Growing interest for Enviro’s technology in North America
Enviro’s pyrolysis technology is hotter than ever in the North American market. The company currently has active MoU’s (Memorandum of Understanding) with three different actors in the tyre recycling industry, as well as ongoing discussions with additional interested parties. CEO Thomas Sörensson and the Enviro team recently returned home from the US where they visited, among others, partners in the states of New York and Texas where recycling plants are planned to be built.
“There are several reasons why we are more active than ever in North America. The market’s need for carbon black is expected to increase as the establishment of virgin production is becoming increasingly difficult due to stricter regulations and penalties, implemented to overcome the environmental problems created by the existing carbon black production”, says Thomas Sörensson.
Enviro CFO Urban Folcker and CEO Thomas sörensson (right) with representatives from EE-TDF Cleveland LLC during Enviro's recent US trip.
Enviro has two active MoU’s in the US, with Treadcraft Limited and EE-TDF Cleveland LLC respectively, and one in Canada with ArticCan.
“The US projects are progressing as planned. They’ve both been looking for several years for a partner to implement a plant project with, and chose us due to our patented pyrolysis technology, a well-prepared Basic Design and proven commercialization of high and stable quality rCB”
“In Canada, the market players have adopted a wait-and-see attitude with respect to their newly introduced manufacturer liability legislation in Ontario and how it will impact them in practice.”
Many existing plants in North America have been forced to invest major sums in emissions purification and ordered to pay fines for failure to comply with those requirements. This, in combination with the materials deficit, has driven up prices for carbon black – and that creates openings for alternatives such as recycled carbon black to gain market shares more quickly.
“This development also means that carbon black is decoupled from oil prices and made less sensitive to lower oil prices. We are expecting the price floor to be higher than before, which benefits the profitability of recycled material. After all, our raw material costs are low, and in many cases, our materials even generate revenue.”
In addition to the three active MoU, there’s potential for additional partnerships in the region. One example is a potential plant project in Maryland, which the Enviro team also visited during the trip. It is an experienced tyre recycler who previously worked on a plant project based on another technology but is now considering moving forward with Enviro instead.
“The US projects are progressing well and will now intensify as a result of last week’s visits. As our new business model includes joint ownership, we will in detail evaluate which project that should be prioritized.”
For more information, please contact:
Thomas Sörensson, CEO Enviro, +46 (0)735-10 53 43, firstname.lastname@example.org
Urban Folcker, CFO Enviro, +46 (0)760-00 13 11, email@example.com
Alf Blomqvist, Board Chairman Enviro, +46 733 149 700, firstname.lastname@example.org
Enviro is a company developing, building and operating industrial plants for material recovery from End of Life Tyres (ELT). The company has developed a process, based on a patented technology, where gas generated in the process is heating the tyres in absence of oxygen. This enables the materials in the tyres to decompose and be recovered instead of incinerated. Thus, a sustainable recovery of the resources Carbon black, Oil, Steel and Gas is obtained. The products are used in new products, replacing fossil resources to help the customers reach their sustainability targets. Enviro was founded in 2001, has its head office in Gothenburg and runs its own plant for ELT tyres in Åsensbruk, Sweden. The company is listed on the Nasdaq First North securities exchange with Mangold Fondkommission AB, tel. +46 (0)8 5030 1550, email@example.com, as its Certified Advisor. www.envirosystems.se