A strategic partnership has been announced that will see VTTI invest up to U$43m in waste tire recycling company Wastefront to support the construction of the first phase of its end-of-life tire (ELT) recycling plant in Sunderland, UK. The companies will also conduct site selection surveys to determine the location of eight additional and jointly owned tire recycling plants that will use Wastefront’s ELT solution and be operated by VTTI. A final investment decision will be made following the surveys.
Wastefront’s Blueprint aims to stop the disposal of an estimated 31 million metric tons of ELT each year, which would otherwise end up in landfill. Its pyrolysis process breaks down a tire’s materials into useful commodities – including biofuels and carbon black – which can then be reused to produce new products and tires.
The strategic partnership with VTTI marks the first time that the Wastefront Blueprint has been licensed for global deployment. The Blueprint will initially be implemented at Wastefront’s plant at the Port of Sunderland, with construction beginning in 2023 and full operations commencing in 2026.
“Our mission to create a Green Global Industrial Platform to solve the end-of-life tire problem, requires buy-in from major industrial companies,” said Vianney Vales, CEO, Wastefront.
“VTTI is a leading infrastructure company with a clear mission to grow in the energy transition and I am delighted to announce our partnership. This is the first time that our Wastefront Blueprint solution for circularity will be licensed on a global stage. VTTI has opted to go a step further and not just deploy our solution but also invest in Wastefront and in future plants. The investment will immediately enable us to scale our work at the Port of Sunderland, and to grow our market reach with the development of eight plants at VTTI sites worldwide.”
“We are pleased to enter into a strategic partnership with Wastefront on this exciting journey to jointly develop tire recycling plants at our locations around the globe,” commented Guy Moeyens, CEO, VTTI. “Wastefront is a complementary partner of VTTI that brings in a fully developed and technologically proven tire recycling offering, an experienced team, an extensive network in feedstock markets and recognition from tire manufacturers. Our combined efforts will be able to turn a current large and growing global waste problem into products like pyrolysis oil and recovered carbon black, which are highly sought after in the ongoing energy transition.”
VTTI is backed by energy and infrastructure companies Vitol, IFM Investors and the Abu Dhabi National Oil Company. The investment into Wastefront and the future tire recycling plants forms part of the company’s global growth strategy. VVTI aims to conduct more than 50% of its activities in new and transitional energy sources by 2028.