Pyrum Innovations, a pioneer in the sustainable recycling of end-of-life tyres (ELT) based on its patented pyrolysis technology, and Polyfuels Group AB intend to jointly build and operate four pyrolysis plants as part of a joint venture.
Both companies have agreed on this in a letter of intent (LOI). The plants will be based on Pyrum technology and will be realised by Circular Tires AS, a wholly owned subsidiary of Polyfuels. Polyfuels is engaged in the collection and recycling of plastics, mixed plastics – both from industry and consumers – and chemical recycling projects with industrial partners.
According to the LOI, a total of up to four pyrolysis plants for recycling waste tyres are to be built in Norway, Sweden, Finland and Estonia by 2030. Pyrum and Polyfuels plan to contractually fix the construction of the plants within the next 12 months. Pyrum will support its partner in all phases of the project, from the planning and construction of the plants to the basic process design and possible distribution channels for the raw materials and products. In addition, it was agreed that Pyrum will participate in the joint investment and receive compensation for its support in the planning process.
Pascal Klein, CEO of Pyrum said, “After our successful IPO in Oslo, our cooperation with Polyfuels is a first important step for the development of the Nordic market. We are pleased to be working with an equally ambitious partner who – like us – has set itself the goal of striving for a circular economy in the field of waste recycling. The Scandinavian countries are pioneers in this respect and we want to contribute to achieving the demanding goals.”
Geir Langeland, CEO Polyfuels, added, “Polyfuels started the process over a year ago in order to be first mover in the Nordic region regarding ELT projects. Today’s systems in the Nordic region are obviously not sustainable. After evaluating ELT technologies we concluded that Pyrum has an optimal turnkey solution for ELT with a complete business model, not at least regarding offtake ELT oil with BASF. We have already started pre-studies on four projects with partners and located concrete sites for the ELT plants in all countries.”
Each of the planned plants will be equipped with three pyrolysis reactors and thus have a recycling capacity of around 20,000 tonnes/year of ELT. This represents a significant expansion of Pyrum Innovations AG’s current capacities.
Currently, the existing Pyrum plant in Dillingen/Saar is being expanded from one to three production lines. The construction work is proceeding largely according to plan despite a generally tight supply situation. The new shredder is scheduled to go into operation by the end of February 2023, and the first commissioning work of the entire plant is expected for the end of the first quarter.