French tyre maker Michelin is partnering with Swedish tyre recycler Enviro to develop and industrialise on a large scale a pyrolysis technology to recycle tyres at the end of their life. To effect this, Michelin has taken up a stake of +20% of Enviro’s capital, amounting to EUR3 million, making Michelin the largest shareholder in Enviro.
For the tyre industry and its customers, recycling is a major issue. Each year, about 1 billion tyres reach the end of their life. Thanks to this recycling technology, tyres considered as used give birth to new quality raw materials.
Swedish start-up of 20 employees founded in 2001, Enviro developed a technology to modify the chemical composition and physical phase of the pneumatic material during the pyrolysis process, while ensuring minimal energy consumption.
This highly innovative technology enables to produce high-quality products such as recovered carbon black, pyrolysis oil, steel or gas, products that can then be re-incorporated into the production circuit of different industrial sectors. Thanks to this recycling technology, tyres that are now considered as waste will be recycled into raw materials.
- The partnership is based on: a development agreement to deploy Enviro’s pyrolysis technology on a larger scale; Michelin’s stake of +20% of Enviro’s capital, amounting to EUR3 million, making Michelin the largest shareholder and a joint supply agreement between Michelin and Enviro.
- Michelin says it will also support developing Enviro by its board representation, expected to be proposed to the shareholder vote.
- Furthermore, the common project is to build a factory to industrialise the technology. The location of the plant will be confirmed at a later date.
This partnership will allow the complementary know-how of the two companies to be pooled in order to accelerate progress in tire recycling. Michelin will bring its industrial know-how to the plant’s construction project and its know-how in terms of research and development and production. Enviro will bring its patented pyrolysis technology, which will produce high-quality products.
Discussions are ongoing between the two companies with the objective to conclude a final agreement by mid-2020.