CCI Announces Controlling Stake in Delta-Energy Group
Stamford, CT – June 20, 2017 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.”
ABOUT CASTLETON COMMODITIES INTERNATIONAL LLC
CCI is a global commodities merchant with an integrated set of operations consisting of physical and financial commodities trading and the ownership, operation, and development of commodities- related upstream and infrastructure assets. The Company markets a broad range of physical commodities including natural gas, natural gas liquids, refined products, crude oil, fuel oil, freight, petrochemicals, electric power, coal, metals and financial instruments related to commodities. CCI is headquartered in Stamford, Connecticut with offices in Calgary, Canada; Geneva, Switzerland; Houston, Texas; London, United Kingdom; Shanghai, China; Singapore; and Montevideo, Uruguay.
ABOUT BRIDGESTONE AMERICAS, INC.
Nashville, Tenn.-based Bridgestone Americas, Inc. (BSAM) is the U.S. subsidiary of Bridgestone Corporation, the world’s largest tire and rubber company. BSAM and its subsidiaries develop, manufacture and market a wide range of Bridgestone, Firestone and associate brand tires to address the needs of a broad range of customers, including consumers, automotive and commercial vehicle original equipment manufacturers, and those in the agricultural, forestry and mining industries. The companies are also engaged in retreading operations throughout the Western Hemisphere and produce air springs, roofing materials, and industrial fibers and textiles. The BSAM family of companies also operates the world’s largest chain of automotive tire and service centers. Guided by its One Team, One Planet message, the company is dedicated to achieving a positive environmental impact in all of the communities it calls home.
MEDIA CONTACTS:
Hill+Knowlton Strategies
Brian R. Brooks
+1 (713) 752-1901
brian.brooks@hkstrategies.com
Bridgestone Americas
Emily Richard
+1 (615) 937-1433
Richardemily@bfusa.com