Carbon Value of ELT
Tires are materials with a high carbon density. They consist mainly of rubber, carbon black, and various polymers, and most of their weight is made up of carbon-based substances. For that reason, end-of-life tires, or ELT, have long been treated as waste, but a framework is also emerging in which they are viewed as a carbon resource.
The main processing routes for ELT can be broadly divided into three categories.
• Incineration (energy recovery)
• Material recycling (rubber powder, asphalt)
• Pyrolysis (rCB, oil)
Among these, pyrolysis and material recycling may in some cases be counted in LCA terms as CO₂ emission reductions because they avoid the production of virgin materials.
In research examples,
• Processing 1 ton of ELT
• Reduces about 1.5 to 3 tCO₂
is a common assessment.
There is discussion about whether this reduction amount could be treated as a carbon credit.
In other words,
Waste tires
→ carbon reduction project
is a structure that may become established.
Economic Value per Kilogram
In the carbon credit market, trading is conducted in units of 1 ton of CO₂ reduction. In the recent voluntary market, prices vary, and the following range is commonly observed.
• 10 to 80 USD / tCO₂
If this is applied to ELT processing, the calculation becomes as follows.
Reduction amount
• ELT 1 kg
• 1.5 to 3 kgCO₂
Price
• 1500 to 12000 JPY / tCO₂
Result
• About 2 to 36 JPY / kg
For 1 ton of ELT,
• About 2000 to 36000 JPY
is the approximate value.
In the waste treatment industry, a difference of just a few yen per kilogram often determines profitability. Therefore, the unit price is not enormous, but it may still affect the business structure.
For reference, the general price range for ELT processing is roughly as follows.
• Processing fee: 10 to 30 JPY/kg
• Recycling product sales: several tens of JPY/kg
If carbon credits are added here,
• Several yen to several tens of yen/kg
becomes additional revenue.
This level is supplementary income, but it may change the profit structure.
Attribution Entity
In carbon credit systems, the project entity responsible for the emission reduction obtains the credit. In the case of ELT, the following operators may become the project entity.
• Pyrolysis plant
• rCB producer
• ELT collection company
• Rubber asphalt operator
In other words, the basic structure is that the processing operator becomes the project owner.
On the other hand, depending on contract design, a different arrangement is also possible.
• Tire manufacturer
• Automobile manufacturer
• Investment fund
These may participate as project partners and share the attribution of the credits.
The purchasers of carbon credits are mainly companies with large emissions.
Examples
• Airlines
• IT companies
• Energy companies
• Automobile manufacturers
These companies purchase credits as part of their net-zero targets or Scope 3 reduction efforts.
Therefore, credits generated through ELT processing are not necessarily limited to a specific industry, but may be traded in a broad market.
If this system is established, ELT may shift from its conventional position as waste to being treated as a carbon reduction resource. It is increasingly being organized as an area where the treatment industry, material circularity, and the carbon market intersect.