The problem of end-of-life tires has led to the development of several innovative ways to use and reuse the leftover materials. While industrial shredders produce many useful byproducts, including rubber mulch, crumb rubber, and TDF, tire pyrolysis unlocks the door to new revenue streams. Pyrolysis oil, a product of pyrolysis, is perhaps the most versatile, and one of the most profitable, if you know how to use it strategically.
This blog walks you through the practical applications of tire-derived pyrolysis oil, how it fits into broader industry needs, and why understanding its full potential gives your tire recycling operation a competitive edge.
What Is Tire Pyrolysis Oil?
Tire pyrolysis oil comes from a thermochemical decomposition process where processors heat shredded tires without oxygen. During this process, the complex polymers in rubber break down into smaller molecules, creating gas, char, steel, and oil. The extracted oil is a dark, viscous fluid rich in hydrocarbons, making it suitable as a fuel substitute or raw material in various sectors.
You can think of this oil as a kind of recycled crude—a substance that bridges the gap between waste disposal and energy production. When refined or processed to meet industry-specific standards, there are many applications for it.
Fuel for Industrial Boilers and Furnaces
One of the most direct uses for pyrolysis oil is as a replacement for conventional fuels in industrial boilers and furnaces. For facilities with high thermal demands, such as a cement plant, brick kiln, or textile mill, pyrolysis oil can deliver the BTUs needed to sustain large-scale operations. Many industries in Asia and Europe are already using it as an alternative to furnace oil, especially where energy costs are high or diesel availability is limited.
When blended with heavy fuel oils, pyrolysis oil can help reduce dependency on traditional petroleum-based fuels, providing a more sustainable and potentially more affordable energy source.
Feedstock for Refining and Fuel Blending
Pyrolysis oil can also serve as a precursor to lighter fuels like gasoline and diesel. While this process requires some investment in distillation or hydro-treatment equipment, it opens the door to creating high-value fuels with consistent quality. If you’re targeting the fuel market, this path allows you to refine your product for broader compatibility and regulation compliance.
Some operators choose to sell raw pyrolysis oil to third-party refineries that specialize in this kind of conversion. Either way, it’s a profitable option if you want to position yourself in the alternative fuels industry.
Power Generation in Diesel Engines and Generators
With a bit of modification, pyrolysis oil can power certain diesel engines and generators. Business owners operating machinery off-grid or maintaining backup generators at their facility can convert these to accept a blend of pyrolysis oil and diesel. This conversion provides a degree of energy independence and can significantly reduce fuel costs over time.
It’s important to note that engine compatibility is key. A technician who understands how to adjust timing and compression ratios to handle the viscosity and combustion properties of pyrolysis oil should handle any necessary modifications. That said, once the necessary changes are made, the benefits in terms of cost-efficiency and sustainability can be substantial.
Base Oil for Lubricant Production
If you’re in or near a market where automotive or industrial lubricants are in demand, tire pyrolysis oil offers a unique opportunity. With further processing, it can be a base oil for producing greases, hydraulic fluids, and motor oils. The pyrolysis oil must first go through a refining process to remove impurities such as sulfur compounds and particulate matter.
The global demand for lubricants is steadily rising, particularly in emerging economies. So if you can supply clean, recycled base oil that meets ISO or API standards, you might find a niche market that’s both lucrative and environmentally beneficial.
Chemical Manufacturing and Extraction
Because pyrolysis oil contains complex hydrocarbons, it functions effectively as a feedstock for producing various chemicals. Industries involved in solvent production, rubber processing, and plastic manufacturing often use hydrocarbon-rich materials as building blocks. In this sense, pyrolysis oil provides both fuel and raw material.
For example, pyrolysis oil contains valuable compounds like benzene, toluene, and xylene—chemicals that manufacturers commonly include in adhesives, paints, and cleaning agents. With the right separation technology, isolating these compounds and selling them to chemical manufacturers is possible. These chemicals can give you an additional revenue stream beyond energy markets.
Use in Asphalt
You can also incorporate pyrolysis oil into asphalt. If you’re near a road construction company or highway authority, this presents a practical partnership opportunity. Modified asphalt using pyrolysis oil can be more flexible and resistant to cracking, especially in extreme temperatures.
Blending pyrolysis oil with asphalt also supports circular economy initiatives in public infrastructure projects. You can position your recycled product not just as a fuel, but as a sustainability enhancer in the construction sector.
Carbon Offset and ESG Benefits
Companies across industries are under pressure to meet environmental, social, and governance (ESG) standards. If you can show that you’re producing and utilizing pyrolysis oil to offset fossil fuel consumption, you’re in a strong position to attract environmentally conscious partners and investors.
For instance, let’s say you supply pyrolysis oil to a manufacturing facility that needs to reduce its carbon footprint. Instead of positioning yourself as a company that sells fuel, you can emphasize how your product enables tangible carbon reduction and sustainability improvements. That narrative helps them fulfill ESG goals while helping you represent your brand as an eco-friendly operation.
Things to Consider Before Use
While the benefits of pyrolysis oil are compelling, you still need to assess factors like sulfur content, flash point, and viscosity before using it in specific applications. Some markets, including Europe and North America, have strict regulations regarding emissions and fuel standards. Ensure your oil meets those benchmarks or is refined accordingly.
Moreover, storage and handling are critical. Pyrolysis oil is acidic and can corrode standard tanks or lines. Investing in corrosion-resistant containers and compatible fuel systems is essential as you scale up.
Building a Business Model Around Pyrolysis Oil
If you’re running a pyrolysis plant, integrating oil recovery into your revenue strategy is a smart move. Not only does it diversify your income, but it also makes your operation more resilient to fluctuations in scrap tire pricing and carbon black markets. Whether you choose to sell your oil raw, refine it, or use it in your own processes, the goal is to maximize utility in your waste tire recycling operation.
You might even find it worthwhile to create custom product lines—such as blended heating oils or distilled light fuels—based on regional demand. Doing so helps you tailor your output for high-margin markets and increases your profitability while delivering value.
Recovered tire pyrolysis oil presents a range of profitable and sustainable possibilities. From powering heavy-duty equipment to feeding chemical plants and lubricants markets, the versatility of this byproduct can transform how you look at tire waste.
If you invest in quality pyrolysis equipment and strategically identify end-users for your oil, you can carve out a strong position in multiple industries. And with rising global demand for alternative fuels and raw materials, now is the perfect time to turn that waste into opportunity.
