Enviro and Windspace move one step closer to launching tire pyrolysis plant in Denmark
Recently, Scandinavian Enviro Systems – the Swedish tire pyrolysis equipment manufacturer – published a press release which tells about the new lease agreement for tire pyrolysis plant site in Denmark, signed by a joint venture of Enviro and Windspace A/S – Elysium Nordic.
According to Enviro, Elysium Nordic ApS is the official name of the prospective joint venture launched by Enviro and WindSpace A/S. Reportedly, it has signed a lease agreement with Associated Danish Ports (ADP) on February 5, 2019 for a site in Nyborg harbor on Funen, Denmark. The press release mentions that land lease is valid for 20 years with an extension option for additional 15 years; also, the agreement includes a 5-year option to extend the leased area to enable a phase two of the project that will double its capacity. The plant construction is scheduled to start in 2019, once different commercial questions are settled, and will be completed in 2021. The cost of the project is estimated at DKK 300 million, i.e. over EUR 40,2 million.
“We’re planning on taking joint ownership of Elysium Nordic, which will be operating the establishment of the plant. This is completely in line with Enviro’s new business model and it means that we will benefit from the returns that will be generated by a plant,” said Thomas Sörensson, CEO of Enviro.
Enviro’s management considers the agreement a very important step in constructing a pyrolysis plant for the recovering of valuable materials from end-of-life tires. Envire reports that the contract for the land is conditional upon Elysium Nordic completing commercial negotiations so that construction can begin. The leaders of the joint venture have opted for Nyborg harbour as construction site because of attributes such as logistics and the local expertise.
“We have collaborated with both ADP and Nyborg Municipality to identify the most suitable location for the plant. And we’re looking forward to erecting the first [tire] recycling plant that will be able to handle and utilise Enviro’s unique technology to extract valuable materials from end-of-life tires,” notes Jens Elton Andersen, CEO of WindSpace A/S.
“Demand for recovered carbon black continues to increase from several different industries and therefore there’s also a demand for available volumes. The next step in the project is to package the partnership around financing and ownership matters,” says Thomas Sörensson.
Article by Enviro.
Weibold is an international consulting company specializing exclusively in end-of-life tire recycling and pyrolysis. Since 1999, we have helped companies grow and build profitable businesses.