RECYCLED oil from old car tyres could on its way to a local oil refining company to be made into fuel.
Tyres from cars and trucks that have reached the end of their life are being used to produce oil, which will be sent to Southern Oil for refining into oil-based products such as diesel or petrol.
Green Distillation Technologies chief operating officer Trevor Bayley confirmed the agreement with the Wagga-based oil refinery, saying the two companies have been waiting for an opportunity to arise where its oil could fit in suitably.
The Australian start-up company recycles old tyres into oil, carbon and steel, which Mr Bayley said is the first-of-its-kind.
"We started working with Southern Oil right at the beginning of our journey, trying to see where we could fit in," Mr Bayley said.
"Southern Oil has broadened their horizon to look at fuel and our oil fits nicely into this package.
"It is renewable and an easy drop-in replacement in diesel fuel."
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Mr Bayley said the refinery is set to take all oil produced by Green Distillation Technologies - and with the development, increase the volume because its oil is similar to a light crude, being low in sulphur and easy to refine.
Green Distillation Technologies has plans to build more infrastructure that will have the capacity to process about 700,000 old tyres each year into eight million litres of oil for refining, as well as 7700 tonnes of carbon black and 2000 tonnes of steel.
Mr Bayley said these numbers represents about 4 per cent of the end-of-life tyres that are generated in the country every year.
"The capacity to convert (the oil into other oil-based products beside from diesel) is there, but the oil is mostly used for diesel," he said.
"The quality is really good. If we had been early to the marketplace, our oil would have fit right into the market, but with regulations it needs to keep up."
Mr Bayley hopes the agreement could "grow something of note" as the partnership progresses.
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