Enviro advances North American tire pyrolysis project

Gothenburg, Sweden – Scandinavian Enviro Systems has signed a conditional service agreement for a proposed tire pyrolysis plant project in North America, which was initially announced earlier this year.

The agreement, worth $2 million (€1.8 million), covers ‘permitting documentation’ required by the customer for environmental planning, said Enviro 5 Nov.

It also includes preliminary design work for a facility capable of processing up to 50 ktpa of end-of-life tires.

The project is being developed with an unnamed international operator providing transport services to the energy sector, following a letter of intent signed on 17 March. (ERJ report)

Under the agreement, Enviro will prepare documentation for environmental, planning and fire safety permits, alongside an initial plant design.

However, work will begin only after the customer has secured a site and signed binding offtake agreements covering at least 75% of the expected production of both pyrolysis oil and carbon black.

"This is an important step towards establishing Enviro's technology in North America," said CEO Fredrik Aaben.

"Together with the customer, we are now moving from a letter of intent to a binding conditional agreement," he added.

The customer must decide whether to proceed by 31 Dec 2027, after which the agreement will expire if no decision has been made.

Enviro expects to complete the design and permitting assignment seven months after receiving approval to proceed.

The agreement, Enviro said, "does not grant any right to use Enviro’s technology to construct or operate the plant; such a right requires a separate licence agreement."