AUSTRALIA’S FIRST FULLY CIRCULAR ELT ECOSYSTEM: FROM COLLECTION TO CLEAN COMMODITIES

Sustainable Development Goals

Current Project Status:
Development Started 2023 | Feasibility Study | Pre-FEED
Organizations Involved:
Klean Industries, CEVA Logistics, Goodpack, CMA CGM, Viva Energy, KBR, InvestVictoria, Sustainability Victoria, Tyre Stewardship Australia, Several Tyre Recycling Companies  
Services:
Design & Engineering, Component Supply, Feasibility Study, Due DiligenceSupply Chain Management, Operator Training

Klean Industries is developing a cutting-edge tyre pyrolysis plant in Australia. The plant aims to process end-of-life tyres into valuable commodities, such as recovered carbon black and renewable fuels, thereby advancing sustainable waste management and supporting the circular economy.

Introduction:

As the global demand for sustainable infrastructure accelerates, Australia finds itself at the crossroads of innovation and necessity in managing end-of-life tires (ELTs). Every year, over 450,000 metric tonnes, or more than 50 million tires, are discarded across the country. Until recently, most were landfilled, exported, or incinerated, posing environmental and health hazards while wasting valuable resources. Now, a visionary collaboration between Klean Industries, CEVA Logistics, and Goodpack is turning that crisis into a circular economy opportunity. Anchored by a commercial-scale tire pyrolysis facility near Melbourne, this integrated ecosystem is set to transform how tires are collected, processed, and returned to the global materials supply chain—delivering high-performance recovered products while advancing national net-zero and zero-landfill goals.

The Challenge: 

Australia’s tire waste problem mirrors global trends, characterized by rising stockpiles, fragmented logistics, and limited recycling infrastructure. While the voluntary Tyre Stewardship Scheme (TSA) has helped divert some end-of-life tyres (ELTs) from landfills, it manages only 25% of the waste stream, leaving the rest to accumulate in dumpsites or be exported without a guarantee of environmental compliance.

The environmental consequences are severe. Tire stockpiles become breeding grounds for pests and toxins. Tire fires, once ignited, are nearly impossible to extinguish and release dangerous pollutants into the air, soil, and groundwater. The international shipment of baled tires often leads to further environmental degradation in developing countries, where they’re repurposed through unsafe and unregulated methods.

Equally problematic is the fragmented nature of ELT management. Collection, transport, processing, and materials recovery are typically handled by disconnected entities. This lack of integration results in higher emissions, inefficiencies, and lost value from materials that could otherwise be turned into fuel, carbon black, and steel. Australia needed a scalable, end-to-end solution that could efficiently process ELTs at an industrial scale while closing the loop on tire waste and promoting materials reuse.

The Opportunity:

The partnership between Klean Industries, CEVA Logistics, and Goodpack is delivering exactly that: a first-of-its-kind, fully integrated ELT circular economy platform. It addresses all stages of the tire lifecycle from collection and transport, to pyrolytic conversion into valuable commodities, to real-time tracking and traceability of recovered outputs.

This multi-pronged approach brings together:

  • CEVA Logistics, a global supply chain leader, to manage the aggregation and distribution of ELTs through a reverse logistics network that minimizes emissions and prevents tire stockpiling.

  • Klean Industries, a global pioneer in commercial-scale pyrolysis, is to process tires into high-performance recovered carbon black (rCB), steel, and renewable fuels.

  • Goodpack, the world leader in reusable metal containers, is to provide safe and circular storage and shipping solutions for all recovered materials.

Together, these partners are not only solving Australia’s tire waste problem—they’re redefining what’s possible for the global tire manufacturing and recycling ecosystem.

