10. April 2013
Fund Raising for Tyre Recycler
Tyre recycler Green Distillation Technologies is planning to raise $7.5 million to fund its first commercial plant ahead of a planned public listing in 2014, says a report by the Wall Street Journal.
The company is commercializing a technology that can turn used tyres into carbon and oil and recover the steel without emissions. The company says the pyrolytic process is environmentally sustainable and energy neutral, and can reduce oil imports.
The technology works by putting up to 10 tyres on a heating tube in a chamber with hot gases. The process is said to take about an hour.
A pilot plant has been operating for three years, and the company is now building its first commercial plant, at Warren in NSW, that will be able to process up to 600,000 tyres per year. Future plans include plants in Victoria, Tasmania and Queensland.
In late 2011 Green Distillation Technology won a proof of concept grant of $438,400 from Commercialisation Australia for the construction of a commercial production module following the successful pilot plant trial.
The Wall Street Journal report says the fund raising is to start operations at Warren in October.
The Journal says Zen Capital Advisors and RBS Morgans are advising GDT on the capital raising, with RBS Morgans retained as lead underwriter on the planned $10 million IPO. To date, GDT has completed four equity raisings as well as government grants, it said.
The South Pacific Regional Environment Programme (SPREP) says the GDT technology has applications for all organic waste; anything that contains carbon. This could enable the processing of coconuts into energy in Samoa and other South Pacific Islands.