‘We are ready to accelerate our commercial growth’
The preparation took a long time and was thorough, sometimes even quite intense. But in May, the first pile was finally driven into the ground at the Oosterhorn-Zuid industrial area in Delfzijl. This marked the beginning of building a flagship factory for the British tire recycling company, Circtec.
This isn’t just any factory that will soon open in the Chemport Europe area. It will be the largest plant in Europe for the chemical recycling of discarded tires. Through pyrolysis—an extreme heating process without oxygen—around 200,000 tons of used tires will be processed annually in Delfzijl. To put that in perspective, that’s about 5% of all waste tires in the EU and roughly double the amount generated in the Netherlands. A total of 28 reactors will be built in two phases. The first phase is expected to be completed by the summer of 2025. Shortly after, the expansion of the factory in Delfzijl will begin.
Green chemicals
“We think of ourselves as a chemical company,” says Pieter ter Haar, Circtec’s Director of R&D. “Using our own pyrolysis technology, we turn old tires into renewable fuels and green chemicals. For example, we make circular naphtha, a petrochemical used to produce plastics. Circtec also provides HUPA, a refined biofuel for ships, which can replace fossil fuels. Additionally, our factory will recover the material that gives tires their black color and strength. This recovered carbon black can be used to make new tires and other products.”
Currently, many discarded tires are shipped to Asia or Africa or burned as fuel in industries like cement production. It’s a real waste because this seemingly useless rubber can be perfectly recycled. “New carbon black is made by refining and burning petroleum,” explains Pieter. “This is a highly energy-intensive and polluting process. By recovering carbon black instead of producing it, we can achieve significant environmental benefits. The same goes for our biofuel, which helps make the shipping industry more sustainable. In fact, once the factory in Delfzijl is fully operational, we can offset 3 to 5% of the CO2 emissions from the entire Dutch chemical industry.”
Long-term contracts
Circtec was founded in 2009 by Allen Timpany and Robert Harper. After developing and refining their technology, they set up a demonstration plant in Poland about ten years ago, followed by the acquisition of a similar plant in Germany a few years later. “Our facility in Poland has grown to be more than just a demonstration plant. We can now process nearly 20,000 tires annually. In other words, we’re ready to accelerate our commercial efforts. That’s why we’re scaling up in Delfzijl.”
The demand for Circtec’s products is high, so much so that long-term contracts have been signed with British Petroleum (BP) and Birla Carbon, one of the world’s largest producers of carbon black. BP has committed to purchasing renewable fuel for ships and circular naphtha, while Birla Carbon has secured an agreement to buy the entire output of recovered carbon black from the new Delfzijl plant. “Even before the factory is fully operational, we’re essentially sold out for the coming years,” says Pieter.
Major boost
Circtec’s developments haven’t gone unnoticed in the world of finance. A.P. Møller Holding and NOVO Holdings, two renowned Danish investment funds, decided to invest €75 million in the construction of the new factory. In addition, the Dutch Ministry of Economic Affairs and Climate provided Circtec with a grant through the DEI+ program (Demonstration Energy and Climate Innovation). At the same time, the province of Groningen, the Groningen Growth Fund, and the NOM also expressed their strong support for the British company’s move to Northern Netherlands.
“Circtec’s activities align perfectly with the sustainability goals of Chemport Europe,” says Sytze Hellinga, investment manager at NOM. “The new factory will undoubtedly give a significant boost to the chemistry and green raw materials ecosystems. But more importantly, the company will soon make a vital contribution to creating a future-proof and circular economy in the region.”
Emma Schakel, Investment Manager of the Groninger Growth Fund, is also proud that the new factory will soon be located in the region. Not only will it significantly advance sustainability in the chemical industry, but it will also create substantial job opportunities. “We expect it will generate 100 to 150 jobs,” she emphasizes. “For a chemical company, that’s quite a lot. The impact on the region will be significant in many ways.”
"Once the Delfzijl plant is fully operational, we will be able to offset 3 to 5% of the entire Dutch chemical industry's CO2 emissions"
Regional cooperation
Why did Circtec choose Delfzijl? What made this location the right fit? “We were actively searching for a site near water,” explains Pieter. “It also needed to be relatively close to the port areas of Amsterdam, Rotterdam, and Antwerp, as our business is closely connected to this ARA region. However, finding a suitable location there proved to be quite challenging. Delfzijl offered more and better space for the factory we envisioned. Additionally, we were impressed from the start by the enthusiasm of Groningen Seaports, the province of Groningen, the Groningen Growth Fund, and NOM to help make this project a success. Our project perfectly aligns with Groningen Seaports’ ambition to position the area as Europe’s circular hotspot.”
As mentioned, it was a lengthy and sometimes challenging process, largely due to the nitrogen crisis and the complexities of obtaining permits. New technologies and processing methods naturally require more time, no matter where you are in the world. “Securing the necessary electricity and process water supply for the factory also proved to be challenging,” Pieter reflects, “but thanks to strong regional cooperation, we were able to resolve these issues in time.”
Acquisition of Granuband
In June, Circtec shared some more exciting news: the company announced its acquisition of Granuband, a leading player in tire collection and recycling in the Benelux region. Granuband will ensure a steady supply of tires for the Delfzijl factory, while continuing to produce its own rubber products in Amsterdam. Pieter explains, “With this acquisition, we can now recycle a significant portion of waste tires on a national scale, effectively closing the recycling loop. This marks the creation of the first integrated circular chain for chemical tire recycling in Europe and is a key step for Circtec in gaining a substantial market share on the continent.”