DETROIT (Oct. 26) — Digital Gas Inc., a New York-based financier of innovative energy and natural resource projects, has signed an agreement with tire recycler Techno Rubber Inc. to expand Techno Rubber´s Detroit facility to 42,000 sq. ft. from the current 12,000.
Under the plan, Digital Gas will give Techno Rubber's owners a $2.5 million promissory note for the purchase of land, buildings and equipment for the expansion.
Under Phase One of the agreement, Techno Rubber — which currently processes about 1 million scrap tires annually — will expand to a 3 million-tire facility as early as December 2006 at a cost of approximately $500,000.
Phase Two will see Techno Rubber change from a tire chipping plant to a hydrocarbon recovery facility with an annual capacity of 7 million tires, according to a Digital Gas press release. This marks the first time Digital Gas has invested in a scrap tire project, according to Acting Director Brian Smith.