Collaboration between Audi Hungary and New Energy will see tyre waste generated at the automaker's Gyor factory chemically recycled, avoiding release of microplastics and hazardous substances which leach from them during recovery.

The process used is pyrolysis in which tyre waste is converted chemically into oil used by petrochemical companies to produce new plastics while recovered carbon black is used for new tyre production. Gases produced are used to generate the high temperatures needed for the process.

Audi Hungary is also eyeing chemical recycling of plastic waste from production.

Viktor Vsradi, CEO of New Energy said: "We have spent [15 years] developing chemical recycling to industrial scale.

"We can achieve measurable results in replacing fossil based feedstocks."

The cooperation between Audi Hungaria and New Energy was managed by DBH Investment with he waste management part "of the program was "supported" by Buechl Hungary.

Laszlo Uerge of DBH Investment, said: "These collaborations may also validate new technological platforms and innovations."