How will the collaboration with Michelin influence the future of the company? What vision do the companies share?

Michelin evaluated our recovered carbon black material in 2016. Since then, they have made significant testing of quite large volumes of our material over time to evaluate its consistency and quality. This is probably the most important parameter for any tyre manufacturer to use recovered carbon black. The interest in the technology itself started to grow as they saw that the performance of the recovered carbon black material was quite impressive. Over time, they started doing due diligence on the technology during those years. We intensified the negotiations in the early stages of 2020 and finally entered into a partnership agreement in April where Michelin invested 20 percent in Enviro. But, that was only one part of the partnership we envisioned. We also had, from the beginning, discussions about how we can provide the technology as a part of their solution to build a business model around mining tyres. This way, they could also offer their mining customers a solution for the recovery of the mining tyres. In that aspect, we negotiated regarding a joint plant project we are currently building in the Antofagasta region of Chile. We are also preparing the permitting for a plant in Uddevalla, Sweden, of 60,000-tonne ELT capacity for car and truck tyres.

In addition to that, we evaluate different technology experiences from both sides where we contribute with our experience in pyrolysis and treating end-of-life tyres in a professional way. Michelin is contributing with their extensive knowledge about developing and innovation into industrial capacity plants. What we have is a very intense collaboration on a more or less daily basis.

Going forward, we see that Michelin has a strategic ambition to replace up to 100 percent of the materials in the tyres with sustainable alternatives. Carbon black is one of the materials where we think that quite large volumes can be replaced over time. They're also involved in replacement and development of different types of oils in the tyres. From Michelin’s side, I think they have a wider interest in the recovery of all the materials in the tyres. This also aligns with our interest since we are recovering tyre pyrolysis oil and doing that quite successfully. We expect more plans in collaboration with Michelin in one way or another. Their investment in our company and the clear engagement in showing the market that they're using our material in motorcycle racing tyres in Moto E and in performance tyres for racing cars is helping us to get the acknowledgement in the market. This is important for our growth and our expansion plan.

How are you matching the quality and consistency of the recovered carbon black to virgin carbon black? Can you also please elaborate on the collaboration with AnvaPolytech, where Enviro completely replaced virgin carbon black used in Volvo's rubber components back in 2015?

We are using our patented batch process, which is a fixed batch process. The technology that we are using was developed for over 20 years to maintain control of the pyrolysis process. We can make sure that the result of the pyrolysis in the material is consistent, which means that we are not creating new carbon, as you easily do when you have a continuous process, and we are making sure that the pyrolysis process has evaporated all the volatiles out of the carbon fraction. This is very important and we control this with the system in multiple parameters that we measure during the process. We also have a significant quality control system downstream. So, in the post process of the pyrolysis, we do multiple quality checks. Before each shipment, we have ASTM standard controls for about 10 different parameters where we compare to the industry ASTM standard normally used for carbon black. There are a few ASTM measurements used for virgin carbon black that are not applicable for all recovered carbon black products, but the majority of the tests can be similar and we keep a very high consistency there. This is also one of the main achievements of the company since January 2016. We made the first commercial delivery to AnvaPolytech and they are a rubber component supplier to Volvo Cars. They have been involved with us before the commercial deliveries in the research and development of the material for rubber components. They were also involved in lots of different types of testing, where meeting the automotive standard for EPDM rubber components was a very significant part, and also got the final approval from Volvo Cars to replace the material. Since 2016, we have replaced 100 percent carbon black in those components with our material. I think it's now more than 100 million components delivered from Anva to Volvo Cars.

The gas produced during the pyrolysis process is used to fuel the machinery itself. Is there a commercial value for the gas in this market and are you exploring those business verticals?

It is a very valid question; we are producing new pyrolysis gas, and in the process, we condense out the oil, but there will be a fraction of gas that is not condensable. That gas is the excess gas that we use for the next pyrolysis phase. In our current plant at Åsensbruk, we use the excess gas and part of the oil to power the main process and the post process for heating purposes. In the new plants we will be building, for instance, one in Sweden, we plan to start production in the fourth quarter of 2023, where we will use green energy from wind, solar, water and waste to provide energy. In this case, the excess gas will be used only to heat the dryer system in the post process. Does it have a commercial value? I think some markets do; it might be used also in-turn to produce energy or electricity, but at the moment, this is not something that we are exploring further in detail.

The company recently received two ISCC certifications, one for the pyrolysis oil and the other for the carbon black. What were the challenges in earning the certifications and are there any other benchmarks that you're targeting for any other product in the future?

We are very proud to be the first to achieve the certification for the recovered carbon black. It is an important step for both the certification and for us as a company. We are already seeing some of the players in the tyre industry looking to certify according to ISCC now. This means that there will be a higher value in connection to using that type of material. There are always challenges with being certified and the most challenging maybe is to follow the certification requirements in terms of how, when and where to measure. We need to make sure that this is something that we can live up to when we are audited annually. We must also commit resources and capabilities to do this. We also needed to involve our supplier of tyre material, which, in Sweden, are Ragn-Sells. They are also audited by the certifier.

