Jun 20, 2017 STAMFORD, Conn.
Castleton Commodities International LLC Announces Controlling Stake in Delta-Energy Group
Bridgestone remains committed to its Environmental Mission which includes continually improving natural resource conservation through operational improvements and product design.
Bill Thompson, Chief Operating Officer, Bridgestone AmericasClick to Tweet
Castleton Commodities International LLC (“CCI”) today announced an investment, through one of its subsidiaries, in Delta-Energy Group (“DEG” or the “Company”), a premier resource recovery company providing recycling solutions to the tire industry. The Company has developed a proven and patented process to recover carbon black and marketable liquid chemicals from used tires. DEG’s process provides a significant reduction of carbon emissions compared to traditional processes for production of virgin carbon black and fuel oils.
CCI is taking a majority position in the Company, while Bridgestone Americas, which was disclosed as a major early-stage investor, will continue to be an active but minority investor in this effort to repurpose spent tires and rubber. Outside of the founders, Bridgestone was the first investor into DEG in 2014 under confidential terms. That initial infusion of capital has allowed DEG to prove concepts and attract new investments to accelerate development.
“Bridgestone remains committed to its Environmental Mission which includes continually improving natural resource conservation through operational improvements and product design. We supported Delta-Energy early due to its potential to develop a process and circular economy market for used tires domestically and internationally,” said Bill Thompson, Chief Operating Officer, Bridgestone Americas. “CCI’s investment is validation of the potential for this market and technology and should accelerate development going forward.”
More than 270 million passenger and truck tires reach their useful life each year in the United States, creating an opportunity for millions of tons of end of use tires to be repurposed and processed into high-value products. Proceeds from the investment will be used to develop a commercial-scale plant in Natchez, Mississippi, with an estimated daily processing capacity of 100 tons of end of use tires. DEG’s commercial plant will recover carbon black and other basic materials for reuse in tire production and other rubber related manufacturing processes, as well as liquid solvents and fuels. The investment will further expand CCI’s activities in the renewables sector, which today include nearly 20 biomass electric generation facilities, emissions trading, and biofuels marketing.
CCI, along with its partners, looks forward to supporting DEG as it expands its presence in the oil liquids and renewable sectors. “The founders of Delta-Energy have achieved technological proof of concept in large part thanks to early-stage support from Bridgestone. As an industry leader, Bridgestone’s commitment to Delta-Energy validates the quality and market potential for the Company’s products,” said Nicholas Haslett, CCI’s Chief Strategy Officer. “CCI will bring experience in developing and operating midstream and conversion assets, as well as access to one of the largest physical oil liquids marketing franchises, while Bridgestone will provide offtake capacity for DEG-produced recovered carbon black and continue to identify opportunities to substitute the DEG recovered product for virgin carbon black.”