Novo Energies signs 10-year pact for recycled tires

Novo Energies Corporation, an alternative energy company, announced that is has executed a 10-year supply contract to recycle tire feed stock with Colorado Tire Recycling LLC of Hudson, Colorado.

Colorado Tire Recycling has agreed to supply tire derived fuel (TDF) chips to Novo for 10 years beginning January 1, 2010. Colorado Tire Recycling 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.

Novo plans to construct its first tire-to-fuel plant in the Denver, Colorado area and expects to have it fully operational during the second quarter of 2010. Novo should be able to generate approximately 1,000,000 gallons of fuel or fuel additives during the first year of the operation of its plant and 2,000,000 gallons per year thereafter. As a result of the expected additional tire residual materials, Novo intends to also produce approximately 3,000 metric tons of Carbon Black and 900 metric tons of steel during the first year of operation.