Enviro was evaluating business prospects in India. What is the current status of opening a full-size plant? Pyrolysis is banned in India across almost all states by the pollution board, and we're seeing various companies being ordered to shut down plants. Where does Enviro fit in and what are the developments?

Yes, we have been conducting meetings together with the Swedish Energy Agency, Swedish Export Organization, Business Sweden and a few other organisations including India-Sweden Innovations Accelerator and Confederation of Indian Industry in India. We have been exploring the Indian market for many multiple axles, and during the last two years, we are meeting with all the major tyre producers, both local and international. We are meeting with oil companies downstream who are potential customers for oil. We are meeting with waste treatment and tyre treatment companies locally and also making presentations to most local governments. However, we feel it is a bit too early for us to enter India on a more massive basis.

We have decided strategically that we will start with Europe followed by probably the US in the next phase. I think that will help India to monitor what is happening with the technology and how it can be a part of the system in those markets. We can then use that as a showcase for creating a sustainable and long-term system for the Indian market. We hope that this display of the system will be appreciated by the players in India to implement and also be some kind of inspiration to make that happen. In regards to pyrolysis being banned, I think it's probably a very correct decision because the pyrolysis technologies that we have seen being used in India are mainly Chinese versions where the environmental 360-degree impact has not really been considered. I think it was a very necessary decision.

The system for import and collecting for the pyrolysis industry was not really in place at that moment. But I think we can showcase together with a few of our peers in the European market that batch pyrolysis process and pyrolysis in general can be made with a very sustainable and safe technology with the highest possible emission control systems. We are hoping that by setting an example in Europe and showing both the technology and the system, maybe we will enter India in the next five years.

What are some of the constraints that you see in entering the Indian market?

I think one constraint that we are struggling with – mainly in Europe, but also in other markets – is that end-of-life tyres are viewed purely as waste materials. To really get our authorities and government regulators to understand that we are making a transition of waste materials into something that can sustainably replace fossil resources is a challenge. We are in the right direction. ISCC certification is one step.

Reach of the materials is another step. I think that transition to get aligned with the current legislation in many countries is still a hurdle. Even if it's improving, making this kind of large transition of an industry that is not really present at the moment requires financial support. Financial investors need to be willing to take a little bit of a risk to make the industry change as rapidly as it needs to. It's not enough for the tyre industry if there is one company able to provide the small volume to the market; they need multiple suppliers and large volumes to replace larger volumes of virgin material. The volume is a constraint itself. We hope, together with Michelin and other parties that we're working with, to provide larger volumes in the coming 10 years. Our ambition is to establish at least 30 plants globally in the coming decade. We also hope that our competitors are also successful in India.

What potential do you see in the Indian market, being one of the biggest automotive markets in the world, in terms of government support or the infrastructure for the products Enviro produces?

One of the opportunities is the growing automotive market. There is also a foundation of industry there in India for a long time. There is a tradition to produce tyres with a lot of knowledge, research and development around tyres and rubber materials, which I think is a very interesting potential itself. The competence around the materials in India is significant. I think the size of the market itself is an opportunity. If you choose to see the immaturity of the collection system as an opportunity, which I do, I think there is a lot of potential to establish from ground-up, a workable system with different stakeholders where I think local and national government needs to play a role, but it needs to be still on market conditions. I think the model that we will be showcasing in Europe will be attractive for both the government and local private stakeholders like the tyre industry and rubber industry.

In a broader sense, what is the future for the company and what are your goals? What are you excited about?

There are very clear targets from the tyre industry since they are consuming more than 70 to 80 percent of the carbon black material in the world. We have very clear targets for replacing fossil-originated materials with recovered or sustainable materials. We are very excited about the volume potential we see there. We have started to take steps in that direction with multiple tyre producers. The regulation in Europe and other countries to reduce the fossil content in oil products and chemical products is very positive for us. ISCC is a very important tool for the market to implement recovered and bio-based materials which have tax incentives. These enable us to launch our expansion plan, which, as I mentioned, is for the next 10 years to open 30 plants globally. We are excited that we are now in the position to work in establishing one plant with Michelin in Chile and in parallel a plant in Sweden with more or less the same time scheduled to start production. In the pipeline, we have several very interesting projects building up.

Are there other manufacturers or automotive players that are satisfied with the level of quality in your recovered carbon black? Are there any projects in the pipeline?

