Selling the Outputs: Off-Take, QA, and Blending Strategies for Pyrolysis Products in Thailand

The growing demand for sustainable materials and energy sources has made pyrolysis an attractive option for waste management and resource recovery. In Thailand, the successful implementation of pyrolysis projects depends on developing bankable off-take agreements. Whether your venture focuses on recovered carbon black (rCB), tire pyrolysis oil (TPO), syngas, or steel, it’s vital to understand what buyers expect regarding consistent specifications, quality assurance (QA), and logistics. This playbook will guide you on qualifying products, structuring off-take contracts, and developing effective blending strategies specifically tailored for Thailand's market.

Understanding What Buyers Want: Thailand’s Pyrolysis Market

In Thailand, buyers have specific requirements that need to be met for successful off-take agreements. They expect products that adhere to tight specifications, ensuring quality and consistency.

Stable rCB Fit for Tire/Plastics

Buyers look for recovered carbon black that meets standards in areas such as iodine adsorption, DBP absorption, ash content, metals presence, particle size, and tint strength. This often requires purification processes to ensure the material reaches tire-grade consistency. A notable case is the collaboration between Marubeni and Green Rubber Energy (GRE), which demonstrates a complete supply chain from end-of-life tire (ELT) collection to rCB purification and sales channels, showcasing a real appetite from buyers when QA measures are robust.

Aerial view of a pyrolysis facility focused on rCB production.

TPO with Clear Use Paths

Tire pyrolysis oil is mainly utilized in industrial burners and as blend-stocks in various applications. Buyers demand reliable specifications such as density, viscosity, sulfur content, ash level, and higher heating value (HHV). Life Cycle Assessment (LCA) studies indicate realistic yield baselines for ELT pyrolysis in Thailand, demonstrating the importance of energy optimization and crediting recovered products to strengthen the off-take business case.

On-site storage tanks for tire pyrolysis oil ready for distribution.

Realistic Yield Expectations

A critical lesson from Thailand’s ELT studies is the need for realistic yield expectations. Typical mass yields from pyrolysis include approximately 40% oil, 32% carbon black, 13% steel, 9% syngas, and 6% sludge, assuming adequate control over moisture and contamination levels. These figures serve as a planning baseline for producers and must be validated through pilot trials.

Product Qualification for Pyrolysis Outputs

When devising a product qualification strategy, it's essential to focus on specific QA panels that buyers inspect rigorously.

QA Panels You Should Lock

1. Recovered Carbon Black (rCB):

Core panel metrics include iodine content (mg/g), DBP absorption (cm³/100 g), ash percentage, metals (ppm), particle size/surface area, and tint strength (%). A strong signal from Thai operations like GRE’s purification network will support the stabilization of rCB quality for tire applications.

2. Tire Pyrolysis Oil (TPO):

Metrics to focus on include density at 15 °C, kinematic viscosity at 40 °C, sulfur (ppm), ash (%), HHV (MJ/kg), and the presence of aromatics/FAME content if applicable. Blending strategies should cover co-processing or blending against refinery or industrial buyer specifications.

3. Steel:

Core panel metrics for steel should include scrap grade and residuals such as copper and tin. Ensuring quality in bead removal and magnet separation can yield better pricing for this product.

4. Syngas Use:

Identify internal heat duty to reduce net electricity demands while documenting recovery fractions and compliance features.

Detailed view of steel processing machinery in a pyrolysis facility.

Smart Blending and Upgrading Strategies

Implementing effective blending and upgrading strategies is crucial for maximizing the value of pyrolysis outputs.

rCB to Tire/Plastics via Purification

Partnering with a purification technology provider can lock target bands for iodine, DBP, and ash levels while establishing a quality control cadence. The collaboration between Marubeni, GRE, and RCB Nanotechnologies serves as a model for creating tripartite structures (producer–purifier–buyer) that mitigate quality risks.

TPO for Industrial Burners or Co-Processing

Develop blend windows that focus on viscosity and sulfur caps, and establish standard operating procedures (SOPs) for fuel handling. Pre-approval of burner settings with buyers will streamline this process, while lab panels and trial burns will aid in determining price escalators tied to sulfur and ash bands.

