Liberty Tire Recycling | 2023 Environmental, Social and Governance Report 49 ADVANCING SUSTAINABLE PRODUCTS Energy Recovery from End-of-Life Tires Our goal is for all tires to be recycled into usable end products with no tire material being disposed of in landfills. Liberty Tire Recycling manages this process through material recovery as well as energy recovery in the form of tire-derived fuel (TDF). While we recognize the significant emissions profile of our users of TDF in reporting our Scope 3 emissions, there are benefits to be realized from using recycled rubber as a fuel source. Manufacturers and power generators include TDF in their fuel mix because of its reliably high heat value, near-zero bottom ash production, and ability to lower their greenhouse gas emissions. TDF can take the place of traditional fossil fuels like coal and petroleum coke in co-fired boilers and kilns, and the U.S. Environmental Protection Agency (US EPA) recognizes TDF as a viable alternative to fossil fuels. The manufacturing industry uses TDF as an alternative fuel that is cleaner and more economical than coal and petroleum coke. Cement kilns, pulp and paper mills, steel mills, power plants and boilers can all benefit from tire-derived fuel, as less fuel is needed overall: 1 ton of TDF typically replaces 1.5 tons of coal, and TDF creates 35% more energy than coal. Additionally, TDF reduces the amount of boiler bottom ash that is difficult to remove and landfill. Power plants can use tire-derived fuel as a green energy source as some groups classify it as renewable. The North Carolina Utilities Commission recognizes TDF as a renewable energy resource for renewable energy certificates (RECs) for 24%, the percentage of natural rubber found in TDF. 8 While TDF is not the highest and best use for recycled rubber material in our value chain, it is filling a specific need: keeping tires out of landfills and replacing fossil fuels as an alternative fuel source. It is a steppingstone on the path of energy transition and a recognized form of recovery in the waste management hierarchy. 8. https://www.ncuc.gov/reports/repsreport2021.pdf Spotlight on Tire Derived Fuel While TDF’s emissions are higher than our other categories, the emissions are 9.6% lower than if coal were burned instead of the tire-derived fuel. Also, emissions associated with mining coal are over 14 times higher than tire-derived fuel from waste tires. The use of TDF also results in lower nitric oxide emissions when compared to many U.S. coals, particularly the high-sulfur coals, and TDF—unlike coal—does not contain mercury. Given these factors, tire-derived fuel is a beneficial waste product alternative to mining and burning traditional fossil fuels like coal. TDF is often an integral ingredient in supporting the renewable biomass industry. Biomass by its very nature is often bulky, holds a high moisture level, and is not particularly energy dense. TDF is a critical part of being able to fire biomass, whether at a paper mill or a biomass power plant, because of its high heat value. It also helps to stabilize the heat in the boiler, allowing the facilities to run more predictably and efficiently. These benefits come with a lower emissions profile compared to coal, and some states recognize the natural rubber contained in tire-derived fuel as a renewable fuel source, much like biomass itself. 3,555,611t Material Recovery Energy Recovery Stocks / Unknown 54.96% 4.65% 40.18%
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