Enviro finalises plan for large-scale waste tire recycling unit in Sweden
13 Feb 2024
Announces final investment decision with JV partners Antin, Michelin for Uddevalla plant
Stockholm – Scandinavian Enviro Systems and its JV partners Michelin and Antin Infrastructure Partners have decided to proceed with a planned investment in an end-of-life tire (ELT) pyrolysis plant in Sweden.
The JV has secured equity financing for the construction project and signed “multi-year agreements” for the supply of ELTs and offtakes for the recovered products, Enviro announced 7 Feb.
Located in Uddevalla, the facility will have capacity to recycle 34.5 kilotonnes per annum of waste tires, equal to 40% of the annual ELT arisings in Sweden. (ERJ report)
The signed agreements regarding deliveries of recovered materials have a total value of €180 million, over the contract period, which varies between five and 10 years, Enviro noted.
Customers for recovered oil and carbon black include “several leading manufacturers" including Michelin, Preem, Nokian Tyres and H&R Group, Enviro added.
Enviro has also agreed with Svensk Dackatervinning AB for the supply of waste tires to the plant.
French tire maker Michelin has also signed multi-year delivery contracts for recovered materials in support of the joint venture and its plans.
The Uddevalla plant will be the first full-scale recycling unit based on Enviro’s pyrolysis technology.
According to Enviro, all the of the necessary environmental and construction approvals for the facility have been obtained.
This, it added, enables the JV to place orders for key materials and machinery – including those with longer lead times – and construction subcontractors to establish operations at the site.
Construction work on the plant is set to start in the first quarter of this year, with production scheduled for start-up in 2025.
Enviro, Michelin and Antin formed a ‘joint venture’ partnership in March last year, with ambitious plans to construct plants across Europe with a total processing capacity of 1 million tonnes by 2030.
After commissioning the plant in Uddevalla, the JV will “seek to accelerate the build-out of additional plants in other European jurisdictions,” Enviro stated.
“The procedure for establishment in other European countries has begun so as to ensure a rapid roll-out,” it added.
Enviro will be partially compensated for the ownership of the land prior to the formation of the JV.
The tire pyrolysis company will also be paid in part with a stake in the JV.
Enviro said it would announce the amount and the ownership stake once both have been established in conjunction with ownership of the land passing to the JV.
As previously communicated, Enviro has an option to acquire an ownership share of approximately 30% in the JV. (ERJ report)