- 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 tyre 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.
COPENHAGEN, Denmark,
May 21, 2024 /PRNewswire/ --
Discarded tyres pose significant environmental and health risks,
accumulating in landfills, and polluting ecosystems with toxic
substances.
The current scale of tyre 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 tyre waste
management. Moreover, the increasing adoption of electric vehicles
will further exacerbate the tyre waste problem as tyres used for
electric vehicles wear down faster.
CIRCTEC, a UK-headquartered technology company, has developed a
proprietary technology for decomposing old tyres 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.
With the funding raised, CIRCTEC will construct Europe's largest end-of-life tyre 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 tyres that are generated in Europe annually.
CIRCTEC's technology offers a scalable solution to the global
tyre 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.
In its pyrolysis process, CIRCTEC produces (i) its proprietary
sustainable marine fuel HUPATM, (ii) circular naphtha
for responsibly-sourced plastics, polymers and chemicals, and (iii)
high-quality recovered carbon black for use back into tyres, rubber
and plastics manufacturing.
CIRCTEC previously announced long-term offtake agreements with
BP for its sustainable marine fuel and circular naphtha products,
and with one of the largest global producers of carbon black,
Birla Carbon, for the recovered
carbon black. This means the entire output of the new plant being
constructed at Delfzijl is fully sold.
Allen Timpany, Co-founder and
CEO of CIRCTEC, said: "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 realising our goal of scaling
sustainability. Bringing our technology to a global scale will
generate meaningful contributions to the sustainability of the
planet."
Anders Spohr, Senior Partner,
Bioindustrial Investments, Novo Holdings, said: "CIRCTEC is the
global leader in end-of-life tyre 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. I
look forward to the collaboration with the CIRCTEC leadership as
well as the highly esteemed investor group."
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."
Hilde van der Meer,
Commissioner of The Netherlands Foreign Investment Agency (NFIA),
said: "The funding raised enables CIRCTEC to start
realisation of the new plant in Delfzijl, which will bring a
solution that produces circular chemical products from tyre 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."
About CIRCTEC
CIRCTEC is a leading innovator and
operator of pyrolysis technology to recycle waste into renewable
fuels and circular chemicals, in order to support the energy
transition and the move to a circular economy. The CIRCTEC group
has a footprint across five countries in Europe, with 2 commercial demonstration plants
operating today and a third flagship scale plant under development
in the Netherlands. In addition to
production plants, CIRCTEC group includes both design &
engineering and research & development units, with an ongoing
focus not just on scaling the CIRCTEC process for chemical
recycling of tyre waste, but also on adapting the process to other
waste feedstocks. Founded in 2009 by British industrial
decarbonisation entrepreneurs Allen
Timpany and Robert Harper,
CIRCTEC's proprietary production technologies, including its
CIFRTM pyrolysis reactor system, have been
developed to commercial scale, supplying several global
multinational industrial partners with renewable fuel and circular
chemical products. CIRCTEC's focus is on innovation and technology
leadership, scaling sustainability in the chemical and renewable
fuels sectors. For more information visit www.circtec.com.
About Novo Holdings A/S
Novo Holdings is a holding and investment company that is
responsible for managing the assets and the wealth of the Novo
Nordisk Foundation. The purpose of Novo Holdings is to improve
people's health and the sustainability of society and the planet by
generating attractive long-term returns on the assets of the Novo
Nordisk Foundation. Wholly owned by the Novo Nordisk Foundation,
Novo Holdings is the controlling shareholder of Novo Nordisk A/S
and Novonesis A/S (Novozymes A/S) and manages an investment
portfolio with a long-term return perspective. In addition to
managing a broad portfolio of equities, bonds, real estate,
infrastructure and private equity assets, Novo Holdings is a
world-leading life sciences investor. Through its Seeds, Venture,
Growth, Asia, Bioindustrial and
Principal Investments teams, Novo Holdings invests in life science
companies at all stages of development. As of year-end 2023, Novo
Holdings had total assets of EUR 149
billion.
www.novoholdings.dk
About the Novo Nordisk Foundation
Established
in Denmark in 1924, the
Novo Nordisk Foundation is an enterprise foundation
with philanthropic objectives. The vision of the Foundation is to
improve people's health and the sustainability of society and the
planet. The Foundation's mission is to progress research and
innovation in the prevention and treatment of
cardiometabolic and infectious diseases as well as to advance
knowledge and solutions to support a green transformation of
society.
www.novonordiskfonden.dk/en
About A.P. Moller
Holding
A.P. Moller Holding is a
privately held investment company based in Denmark with approximately USD 32 billion under management. As the parent
company of the A.P. Moller Group, owned
by the A.P. Moller Foundation, our
purpose is to build and develop businesses that have a positive
impact on society – 'nyttig virksomhed'. We drive
long-term value and growth in our businesses. Through engaged and
valued ownership, we leverage our family name, values, insights and
global networks to set our businesses up for success.
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