Bibra Lake-based rubber recycling company Reclaim Industries Ltd will develop a tyre processing facility capable of producing fuel and other byproducts, the company has announced.
Bibra Lake-based rubber recycling company Reclaim Industries Ltd will develop a tyre processing facility capable of producing fuel and other byproducts, the company has announced.
Reclaim has signed a memorandum of understanding for a joint venture agreement with Chinese investor Shou Zhuo, who will spend around $3 million to establish the facility next to Reclaim's planned Adelaide plant.
Once commissioned, Reclaim said facility would 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 full text of a company announcement is pasted below
Waste tyre recycling company Reclaim Industries Ltd (ASX: RCM, "Reclaim") today announced that it has signed a memorandum of understanding to enter into a Joint Venture (JV) agreement with Chinese investor Mr Shou Zhuo.
The JV agreement is for the development of a tyre processing facility that will recycle waste tyres to produce fuel and other byproducts .
Mr Zhuo is 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
byproducts.
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.
Mr Zhuo will spend approximately USD$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.
The agreement also provides Reclaim with the potential to consider replicate plant opportunities in other locations over time.
Reclaim Industries' Director for Business Development Chris Forrester said the agreement with Mr Zhuo was an important development for the Company.
"The agreement with Mr Zhuo is an excellent step forward for Reclaim," said Mr Forrester. "We believe there is enormous potential for the recycling of tyres for energy recovery and with exclusive rights to this unique technology in Australia we will be able to make significant inroads into this important industry."
"In addition to fuel, the 'pyrolisis' recycling process can recover a number of other materials including carbon black that can be sent back to a refinery; hydrocarbon gases that can be used to make steam or electricity to generate power; and significant volumes of steel," he said. "This venture then has the potential to generate a number of additional revenue streams for the Company."
"By establishing a strategic partnership with Mr Zhuo, we will also be able to gain entry into the currently buoyant Chinese market."
The JV agreement is subject to the outcome of two feasibility studies being undertaken to determine the marketability and technological viability of the project. It is expected that these studies will be completed prior to Christmas 2007.
Subject to a suitable outcome from those studies, construction of the facility in Adelaide is expected to be carried out in the first quarter of 2008, with installation and commissioning to be completed by the second quarter of 2008.
