Enviro: Improved tyre pyrolysis market will help revenues
Scandinavian Enviro Systems AB is reporting a “dramatic increase in interest” the pyrolysis oil the company extracts from end-of-life tyres. According to the company, the oil has a high bio content due to the natural rubber in tyres and is therefore “of great interest to many players in the market because it could replace fossil-based alternatives”. This, in turn, is likely to help Enviro’s sales revenues. “Based on the market response and our own calculations, we judge that the oil recovered from end-of-life tyres could contribute to a strong increase of revenues from recycling plants that use our technology,” Thomas Sörensson, CEO of Enviro, explained.
In Enviro’s opinion, the increasing demands by the capital market and consumers for sustainability and tightened regulatory requirements have led to greater demand for alternatives to fossil-based raw materials in several industries, including the refining and chemical industries. The dramatic increase in interest in this recovered oil, and the indications relating to prices and demand that Enviro has obtained mean that the company has now adjusted its calculations of potential revenue streams from a recycling plant based on Enviro’s technology.
“The changed market conditions mean that the recovered oil will have a strong positive effect on the revenues from a plant. We are now of the opinion that it could contribute to a strong increase of the previously calculated revenue, which was stated at approximately MSEK 110 per plant and year,” said Thomas Sörensson.
According to the company, a recycling plant based on Enviro’s standard model can process approximately 30,000 tonnes of tyres per year, recovering a commercial volume of approximately 14,000 tonnes of pyrolysis oil. Over the past year, Enviro also invested in increasing the recovery rate for oil, and started several projects in partnership with Rise, the state-run research institute in Sweden, and several international players in the oil industry, in order to expand the field of applications for pyrolysis oil through refining.
Enviro now intends to intensify its activities to certify the recovered pyrolysis oil to make it even more commercially viable. The company will also conduct a life cycle assessment (LCA) of the oil to verify its environmental benefit, as well as a more detailed study of its content. Furthermore, the company intends to certify the pyrolysis oil in accordance with the EU’s REACH environmental regulation, which will facilitate trading in and transportation of the recovered oil.
In July, Enviro extended a partnership letter of intent it had previously signed with Michelin.