Tires can be used as fuel either in shredded form - known as tire derived fuel (TDF) - or whole, depending on the type of combustion device. Scrap tires are typically used as a supplement to traditional fuels such as coal or wood. Generally, tires need to be reduced in size to fit in most combustion units. Besides size reduction, use of TDF may require additional physical processing, such as de-wiring.

There are several advantages to using tires as fuel:

Of the 130 million scrap tires used as fuel per year: Cement industry - 41% Pulp and paper mills - 20% Electric utilities - 18% Industrial/institutional boilers - 13% Dedicated tire-to-energy facilities - 8% - Rubber Manufacturers Association, 2004

Scrap tires are used as fuel because of their high heating value. Using scrap tires is not recycling, but is considered a beneficial use - it is better to recover the energy from a tire rather than landfill it. In 2003, 130 million scrap tires were used as fuel (about 45% of all generated) - up from 25.9 million (10.7% of all generated) in 1991.

Based on over 15 years of experience with more than 80 individual facilities, the EPA recognizes that the use of tire-derived fuels is a viable alternative to the use of fossil fuels. EPA testing shows that TDF has a higher BTU value than coal. The Agency supports the responsible use of tires in portland cement kilns and other industrial facilities, so long as the candidate facilities: (1) have a tire storage and handling plan; (2) have secured a permit for all applicable state and federal environmental programs; and (3) are in compliance with all the requirements of that permit.

Several industries use tires as fuel: