STAMFORD, Conn.—Castleton Commodities International L.L.C. invested through one of its subsidiaries in Delta-Energy Group, a resource recovery company providing recycling solutions to the tire industry.
Delta-Energy has developed a patented process to recover carbon black and marketable liquid chemicals from used tires, which provides a significant reduction of carbon emissions compared to traditional processes for production of virgin carbon black and fuel oils.
CCI is taking a majority position in Delta-Energy, while Bridgestone Americas, which was disclosed as a major early-stage investor, will continue to be an active, but minority, investor. Outside of the founders, Bridgestone was the first investor into Delta-Energy in 2014.
Proceeds from the investment will be used to develop a commercial-scale plant in Natchez, Miss., with an estimated daily processing capacity of 100 tons of end-of-use-tires. Delta-Energy's commercial plant will recover carbon black and other basic materials for reuse in tire production and other rubber-related manufacturing processes, as well as liquid solvents and fuels. The investment will further expand CCI's activities in the renewables sector, which today include nearly 20 biomass electric generation facilities, emissions trading and biofuels marketing.
"The founders of Delta-Energy have achieved technological proof of concept in large part thanks to early-stage support from Bridgestone. As an industry leader, Bridgestone's commitment to Delta-Energy validates the quality and market potential for the company's products," said Nicholas Haslett, CCI's chief strategy officer. "CCI will bring experience in developing and operating midstream and conversion assets, as well as access to one of the largest physical oil liquids marketing franchises, while Bridgestone will provide offtake capacity for DEG-produced recovered carbon black and continue to identify opportunities to substitute the DEG recovered product for virgin carbon black."