Agreement to recycle tyres to produce fuel

Waste tyre recycling company Reclaim Industries has signed a memorandum of understanding to enter into a joint venture agreement with Chinese investor Shou Zhuo.

The agreement is for the development of a tyre processing facility that will recycle waste tyres to produce fuel and other by-products.

Zhuo is the director of a Hong Kong-based corporation that owns and develops technologies relating to environmentally friendly energy sources. Under the terms of the agreement, Reclaim will secure excusive rights to a patented ‘pyrolisis’ technology enabling it to process waste tyre rubber and plastics into diesel, petrol and other by-products.

Once commissioned, the facility will be capable of recycling 30 tonnes of waste tyres to produce 12 tonnes of fuel per day for sale to a range of customers including other biodiesel or fuel manufacturers, blast furnaces and other users of bunker oils. The recycling process runs on a percentage of its own output and is therefore self-sustaining.

Zhuo will spend approximately US$2.75 million to establish the processing facility, which will be co-located at Reclaim’s soon-to-be-constructed tyre recycling facility in Adelaide.

Reclaim will provide shredded tyres as feedstock supply, working capital and day-to-day management of the facility.