While I mentioned a number of end applications for the recovered carbon black (rCB), further information can be read here [Applications].
IMO, there are a couple of big striking opportunities for the company.
a). One of them being substitute for an expensive virgin carbon black in the tire manufacturing.
Recently I read a 2019 news article at rubbernews.com wherein it mentioned Bridgestone Americas Inc began manufacturing tires with recovered carbon black. The tire maker said, rCB recovered from scrap tires retains a structure similar to that of virgin carbon black, allowing it to be used as a partial replacement for virgin black in tires. It said, rCB produced by depolymerization emits 81 percent less carbon dioxide per ton than virgin carbon black produced by a furnace reactor. Bridgestone said, it has purchased approximately 215 metric tons of rCB, the equivalent of about 64,000 end-of-life tires. This reduced carbon dioxide emissions by approximately 765,000 pounds compared with using virgin black. The company plans to use some 6,800 metric tons of rCB by the end of 2020, according to Bridgestone. This is equivalent to about 2 million end-of-life tires and a reduction of some 24 million pounds of carbon emissions, enough to power nearly 2,000 homes or more than 2,300 passenger vehicles for a year, the company said.
From the above use case, rCB holds immense opportunity for the Indian tire makers in terms of reducing costs and carbons emissions.
b). Govt. EPR policy compliance for the tire waste
What is EPR and How Does it Work?
Extended Producer Responsibility (EPR) is a policy framework that holds producers responsible for the entire lifecycle of their products, including their disposal and waste management. The objective of EPR is to promote sustainable practices and reduce the burden on local governments for waste management.
In the case of tire waste, EPR compliance requires tire manufacturers or importers to take responsibility for managing and recycling the waste generated from their products. This includes setting up collection centers, collaborating with recycling facilities, and ensuring proper disposal of end-of-life tires.
EPR Compliance for Tire Waste in India
In India, the Ministry of Environment, Forests and Climate Change (MoEFCC) introduced the E-waste management rules in 2016, which includes provisions for EPR compliance. The Central Pollution Control Board (CPCB) is responsible for overseeing and implementing these rules. https://www.eprtyrescpcb.in/rules/pdf/amendment-Rules-2022.pdf
Under these rules, tire manufacturers or importers are required to obtain authorization from the CPCB to operate as an EPR-compliant organization. They must also submit a detailed plan outlining their strategies for collection, segregation, transportation, recycling, and disposal of end-of-life tires.
Additionally, manufacturers must establish tie-ups with authorized recyclers to ensure proper recycling and disposal of tires. These recyclers must meet specific standards set by the government to ensure environmentally friendly practices.
To understand how EPR policy would benefit the tire recyclers can be found from a recent Tinna Rubber’s investor call.
So, in summary, the opportunities are immense; however, only time will tell how Hi-Green Carbon will capitalize on them.
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