We have seen the interest significantly increasing in suppliers to the automotive industries and to other core manufacturers since we got the ISCC certificate for our products. But I think that we could better market what we have achieved together with Volvo in order to really get the other car brands into using more of our material. I think we have some homework to do there, because what we do is too little known to them at the moment. So there is work to be done there. We know we can achieve it. We should focus on letting them know what we can do. We are working with some other automotive manufacturers not only for the recovered carbon black but also to help them achieve their zero-emission objectives. So that could be related to oil, carbon black, steel and potentially other materials such as carbon fibre, for instance. (MT)

l’Aventure Michelin is reopening its doors to visitors after a month’s closure with a revamped visitor trail. The overhauled visitor trail will offer visitors a glimpse of Michelin’s history: right from bicycle tyres to the Michelin Man and the MICHELIN Guide, which is celebrating its 125 anniversary this year.

In order to facilitate visitors' movements and enhance the immersive experience of exploration, l'Aventure Michelin has redesigned its trail for its reopening. Access for those with disabilities was carefully considered. Since its inception, l'Aventure Michelin has maintained the French Tourism & Disability quality rating. It continuously improves its visitor trail to make the trip accessible to everyone, which is evident from the magnetic loops, easily comprehensible brochures and videos in French Sign Language.

This more inclusive visitor trail is complemented by a recently added section that emphasises sustainable mobility and development. Michelin will showcase its MILAW lunar wheel concept designed for vehicles travelling through harsh settings, such as the lunar south pole area. It is specifically designed to withstand harsh circumstances with its flexible construction and lack of air, which maximises traction on uneven ground. The second invention is the WISAMO inflatable wingsail, which uses wind power to cut down on ship fuel usage and contribute to the decarbonisation of marine transportation. It uses a renewable energy source and is compatible with both cargo ships and sailboats.

A member survey of the German Rubber Industry Association (wdk) has come to a conclusion that the situation in Germany as a production location remains worrying. The member survey highlighted that industry sales fell by almost two percent last year. Sales and domestic production were even weaker, with a decrease of three percent compared to the previous year.

Michael Klein, President, wdk, termed this as an ‘overly clear warning signal’ in Frankfurt am Main today with regard to the earnings situation. "While earnings in 2023 were 'only' strained or even threatened the existence of around a quarter of the companies in the industry, this proportion has now increased to more than 40 percent. That is why improving the location conditions must be at the top of the agenda of the next federal government," he said, explaining that more than one in five companies in the industry are already planning to relocate production out of Germany by 2025.

Demand, legislation, energy, sustainability, and specifically, location conditions are the biggest challenges facing the companies in the rubber industry, according to the member survey. Pointing out that 90 percent of companies are feeling an increase in bureaucratic burdens, Klein further added, "This is a clear mandate for politicians. The new federal government must immediately address the issue of reducing bureaucracy - in Germany and in Europe. 13,000 new laws since 2019 are not an achievement, but a burden.”

The European Tyre and Rubber Manufacturers' Association (ETRMA) has sent its recommendations to the public consultation held by the European Commission about the urgent measures that must be taken to ensure the automotive industry's survival in Europe and to pinpoint possible remedies.

The proposals made by ETRMA are intended to reduce bureaucratic burdens, create a legislative climate that will increase competitiveness and advance a broader EU Automotive Action Plan that views the whole automotive supply chain as strategically important.

The main points of ETRMA's recommendations include promoting best-performing tyres and tackling the high energy costs for the industry, establishing sector-specific regulation for safe access to in-vehicle data, developing an EU Rubber Strategy to secure supply chain of raw materials such as natural rubber and including it in list of critical raw materials, equipping the current and future workforce with the skills required to meet increasing demands of the industry, achieving fair and open access to global markets for European tyres with a focus on emerging high-growth regions like India and Indonesia and simplifying the tyre regulatory environment to reduce implementation costs and legal uncertainties to promote investing in R&D and producing in Europe.

As the FIA Formula 1 World Championship hosted an exceptional event at London’s O2 Arena to celebrate and mark its 75th anniversary, Pirelli, who is the global tyre partner of Formula 1, marked the beginning of its own celebration. The year 2025 is special for Pirelli too as it is set to hit the 500 Grands Prix mark during the coming season. On the occasion, the company revealed a version of the Pirelli logo that will be used for all its Formula 1 communication throughout the 2025 season.

Pirelli will reach the 500-mark at the Dutch Grand Prix on 31 August at Zandvoort, having participated in 485 championship events thus far. A week later, Pirelli will host a number of special festivities at its home event in Monza to commemorate this milestone. The company has planned a series of celebration activities, the first of which was the unveiling of the logo.

An analysis of the 50 most important Grands Prix during Pirelli's tenure on the F1 World Championship trail will be the first initiative, and it will be featured on Pirelli.com. The British Grand Prix, which took place at Silverstone on 13 May 1950, was the inaugural round of motor racing's blue riband category. That day, there were 21 cars on the grid, eight of which were equipped with Pirelli tires. All three of the top finishers were Alfa Romeos, with Giuseppe Fagioli and Nino Farina of Italy leading the field ahead of Reg Parnell of England. It was the first chapter in Pirelli's lengthy and continuous history in Formula 1, where the Italian business would provide the tyres this year with the longest record in the sport.