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

London – BP and chemical-recycling specialist Circtec have signed a long-term agreement covering the supply of waste tire-derived feedstock to the UK energy major.

Under the deal, BP will buy up to 60 kilotonnes per annum (ktpa) of Circtec’s renewable 'drop-in' marine fuel and up to 15ktpa 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 – for eight years after the facility is commissioned, Circtec announced 2 May.

Once completed, the €285-million ELT recycling plant will have the capacity to process 200ktpa waste tires.

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

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

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 has also committed to providing €12.5 million of investment through debt capital, to support the €100-million development of the first phase of the Delfzijl plant.

Over ten years in the making, Circtec’s marine fuel is claimed to be “50% biogenic” and with the biogenic portion “certified as having a GHG reduction impact of 87% 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 decarbonisation under the EU’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 south east Asia, “as direct owner-operator plants and as joint-venture licensing partnerships.”