'Milestone payments' help Enviro deliver improved annual results

Gothenburg, Sweden – Swedish waste tire recycler Scandinavian Enviro Systems AB posted 2024 net revenues of SEK170.8 million (€15.33 million), up from a prior-year level of SEK13.9 million.

Enviro linked the increased turnover to 'milestone payments' [ERJ report] of SEK132.4 million via its Infiniteria joint venture with Michelin and equity firm Antin.

In what CEO Frederik Emilson described as “an extraordinarily eventful year," Enviro posted a post-tax loss of SEK53.9 million, an improvement on a prior-year loss of SEK92.3 million.

According to Emilson, the focus for the year ahead will be the ongoing development of the Uddevella, Sweden recycling plant by the Infiniteria joint venture.

The goal, he said, is to get the plant technology “validated in a full-scale execution where Infiniteria … can process 34,500 tons of end-of-life tires per year.”

With a goal of commissioning in 2025, Uddevella would be a blueprint for all future plants to be established by the joint venture company in Europe, added Emilson.

In the near-term, he acknowledged that revenue streams from Infiniteria would be limited to 'milestone payments' but predicted “significant royalty and service revenues” as operations began.

At that stage, said Emilson, Enviro's shares in Infiniteria are also expected to increase in value and reflect the plant's potential to generate both predictable and stable cash flow.”

The CEO also addressed questions about the firm’s smaller Swedish plant, in Åsensbruk: admitting that its current and future impact on Enviro's profitability would be “very limited.”

The site's existing REACH permit limits pyrolysis oil production to a maximum of 1,000 tons of oil per year, explained Emilson.

However, a recently granted exemption granted meant no REACH limitations on carbon black production, enabling Enviro to sell "everything we can manufacture in Åsensbruk.”