Carbon black demand in the EU
There is a strong demand for carbon black among the EU countries, and it is expected to continuously increase over the next years.
In 2018, total demand of carbon black in the EU countries was close to 2 million tons. 45% of this was imported, mainly from Russia and Ukraine.
The high share of new carbon black imports is related to the strict environmental and safety regulations in the EU, which make production of new carbon black in the EU costlier than in countries with less restrictive regulations.
Recovered carbon black (rCB): An attractive and competitive material
Most of the big tire producers have defined strategies and set targets for their use of sustainable and recycled materials in future products. Recovered carbon black helps producers achieve these targets, as up to 30% of a new tire consists of carbon black.
rCB has an economical advantage, compared to the newly produced product, as the production price is not related to the fluctuating oil prices. This is due to the fact, that it is recovered from ELT and not produced from oil. ELT is an abundant resource which is expected to secure competitive production costs.
Elysium Nordic will comply with all applicable regulations. Even when constructing and operating the plant according to EU’s strict environmental and safety requirements, recycling of carbon black is still a very cost efficient operation.
Potential for a stronger European economy
The more than 9.000 tons of rCB Elysium Nordic will produce every year with the first plant will account for less than 1% of the carbon black imported to European industries.
Currently 1 million tons of ELT are incinerated in the EU every year. In order to recover 9.000 tons rCB, Elysium Nordic will use only 3% of these.
If all 1 million tons of ELT currently incinerated were recycled into rCB, import of carbon black to the EU could be reduced by a third. If all 3 million tons ELT collected every year in EU were recycled, import of carbon black would no longer be needed. However, this would require almost 100 similar pyrolysis plants.
The numbers above illustrate the significant potential to expand Elysium Nordic operations in the future. New plants will reduce import, create new business and jobs, contribuing to the European economy and help the European tire and rubber producers to achieve their targets.