Michelin once again owns 20 per cent of the shares in Scandinavian Enviro Systems (Enviro) following the dilution of its holding in May as a result of the completed new issue. The increase in its holding resulted from Michelin, via its subsidiary, acquiring two million of the shares that were issued in May to Unwrap Finance AB. Enviro has no information about the purchase consideration or the acquisition price.
In November 2020 Scandinavian Enviro’s UK partner 2G BioPOWER began a study into the feasibility of running a largescale tyre pyrolysis plant in the UK. The project has now been completed and found that there are “favourable conditions” for such a pyrolysis plant that “derive primarily from the large domestic demand for recovered oil for the production of renewable vehicle fuel.”
When Michelin launched its e.Primacy range in mid-November 2020, the French tyre manufacturer did so in the context of a goal to make all Michelin tyre 100 per cent sustainable by 2050. So how does Michelin plan to achieve this? One answer is the company’s expanding partnership with Scandinavian Enviro Systems (Enviro), details of which were recently released (see separate article). But there are other parts of this plan.
Further details of Scandinavian Enviro Systems’ cooperation with Michelin have been revealed alongside a formal notice ahead Swedish firm’s EGM on the subject of its strategic partnership with Michelin. They include an overview of: licensing rules, percentage ownership of the two companies Chile recycling joint venture and how much Enviro is investing in that project.
Michelin is investing US$30 million in building its first tyre recycling plant in the world in Chile. The project is the result of Michelin’s ongoing collaboration with Enviro, a Swedish company that has developed a patented technology to recover carbon black, oil, steel and gas from end-of-life tyres.
Located in Chile’s Antofagasta region, the plant will be able to recycle 30,000 tons of earthmover tyres a year, or nearly 60 per cent of such tyres scrapped every year nationwide. Work will begin this year, with production scheduled to get underway in 2023.
On 22 December, Scandinavian Enviro Systems and Michelin agreed on the principle terms for establishing a first jointly owned recycling plant and a license agreement regulating the terms of use for Enviro’s recycling technology as well as subsequent compensation. At the same time, the agreement details that compensation applies to the first plant as well as for any future plants that Michelin might decide to build.
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.
Enviro and Michelin have extended their recently signed letter of intent regarding a strategic partnership between Scandinavian Enviro Systems (publ) and the French global tyre manufacturer until October. The original exclusivity agreement built into the initial letter of intent was due to run out on 31 July and would have meant that Enviro couldn’t co-operate with other tyre manufacturers and tyre suppliers until after this date. That too has been extended until the end of October.
Recycling firm Scandinavian Enviro Systems AB (Enviro) has completed a share issue worth 116 million Swedish Krone to Michelin. The issue is part of the letter of intent announced on 15 April 2020 and signals a “long-term strategic partnership between the two companies”.
Michelin is entering into a partnership with Swedish firm Scandinavian Enviro Systems (Enviro) to develop and industrialise on a large scale pyrolysis technology to recycle end of life tyres into raw materials. The two companies signed a shareholding subscription today that will see a subsidiary of the tyre maker, Michelin Ventures SAS, acquire a 20 per cent stake in Enviro.
Elysium Nordic ApS’s environmental permit application for an end-of-life tyres recycling plant based on Scandinavian Enviro Systems AB (publ.) (Enviro)’s technology.
The Research Institutes of Sweden (RISE) and Swedish oil company Nynas AB are launching a joint research project aimed at developing a process for refining the oil that is recovered from end-of-life tyres using Scandinavian Enviro Systems AB’s recycling method. Through refining, the oil can be used for more than fuel, which both increases the value of the recovered oil and reduces the environmental impact.
Scandinavian Enviro Systems (Enviro) is developing a public, international corporate bond to finance the company’s ownership of forthcoming recycling plants for end-of-life vehicle tyres. The work to develop the bond is being carried out in collaboration with the London-based financial adviser, Zenzic Partners.
Instead of just approving the use of its technology under license, Scandinavian Enviro Systems (Enviro) intends to introduce its technology worldwide by participating in joint ventures. To facilitate the setting up of such plants in the USA, Enviro’s board of directors has founded a holding company in that market.
After successful production tests, in late June Trelleborg Lanka (Pvt) Limited placed three initial orders for serial delivery of Scandinavian Enviro Systems’ EnviroCB recovered carbon black for use in its solid tyre production.
Ellie Burgin; Pexels
Michelin
Michelin; Enviro
Scandinavian Enviro Systems AB