Pyrolyx failure takes down German company alongside US operations
Pyrolyx AG Starts Bankruptcy Proceedings in Germany
The company, which started out in Stieglitz, Germany, and held a reputation as one of the more commercial operations was at one time promoted by Dr. Ulrich Sattler.
When the company expanded to start US operations the German management were ousted and replaced by Thomas Redd and an American team – it was, as they say, not Redd’s first rodeo – he had previously been at Reklaim in Boardman, Oregon. The Boardman plant was sold by Reklaim and Redd to Jesse Klinkhammer’s Klean Industries, but Klean has been chasing Redd for unpaid rent at the Boardman site, which is preventing Klean Industries from developing the operation there.
Pyrolyx, under the Redd team was investing in operations at Terre Haute, Indiana, where the new plant was to be built by German firm Zeppelin.
However, throughout 2020 there were issues with finances and initially trading in stocks in the Australian and German markets. In November 2020, the company filed with the U.S. Bankruptcy Court District of Delaware. It listed between 100 and 199 creditors, including the City of Terre Haute for rent that was unpaid.
It seems that the combination of process issues and financial shortcomings created a perfect storm that not even the promised offtake to Continental could offset.
The failure of such a long standing and potentially successful pyrolysis operation will surely be sending shock waves through the sector. In an industry where many developers are seeking finance, the collapse of Pyrolyx may serve as a barrier to investment. If nothing else, the Pyrolyx failure will drive even greater due diligence amongst those investing in the sector.