The Solution: 

The centerpiece of the initiative is Klean’s advanced tire pyrolysis facility, strategically located 45 km northwest of Melbourne. Capable of processing 160–240 tonnes of tires per day, the plant converts approximately 6.5 to 8.5 million scrap tires annually into premium recovered commodities:

  • Recovered Carbon Black (rCB): A circular alternative to virgin carbon black used in tires, plastics, and rubber goods. Produced with Klean’s CBk KleanCarbon™ upgrading system, it reduces CO₂ emissions by up to 90% compared to virgin material.

  • Recovered Steel: Separated during the pyrolysis process and repurposed for use in construction and manufacturing.

  • Biogenic Recovered Fuel Oil (rFO): A low-carbon, high-energy-content fuel with marine, sustainable aviation fuel (SAF) and industrial applications, enhanced through in-line upgrading to meet 90% VLSFO quality standards.

  • Naphtha-like Products: Created from the lighter fractions of rFO, usable as petrochemical feedstocks.

  • Hydrogen: Generated as a by-product, contributing to future clean fuel strategies and circular hydrogen hubs.

What sets this project apart is its complete systems integration:

  • Reverse logistics and collection: Tires are aggregated through CEVA’s national network, then routed to the Klean plant.

  • Digitally enabled tracking: Klean Loop™, a blockchain SaaS platform, tracks every tire entering the system, recording its journey through collection, processing, and material resale, adding unparalleled transparency for ESG compliance, carbon credit verification, and performance optimization.

  • Circular storage and shipment: Goodpack’s IBC containers ensure that all recovered outputs are safely stored and shipped with zero single-use packaging, further lowering the environmental footprint.

This ecosystem creates a closed-loop tire solution from road to recovery and back again, designed to be scalable across Australia and replicable worldwide.

Why Klean Industries is the Clear Leader in Tyre Pyrolysis Technology

For over two decades, Klean Industries has been the trusted global leader in tyre pyrolysis and resource recovery solutions. Unlike competitors that are still in the pilot phases, Klean has fully operational, commercial-scale plants supplying major tyre manufacturers, carbon black producers, and industrial clients.

Klean’s Key Advantages:

  • Proven Commercial-Scale Technology: Decades of real-world performance in tyre pyrolysis & carbon upgrading
  • High Quality Recovered Carbon Black (rCB): Superior quality & performance, meeting ASTM standards
  • Sustainable Fuel Production: Biogenic pyrolysis oil for low-carbon energy applications
  • End-to-End Circular Economy Integration: Supporting tyre-to-tyre & tyre-to-fuel recycling models
  • Scalable & Modular Solutions: Designed for global deployment & high-yield operations

By choosing Klean Industries, businesses can future-proof their operations, lower costs, and achieve true circularity—turning waste into valuable, sustainable resources while driving profitability and reducing environmental impact.

Partner with the KleanTeam That’s Redefining End-of-Life Tire Recycling

Global Solutions. Proven Technology. One Partner That Delivers.

Klean Industries has mastered the art of tire pyrolysis, transforming waste into valuable resources on a large scale with world-class reliability. The CEVA collaboration is just one of many real-world examples that showcase how our technology, partnerships, and expertise are helping to solve the global end-of-life tire crisis.

With decades of experience, precision engineering, and full-spectrum project support from permitting to production, Klean is the proven partner you need to turn opportunity into action.

Ready to turn tire waste into profit and impact?

Speak with a Tire Pyrolysis Expert at Klean Industries >> GO.

This project addresses the United Nations Sustainable Development Goals (SDGs) by considering the goals and associated targets illustrated by the WBCSD’s Tyre Industry Project (TIP). TIP offers a framework for action that outlines impactful pathways for the tyre sector to contribute to the Sustainable Development Goals (SDGs). To learn more about how Klean's approach, solutions, and technologies contribute to advancing the SDGs, please review the report "Sustainability Driven: Accelerating Impact with the Tyre Sector SDG Roadmap." See: https://www.wbcsd.org/Sector-Projects/Tire-Industry-Project/End-of-Life-Tires-ELTs