SCRAP TIRE MARKET SCRAP TIRE MARKET DEVELOPMENT DEVELOPMENT

BYBY

TERRY GRAYTERRY GRAY

TAG RESOURCE RECOVERYTAG RESOURCE RECOVERY

TIRE WORKSHOP 2013TIRE WORKSHOP 2013

SAN ANTONIO, TEXASSAN ANTONIO, TEXAS

APRIL 3, 2013APRIL 3, 2013

PERSPECTIVEPERSPECTIVE

FIRST PROGRAM IN MINNESOTA IN 1984FIRST PROGRAM IN MINNESOTA IN 1984

MANY U.S. STATES STILL DON’T HAVE MANY U.S. STATES STILL DON’T HAVE SUCCESSFUL PROGRAMSSUCCESSFUL PROGRAMS

<1% UTILIZED IN 1984, BUT ABOUT 80% IN <1% UTILIZED IN 1984, BUT ABOUT 80% IN 20112011

MEXICO CAN ACCELERATE ITS GROWTH BASED MEXICO CAN ACCELERATE ITS GROWTH BASED ON GOOD AND BAD HISTORICAL EXPERIENCESON GOOD AND BAD HISTORICAL EXPERIENCES

US SCRAP TIRE MARKET US SCRAP TIRE MARKET TRENDS: 2005-2011TRENDS: 2005-2011

MAJOR APPLICATIONSMAJOR APPLICATIONS

ENERGYENERGY

CEMENT KILNSCEMENT KILNS

POWER GENERATIONPOWER GENERATION

PAPER MILLSPAPER MILLS

DEDICATED FACILITIESDEDICATED FACILITIES

PYROLYSIS/GASIFICATIONPYROLYSIS/GASIFICATION

U.S. TIRE-DERIVED FUEL U.S. TIRE-DERIVED FUEL MARKET TRENDS: 2005-2011MARKET TRENDS: 2005-2011

U.S. TIRE-DERIVED FUEL U.S. TIRE-DERIVED FUEL MARKETS 2011MARKETS 2011

CEMENT KILNSCEMENT KILNS ENVIRONMENTALLY EXCELLENTENVIRONMENTALLY EXCELLENT

ECONOMICALLY ATTRACTIVEECONOMICALLY ATTRACTIVE

QUICKLY DEVELOPEDQUICKLY DEVELOPED

GENERALLY WHOLE TIRES, SOME TDFGENERALLY WHOLE TIRES, SOME TDF

NEEDS CONSISTENT SOURCENEEDS CONSISTENT SOURCE

PROGRAM CORNERSTONEPROGRAM CORNERSTONE

MODERN CEMENT FACILITYMODERN CEMENT FACILITY

CEMENT KILNCEMENT KILN

MANUAL FEED SYSTEMMANUAL FEED SYSTEM

AIR LOCKAIR LOCK

INTO KILNINTO KILN

RAPID COMBUSTIONRAPID COMBUSTION

POWER AND PAPER POWER AND PAPER INDUSTRIESINDUSTRIES

SPECIFIC BOILER TYPES INCLUDE SPECIFIC BOILER TYPES INCLUDE CYCLONE, STOKER-FIRED, CFBCYCLONE, STOKER-FIRED, CFB

DISPLACES COAL OR OTHER SOLID DISPLACES COAL OR OTHER SOLID FUELFUEL

USES NOMINAL 1” OR 2” TDF, BEAD USES NOMINAL 1” OR 2” TDF, BEAD WIRE REMOVEDWIRE REMOVED

CHIPCHIP

SIZESIZE

500,000500,000 1,000,0001,000,000 1,500,0001,500,000

2.0”2.0” +69%+69% -11%-11% -42%-42%

1.5”1.5” +82%+82% BASISBASIS -14%-14%

1.0”1.0” +94%+94% +35%+35% 0%0%

COMPARATIVE TDF PRODUCTION ECONOMICS

(CHIP SIZE VS TIRES/YR)

PYROLYSISPYROLYSIS

HISTORICALLY UNSUCCESSFULHISTORICALLY UNSUCCESSFUL

• NO COMMERCIALLY SUCCESSFUL NO COMMERCIALLY SUCCESSFUL SYSTEMS IN NORTH AMERICASYSTEMS IN NORTH AMERICA

• OVER $500 MILLION EXPENDEDOVER $500 MILLION EXPENDED

• MAJOR COMPANIES AND SMALL MAJOR COMPANIES AND SMALL PROMOTERSPROMOTERS

CRITICAL ISSUESCRITICAL ISSUES

TECHNICAL PERFORMANCETECHNICAL PERFORMANCE• UNRELIABLE OPERATIONUNRELIABLE OPERATION• EXPLOSIONS/FIRESEXPLOSIONS/FIRES• ENVIRONMENTAL ISSUESENVIRONMENTAL ISSUES

AIRAIR CHAR DISPOSALCHAR DISPOSAL

ECONOMIC PERFORMANCEECONOMIC PERFORMANCE• GAS UTILIZATIONGAS UTILIZATION• OIL ONLY BLENDSTOCKOIL ONLY BLENDSTOCK• CHAR MARKETCHAR MARKET

