The JV will combine Enviro’s unique and patented technology for the extraction of carbon black and pyrolysis oil from end-of-life tires with Michelin’s leading position in sustainable tires and Antin’s expertise in developing and scaling tomorrow’s infrastructure platforms to enable the industrial development of this innovative recycling technology.
The JV has secured a multi-year supply agreement with Michelin for the first plants established. The agreement with Michelin includes delivery of recovered carbon black and tire pyrolysis oil (TPO).
The initial investment in the JV will be funded by Antin’s NextGen platform, which will be the majority owner of the JV. Enviro’s ownership in the joint venture will ultimately correspond to approximately 30%. As part of the JV, Enviro’s patented technology will be licensed to the JV on an exclusive basis throughout Europe.
Michelin is planning to partner in the JV as the plants are built in the future.
The first full-scale commercial plant will be built in Uddevalla, Sweden, with initial capacity to recycle 34,500 tons of disposed tires, equal to 40% of the annual volume of end-of-life-tires in Sweden. Plant construction is scheduled to start in the first half of 2023, subject to a final investment decision by the JV, and the plant is expected to be fully operational by 2025.
Following successful commissioning of the Uddevalla plant, acceleration of the European roll-out will commence. Site selection in other European countries has been initiated to ensure a rapid roll-out, with an aim to build recycling capacity for up to approximately one million tons of end-of-life tires by 2030, corresponding to a third of all tires being disposed of in Europe each year.
The volume of disposed end-of-life tires has been steadily growing to reach 3.5 million tons per year in Europe alone. The joint venture between Enviro and Antin’s NextGen platform will develop, with the support of Michelin, end-of-life tire recycling plants throughout Europe to produce sustainable raw materials. These include reclaimed carbon black and oils that can be reused in the tire and petrochemical industries. By replacing virgin carbon black with Enviro’s recycled carbon black, carbon emissions can be reduced by more than 90%, compared to using conventional carbon black. Based on the target volume of one million tons of end-of-life tires, carbon dioxide emissions would be reduced by 670,000 tons.