Genan introduces floating energy surcharge as costs increase
The business strategy of Genan, Europe's largest mechanical tyre recycler, has been impacted by rising energy costs. As a result, Genan has separated energy charges from its process list and will display a quarterly updated energy price scale alongside the materials cost. According to Genan’s CEO Poul Steen Rasmussen, energy prices have been increasing for quite some time, and Genan has been absorbing these significant extra expenditures through 2021. The company says it cannot, however, continue along this path. The Circular Economy requires energy in order to transform end-of-life items into fresh recycled raw materials, and the recycling industry alone cannot meet this demand. Rasmussen says by 2022, Genan will have to enact a portion of this bill as a variable energy surcharge.