Dutch energy trader Vitol has completed a new deal with tyre recycling company Wastefront – the 10-year offtake agreement outlines a supply order for waste tyre fuel produced at Wastefront’s Sunderland, England, plant due to be completed in 2023. The agreement extends to offtake from future new plants as well.
When fully operational, the Wastefront plant will have a capacity to process 60,000 tonnes of waste tyres annually, which would produce about 30,000 tonnes of liquid fuel to be bought by Vitol. According to Wastefront co-founder Christian Hvamstad, about half the output from the plant will be liquid fuel, around 40% will be recovered carbon black and the remaining 10% will be gas used to cover most of the plant’s energy needs.
Meanwhile, Chris Bake, Head of origination, Vitol, assured investors that Wastefront’s fuel would proceed to market with no extra investment. He mentioned that the European Union aims to have renewable energy – of which waste tyres play a big part – account for 14% of transport sector fuel needs by 2030.