Tyre recycler Scandinavian Enviro Systems has received an additional payment for costs incurred relating to the plant in Uddevalla, Sweden. The payment has been made by the joint venture established by Enviro and Antin Infrastructure Partners.
This time, Enviro has received a payment of MSEK53.8 million, of which MSEK26.9 in cash and MSEK26.9 in the form of shares in the joint venture.
As previously communicated, Enviro has an option to acquire an ownership share in the joint venture that over time will ultimately correspond to approximately 30%. Enviro says it intends to fully exercise this option.
This time too, the payment covers part of the costs incurred by Enviro for establishing the full-scale recycling plant for end-of-life tyres in Uddevalla. In February, Enviro received MSEK53 in a first payment for costs incurred of which 50% was in cash and 50% in the form of shares in the joint venture. In total, Enviro has now received MSEK106.8 in payments, whereof MSEK53.4 in cash and MSEK53.4 in the form of shares.
Enviro’s stake in the joint venture will fluctuate in pace with the capitalisation process for the joint venture, but over time Enviro is entitled to acquire an ownership share that ultimately corresponds to approximately 30%.
The construction of the full-scale plant in Uddevalla was initiated in February this year. The facility and the land it is built on have now passed into the joint venture’s ownership. The joint venture will be the world’s first large-scale tyre recycling company, combining Enviro’s unique patented technology for extracting carbon black and pyrolysis oil from end-of-life tyres with Antin’s expertise in developing and scaling up future infrastructure platforms. The joint venture plans to construct plants across Europe targeting a total annual recycling capacity of up to 1 million tonnes of end-of-life tyres by 2030.
As previously communicated, Enviro will receive revenue through both service fees and an asset fee based on the profitability of the respective plants while the company will have the possibility of building up long-term value through ownership in the joint venture. After the directed share issue in the spring 2023 and the final investment decision, Enviro has secured the financing of the company’s operations during 24-30 months counted from May 2023.