenge is achieving optimal oil yield. Normal pyrolysis takes about 8 hours, but high water content in tires can extend this time to 10 hours or more. Overloading the reactor can cause instability, so precise adherence to feeding specifications is crucial to avoid this issue.

  1. Can pyrolysis oil be a diesel substitute?

Answer: Researchers are actively exploring combustible pyrolysis oil derived from waste plastic or tyre material as an alternative fuel for diesel engines. Economic studies suggest that pyrolysis oil can match diesel in terms of engine performance and energy output if its cost remains below 85% of diesel oil.

  1. What percentage of tyres is recycled in India?

Answer: According to data from the National Green Tribunal (NGT), India discards approximately 275,000 tyres annually without a comprehensive disposal plan. Additionally, around 3 million waste tyres are imported for recycling purposes.

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