Biochar for Soil or Materials

For lines producing biomass char, assess carbon content, stability, volatile matter, ash, pH, bulk density, and surface area. Engaging with utilization records for carbon credits can support marketability. Notable Thai pilots by SCG and Biochar Life outline successful collaborations for local traction.

Structuring Off-Take Contracts: Essential Clauses

A well-structured off-take contract is crucial to establishing successful buyer relationships. Here are key clauses to include:

Spec-Linked Price Bands

Establish pricing structures based on agreed-upon quality multipliers linked to product specifications. For example, the price for rCB could be defined as:

• Base price (THB/unit)

• Adjusted by quality multipliers (e.g., (1 - Ash Penalty) × (1 - Metals Penalty) × (Iodine/DBP band multiplier))

• Market index based on rubber fillers or fuel references.

  
  

QA Cadence & Witnessing

Build trust with buyers by adhering to ISO sampling matched with their SOPs.

Volumes, Ramp-Up & Take-or-Pay

Agreements should stabilize cash flow through a clear volume ramp-up and take-or-pay clauses.

Logistics & Chain-of-Custody

Implement measures such as weighbridges, sealed containers, and GPS tracking for deliveries. Custody transfer should only occur once QA acceptance is achieved at the buyer's facility.

ESG & Compliance

Sellers must warrant lawful waste sourcing and ensure compliance with environmental health and safety (EHS) regulations. Providing Environmental and Social Management Plan (ESMP) reports will align with buyer due diligence expectations.

Pilot Programs for De-risking Quality and Price

Running a trial program is beneficial for both sides to determine product quality and establish pricing expectation.

Phase 1: Lab & Pilot (4-8 Weeks)

This phase involves running five consecutive batches with complete lab panels. Preliminary price bands should be set, and purification throughput for rCB must be confirmed.

Phase 2: Operational Acceptance (8-12 Weeks)

Aim for a high on-spec delivery rate (e.g., 80-90%) to lock final bands, minimum order quantities (MOQs), and logistics service level agreements (SLAs). Developing a QA dashboard shared with buyers can enhance transparency.

Phase 3: Multi-Year Contract

When establishing long-term contracts, consider inserting reopener clauses if there are material changes in the feedstock mix. Adding bonuses for premium spec deliveries can motivate suppliers.

Comprehensive view of a logistics facility emphasizing supply chain management effectiveness.

Addressing Common Pitfalls

Navigating the complexities of the pyrolysis market in Thailand involves common challenges that can be mitigated.

Spec Drift After Commissioning

To address potential spec drift, tighten sampling SOPs and involve purification partners in scope and batch Certificate of Analysis (CoA) requirements.

Buyer Skepticism on Stability

Implement acceptance programs that showcase consecutive on-spec shipments, along with publishing transparency dashboards and third-party lab results.

Under-negotiated Sulfur/Ash Bands for TPO

To avoid under-negotiated specifications, conduct trial blends while embedding price escalators per sulfur/ash levels.

Logistics Disputes

Employ GPS tracking, weighbridges, and cameras to ensure compliance with logistics agreements and reduce disputes over volume and quality.

ESG Questions

Publish relevant ESMP or permit evidence to reassure buyers of compliance with odor, dust, and leachate controls.

Final Thoughts on Off-Take Strategy

Starting effective off-take strategies requires a careful balance of quality, pricing, and logistics management. By focusing on product specifications, developing strong QA measures, and addressing common pitfalls, you can build successful partnerships in Thailand's growing pyrolysis market.

Creating a comprehensive off-take strategy involves defining your specification bands, establishing trial programs, securing purification partners, and negotiating multi-year agreements that are beneficial for both parties. With a focused approach, your pyrolysis project can thrive in the Thai market while contributing to sustainable development and resource recovery.

Contact Us

If you're looking to develop a robust off-take strategy that meets the needs of Thailand's market, please reach out to AD ASIA Consulting. We specialize in structuring your contracts and ensuring you are Thailand-ready and lender-friendly.

This comprehensive playbook serves as a resource for those navigating the complexities of off-take agreements for pyrolysis products. By implementing these best practices, you can align your project with the expectations of buyers in the Thai market, ensuring success and sustainability moving forward.