The joint venture in tire recycling
Scandinavian Enviro Systems and Antin Infrastructure Partners have announced the formation of a joint venture which, thanks to the support of Michelin, will be the first group in the world dedicated to tire recycling on a large scale. The joint venture will use Enviro’s unique and patented technologies for the extraction of carbon black and pyrolysis oil from end-of-life tires.
Michelin’s leadership position in sustainable tires – aided by Antin’s experience in developing e in scaling infrastructure platforms – will favor the industrial development of innovative technologies to support recycling. The joint venture has secured a multi-year supply agreement with Michelin.
The agreement with Michelin includes the delivery of recovered carbon black and tire pyrolysis oil (TPO). The initial investment will be funded by Antin’s NextGen platform, majority owner in the joint venture. Enviro’s stake will correspond to approximately 30% of the shares while Enviro’s patented technology will be exclusively licensed to the joint venture throughout Europe.
Michelin is also planning to participate in plants that will be built in the future. The first large-scale commercial plant built in Uddevalla, Sweden, will have an initial recycling capacity of 34,500 tonnes of tires for disposal; number equivalent to 40% of the annual volume of Swedish end-of-life tyres. The construction of the plant will start in the first half of 2023, however remaining subject to the final investment decision of the joint venture.
The plant is expected to be fully operational by 2025. Once the commissioning of the Uddevalla plant is completed, the acceleration towards the European rollout will begin. The selection of sites in other European countries has already started to ensure rapid implementation. The goal is to reach a recycling capacity of up to around one million tonnes of end-of-life tires by 2030, corresponding to one third of all tires disposed of annually in Europe. The aim is to produce sustainable raw materials.
Among these stand out carbon black and recovered oils to be reused in the tire and petrochemical industries. By replacing virgin carbon black with recycled carbon black from Enviro, emissions can be reduced by more than 90% than using conventional carbon black. Based on the target volume of around one million tonnes of tires to be recycled, carbon dioxide emissions could be reduced by 670,000 tonnes.
Maude Portigliatti, executive vice president, High-Tech Materials – Member of the Group Executive Committee of Michelin, commented: “Today’s announcement is a significant step towards our ambition to achieve a circular and increasingly sustainable tire production. The choice provides further evidence of Michelin’s ability to move forward to achieve the strategic ambitions of 2050, and reduce the overall environmental impact of tires by creating innovative partnerships, for an increasingly circular industry”. (ITALPRESS).