Scandinavian Enviro Systems AB has taken two significant steps in its growth and restructuring strategy, announcing plans for its first fully owned large-scale tyre recycling plant in the Nordic region while simultaneously securing a financing arrangement of up to SEK 50 million.

The developments mark an important milestone for the Swedish tyre pyrolysis company as it continues its corporate reorganization and pursues long-term expansion of its recovered carbon black production platform.

Permit application submitted for full-scale Nordic plant

Enviro has submitted an environmental permit application for a planned full-scale tyre pyrolysis facility that would process more than 70,000 tonnes of end-of-life tyres annually.

The company has also secured an exclusive option to acquire the property intended for the project, giving it the ability to secure the site ahead of a final investment decision.

The proposed facility would become Enviro’s first fully owned industrial-scale plant in the Nordic region and represents a key component of the company's long-term growth strategy.

According to Enviro, the development of wholly owned facilities forms one of two strategic pillars underpinning its future expansion plans.

Authorities reviewing environmental application

Enviro said it has maintained ongoing discussions with authorities and other stakeholders throughout the planning process and expects to receive preliminary feedback on the permit application before the end of the second quarter of 2026.

The project remains subject to environmental approvals, a final investment decision and other customary development conditions.

If approved, the plant would significantly expand Enviro’s processing capacity and strengthen its position within the growing market for recovered carbon black and other tyre-derived raw materials.

Financing agreement supports restructuring process

On the same day, Enviro announced a new equity-related financing agreement with Alumni Capital Limited that could provide up to SEK 50 million in funding over the next twelve months.

The financing arrangement is structured as an equity line facility, allowing Enviro to request capital in multiple tranches of up to SEK 5 million each.

The company said the agreement is intended to support operations during its ongoing corporate reorganization, which was approved by the Gothenburg District Court in February 2026.

Initial share issue and warrants approved

As part of the agreement, Enviro plans to carry out an initial directed issue of 22.2 million new shares to Alumni Capital at SEK 0.18 per share.

The shares are being issued as payment for a SEK 4 million commitment fee associated with the financing facility.

In addition, Enviro will issue 25 million warrants to Alumni Capital, with the possibility of issuing up to 50 million warrants in total over the life of the agreement.

Each warrant will carry a subscription price of SEK 0.22 per share and remain exercisable until May 2030.

If all warrants are exercised, Enviro could receive an additional SEK 11 million in proceeds.

Potential dilution for shareholders

The initial share issue and full exercise of the accompanying warrants would result in Alumni Capital holding up to 47.2 million shares.

Enviro estimates the resulting dilution for existing shareholders at approximately 4.13%.

The board stated that the financing structure was chosen over a traditional rights issue due to lower execution risk, reduced costs and faster access to capital during the restructuring period.

Focus on scaling recovered carbon black production

Enviro's patented pyrolysis technology converts end-of-life tyres into recovered carbon black, pyrolysis oil and steel, supporting circular economy initiatives within the tyre industry.

The company states that carbon black recovered through its process can reduce carbon dioxide emissions by up to 93% compared with conventional virgin carbon black production.

The combination of a new large-scale plant project and additional financing demonstrates Enviro's intention to continue expanding despite ongoing restructuring efforts, while positioning itself for future growth in the European tyre recycling and recovered materials market.

Article source: Enviro.