- Memorandum of Understanding provides for the construction and operation of four pyrolysis plants in Norway, Sweden, Finland and Estonia
- Each plant is to consist of at least three pyrolysis reactors with a capacity of around 20,000 tonnes of used tyres per year
- Foundation of a joint venture planned within the next 12 months
Dillingen /Saar, 24 January 2023 — Pyrum Innovations AG (“Pyrum”), a pioneering company that sustainably recycles used tyres with its globally patented, unique pyrolysis technology, and Polyfuels Group AB intend to jointly construct and operate four pyrolysis plants as part of a joint venture. The two 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 Group AB specialises 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 used tyres are to be built in Norway, Sweden, Finland and Estonia by 2030. Pyrum and Polyfuels plan to contractually finalise the construction of the plants within the next twelve 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. It has also been agreed that Pyrum will participate in the joint investment and receive remuneration for its support in the planning phase.
Pascal Klein, CEO of Pyrum Innovations AG: “Following our successful IPO in Oslo, our co-operation with Polyfuels is an important first step in opening up the Northern European market. We are delighted 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 their ambitious goals.”
Geir Langeland, CEO Polyfuels Group AB: “Polyfuels started the process over a year ago to pioneer waste tyre projects in the Nordic region. The current systems in Northern Europe are clearly not sustainable. After evaluating various waste tyre technologies, we came to the conclusion that Pyrum offers an optimal turnkey solution for waste tyres with a complete business model, not least with regard to BASF’s purchase of the oil. We have already started preliminary studies on four projects with partners and have found specific locations for the waste tyre 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 of used tyres per year. This represents a significant expansion of Pyrum Innovations AG’s current capacities. The existing Pyrum plant in Dillingen/Saar is currently 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, with the first commissioning of the entire plant expected at the end of the first quarter.