Spain's Nexolub signs 10-year pyrolysis oil offtake agreement with L4T Group
In a significant advancement for sustainable tyre recycling, Spanish trading company Nexolub has entered into a 10-year offtake agreement with Life for Tyres (L4T) Group to market advanced pyrolysis oil produced from end-of-life tyres. This collaboration exemplifies a commitment to the circular economy by transforming waste tyres into valuable resources.
Argus Media recently reported that Spanish trading company Nexolub has signed a 10-year offtake agreement with a tire pyrolysis company Life for Tyres (L4T), to market advanced pyrolysis oil from a new plant in Puertollano. The project is expected to be completed in December and, reportedly, will become one of the biggest of its type in Europe.
According to the press release, L4T says the €30 million plant will begin producing 10,000 tons per year of pyrolysis oil made from recycled end-of-life tires in the first quarter of 2022. The recovered oils can be used as an advanced biofuels feedstock under annex IX of the EU’s recast Renewable Energy Directive (Red II).
The plant is being built by engineering and construction conglomerate Idom, and the EU supports the project. The Puertollano facility will require 30,000 tons per year of end-of-life tires to produce 10,000 tons of pyrolysis oil. The unit will also produce recovered carbon black — used as a pigment and to strengthen rubber products — and recycled steel. L4T and Nexolub estimate that the offtake deal will be worth €100 million.
The media says L4T plans to construct two more waste oil plants in Spain: Guardo in the northern Castilla-Leon region and Tenerife in the Canary Islands. It also wants to build four more plants outside Spain, one in Ecuador, one in Japan, and two in Germany. The company said Mexico is also a possible site. It is targeting 80,000 tons per year of pyrolysis oil production capacity by 2025.
Original press release by Argus Media.
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