Novo Energies Corp., through its wholly-owned subsidiary WTL Renewable Energy, plans to build, own and operate renewable energy plants throughout North America. Using a novel technology, these plants will transform residual plastics and tires into valuable liquid low carbon fuels such as diesel, gasoline and fuel additives.
The company announced today that it has executed a ten-year supply contract to recycle tire feedstock with Colorado Tire Recycling LLC. Colorado Tire Recycling has agreed to supply tire derived fuel (TDF) chips to Novo for ten years beginning January 1, 2010. They will provide a minimum of 6,000 tons of TDF for the first year of the contract and a minimum of 12,000 tons per year thereafter, with a further option to increase supply.
TDF chips are the integral feedstock for Novo Energies’ novel process to convert tires into fuel and fuel additives. The company plans to construct its first tire-to-fuel plant in the Denver, Colorado area and it expects to have it fully operational during the second quarter of 2010. Novo should be able to generate approximately 1 million gallons of fuel or fuel additives during the first year of the operation of its plant and 2 million gallons per year thereafter.
As a result of the expected additional tire residual materials, Novo also intends to produce approximately 3,000 metric tons of carbon black and 900 metric tons of steel during the first year of operation. The company estimates that it will generate a minimum of 25,000 carbon credits per year.
Let us hear your thoughts below:
