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  Industrialists seek alternative to imported fuel

Industries producing industrial fuel by using old tyres piled up along roadsides, at scrap yards and in open spaces as raw materials are expanding.

An industry in Rupandehi that processes old tyres to produce fuel, carbon and steel is seeking to bring tyre-derived fuel to the market as an alternative to imported petroleum products.

The industrial fuel is produced by processing old tyres at high temperatures in an oxygen-free environment and extracting oil through pyrolysis technology. As the oil can be used in industrial furnaces, boilers and other industries requiring heat, industrialists believe it can be developed as an alternative source of imported fuel.

Rupandehi-based industrialist Ajayman Shrestha has been working through two industries to commercialise the potential of producing fuel from tyres. Old tyres are being processed through Speed Energy Industries Pvt. Ltd., established in Devdaha, and Eco Nepal Energy Industries Pvt. Ltd., established in the Bhairahawa Special Economic Zone (SEZ).

According to Shrestha, the oil obtained from tyre processing can be used as industrial fuel, while the steel and carbon recovered during the process can also be reused as industrial raw materials.

“An industry is not merely a factory that produces goods; it is also a means of creating employment, protecting the environment and contributing to the national economy,” said Shrestha.

Nepali industries rely heavily on petroleum products and other imported fuels. As fuel accounts for a significant share of industrial production costs, the availability of alternative fuel is expected to help reduce operating expenses. Shrestha said discarded tyres should not be viewed merely as waste but as industrial raw materials.

According to him, a large quantity of raw material could be made available domestically if used tyres in Nepal were collected systematically.

“Instead of viewing discarded tyres merely as waste, we need to recognise that they can be used to produce energy and industrial raw materials,” he said.

By Laxman Paudel

[ 28 Aug 2026 / risingnepaldaily.com ]   
 

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