- 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.”