CHIPS are the products of the first stage of the granulation process. Their grain sizes range from 10 to 40mm.  CHIPS form the base for the granulation process. They can also be used as alternative fuel in cement plants. The fuel contains up to 2% of steel cord and up to 15% textile cord, the remaining part being rubber. TDF Tyre-Derived Fuel is a fuel of high calorific value, i.e. 33 000 kJ/kg. It is sold in bulk. Its density is approx. 0.5t/m³. Chips are also used as input for pyrolysis. They can substitute for thermal coal.