CIVIL ENGINEERINGCIVIL ENGINEERING

LIGHTWEIGHT FILLLIGHTWEIGHT FILL

DRAINAGE AGGREGATEDRAINAGE AGGREGATE

WHOLE TIRES IN RETAINING WALL WHOLE TIRES IN RETAINING WALL CONSTRUCTIONCONSTRUCTION

Dixon Landing InterchangeDixon Landing Interchange

PROBLEM: Embankment Constructed on Bay PROBLEM: Embankment Constructed on Bay MudMud

SOLUTION: Use TDA for the core of the SOLUTION: Use TDA for the core of the embankmentembankment

CHEAPEST SOLUTION: Caltrans saved CHEAPEST SOLUTION: Caltrans saved $470,000$470,000

USED: 600,000 tiresUSED: 600,000 tires

Typical Cross SectionTypical Cross Section

Spread with bulldozerSpread with bulldozer

Rt. 91 Wall in Riverside, CARt. 91 Wall in Riverside, CA

Freeway wideningFreeway widening

Objective: show that reduced earth Objective: show that reduced earth pressures can reduce overall wall pressures can reduce overall wall construction costsconstruction costs

Length: 260 ftLength: 260 ft

Tires used: 75,000 PTETires used: 75,000 PTE

Rt. 91 wall cross sectionRt. 91 wall cross section

Half of TDA in PlaceHalf of TDA in Place

Potential Future Savings for WallsPotential Future Savings for Walls

Lower pressure on wall Lower pressure on wall less rebar less rebar

Potential reduction = 28 tons/100 ftPotential reduction = 28 tons/100 ft

Potential cost savings = $13,000/100 ftPotential cost savings = $13,000/100 ft

RETAINING WALLSRETAINING WALLS

WHOLE TIRES MECHANICALLY JOINED WHOLE TIRES MECHANICALLY JOINED TO STABILIZE OR RETAIN SLOPETO STABILIZE OR RETAIN SLOPE

NOT BROADLY APPLIED IN US DUE NOT BROADLY APPLIED IN US DUE TO LABOR COSTSTO LABOR COSTS

MINIMAL CAPITAL EXPENSE FOR MINIMAL CAPITAL EXPENSE FOR SMALL VOLUMESSMALL VOLUMES

CRUMB RUBBERCRUMB RUBBERAPPLICATIONSAPPLICATIONS

SPORTS SURFACESSPORTS SURFACES

MOLDED PRODUCTSMOLDED PRODUCTS

RUBBER-MODIFIED ASPHALTRUBBER-MODIFIED ASPHALT

DECORATIVE MULCHDECORATIVE MULCH

CRUMB RUBBER CRUMB RUBBER CHARACTERISTICSCHARACTERISTICS

SLOW OVERALL MARKET GROWTHSLOW OVERALL MARKET GROWTH

HIGH CAPITALHIGH CAPITAL

HIGH MAINTENANCEHIGH MAINTENANCE

MARKET CHALLENGESMARKET CHALLENGES

RURAL CONSIDERATIONSRURAL CONSIDERATIONS

VOLUME SENSITIVITYVOLUME SENSITIVITY REGIONAL PLANS, COLLECTION REGIONAL PLANS, COLLECTION

CENTERS OR PROCESSING FACILITIESCENTERS OR PROCESSING FACILITIES MOBILE PROCESSINGMOBILE PROCESSING CAREFULLY EVALUATE BALE CAREFULLY EVALUATE BALE

APPLICATIONS BEFORE STARTINGAPPLICATIONS BEFORE STARTING

SUGGESTIONSSUGGESTIONS

FOCUS ON ENERGY (ESPECIALLY FOCUS ON ENERGY (ESPECIALLY CEMENT KILNS) INITIALLYCEMENT KILNS) INITIALLY

DEVELOP CE DESIGN EXPERIENCES DEVELOP CE DESIGN EXPERIENCES AND PRACTICESAND PRACTICES

BEGIN TO ENCOURAGE CRUMB BEGIN TO ENCOURAGE CRUMB MARKETS, BUT AVOID PREMATURE MARKETS, BUT AVOID PREMATURE OVER-COMMITMENT OVER-COMMITMENT

PROCESSING EQUIPMENTPROCESSING EQUIPMENT

APPLICATIONS RANGE FROM WHOLE APPLICATIONS RANGE FROM WHOLE TIRES TO FINE POWDERTIRES TO FINE POWDER

SPECIFIC EQUIPMENT REQUIRED TO SPECIFIC EQUIPMENT REQUIRED TO PRODUCE EACH SIZE PRODUCTPRODUCE EACH SIZE PRODUCT

KNOW MARKET BEFORE PURCHASING KNOW MARKET BEFORE PURCHASING EQUIPMENTEQUIPMENT

KEYS TO SUCCESSKEYS TO SUCCESS

LEARN FROM OTHERS’ SUCCESS AND FAILURELEARN FROM OTHERS’ SUCCESS AND FAILURE

EVALUATE BEFORE CHARGINGEVALUATE BEFORE CHARGING

CHALLENGE “MAGIC” PROPOSALSCHALLENGE “MAGIC” PROPOSALS

RECOGNIZE LOCAL MARKET VARIATIONSRECOGNIZE LOCAL MARKET VARIATIONS

RECOGNIZE REALITYRECOGNIZE REALITY

CONTACT INFORMATIONCONTACT INFORMATION

TERRY GRAYTERRY GRAY

TAG RESOURCE RECOVERYTAG RESOURCE RECOVERY

EMAIL:EMAIL: tagray@flash.nettagray@flash.net

PHONE: (281) 463-7552PHONE: (281) 463-7552