Ecolomondo Corporation, a leading Canadian innovator in sustainable scrap tire recycling technology, is proud to announce that it has executed an important joint venture and EPC engineering agreement (Agreement) with Alternativas Riojanas Eolicas y Solares S.L. (ARESOL) to build four TDP turnkey facilities in the European Union using Ecolomondo’s Thermal Decomposition Process (TDP) proprietary technology.

On December 2, 2024, the Company signed a non-binding letter of intent for a joint venture with ARESOL to build a 4-reactor TDP facility that could process 20,000 metric tons/year of end-of-life tires in Spain. After further discussions and following a detailed technical audit by ARESOL, the parties concluded in July 2025 a definitive agreement to build four TDP turnkey facilities in the European Union, with the first to be built in Valencia, Spain. Locations of the other three sites will be determined once necessary due diligence is performed by the parties with the focus on feedstock availability, tipping fees, offtake agreements and government support.

ARESOL is a business group with over 40 years of experience in the renewable energy sector that develops, executes and operates renewable energy projects from conception to installation and operation. ARESOL has strong expertise in Engineering, Procurement, Construction (EPC) and intends to develop and implement pyrolysis projects for end-of-use tires in Europe using Ecolomondo’s proprietary pyrolysis TDP technology.

Subject to final documentation, the Agreement calls for the creation of a joint venture entity in Europe for the purpose of developing, constructing and operating a minimum of four turnkey TDP facilities. Ecolomondo and ARESOL are expected to own 51% and 49% respectively of the joint venture corporation (JV entity). The Board of Directors of the JV entity will consist of two representatives of Ecolomondo, two representatives of ARESOL, and one independent director.

The timing of this Agreement aligns well with Ecolomondo’ global growth strategy. The Company recently announced initial shipments of recovered Carbon Black (rCB) to a major offtake customer. The Company believes that these orders are a validation of the quality of rCB currently produced at the Hawkesbury TDP facility.

With the ramping up to commercial operations of the Hawkesbury TDP facility, the Company now believes it is ready to move on to pursue its global ambitions, starting with the already announced project in Shamrock, Texas, and followed with the European rollout of this Joint venture with ARESOL.

“We are excited about this important partnership, and we look forward to working with the ARESOL team as part of our European rollout. We will enter the European market with a JV partner that is based locally, understands the European market and has the experience to build plants in selected sites in any city in the EU. This agreement is exactly in line with the Company’s long term strategic objective to become a global industry leader, creating sustainable products from end-of-life tires”, said Eliot Sorella, Executive Chairman of the Company.

Press release by Ecolomondo Corporation.