INDUSTRY CHALLENGES
CIRCULAR ECONOMY - THE CHALLENGE OF XXI CENTURY
The current system is no longer working for businesses, people or the environment. We take resources from the ground to make products, which we use, and, when we no longer want them, throw them away. Take-make-waste. We call this a linear economy and today still 92% of the global economy is like that and it is clearly unsustainable. The linear economy has to change. We must transform all the elements of the take-make-waste system: how we manage resources, how we make and use products, and what we do with the materials afterwards. Only then can we create a thriving economy that can benefit everyone within the limits of our planet. Black Pearl enables the value chain of the resources used within the tire sector to be circular. Our recovered resources can be used within the tire industry sector or outside by offering a sustainable alternative to linear fossil resources. We close the loop and add value by establishing partnerships with manufacturers and incorporating existing and new environmental regulatory initiatives with ESG criterias.
STRATEGIC OUTLOOK
About 1.5 tons of fossil fuel raw materials and large amounts of water are used to produce 1 ton
of carbon black. During the Furnace process, approximately 2.5 – 3.0 tons of CO2 emissions are released per ton of carbon black produced. As a result, the production of carbon black contributes greatly to the release of greenhouse gases and the associated problems. In order to reduce CO2 emissions and the consumption of fossil raw materials and water, processes for the efficient recovery of carbon black must be developed and established. In particular, tire waste is considered to be the most important source of carbon black in this respect. Around 4 billion waste tires are deposited in landfills worldwide and around 28 million tones waste tires are added each year. Considering that an average car tire contains about 3 kg of carbon black, it becomes clear what gigantic raw material stock for Carbon Black is theoretically available.
THE GLOBAL TREND TOWARDS RENEWABLE
The pressure is increasing on the world’s companies to reduce their environmental impact due to climate change and the growing need for a more resource-efficient and circular economy. Customers, end-con-sumers, the capital market, public authorities, and lawmakers push the companies in this respect and contribute to changed behavior to follow ESG criterias. Until only a few years ago, ESG was an option that could generate some competitive advantages for a com-pany, but nowadays, it is business-critical and an absolute necessity. And the level of ambition is increasing all the time.
MARKET POTENTIAL
The major tire manufacturers have begun to seriously investigate the possibilities to increasingly use recovered carbon black in their production processes. All major manufacturers have announced very aggressive targets for the proportion of renewable materials their tires will include in the coming decades. However, since the traditional carbon black suppliers mainly focus on fossil-based solutions, the alternatives are still few. As a result, a large and growing gap is emerging between what black carbon producers can deliver and what their customers demand, creating an excellent opportunity for Black Pearl and its technology.
100%
Recycled Materials from
2050
10%
Recycled Materials before
2025
30%
Recycled Materials from
2020
THE DEMAND OF rCB EXCEEDS THE SUPPLY
The global carbon black valued at USD25.8 billion in 2022 and projected to grow from USD 27.44 billion in 2023 to USD 38.7 billion in 2030, exhibiting a CAGR of 4.8% during the forecast period. The value only to the tire producers is about 23b USD and they consume about 74 percent of all carbon black. Potential demand for rCB well beyond realistic capacity builds out – success will depend on execution.