BASF supports Pyrum in financing the current rollout plan with an initial EUR 25 million

  • BASF and Pyrum have signed a new coöpe­ra­tion agreement
  • Start-up finan­cing agreed for the reali­sa­tion of at least three new plants by 2026

Dillingen /​Saar, 15 November 2023 — Pyrum Inno­va­tions AG (“Pyrum”, the “Company”, ISIN: DE000A2G8ZX8) and BASF Antwerpen NV have today signed a new coöpe­ra­tion agree­ment. The agree­ment provides for a condi­tional loan of initi­ally EUR 25 million, to be drawn in tran­ches, which will serve as start-up finan­cing for the reali­sa­tion of Pyrum Inno­va­tions AG’s concrete project pipe­line until 2026. The object of the agree­ment is the plan­ning, project deve­lo­p­ment and cons­truc­tion of at least three new plants, each with an annual capa­city of 20,000 tonnes of end-of-life tyres, using the funds provided. Pyrum plans to use the funds in parti­cular for the cons­truc­tion of the announced plant in Saar­land, Germany, as well as for the equity contri­bu­tion and co-finan­cing of up to five of the projects announced in recent months with finan­ci­ally strong partners.

BASF’s new commit­ment streng­thens the confi­dence of Pyrum’s custo­mers and other finan­cing part­ners who also want to invest in Pyrum’s growth. Provided that Pyrum will have secured addi­tional funding of EUR 50 million, for example in the form of corpo­rate bonds via the capital market, loans or invest­ments from part­ners of jointly planned plants, BASF will provide a further EUR 25 million as a loan to Pyrum under corre­spon­ding condi­tions. The aim of Pyrum and BASF is to signi­fi­cantly expand the Company’s produc­tion capa­ci­ties. BASF already acquired a stake in Pyrum Inno­va­tions AG in September 2020 as part of its Chem­Cy­cling®®project and has been sourcing pyro­lysis oil from Pyrum ever since. BASF feeds this oil into its produc­tion network and manu­fac­tures Ccycled® products to which the recy­cled raw mate­rial is allo­cated via the mass balance approach. This saves fossil raw mate­rials and contri­butes to the circular economy. The volumes of pyro­lysis oil are to be signi­fi­cantly increased with the new plants.

Pascal Klein, CEO of Pyrum Inno­va­tions AG: “The phase between proving that a new tech­no­logy works and achie­ving stable results, i.e. the indus­trial rollout, is a very big chall­enge for compa­nies after the initial start-up phase in terms of finan­cing. We are ther­e­fore very pleased about the valuable coöpe­ra­tion with BASF and the trust that BASF has once again placed in us with this new agree­ment. Follo­wing the successful project acqui­si­tion phase of the last twelve months, nothing stands in the way of the reali­sa­tion of our concrete rollout plan with the start of cons­truc­tion of up to six plants by the end of 2025. On the project side, we are prac­ti­cally “sold out” until the end of 2026 and are now looking forward to reali­sa­tion. The finan­cing is the most important step towards the commer­cial rollout of our unique pyro­lysis tech­no­logy and is the basis for meeting the high demand for our products.”

Chris­toph Gahn, Head of Chemical Recy­cling at BASF: “Thanks to Pyrum’s inno­va­tive and stable tech­no­logy, we were able to feed the pyro­lysis oil produced from end-of-life tyres into our network as a recy­cled raw mate­rial. With the new agree­ment, we want to support the scaling of the tech­no­logy and expand our customer port­folio with mass-balanced Ccycled® products.”

Pyrum Innovations AG

Contact us

IR.on AG
Frederic Hilke
Tel: +49 221 9140 970
E‑mail: pyrum(at)ir-on.com

Pyrum Inno­va­tions AG
Diesel­strasse 8
66763 Dillingen
E‑mail: presse(at)pyrum.net
https://​www​.pyrum​.net

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About Pyrum Innovations AG

With its patented pyro­lysis tech­no­logy, Pyrum Inno­va­tions AG is active in the attrac­tive recy­cling market for used tyres and various plas­tics. Pyrum’s pyro­lysis process is largely energy self-suffi­cient and, accor­ding to the Fraun­hofer Insti­tute, saves signi­fi­cantly more CO2 emis­sions than today’s stan­dard recy­cling processes for used tyres — espe­ci­ally compared to inci­ne­ra­tion in cement plants — and produces new raw mate­rials such as pyro­lysis oil, gas and recy­cled carbon black (rCB) from the waste used as input mate­rials. In this way, Pyrum closes the mate­rial cycle and pursues a 100% sustainable busi­ness model. As a pioneer, Pyrum Inno­va­tions AG was the first company in the waste tyre recy­cling sector to receive REACH regis­tra­tion from the Euro­pean Chemi­cals Agency (ECHA) for the pyro­lysis oil it produces back in 2018. This means that the oil is reco­g­nised as an offi­cial raw mate­rial that can be used in produc­tion processes. In addi­tion, Pyrum has received ISCC PLUS certi­fi­ca­tion for the pyro­lysis oil and the rCB. Both products are ther­e­fore reco­g­nised as sustainable and rene­wable raw mate­rials. Pyrum has also received ISO 14001 certi­fi­ca­tion for its envi­ron­mental manage­ment system and ISO 9001 certi­fi­ca­tion for its quality manage­ment system. These successes have also been reco­g­nised by inter­na­tional experts in the tyre industry. For example, Pyrum was hono­ured at the first Recircle Awards in the cate­gory Best Tyre Recy­cling Inno­va­tion and has been a fina­list for the German SME award three times in a row.