Tyre Pyrolysis Technology Agreement

Breakthrough Tyre Pyrolysis Technology Agreement Signals North American Circular Economy Expansion

The global accumulation of end-of-life tyres (ELTs) presents one of the most critical environmental challenges facing modern waste management networks. Each year, hundreds of millions of scrapped tyres are landfilled, incinerated, or stockpiled, releasing hazardous particulate emissions and creating persistent bio-hazards. Tyre Pyrolysis Technology Agreement

Thermochemical processing, specifically continuous pyrolysis, has emerged as a high-value industrial solution capable of converting vulcanized rubber matrices into recovered carbon black (rCB) and circular oil fractions suitable for refine-ready or chemical applications.

In a key strategic development for industrial recycling infrastructure, Scandinavian Enviro Systems has executed a conditional service agreement valued at $2 million (approximately SEK 19.5 million) with an international transport operator within the energy sector. The binding deal represents a commercial milestone following a preliminary letter of intent concluded between the entities in March 2026. Under the terms of the project, Enviro will formulate comprehensive engineering designs, fire safety protocols, and environmental permit documentation for a continuous tyre pyrolysis facility engineered to process up to 50,000 tonnes of post-consumer tyres annually across North America.  Tyre Pyrolysis Technology Agreement

Permitting Framework, Plant Design, and Financial Deliverables

Industrial-scale thermochemical plants require rigorous regulatory approval across environmental impact, zoning, and municipal fire safety frameworks before site development can proceed. The $2 million contractual framework allocates specific capital milestones for engineering design and documentation deliverables:

• Permit Documentation ($500,000): Dedicated technical services covering environmental compliance modeling, municipal planning documentation, and structural fire protection design tailored for North American regulatory bodies.  Tyre Pyrolysis Technology Agreement

• Plant Design & Engineering ($1,500,000): Comprehensive facility engineering comprising primary process flow diagrams, detailed equipment manifests, piping design, structural load calculations, and technical specifications that establish the groundwork for full-scale EPC (Engineering, Procurement, and Construction) implementation.

Initial LOI (March 2026) ---> Conditional Service Agreement ($2M) ---> Permit & Design Phase (5-7 Months) ---> License & Construction Phase

The initial project phase triggers an immediate upfront disbursement of $450,000 upon formal instruction from the customer to initiate work, with remaining capital released in progressive milestone tranches over an estimated seven-month project execution window. Regulatory technical support will remain active for up to 12 months following primary file submission to ensure regulatory alignment. Crucially, the agreement guarantees payment for Enviro’s engineering services regardless of final permitting outcomes or eventual facility commissioning.  Tyre Pyrolysis Technology Agreement

Operational Preconditions, Commercial Offtake, and Licensing Dynamics

While the agreement secures binding terms for pre-engineering and permitting support, full operational activation rests upon stringent commercial conditions. Enviro will commence engineering work only after the customer satisfies core financial and logistics criteria:

1. Site Acquisition: Formal real estate acquisition and environmental baseline clearance for the North American plant location.

2. Commercial Offtake Commitments: Binding agreements with commercial off-takers securing purchase rights for at least 75% of total anticipated plant production across both output streams: recovered carbon black (rCB) and tyre pyrolysis oil (TPO).

The service contract focuses strictly on initial engineering work and preliminary permitting services. It does not convey operational patent rights or technology licenses to construct or operate the facility. A separate, formal licensing agreement must be finalized prior to groundbreaking. Should the partner entity fail to execute the project go-ahead by December 31, 2027, the conditional contract will automatically terminate. Tyre Pyrolysis Technology Agreement

Market Acceleration: Decarbonizing Supply Chains via Recovered Raw Materials

The deployment of advanced thermochemical conversion technology directly targets international decarbonization targets across automotive and rubber manufacturing sectors. Traditional carbon black production relies on thermal-oxidative decomposition of heavy petroleum feedstocks, producing high fossil greenhouse gas emissions. Independent life-cycle assessments (LCA) demonstrate that substituting virgin carbon black with recovered carbon black produced via Enviro’s patented process cuts carbon dioxide emissions by up to 93%.

Concurrently, tyre pyrolysis oil (TPO) serves as a circular hydrocarbon feedstock for industrial burners, specialized marine fuel blends, or secondary petrochemical refining into circular polyolefins and synthetic rubbers. As regulatory bodies in North America and Europe tighten extended producer responsibility (EPR) laws and enforce recycled-content mandates across tire manufacturing, localized high-capacity pyrolysis plants operating at 50,000 tonnes annually provide essential infrastructure for circular industrial manufacturing.  Tyre Pyrolysis Technology Agreement

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