Warren-based company Green Distillation Technologies has proven its world-first technology during a three-month pilot program and has now gained local government permission for a $2.5million thermal treatment plant on the Oxley Highway.

A workforce of 30 will be trained on site and the Warren operation is set to become the headquarters of a network of similar plants planned for 40 locations across Australia.

“Our operation is attracting international attention and the eventual aim is to expand overseas,’’ general manager operations Paul McKay told the Daily Liberal yesterday.

“The technology has been developed by metallurgist Dennis Randal and is the culmination of a lifetime of work.

“Old tyres are super heated at up to 600 degrees Celsius in an enclosed furnace but not allowed to burn. The process gives up gas and oil but the tyre remains intact and is easily crushed to create carbon and steel.

“The steel is sold for scrap metal and we are looking at options for the carbon.

“The oil produced is better than diesel and is currently being used to run our furnace. As production increases oil will be stored on-site for short periods before being transferred to tankers.

“We are looking at markets for the oil but are also considering refining it ourselves for use in engines.’’

Mr McKay said the tyre-to-oil conversion concept had enormous potential for energy production and power generation.

The plant was expected to process 1000 truck tyres per day, with an annual expectation of 300,000 tyres.

“The good news is that there is no smoke or pollution,’’ Mr McKay said.

“Our plant can also be used to treat other material, including wheat stubble.’’

Mr McKay, a former cotton farmer and futures broker, said 22 million second-hand tyres were generated in Australia every year.

Green Distillation Technologies had arranged to source discarded tyres from throughout central western NSW.

Warren mayor Rex Wilson said he welcomed the new plant and expected it to boost his town’s economy and population.