BP, Circtec ink supply deal for tire-derived fuel, feedstock

London—BP P.L.C. and chemical-recycling specialist Circtec have signed a long-term agreement covering the supply of waste tire-derived feedstock to the United Kingdom-based energy major.

Under the deal, BP will buy up to 60,000 metric tons per year of Circtec's renewable "drop-in" marine fuel and up to 15,000 tons per year of "circular naphtha petrochemical feedstock," on a take-or-pay basis.

Product will be supplied from Circtec's end-of-life tire (ELT) pyrolysis plant—currently under construction in Delfzijl, the Netherlands—for eight years after the facility is commissioned, Circtec announced May 2.

Once completed, the $307 million (€285 million) ELT recycling plant will have the capacity to process 200,000 tons of waste tires per year.

Tires will be converted into Hupa-branded renewable drop-in marine fuel, circular naphtha petrochemical feedstock and circular chemical recovered carbon black.

In 2021, Circtec announced a long-term off-take contract with Birla Carbon for the rCB to be produced at the facility.

Construction work on the plant is scheduled to start this year, with the first phase of the unit intended to become operational in 2025.

BP also committed to providing a $13.5 million investment through debt capital to support the $107 million development of the first phase of the Delfzijl plant.

Over 10 years in the making, Circtec's marine fuel is claimed to be 50 percent biogenic, with the biogenic portion "certified as having a GHG reduction impact of 87 percent compared to fossil marine fuel."

It complies with marine fuels regulations and standards and can be blended with fossil marine fuels to meet legal mandates on marine decarbonization under the European Union's Fuel EU Maritime Regulation and Renewable Energy Directive.

The Delfzijl plant is Circtec's first commercial-scale plant investment following a 15-year technology and product development process.

The company also plans to expand globally over the next few years, starting with North America and Southeast Asia, "as direct owner-operator plants and as joint-venture licensing partnerships."