bp has signed an eight-year offtake agreement with Circtec.
This is a UK-based technology company that develops and operates pyrolysis chemical process technology and whose plants convert hard-to-recycle waste tyres into HUPATM - Circtec’s proprietary renewable drop-in marine fuel, and circular naphtha petrochemical feedstock.
Under the agreement bp is committed to purchasing up to 60,000 tonnes per year of HUPATM renewable drop-in marine fuel and up to 15,000 tonnes per year of circular naphtha petrochemical feedstock.
The €285 million new plant, currently awaiting construction in Delfzijl, The Netherlands, will be constructed to have the capacity to process 200,000 tonnes per year of waste
Tyres.
Construction is planned to start this year with the first phase of the plant intended to become operational in 2025. bp has also committed to providing €12.5 million of investment through debt capital, to support the €100 million development of the first phase of the Delfzijl plant.
Over the past decade Circtec has invested in research and development, patent protection and extensive trials with multiple shipping operators to bring the HUPATM product to the marine transport market.
HUPA is 50% biogenic and its biogenic portion is certified as having a GHG reduction impact of 87% compared to fossil marine fuel.
The Delfzijl plant is Circtec’s first commercial-scale plant investment following a 15-year technology and product development process.
Circtec is planning the development of several plant projects globally over the next few years, starting with North America and Southeast Asia, as direct owner-operator plants and as joint-venture licensing partnerships.
A previous long-term offtake partnership for the entire output from the new Delfzijl plant of Circtec’s circular chemical product, recovered carbon black (rCB), was announced in 2021with Birla Carbon, one of the world’s largest producers of the chemical carbon black. This is supplied to Birla Carbon for their ContinuaTM SCM flagship decarbonisation product line.
The processing capacity of the Circtec Delfzijl plant will account for circa 6% of European waste tyres annually.
Allen Timpany, CEO and Cofounder of Circtec, said: “This entry into offtake and funding
agreements with bp provides Circtec with a long-term offtake relationship, which will assist with our growth plans over the coming years, and accelerate the development of our pyrolysis plant capacity to produce renewable and circular products from waste feedstock.
“We hope that by working together Circtec and bp can help shipping operators tackle their GHG emissions, while addressing the serious environmental problem of end-of-life tyres.”
Sven Boss-Walker, SVP refining and products trading at bp, said: “We’re excited to work with the team at Circtec, especially as the company enters a new chapter and begins its expansion in The Netherlands this year.”
Circtec and bp sign petrochemical feedstock agreement
