Australian Green Distillation Technologies (GDT) has signed a nearly US$50 million agreement with Volco Power (Volco) to set up five tyre recycling plants in South Africa – the plants will comprise of six tyre processing modules which are to process approximately 700,000 old tyres into 8 million litres of oil, 7,700 tonnes of carbon black and 2,000 tonnes of steel, annually.
While Volco’s predecessor, Synchrona, previously specialised in the conversion of municipal solid waste and used tyres into energy in over fifteen countries across Africa, Volco has now decided to concentrate on providing energy to private industrial clients.
On their deal with GDT, Wilson Machekanyanga, Business Development Manager of Volco, said that South Africa is a good market for tyre recycling as it generates more than 300,000 tonnes of scrap tyres a year, less than 20% of which are recycled while those kept illegally can pose a fire hazard or become a breeding ground for mosquitos.
Trevor Bayley, Chief Operating Officer of GDT said of their first signed international MoU: “All the competing approaches to recycling old tyres either create dangerous emissions or low-value products. Our technology can make a significant environmental contribution to South Africa as our process is not only emission-free but processes a waste product into high value oil, carbon and steel.”
GDT’s proprietary technology turns old tyres into oil, carbon and steel;the tyre recycler currently operates one plant at Warren in Western, New South Wales (NSW), within the limits imposed by NSW Environment Protection Authority and is raising capital for another in Toowoomba, Queensland.