Sustainability certification drives demand for Enviro pyrolysis oil

GOTHENBURG, Sweden—The European Union's mass balance approach allied to the International Sustainability & Carbon Certification has increased the value of pyrolysis oil produced by Scandinavian Enviro Systems A.B.

The certification obtained in September for Enviro's recovered pyrolysis oil has made it a significantly more attractive raw material for fuel producers, according to a Dec. 22 company statement.

Enviro's pyrolysis oil is recovered from end-of-life tires and has highly renewable—termed biogenic—content, as tires are largely comprised of natural rubber.

Combined with the EU mass balance approach, which forms part of the EU Renewable Energy Directive, the certification means that the oil can be commercialized as 100-percent renewable.

"Our oil can thus strongly improve (fuel) producers' ability to meet reduction demands based on taxation in relation to the proportion of fossil raw material," said Thomas Sorensson, CEO of Enviro.

This September, the pyrolysis oil that Enviro recovers at its plant in Asensbruk was awarded sustainability certification in accordance with the ISCC.

On average, tires from cars, trucks and buses have up to 50 percent biogenic content. Larger tires from construction machinery and mining machinery may have a content of as much as over 70 percent.

Mass balance links the registration of amounts and properties of incoming raw materials (end-of-life tires) to the amounts and properties of oil, gas, steel and carbon black from the recycling process.

As pyrolysis oil usually has a biogenic content of 50 percent, about half of Enviro's recovered oil can be commercialized by fuel producers as 100-percent renewable.

The certification has also expanded the area of use for the oil, generating interest from new potential customers, the company also noted.

"As more people see the commercial opportunities of our oil, the number of requests for potential deliveries increases, as does the number of negotiations," stated Sorensson.

"Following certification, we feel that it is more important for us to choose the right counter-parties and terms for long-term agreements, rather than moving rapidly," he said.