National Market Development Strategy for Used Tyres
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National market development strategy for used tyres Final Strategy 19 June 2017 National market development strategy for used tyres Final Strategy Client Client Contact Karl Shanley Authors Matt Genever Kyle O’Farrell Paul Randell John Rebbechi, Roadcor – Specialist input on asphalt and sprayed seals Reviewers Paul Randell Project Reference: PREC070 Disclaimer This Strategy has been prepared for Sustainability Victoria in accordance with the terms and conditions of appointment dated 25/11/2016. Randell Environmental Consulting Pty Ltd (ABN 17 153 387 501) cannot accept any responsibility for any use of or reliance on the contents of this Strategy by any third party. Randell Environmental Consulting Pty Ltd ABN 17 153 387 501 Woodend Victoria 3442 [email protected] Phone 0429 501 717 Contents EXECUTIVE SUMMARY .......................................................................................................................... vii 1 Project introduction ....................................................................................................................... 1 PART 1 – END-OF-LIFE TYRES IN AUSTRALIA ........................................................................................... 7 2 Tyre-derived products .................................................................................................................... 8 3 Applications for TDPs ................................................................................................................... 14 4 Specifications and standards relevant to TDPs ............................................................................ 21 5 Current and projected national market for end-of-life-tyres ...................................................... 22 6 National regulatory framework.................................................................................................... 40 7 National market conditions .......................................................................................................... 45 PART 2 – ANALYSIS OF BARRIERS AND OPPORTUNITIES ...................................................................... 50 Overview of Part 2 – Analysis of barriers and opportunities ................................................................ 51 8 Market barriers ............................................................................................................................ 52 9 Market opportunities and competition analysis for TDPs in Australia ........................................ 58 10 Opportunities in the road construction sector ............................................................................ 65 11 Opportunities in the rail construction sector ............................................................................... 75 12 Opportunities for TDPs in civil engineering applications (non-structural) ................................... 84 PART 3 – OPTIONS FOR STRATEGY IMPLEMENTATION ........................................................................ 90 Overview of Part 3 – Options for Strategy Implementation ................................................................. 91 13 Key transaction and intervention points in the TDP product chain ............................................. 92 APPENDIX 1 – DETAILED OVERVIEW OF SPECIFICATIONS .................................................................... 96 14 Detailed overview of specifications ............................................................................................. 97 APPENDIX 2 – EOLT MARKETS FOR EACH STATE AND TERRITORY ..................................................... 102 15 Victoria ....................................................................................................................................... 103 16 Queensland ................................................................................................................................ 107 17 Western Australia ....................................................................................................................... 111 18 New South Wales ....................................................................................................................... 115 19 South Australia ........................................................................................................................... 119 20 Tasmania .................................................................................................................................... 123 21 Northern Territory ...................................................................................................................... 