bp and Circtec sign eight-year offtake and €12.5M finance for Delfzijl tyre‑pyrolysis plant
- bp committed to an eight-year take-or-pay purchase of up to 60,000 t/y of HUPA renewable drop-in marine fuel and up to 15,000 t/y of circular naphtha from Circtec.
- bp will provide a €12.5 million debt facility to support the €100 million first-phase development of a €285 million Delfzijl plant.
- The Delfzijl plant is designed to process 200,000 t/y of waste tyres and is intended to produce at least 54,000 t/y of HUPA and 15,000 t/y of circular naphtha, with first phase due in 2025.
- HUPA is 50% biogenic and ISCC-certified for an 87% GHG reduction vs fossil marine fuel; the plant will also produce circular recovered carbon black and ties to a 2021 rCB offtake with Birla Carbon.
Deal overview
Circtec and bp have signed an eight-year offtake agreement under which bp is committed to purchase up to 60,000 tonnes per year of Circtec’s HUPA renewable drop-in marine fuel and up to 15,000 tonnes per year of circular naphtha on a take-or-pay basis for eight years after the new plant is commissioned. bp is also providing a €12.5 million debt finance facility to support the first-phase development.
Plant and schedule
The Delfzijl facility is a €285 million project designed to process 200,000 tonnes per year of waste tyres into HUPA, circular naphtha and recovered carbon black (rCB). Circtec intends the plant to produce at least 54,000 t/y of HUPA and 15,000 t/y of circular naphtha; the first phase is intended to become operational in 2025. bp’s €12.5 million debt will contribute to the €100 million development cost of that first phase.
Market context
HUPA is presented as a drop-in marine fuel that can be blended with fossil fuels to help meet EU FuelEU Maritime and Renewable Energy Directive obligations. Circtec plans further global expansion including projects in North America and Southeast Asia and already has a long-term rCB supply agreement with Birla Carbon announced in 2021.
Environmental and capacity impact
HUPA contains 50% biogenic content and its biogenic portion is ISCC-certified with an 87% GHG emissions saving versus fossil marine fuel. Circtec says the Delfzijl plant will process about 6% of European waste tyres and an ISO LCA estimates a GHG reduction equivalent to roughly 3% of the Netherlands’ chemical industry sector emissions once at full scale.
Source: Circtec