Pyrum and Polyfuels Sign a Memorandum of Understanding to Jointly Build and Operate Four Pyrolysis Plants
- The memorandum of understanding calls for the construction and operation of four pyrolysis plants in Norway, Sweden, Finland, and Estonia
- Each facility should consist of at least three pyrolysis reactors with a capacity of approximately 20,000 metric tons of scrap tires per year
- Plans are in place to establish a joint venture within the next 12 months
Dillingen / Saar, January 24, 2023 – Pyrum Innovations AG (“Pyrum”), a pioneering company that sustainably recycles scrap tires using its globally patented, unique pyrolysis technology, and Polyfuels Group AB plan to jointly build and operate four pyrolysis plants as part of a joint venture. Both companies have agreed to this in a letter of intent (LOI). The plants are to be based on Pyrum’s technology and built by Circular Tires AS, a wholly owned subsidiary of Polyfuels. Polyfuels Group AB is engaged in the collection and recycling of plastics and mixed plastics—from both industry and consumers—as well as chemical recycling projects with industrial partners.
According to the LOI, up to four pyrolysis plants for recycling scrap tires are to be built in Norway, Sweden, Finland, and Estonia by 2030. Pyrum and Polyfuels plan to finalize a contract for the construction of the plants within the next twelve months. Pyrum will support its partner throughout all project phases, from the planning and construction of the plants to the basic process design and potential distribution channels for 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 phase.
Pascal Klein, CEO of Pyrum Innovations AG: “Following our successful initial public offering in Oslo, our partnership with Polyfuels is an important first step toward tapping into the Northern European market. We are pleased to be working with an equally ambitious partner who, like us, has set the goal of establishing a circular economy in the field of waste recycling. The Scandinavian countries are pioneers in this regard, and we want to contribute to achieving these ambitious goals.”
Geir Langeland, CEO of Polyfuels Group AB: “Polyfuels began this process over a year ago to become a pioneer in scrap tire projects in the Nordic region. The systems currently in use in Northern Europe are clearly not sustainable. After evaluating various used tire technologies, we concluded that Pyrum offers an optimal turnkey solution for used tires with a comprehensive business model, not least with regard to BASF’s purchase of the oil. We have already begun preliminary studies for four projects with partners and have identified specific locations for the scrap tire facilities in all countries.”
Each of the planned facilities is to be equipped with three pyrolysis reactors, giving it a recycling capacity of approximately 20,000 metric tons of scrap tires per year. This represents a significant expansion of Pyrum Innovations AG’s current capacity. The existing Pyrum plant in Dillingen/Saar is currently being expanded from one to three production lines. Construction is proceeding largely according to schedule despite a generally tight supply situation. The new shredder is scheduled to go into operation by the end of February 2023, and the initial commissioning of the entire plant is expected by the end of the first quarter.
About Pyrum Innovations AG
Pyrum Innovations AG operates in the attractive market for recycling used tires with its patented pyrolysis technology. Pyrum’s pyrolysis process is energy-self-sufficient and, according to the Fraunhofer Institute, significantly reducesCO2 emissions compared to current standard recycling methods for scrap tires—particularly when compared to incineration in cement plants —and produces new raw materials such as pyrolysis oil, gas, and recycled industrial carbon black (recovered carbon black—rCB) from the waste used as feedstock. In this way, Pyrum closes the recycling loop and pursues a sustainable business model. As a pioneer, Pyrum Innovations AG was the first company in the used tire recycling sector to receive REACH registration from the European Chemicals Agency (ECHA) for the pyrolysis oil it produces—as early as 2018. This means the oil is officially recognized as a raw material that can be used in production processes. In addition, Pyrum has received ISCC PLUS certification for both the pyrolysis oil and the rCB. Both products are thus considered sustainable and renewable raw materials. These achievements have also been recognized by international experts in the tire industry. For example, Pyrum was honored in the “Best Tire Recycling Innovation” category at the inaugural Recircle Awards and was nominated for the Saarland State Grand Prize for Medium-Sized Businesses.
About Polyfuels
The company’s goal is to use environmentally friendly technologies to operate financially viable, sustainable businesses in the field of material recycling of plastics and other organic materials. Together with industry partners, Polyfuels will manufacture and sell end products derived from chemical processes that convert plastics and organic materials into liquid carbon compounds.
Contact
IR.on AG
Frederic Hilke
Tel: +49 221 9140 970
Email: pyrum@ir-on.com
Pyrum Innovations AG
Dieselstrasse 8
66763 Dillingen / Saar
Email: presse@pyrum.net
Polyfuels Group AB
Geir Langeland
Tel: +47 9348 0044
geir.langeland@polyfuels.group
Bogstadveien 27 B
Oslo – Norway
Email: info@polyfuels.group