UK-based CIRCTEC Launches Europe’s Largest End-of-Life Tire Pyrolysis Recycling Facility in the Netherlands

CIRCTEC raises €150 million in financing round for facility in Delfzijl

Novo Holdings and A.P. Moller Holding have enabled a €150 million fundraise for CIRCTEC by leading with a €75 million equity investment. Financing includes €22.5 million of grants awarded by the Government of the Netherlands. The funding enables CIRCTEC to construct Europe’s largest end-of-life tire pyrolysis recycling facility in Delfzijl, the Netherlands. The construction of the new plant was announced on 17th May at a ceremony attended by offtake parties BP and Birla Carbon and by agencies of the Government of the Netherlands that contributed grant finance – The Netherlands Enterprise Agency (RVO) and Groningen Province.

Allen Timpany, Co-founder and CEO of CIRCTEC, said on realizing the funding for the Delfzijl facility: “We are very pleased to welcome Novo Holdings and A.P. Moller Holding to our board to continue our growth journey together. The success of this new investment round gives us the partners that will enable us to take CIRCTEC to the next level in realizing our goal of scaling sustainability. Bringing our technology to a global scale will generate meaningful contributions to the sustainability of the planet.”

CIRCTEC brings solution to tyre waste to the Netherlands

Discarded tires pose significant environmental and health risks, accumulating in landfills, and polluting ecosystems with toxic substances. The current scale of tire waste exceeds the reach of existing recycling efforts, with over half of Europe’s waste being incinerated or being exported to Asia and Africa for environmentally damaging disposal, underscoring the vital need for innovative solutions in tire waste management. Moreover, the increasing adoption of electric vehicles will further exacerbate the tire waste problem as tires used for electric vehicles wear down faster.

CIRCTEC, a UK-headquartered technology company, has developed a proprietary technology for decomposing old tires through pyrolysis, (a process that transforms waste into valuable circular materials through thermal decomposition in an oxygen-free environment), and for upgrading the products to high-quality recycled chemicals and renewable fuels.

Anders Spohr, Senior Partner, Bioindustrial Investments, Novo Holdings: “CIRCTEC is the global leader in end-of-life tire pyrolysis, and thanks to its unmatched proprietary technology, the company is on a rapid growth trajectory that will now be further accelerated. In addition to having a strong technology platform, the team shares Novo Holdings’ firm belief in circularity as a key component in advancing planetary health by enabling the green transition of society.”

Chetan Mehta, Head of Growth Equity, A.P. Moller Holding, said: “The overall green transition of our societies will require trillions of dollars to be invested in the coming years and decades. Capital at this scale can only be activated if investor returns are commensurate for the risks taken. At A.P. Moller Holding, we are committed to investing in and building businesses with a positive impact on society. We believe CIRCTEC satisfies both our purpose and return requirements, and we are excited to be investing in the business and partnering with the management team to build a world-class pyrolysis platform.”

Facility in Delfzijl will be Europe’s largest end-of-life pyrolysis facility

With the funding raised, CIRCTEC will construct Europe’s largest end-of-life tire pyrolysis recycling facility in Delfzijl, the Netherlands. At full capacity, the Delfzijl plant will be able to tackle approximately 5% of the 3.6 million tons of end-of-life tires that are generated in Europe annually.

CIRCTEC’s technology offers a scalable solution to the global tire waste problem by embracing circularity and reducing greenhouse gas emissions, with the new Delfzijl plant set to be capable of reducing emissions by the equivalent of circa 3% of the greenhouse gas emissions of the entire chemical industry sector of the Netherlands.

Hilde van der Meer, Commissioner of The Netherlands Foreign Investment Agency (NFIA), said: “The funding raised enables CIRCTEC to start realization of the new plant in Delfzijl, which will bring a solution that produces circular chemical products from tire waste. As NFIA, we welcome and applaud these types of smart, sustainable solutions for the future that strengthen the Dutch circular economy. The CIRCTEC plans also signify an important long-term commitment to the local region of Delfzijl and Chemport in bringing valuable jobs and innovative opportunities. I am happy that the Dutch government and Groningen province were able to support CIRCTEC in bringing this new solution to fruition.”

Source: CIRCTEC

21 May 2024