ARESOL Renovables, a Spanish renewable energy and circular economy group, has entered into a definitive agreement with Ecolomondo Corporation (TSXV: ECM) (OTC: ECLMF) to establish "Ecolomondo EU," a European subsidiary headquartered in Spain. The partnership will oversee the development of at least four tire pyrolysis plants utilizing Ecolomondo's Thermal Decomposition Process (TDP) technology across the European Union.

The agreement, signed in July 2025, follows successful technical due diligence conducted at Ecolomondo's commercial-scale facility in Hawkesbury, Ontario. ARESOL's audit validated the complete tire processing cycle, from pre-shredding and material separation through pyrolysis and the production of tire pyrolysis oil (TPO) and recovered carbon black (rCB). Laboratory analysis confirmed that both output products meet market standards required by major buyers.

The first facility under this partnership will be located in Valencia, Spain, with three additional plant locations to be determined based on raw material availability, operational costs, offtake agreements, and government support. Each plant is designed to process significant volumes of end-of-life tires, converting waste into commercially viable products for industrial applications.

According to Eliot Sorella, Executive Chairman of Ecolomondo, and Raúl Sáenz, Partner at ARESOL, the alliance will enable rapid deployment of advanced tire recycling technology across Europe as EU member states face increasing environmental restrictions on traditional disposal methods. Sorella emphasized ARESOL's regulatory expertise and EPC capabilities, while Sáenz highlighted the validated performance of Ecolomondo's technology and its potential to address Europe's tire waste management challenges.

The partnership builds on an earlier non-binding letter of intent signed in December 2024 for a single 20,000-metric-ton facility in Spain. The expanded agreement reflects both companies' strategic objectives to scale pyrolysis technology deployment and strengthen the recovered carbon black market within the EU.

For more details on the partnership, refer to the original announcement from ARESOL Renovables and Ecolomondo Corporation.