126 22 Australian Capital Territory ........................................................................................................ 129 APPENDIX 3 – COMPETITION AND MARKET ANALYSIS FOR TDP OPPORTUNITIES IN AUSTRALIA ..... 132 Used tyres national market development strategy Final Strategy i Figures Figure 1 EOLT material flow analysis methodology overview 4 Figure 2 Overview of TDPs and applications 9 Figure 3 Overview of TDPs from energy from waste processing technologies 12 Figure 4 Australian tyre sales 2015-16 by tyre type and jurisidiction (tonnes) 22 Figure 5 Australian tyres sales 2013–14 to 2024–25, by tyre type (EPUs) 23 Figure 6 Australian tyres stocks in 2015–16, by jurisdiction and tyre type (tonnes) 24 Figure 7 Australian tyres stocks 2013–14 to 2024–25, by tyre group (EPUs) 25 Figure 8 Australian tyres reaching end-of-life in 2015–16, by jurisdiction and tyre type (tonnes) 26 Figure 9 Australian tyres reaching end-of-life 2013–14 to 2024–25, by tyre type (EPUs) 27 Figure 10 Australian tyres reaching end-of-life in 2015–16, by material type and tyre type (tonnes) 29 Figure 11 EOLTs fate 2015–16 (tonnes) 30 Figure 12 Percentage of tyres going to high, low and ‘no-value’ markets 31 Figure 13 Percentage of tyres going to high, low and no-value markets, by tyre type 31 Figure 14 Percentage of "readily accessible" EOLTs going to high, low and no-value markets (excluding OTR tyres) 32 Figure 15 Breakdown of domestic recycling by commodity type / TDP (tonnes) in 2015-16 33 Figure 16 Breakdown of domestic recycling by commodity type / TDP (by % of total) in 2015-16 34 Figure 17 Relative contribution (by % of total) to domestic recycling of EOLTs by state for 2015-16 34 Figure 18 Breakdown of TDP commodities leaving Australia (by % of total) in 2015-16 35 Figure 19 Breakdown of TDP commodities leaving Australia (tonnes) by state in 2015-16 35 Figure 20 New tyre sales in Australia by tyre type, 2007-08 – 2015-16 (Hyder and REC data) 36 Figure 21 End-of-life fates of tyres in Australia, 2009-10 – 2015-16 (Hyder and REC data) (EPUs) 37 Figure 22 Domestic recycling rate for EOLTs in Australia (Hyder and REC data) (% of total) 38 Figure 23 National overview of EOLTs by fate in 2015-16 (percentage) 39 Figure 24 Illustration of stages in product lifecycle 40 Figure 25 Estimated 2015-16 value of the tyre recycling sector in Australia 48 Figure 26 Overview of Part 2 – Analysis of barriers and opportunities. 51 Figure 27 Cumulative impact of base case growth and interventions for key TDP opportunites in Australia (2015-16 – 2025-26) – best estimate (tonnes) 61 Figure 28 Projections of EOLT generation (arisings) and best estimate recovery against total unrecovered EOLTs (tonnes) 62 Figure 29 Maturity of markets for TDP opportunities in Australia 63 Figure 30 Overview of key stakeholders in the road construction sector 67 Figure 31 Overview of development process for engineering products in the road sector. 68 Figure 32 Approximate market penetration of crumb rubber sprayed seals by jurisdiction in Australia 70 Figure 33 Overview of infrastructure managers across the Australian rail network 76 Figure 34 Overview of key stakeholders in the rail construction sector 78 Figure 35 Typical sector procurement model for rail construction 79 Figure 36 Potential rail market entry strategy 83 Figure 37 Civil construction outlook data 85 Figure 38 Example of tyres being used in subbase stablisation 87 Figure 39 – Structure and overview of Part 3 of the Strategy 91 Figure 40 Overview of the TDP product chain showing key transaction points 92 Used tyres national market development strategy Final Strategy ii Figure 41 Product-market growth matrix 95 Figure 42 Vic EOLT fates 2015–16 (tonnes) 104 Figure 43 Qld EOLTs fate 2015–16 (tonnes) 109 Figure 44 WA EOLTs fate 2015–16 (tonnes) 113 Figure 45 NSW EOLTs fates 2015–16 (tonnes) 117 Figure 46 SA EOLTs fates 2015–16 (tonnes) 121 Figure 47 Tas EOLTs fate 2015–16 (tonnes) 125 Figure 48 Fates of EOLTs from NT in 2015–16 (tonnes) 128 Figure 49 ACT EOLTs fates 2015–16 (tonnes) 131 Tables Table 1 Manufacture of TDPs and jurisdictions 8 Table 2 Overview of specifications for tyre-derived products 21 Table 3 Australian tyre sales 2015-16 by tyre type and jurisidiction (tonnes) 22 Table 4 Australian tyres sales 2013–14 to 2024–25, by tyre type (EPUs) 23 Table 5 Australian tyres stocks in 2015–16, by jurisdiction and tyre type (tonnes) 24 Table 6 Australian tyres stocks 2013–14 to 2024–25, by tyre group (EPUs) 25 Table 7 Australian tyres reaching end-of-life in 2015–16, by jurisdiction and tyre type (tonnes) 26 Table 8 Australian tyres reaching end-of-life 2013–14 to 2024–25, by tyre type (EPUs) 27 Table 9 Main components of car and truck tyres (by % total weight) 28 Table 10 Australian tyres reaching end-of-life in 2015–16, by material type and tyre type (tonnes) 28 Table 11 EOLTs by fate 2015–16