SCRAP TIRE MARKET DEVELOPMENT

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SCRAP TIRE MARKET DEVELOPMENT

• BY
• TERRY GRAY
• TAG RESOURCE RECOVERY
• TIRE WORKSHOP 2013
• SAN ANTONIO, TEXAS
• APRIL 3, 2013

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PERSPECTIVE

• FIRST PROGRAM IN MINNESOTA IN 1984
• MANY U.S. STATES STILL DONT HAVE SUCCESSFUL
  PROGRAMS
• lt1 UTILIZED IN 1984, BUT ABOUT 80 IN 2011
• MEXICO CAN ACCELERATE ITS GROWTH BASED ON GOOD
  AND BAD HISTORICAL EXPERIENCES

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US SCRAP TIRE MARKET TRENDS 2005-2011
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MAJOR APPLICATIONS
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ENERGY

• CEMENT KILNS
• POWER GENERATION
• PAPER MILLS
• DEDICATED FACILITIES
• PYROLYSIS/GASIFICATION

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U.S. TIRE-DERIVED FUEL MARKET TRENDS 2005-2011
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U.S. TIRE-DERIVED FUEL MARKETS 2011
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CEMENT KILNS

• ENVIRONMENTALLY EXCELLENT
• ECONOMICALLY ATTRACTIVE
• QUICKLY DEVELOPED
• GENERALLY WHOLE TIRES, SOME TDF
• NEEDS CONSISTENT SOURCE
• PROGRAM CORNERSTONE

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MODERN CEMENT FACILITY
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CEMENT KILN
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MANUAL FEED SYSTEM
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AIR LOCK
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INTO KILN
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RAPID COMBUSTION
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POWER AND PAPER INDUSTRIES

• SPECIFIC BOILER TYPES INCLUDE CYCLONE,
  STOKER-FIRED, CFB
• DISPLACES COAL OR OTHER SOLID FUEL
• USES NOMINAL 1 OR 2 TDF, BEAD WIRE REMOVED

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COMPARATIVE TDF PRODUCTION ECONOMICS
(CHIP SIZE VS TIRES/YR)
CHIP SIZE 500,000 1,000,000 1,500,000
2.0 69 -11 -42
1.5 82 BASIS -14
1.0 94 35 0
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PYROLYSIS

• HISTORICALLY UNSUCCESSFUL
• NO COMMERCIALLY SUCCESSFUL SYSTEMS IN NORTH
  AMERICA
• OVER 500 MILLION EXPENDED
• MAJOR COMPANIES AND SMALL PROMOTERS

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CRITICAL ISSUES

• TECHNICAL PERFORMANCE
• UNRELIABLE OPERATION
• EXPLOSIONS/FIRES
• ENVIRONMENTAL ISSUES
• AIR
• CHAR DISPOSAL
• ECONOMIC PERFORMANCE
• GAS UTILIZATION
• OIL ONLY BLENDSTOCK
• CHAR MARKET

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CIVIL ENGINEERING

• LIGHTWEIGHT FILL
• DRAINAGE AGGREGATE
• WHOLE TIRES IN RETAINING WALL CONSTRUCTION

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Dixon Landing Interchange

• PROBLEM Embankment Constructed on Bay Mud
• SOLUTION Use TDA for the core of the embankment
• CHEAPEST SOLUTION Caltrans saved 470,000
• USED 600,000 tires

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Typical Cross Section
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Spread with bulldozer
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Rt. 91 Wall in Riverside, CA

• Freeway widening
• Objective show that reduced earth pressures can
  reduce overall wall construction costs
• Length 260 ft
• Tires used 75,000 PTE

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Rt. 91 wall cross section
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Half of TDA in Place
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Potential Future Savings for Walls

• Lower pressure on wall ? less rebar
• Potential reduction 28 tons/100 ft
• Potential cost savings 13,000/100 ft

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RETAINING WALLS

• WHOLE TIRES MECHANICALLY JOINED TO STABILIZE OR
  RETAIN SLOPE
• NOT BROADLY APPLIED IN US DUE TO LABOR COSTS
• MINIMAL CAPITAL EXPENSE FOR SMALL VOLUMES

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CRUMB RUBBERAPPLICATIONS

• SPORTS SURFACES
• MOLDED PRODUCTS
• RUBBER-MODIFIED ASPHALT
• DECORATIVE MULCH

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CRUMB RUBBER CHARACTERISTICS

• SLOW OVERALL MARKET GROWTH
• HIGH CAPITAL
• HIGH MAINTENANCE
• MARKET CHALLENGES

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RURAL CONSIDERATIONS

• VOLUME SENSITIVITY
• REGIONAL PLANS, COLLECTION CENTERS OR PROCESSING
  FACILITIES
• MOBILE PROCESSING
• CAREFULLY EVALUATE BALE APPLICATIONS BEFORE
  STARTING

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SUGGESTIONS

• FOCUS ON ENERGY (ESPECIALLY CEMENT KILNS)
  INITIALLY
• DEVELOP CE DESIGN EXPERIENCES AND PRACTICES
• BEGIN TO ENCOURAGE CRUMB MARKETS, BUT AVOID
  PREMATURE OVER-COMMITMENT

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PROCESSING EQUIPMENT

• APPLICATIONS RANGE FROM WHOLE TIRES TO FINE
  POWDER
• SPECIFIC EQUIPMENT REQUIRED TO PRODUCE EACH SIZE
  PRODUCT
• KNOW MARKET BEFORE PURCHASING EQUIPMENT

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KEYS TO SUCCESS

• LEARN FROM OTHERS SUCCESS AND FAILURE
• EVALUATE BEFORE CHARGING
• CHALLENGE MAGIC PROPOSALS
• RECOGNIZE LOCAL MARKET VARIATIONS
• RECOGNIZE REALITY

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CONTACT INFORMATION

• TERRY GRAY
• TAG RESOURCE RECOVERY
• EMAIL tagray_at_flash.net
• PHONE [phone]