Feb 8, 2023

Klean Industries Partners with Niersberger Group on Tire Pyrolysis Projects

Klean Industries Inc (“Klean”), a leading equipment provider that owns a commercialized portfolio of intellectual properties and know-how focusing on the recovery of clean energy and resources from waste, is pleased to announce that it is continuing to expand its strategic partnership in the waste-to-value space with Niersberger Group (“Niersberger”). The Niersberger Group was established in 1921 and has been active in planning and implementing plants that not only generate green energy but also those that specialize in the recovery of valuable resources. Niersberger is one of the largest biogas engineering and construction companies in Europe and owns and operates over 30 plants across Germany.

The KleanTeam has developed a strong relationship with Niersberger over the past decade, as Niersberger has been instrumental in the design-build process for delivering commercial-scale pyrolysis technologies in the European Union. Niersberger has acted as an engineering, procurement, and construction (“EPC”) firm that designed, engineered, and constructed one of Klean’s reference tire pyrolysis plants in Poland. Niersberger will assist with a broad range of services, which include design, engineering support, and project construction services for Klean’s projects and its customer projects. It’s envisioned that the primary focus will be in Europe with some selected projects outside of the EU, where Niersberger will assist in pre-engineering and detailed design and will oversee the procurement process from Klean’s manufacturing partners in Germany.

The initial framework for the two organizations is to identify areas where they can join forces to promote and support Klean’s desire to roll out several turn-key tire pyrolysis projects using Klean’s standardized and modular plant designs in a serial production format. Klean’s packaged units are prefabricated, which dramatically reduces project development costs and construction timelines. Under this style of manufacturing, coordination with local contractors on the ground becomes less of a challenge with coordinated timing for the delivery of the balance of plant and the synchronization of equipment delivery. When managed well, all that is required upon completion and delivery of equipment are the completion of interfaces between the pipe-to-pipe design. All plants and equipment are factory assembled and tested before leaving the manufacturing floor, and so these process improvements also help combat supply chain challenges.

With the assistance of Niersberger, Klean’s expansion plans include the re-development of its fully permitted project located in Boardman, Oregon, which is now slated to break ground in 2023. This project will have an annual processing capacity of 60 KTPY in end-of-life tires (“ELT”) as feedstock. The project has an estimated capital cost of $150m and when completed will be the largest continuous tire pyrolysis plant in North America. Klean has secured all of its feedstock requirements, which will be used to recover approximately 20 KTPA of recovered carbon black (“rCB”) and 25 KTPA of recovered fuel oil (“rFO”), both of which are upgraded and are presold on long-term contracts. Additionally, both parties are working to develop an identical project in Australia, which is now securing a site and is entering detailed engineering over the course of the next few months to rapidly deploy Klean’s technology into the Oceania region. Klean has over 30 tire pyrolysis projects under various stages of development around the globe, which represents an estimated US$ 2.5 billion in infrastructure investments into creating a circular solution for the tire manufacturing and recycling sector.

As a part of this relationship, both Klean and Niersberger will also explore new business opportunities for the integration of Klean’s patent-pending Klean Loop™ blockchain technology. The partnership will explore opportunities for total supply chain integration where all procurement partners can adapt the Klean Loop™ to co-ordinate a fully digital infrastructure that can track and trace all aspects of the supply chain from raw material acquisitions to equipment manufacturing and delivery of all parts and equipment while tracking and tracing all carbon emissions throughout the supply chain. The parties also see an opportunity to improve the financial and environmental performance of several resource-recovery applications, such as the application of the Klean Loop™ to biogas production plants that Niersberger is a leader of in the development, design, engineering, and installation throughout Europe. The Klean Loop™ SaaS solution can provide additional economic transparency and environmental accountability to the waste management, resource recovery, and renewable energy sector. The application is also powered by the Klean Loop’s artificial intelligence system called “Arnold” which can forecast, track, and monetize commodities globally through a connected market-based exchange system. Klean intends to have all of its projects integrated with Klean Loop™ application going forward. The transparency of operations on the blockchain will dramatically increase the adoption cycle of the circular economy and of new products that feature a significantly lower carbon intensity than that of virgin-based resources.

“Expanding upon management’s long-term relationship with Niersberger makes sense and is mutually beneficial as both parties’ skillsets complement each other. Developing resource recovery and clean energy projects in partnership with leading engineering providers such as Niersberger enhances Klean’s strategic focus and provides further resilience in cost-effective strategies that enable projects to be delivered in less time and at lower costs. Together, supply chain challenges are reduced, as are project risks. It’s symbiotic relationships like this that allow us to accelerate the creation of the circular, low-carbon economy,” said Jesse Klinkhamer, CEO of Klean Industries Inc.

“Niersberger has been around for over 100 years, and we are firm believers in the circular economy and have been first movers in adopting sustainability throughout our own operations and our customers. Our major business is based on developing properties and plants powered by renewable resources. As a pioneer of zero waste solutions, for the past decade, Klean Industries has been working to create new value in the tire manufacturing, tire recycling, and carbon black manufacturing sector, and I am confident that we can replicate this same model of success for other cities throughout Europe. We are excited to be partnering with Klean to support their pioneering vision of sustainability, and it’s why I am a proud shareholder of Klean Industries,” commented Rainer Dippold, owner and former Managing Director of Niersberger Group.

Source: Klean Industries Inc.

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