Scandinavian Enviro Systems has signed a conditional service agreement with an international transport operator in the energy sector, under which Enviro will prepare the technical documentation required for the plant’s permit applications and initial design for a proposed tyre pyrolysis plant in North America
The agreement represents the next step following a letter of intent signed by the parties in March 2026 and the proposed facility is intended to use Enviro’s technology to recycle up to 50,000 tonnes of end-of-life tyres (ELTs) annually.
Under the agreement, Enviro will receive a fixed fee of $2 million (approximately SEK 19.5 million) to prepare documentation required for environmental, planning and fire safety permit applications, as well as an initial design covering the entire plant, including drawings, equipment lists, calculations and technical specifications, providing the basis for more detailed engineering work.
“This is an important step towards establishing Enviro’s technology in North America. Together with the Customer, we are now moving from a letter of intent to a binding conditional agreement, and we look forward to designing the plant as soon as the project is ready to proceed,” says Fredrik Aaben, CEO of Enviro.
However, Enviro will only begin the work once the customer has made a final decision to proceed with the project, which depends on securing a site for the facility and entering into binding agreements with buyers covering at least 75% of the expected production of both main products: oil and carbon black. The service agreement does not grant the customer a licence to use Enviro’s technology to construct or operate the plant. A separate licence agreement would be required for this.
The $2 million fee comprises $500,000 for permit documentation and $1.5 million for the plant design. An initial USD 450,000 payment will be made once the customer decides to proceed, with the remaining amount paid in instalments as Enviro delivers the agreed work. Enviro will also be entitled to payment for the services regardless of whether permits are granted or the plant is ultimately built.
Enviro will provide technical support during the permit application process for up to 12 months after delivering the documentation. Any additional work beyond the agreed scope will be invoiced separately.
If the customer has not decided to proceed by 31 December 2027, the agreement will terminate. Once the project receives the go-ahead, the assignment is expected to take approximately seven months, with the permit application documentation scheduled for completion within around five months.
